I Need Some Advice…And A Line Of Credit

Let’s face it. New business owners have a heck of a lot to learn when they’re first starting out and they often learn very costly lessons. Wouldn’t it be great to have a trusted funding resource with expertise in your industry, which could guide decision-making with sound advice and help you better manage your financial resources?

Back in my handbag design days, I spent a lot of time and money trying to boil the ocean. That’s a big-time business cliché, I know, but it really was applicable. I didn’t know what handbag styles would be a hit so I created a lot of different prototypes just in case, in an attempt to please as many potential customers as possible. Damn, that was a pricey error in judgement. I cast too wide a net and didn’t narrow in on my target demographic. Then, I spent an insane amount of money on PR to reach all those potential customers. Another waste. Bad mistakes turned into colossally huge ones because I became desperate….to make money, to get press, to find customers.

Presenting a new idea - crowdfunding or community funding concept

Presenting a new idea – crowdfunding or community funding concept

It would have been great NOT to max out a bunch of credit cards and work with a funding source that could have provided advice along with a line of credit. I could have owed much less and worked with financial experts in the fashion industry who could have provided valuable insight around the right areas of focus for my fledgling business.

A roadmap for expansion is critical but it’s hard to know, early on, what components should be included. Once you decide your focus, it’s much easier to correctly allocate funds. I think starting out, small business owners need that guidance from people who’ve made mistakes in expanding their own businesses or have seen mistakes others have made and can provide valuable insight about common pitfalls to avoid.

Figure out your target audience, determine where they “play”, then figure out how to reach them where they are most affected by your message. Learn from people who’ve been successful in the past and take advantage of their failures. There are always pearls of wisdom to be gained. Establish relationships and nurture them, as they are absolutely critical in growing a business. Determine the “what” and “why”, then ask questions and do research to establish the “how.”

Once your roadmap is set, find a lending partner who you can vet your plans with and who can guide your financial decisions. Leverage every source of knowledge available to you and choose the trusted lender that can provide advisement in addition to cash.

Think Twice Before Joining The Style High Club

Hubby recently joined the Five Four Club. For $60 per month, he was promised an entirely new and fashionable wardrobe. Upon registering, he completed a detailed questionnaire so the company could gauge his style and taste and send him items according to his preferences.

Sounds simple enough, right?

The first shipment came the other day. I had to include pics because not only were the styles completely off, but the quality is extremely sub-par. The jacket is some kind of flimsy nylon material and the shirt is just a plain black t-shirt with a couple of buttons. Neither one of us was impressed and Hubby decided to cancel the membership.

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After keeping him on hold for about twenty minutes, Hubby found out he couldn’t return the clothing items for a refund. That’s part of the program, not one they widely publicized, by the way. He was definitely cancelling after hearing that.

But then the customer service rep said if he’d like to continue the membership, they would send him higher quality items the following month. Hmm.

Can you say swindled???

That first month tells this company a lot about their subscribers. If customers let it go without complaining about the crappy items they’d received, the company continues to send them shoddy items, saving themselves wads of cash because they’re able to keep costs down and send the lower quality merchandise.

For the subscribers that may not be happy with the quality, they may not want to sit on hold for eons so they’ll just suck it up, take the clothes and not wear them (at least they won’t if they have wives like yours truly).

Only a few will be disgusted enough to call, sit on hold and complain to customer service. These are the ones who they still have a shot at retaining. Offer them better quality to keep them happy. It’ll cost the company a little more, but they’re already making money hand over fist with the others who are just accepting what was sent.

Then there are the dissenters…the ones whom they can’t convince to stay. These are probably few and far between and not the true target for this company anyway, so better to let them go. Not cost to the company since they don’t give refunds. They still sucker them for $60 a pop (even if it was only ONE pop).

The Five Four team is not really embracing the concept of customer loyalty. Or maybe they just don’t care. Seems like a scam to me. Buyer beware. Big time.

Want A Chance To Win A $50 Amazon Gift Card???

Marketing. It’s a word that simultaneously excites me and makes me cringe. Platforms are constantly changing, making it difficult to reach a target market (ahem, Facebook), prospective customers are tuning out more and more because there is a constant glut of information being thrown at them, key performance metrics that trended positive six months ago may not mean much now because marketing channels are flooded with content and becoming largely ineffective.

So the question is…with all these obstacles, how can you make your company stand out against the competition?

Unfortunately, I don’t have an answer. But I can tell you that testing the effectiveness of marketing channels is becoming critically important to companies with small budgets and the best way to test is to first get feedback from your potential customers. Hence, the reason why marketing excites me. Valuable feedback yields potential for new ideas and opportunities for innovation. YAY! Right up my alley. =)

Vector Notebook with drawing charts

This leads me to my latest project. I NEED YOUR FEEDBACK!!!!! Why not give you all a shot to win a cool prize for taking the time to take my super-quick book marketing survey???

ONE random winner will win a $50 Amazon gift card and FIVE random winners will get swag packs! The contest will end on April 1 and I’ll announce winners on my Facebook page on April 2.

CLICK HERE TO ACCESS THE SURVEY

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