Will Donaldson is putting together a really interesting project with the Tulane Entrepreneur’s Association. He’s interviewing different business people and soliciting their knowledge for a book that TEA is compiling. I (finally) got mine back to him today. Here it is:
1. I’ve got a good idea for a new startup. How can I go about determining the market for it?
Start with the market. The best ideas for startups come from people who are intimately familiar with a market through personal work experience. They see a problem, and they know what it would take to solve it. Some of the biggest mistakes I’ve ever made came when I thought of a great idea that I could build, but I didn’t think about whether anyone wanted it. Ask yourself: Is your product a vitamin or a painkiller? Vitamins aren’t nearly as successful as painkillers.
2. What are some cost effective ways to start spreading awareness of a new product?
Robert Stephens, founder of Geek Squad, says “Marketing is a tax you pay for being unremarkable.” While I don’t fully agree, it sure helps to make a great product and solve a real problem. The most cost effective way of spreading the word about your product is to develop an audience through social media and blogging. I’ve had success being transparent about product development online and talking about what I’m doing. Don’t think of it as marketing, think of it as a conversation about what you are building. People want to root for you, so share your story. But they don’t want to be pitched to, so be yourself, be genuine, share the ups and downs. Specific outlets I use to get the word out cost effectively are: my blog, video posts on YouTube, Twitter, & Facebook.
3. For a beginner, how can I use the internet to make this job easier?
The internet can make you 10x more productive than you are now. Read Getting Real by 37 Signals, the bible for the productive web worker. Collaborate virtually with your team through tools like Basecamp and Skype (see all the tools that we use), don’t meet in person unless you need to. I am amazed when I see people who open their email once a week and don’t use the internet to do anything but shop. Get efficient and comfortable working online and you will eat their lunch in business. You’ll be amazed how much work you can get done.
4. What about allocation? Say I can only dedicate between $5,000 and $10,000 to the marketing for a new project, what are the must-haves? Is there a way to methodically choose what’s best?
For allocating a marketing budget, you need to figure out who you are trying to reach, where they are, and your goal. Christopher Skinner taught me about the five phases of the customer journey: awareness, consideration, inquiry, purchase, re-purchase. A marketing strategy should consider each step and move the customer through it. If you are marketing a product that people are searching for (consideration), then run a Google Adwords PPC campaign. If you have a product that they have never heard of and you need to build awareness, maybe a Facebook campaign targeted at your demographic makes sense. The most important thing about any online campaign is to track everything. You can truly calculate ROI online in a way that isn’t possible offline. If you aren’t doing it, you’re not using all the tools available to you.
5. What about setting up a website? What should I look for?
Setting up a website is a great first step for your business. To get started for free, build a blog using WordPress or a site using Synthasite or SnapPages. I know a small business in New Orleans that has had a web developer working on a website for them for 2.5 years, who knows what they’ll pay for it when its completed. They could build one for themselves in one hour using these services for FREE. The biggest thing to keep in mind when building a website is content creation and setting a goal. What do you want a user visiting your website to do? What action? Sign up for a newsletter? Buy something? Call you? Design an experience that makes it clear for the user what to do. I see so many websites that are content heavy with boring blah blah blah content about the company. Who cares. Talk to your customer, not about yourself.
6. Does CPC marketing make sense?
Cost per click (CPC) marketing is extremely effective and powerful. It can take a while to learn, but it is immediate. Unlike SEO, you can get traffic to your website right now, if you are willing to pay for it. I helped Tom Fischmann of Dash Dudes launch a CPC today. He sells a product for $19.95. Let’s say his cost per click for keywords is 10 cents. Then let’s say one of every 30 visitors to his site buys his product. His cost-per-conversion is $3 and he’s selling a $20 product. He’s laughing all the way to the bank. CPC is something that you can really dial in and generate quality traffic if you take the time to optimize a campaign.
7. How do I start a PR strategy?
I believe you should be your own PR agent. Every dime I’ve personally spent on PR has been a waste. Now, some would beg to differ, but I think you are your own best advocate. People want to hear from you, the CEO, not a PR firm. The best PR strategy I can give you doesn’t cost a dime. Blog. Twitter. Get yourself out there, have a voice. Be interesting. Be opinionated.
8. Are there any rules of thumb that you think people don’t readily know about email marketing?
Email marketing is one of the most overlooked methods of marketing. As hard as you work on your website and as much great content as you write on your blog, there is nothing more powerful than showing up in 1000 inboxes. Think about it, how much time do you spend on email. And if email newsletters are from people you care about or are interested in, you’ll read them. My beliefs are: text only - don’t use images, short and concise, clear call to action, always have an easy unsubscribe method. Don’t spam people, if someone opts-off your list, don’t put them back on.
9. Where should I look for more guidance?
The web is a treasure trove of information for anything you want to learn. Spend 30 min reading the top three articles you find for “SEO 101” and you’ll be as armed to optimize your own site as 50% of the SEO firms out there. There is so much in business that people are happy to charge you thousands of dollars for, but you seriously can do it yourself.
10. What am I missing?
Go for it! Launch a business. There is nothing more satisfying than seeing your name on a business card with CEO under it. There has never been a better time to launch a business efficiently and effectively. You will have ups and downs, you will fail more than you succeed. Keep at it. Starting a business while I was in school getting my MBA was the best decision I ever made. I financed my first company on Stafford Student Loans. You can too.
Is this helpful to you? Something I missed or something you disagree with? Hit me up in the comments.
I’m thrilled to announce that Benjamin Reece’s company, Deltree will be moving into the LaunchPad @ Voodoo starting tomorrow!
