Completing the circuit

It was pointed out nicely today that I have been absent from my blog post. Not that many people actually read my rantings and ravings but for those few that do, no, I did not die. But rather I came to the realization some time ago that business is much like life in that the more self-sufficient you can be the better your chances for success. So, with that in mind I set about making it happen...we have the WPM Group which provides consulting and full-service advertising...we have iAdvertizing.com which provides companies with high-quality, affordable marketing and advertising, and now we have__________________(the project I've been working on). This new project is something that I just have to keep under wraps for right now as it's a potential game changer for the outdoors industry. It has to do with what I've done for the major part of my professional adult life. It is the missing piece to the puzzle for the other two entities mentioned above. It helps to complete the circuit by taking the strengths from the divisions we already have and brings business to them...we won't be totally depending on outside sources to make our markets for us. I would encourage those of you who have staked your own claim in the world of business to think along the same lines. What can you do that will help lessen your dependence on other business referral sources. What can you add to your offering that will bring more business to your door automatically. I'll be on the road for the next little while but when I am back in the office and fully re-engaged I'll throw back the curtain on this "venture" and connect the dots for those of you who are interested. I really think you'll like what you see! I know I do, so far!

Best Always,
Dave J.

Calculating Your Ad Budget

One of the best pieces I've ever read about calculating an ad budget was passed on to me in early 2003. Rather than using the old 5-6% of sales measure for creating my ad budget, I've used the following formula and it's been terrific!

First, before starting (and I know this is business 101 for most of you but please bear with me.

MARGIN is Gross profit divided by Gross Sales Volume

MARKUP is Gross Profit divided by Cost of Goods

Be sure to plug in MARKUP, not MARGIN when figuring your ad budget. Let's say that you have a business averaging 100% markup (keystone) or in other words a 50% Gross Profit Margin.

Take that and multiply the average markup by your cost of exposure...for most businesses the cost of exposure is = to a percentage of your projected sales. I use 10%.

So, if my projected sales are $300,000 per quarter the ad budget calculation looks like this:

30,000 x 100% = $30,000

Now, take that $30,000 number and subtract out your cost of exposure..your website, storefront, rent, etc. for the quarter. Let's say that's $7,500.00

$30,000 - $7,500 = $22,500 and there's your ad budget for the quarter.

if, however, my average markup is only 86% it would shake out as follows:

30,000 x 86% = $25,800

$25,800 - $7,500 = $18,300 remaining for ad budget.

It's a simple formula and while not every simple formula such as this is going to fit every business you can modify it so that it can provide a "make sense" number for you in these otherwise very confusing times...and if nothing else, you have a firm number in mind when shopping for the various marketing/advertising options out there that you can choose from. I do hope that this helps...it's what I use and it hasn't failed me yet!

Best Always,
Dave J.

Optimism for 2010

It's been quite a while since my last post but that's partially due to being busy and partially because of a prolonged illness. I do sincerely hope that the new year has brought you all health and a sense of hope for the coming months. I have found myself taking stock of what has transpired over the past couple of years and find that I am optimistic about the future...perhaps without good reason, but I'm choosing to be that way nonetheless. If there's one thing that has occurred to me over the past several quarters it's that I'm blessed. Blessed to live in such a wonderful country (even though the politicians are trying to ruin that just as hard and fast as they can), blessed to have a wonderful family, and blessed that I have the choices to believe as I want, do what I want for a living, and associate with whom I want. It's those simple things that have me hopeful for the future. I wish you all that same kind of hope as we move forward throught the new year. I, personally, believe that there is more opportunity out there than ever before in my lifetime and I cannot wait to take advantage of it. Until next time...

Best Always,
Dave J.

Different Size, Different Strategy...

Most of today's business leaders have been told since their days in college that to market their business successfully they need to "not step on toes." Now, on the surface this may seem like (and actually be) sage advice, however, I have a different take. If you're a smaller player in a niche market why not go BOLD. Let it be known that you're Christian, or Muslim, or African American, Native American, Traditional, Progressive, Conservative, etc. Make some noise...This is your chance to differentiate yourself from others and bring people that are like you to your door. And for those of you who are skeptical consider this well known mantra of advertising/marketing..."people buy what they know," and if they're comfortable with your belief system, point of view, etc. that's a touchstone that will engender feelings of comraderie that may just get them to use your service and/or buy your product rather than that of a competitor who has not planted their flag in the ground. If you're a smaller player, really, what do you have to lose? Just something to think about as you position your company and your corporate message for 2010 and beyond. Wishing all of you a Very Merry Christmas and a Happy, Healthy and Prosperous New Year!

Best Always,
Dave J.

TURTH ABOUT TAXATION - middle class...

If you ever wanted the truth about increased taxation in a nutshell here it is. And the only reason I mention this on our blog is that some of you who read my random thoughts are small business owners and middle/upper-middle class Americans. Some of you may have venture capital, some may have a wealthy Angel investor...whatever the case, if I can provide you with some common sense information that helps you position your business for the upcoming year I'm more than happy to do so:

Something to think about ... higher rates inevitably pressure wealthy taxpayers to withdraw captial from taxable, productive business and instead invest in tax exempt securities (such as municipal bonds or overseas) - the end result is that the wealthiest segment of the tax base begins to dry up as their money is diverted into tax-free channels that neither benefit the overall business landscape (creation of jobs) or the government (taxes). This ultimately leads to the squeeze on the only target left for the government to pursue...the middle class.

Now, I'm sure that you'll realize that the relevance of this message is as sound today as it has been in the past. It's just common sense... Higher taxes will lead to less money to go around for small business. I don't say this to scare anyone, but just to make you aware of the very simple, yet effective mechanism that is being put into play.

Best Always,
Dave J.

MARKET-ing

One of the major issues facing all companies in the new year (as in ALL new years) is how to better relate to their customers and move them to purchase when the time is right. In today's world, there are so many outside factors from the economy to the geo-political landscape that are either directly or indirectly influencing consumer behavior....so what can we do?

Ok, here's what you do. First, forget the "long-lead" traditional media play. If you make a commitment 4-6 months out on broadcast or print there is no guarantee that what you develop (creatively) will be relevant by the time the consumer sees it. (If you're introducing a premium line in a downward trending economy expect crickets in response to your efforts) Instead, you gather your traditional ad people, your PR people, and your social media folks and get them to work together to produce a running week-to-week, or at the very least a month-to-month, strategy that will not only be timely (for those who have products and/or services that are semi-seasonal) but will also be relevant based on the overall "fluid" nature of today's world. Just imagine...continuous,relevant online display ads and social media initiatives tied in with a consistent, "real-time" PR effort. Seems like an effective recipe to me...and no long-lead times and/or up front monetary commitments to contend with! Here's to a wonderful 2010!

Best Always,
Dave J.

Happy Thanksgiving and The Scrantons

I took this holiday weekend to rest and relax with my family. But as so often happens, after 4 days we all needed some "alone time." My time was spent reading on my favorite subject...the industrial rise of the American Super Economy from the 1840's through the early 1900's. This weekend's reading included the history of the Scranton Group/Family (Scranton, PA) who founded one of America's earliest and most successful iron works, rail lines, and towns in the wilderness of Lackawanna Valley, PA. For any entrepreneurs out there who may read this blog I encourage you to look up the story of the Scranton family/group. These men had vision, but encountered obsticles ranging from poor site location, difficult materials sourcing, political haggling (town of Wilkes Barre didn't want them) to the cry from Socialist leaders to re-distribute the wealth they amassed. Now, one thing should also be noted...most of the Scranton group died in abject poverty. Only three of the original 8-10 group members had any money at all when they died. I don't tell you about this story to impress you (as if I could) regarding my reading selection, but rather to impress upon other entrepreneurs that all of the headwinds we encounter today were also present in 1840! As we go forward into 2010 it will be important to realize that we are not alone in the challenges we face. Men and women of vision who have come before us also encountered issues of a similar nature and that were no less troublesomme. For those of you who have plantd your flag in the ground and staked out your claim, I salute you and wish you all the best today and always!

Dave J.