Most entrepreneurs fail to raise
venture capital because they
make a really BIG mistake when
approaching investors. And on
the other hand, the entrepreneurs
who get funding all have one thing
in common. What makes the difference?
Recently, I polled my subscribers about online marketing.
I asked, "What is your #1 question about marketing your business online?"
I was thrilled to receive so many responses. Thanks for everyone who participated in the survey!
There was a good amount of variety among all the questions, but after reading through them and categorizing them, there were some definite patterns. Actually, 3 big questions accounted for about half of all the responses.
Here are the top 3 questions, and my answers:
FAQ #1: "How Can I Drive Targeted Traffic to My Website?"
FAQ #2: "How Can I Get Return on Investment (ROI)?"
FAQ #3: "What's the Best Way to Get Started?"
Marketing your business online can be very overwhelming because there are so many options and so much to learn. I hope my answers have helped to "demystify" online marketing for you, and that you have a clearer idea of how to go forward.
In the coming weeks, I'll be providing more content as we get ready to release our new training program.
Do you have any remaining questions about online marketing? Or comments about my answers? Please share your comments below.
Many of you know that I started my career in market research.
One of the things I learned back then was to be wary of certain research results. Why? Because I learned that it's pretty easy to purposely skew research questions to get the results you want.
Which is why a lot of new products fail, even though the research said they should have succeeded.
While there are no certainties when conducting or reviewing marketing research, one thing is clear. When data from multiple sources continue to say the same thing, than that data is typically true.
Such is the case when it comes to Internet Marketing.
Countless research studies have proven beyond a doubt that virtually every company can profit from improving their online presence. Consider these recent statistics from eMarketer and Cornell University:
* 87% of all Internet users utilize search engines to find information on goods and services online.
* 63% of all Internet users have used the Internet specifically to research a product or service before buying it.
* 49.9% of companies marketing their businesses online realize ROIs exceeding 100%. (that means they make over $2 for every dollar they invest online!)
* 37.1% of B2C and 37.9% of B2B companies who have tried, have successfully marketed their businesses using Facebook.
The research is pretty clear. Getting your company found in the appropriate places online can skyrocket your growth and profits.
But, like with anything else, internet marketing is a bit complex. And, more often than not, business owners don't realize success right away.
It's sort of like riding a bicycle. Once you know how to do it and get the hang of it, it's smooth sailing. But, the first few times, particularly if you don't have anyone watching out for you, you'll fall down.
In fact, I've fallen down quite a few times. Over the past ten years, I have invested over $5 million of my own money into internet marketing. But, while I've gotten knocked down a few times, I've also enjoyed a ton of success. And I've learned a whole bunch of valuable lessons.
And, right now, I'm putting together the final touches on my internet marketing course so I can teach you these lessons.
While I'd love for you to buy the course, even if you don't buy it, I feel obliged to get at least some of this extremely valuable information in your hands. That way you can start using internet marketing techniques to grow your revenues and profits (and not get hammered by a competitor who is a savvier online marketer).
After five years of living in our new house, my wife and I decided to buy a new clothes washer and dryer. We figured we'd upgrade to those new, ultra-efficient machines that use really little detergent, water and energy.
But right as I was about to make the purchase, I started to feel really bad for the washer and dryer manufacturer.
Well, we bought it at Best Buy, and before we made it to the front, where the registers are, our son Max stopped us in the video game section.
And so I started thinking. When am I going to buy my next washer and dryer? Maybe in another 5 years? 10 years? 15 years?
And when is Max going to get his next video game? Probably next month. And then the month after that. And then the month after that. (If he keeps up the good behavior and good grades as I expect he will.)
What an amazing difference! The washer and dryer manufacturers may only get one sale from me in the next decade while the video game companies might get 120 sales over the same period. Sure, the washer and dryer are bigger ticket items, but even if I'm satisfied, that manufacturer isn't getting squat from me for a long time.
Which made me think of the mistake I made when we first started Growthink.
When Jay and I first started Growthink, we focused solely on developing business plans for companies. We helped a ton of companies achieve a lot of success. But oftentimes, after we helped a company, they no longer needed us. The used the plan to raise money and grow their businesses, and didn't need to come back to us for another business plan.
We were like the washer and dryer manufacturer.
So, we set out to correct this mistake.
We started offering more services to help clients after developing their business plans. We launched our investment banking practice to help them raise capital and/or sell their businesses. And we began offering marketing and internet marketing services to help them generate new leads and customers.
And then we launched Growthink University to help clients with everything they need to successfully start and grow their businesses.
It took us years to get to this point, but now things are humming.
So, my key takeaway for you is to really think about your business:
How often will customers buy from you?
What is the lifetime value of your customers?
How can you increase the number of purchases that customers make from you?
Can you develop new products or services for them?
Can you offer them value month after month after month?
As we start this new year and decade, I want you to take some time to think through these questions. Make sure that you are adding as much value as possible to your customers; and giving them the opportunity to pay you month after month, year after year to receive this value.
It's really easy to make fun of big businesses. With all their bureaucracy, they tend to move slowly. And they tend to be difficult to work with.
But there's one thing that big businesses typically do much better than smaller companies. And that is conducting employee performance reviews.
In fact, many smaller businesses focus so much on solving day to day crises, that conducting employee reviews falls by the wayside.
Which leads to problems. Lots of problems.
Companies that succeed have strategic plans.
And, when you conduct periodic employee performance reviews, you ensure that your employees have objectives that are congruent with your company's strategic plan.
So rather than employees focusing on tasks that they think are right, you ensure that they accomplish the tasks that really allow your company to grow and profit.
Without performance reviews, you get lots of problems. Management gets frustrated because employees are not achieving key objectives. And employees get frustrated because they don't know if they're doing a good job or not.
Interestingly, when I recently interviewed Mike Carden, co-founder of performance management review company Sonar6, he told me that most employees really like performance reviews, even when they are underperforming.
He said, "It's sort of like playing golf. Even if you don't play great, you want to know your score at the end."
Carden gave me some other great tips on conducting performance reviews to ensure that you get the most out of your employees and your company achieves its objectives.
Among other things, Carden mentioned that reviews should typically be done monthly and should take no more than 20-30 minutes per employee.
By getting into the habit of conducting monthly performance reviews, you ensure that your employees remain focused on the RIGHT objectives and that you reward them and/or improve their performance more quickly.
To hear a short clip of the interview, click the blue triangle on the player below:
Most of us are familiar with Ivan Pavlov and his famous Pavlov dog experiments.
To refresh you, Pavlov found that when dogs constantly heard a bell when they were fed, that subsequently, the mere sound of a bell would cause them to salivate in anticipation of their next meal (even if that bell was not accompanied by food).
Interestingly, when I recently interviewed productivity expert Laura Stack, she compared checking email to a Pavlovian response. Basically, applications like Microsoft Outlook with features like a bell sounding with every new email, or an envelope in the system tray, have conditioned people to check email far too often.
In fact, many entrepreneurs and business managers check email 10 times a day or more. Some check it constantly.
But what happens when you are checking email too often? Well, according to Stack, you are failing to complete the key tasks and projects that must be done in order to grow your business.
Successful entrepreneurs and business managers have the insight to determine the highest value uses of their time. And then they have the self-discipline to ensure that each and every day, they devote time to these uses. It is then, and only then, that entrepreneurs can grow their businesses. If not, every day they might accomplish 20 tasks, but these tasks won't help their businesses grow.
During the interview, I peppered Ms. Stack with a series of productivity questions, and received tons of great answers in return. My favorite was her six-step outline for entrepreneurs to become more productive as follows:
1. Determine what you are supposed to be working on (what has the highest value-add to your organization)?
2. Make room for those activities on your schedule (and do whatever you have to do to get it done, including scheduling meeting with yourself or working offsite)
3. Focus on achieving those things that need to be done. Don't let yourself get distracted.
4. Get organized.
5. Be disciplined. Do the things you need to do. Don't waste time on rituals like checking email, getting beverages, and socializing with co-workers in the morning.
6. Get back the attitude you had when you first started your company. By focusing on the high value-add objectives and freeing up your time from monotonous and low value-add activities, you will feel a renewed energy and excitement for your business.
To hear a clip of the interview, click the blue triangle on the player below.
This video will help you raise capital more confidently and quickly.
It's a simple formula, and may sound counter-intuitive, but it's very effective.
And if you enjoyed that video, you may be interested in my new online training course, Secrets to Raising Capital, where I give you step-by-step instructions on exactly how to raise 40 different types of capital to grow your business.
Because of all the negative news in the financial markets, this may come as a surprise to many, but last week, over Half a Billion dollars was given to startups and growing companies.
That's right. In venture capital alone, over $200 million was given out. Startups like Ansca Mobile (mobile application firm) and Branders.com (online seller of promotional items) raised $1 million and $5 million respectively.
And early-stage companies like Lanyon (management solutions to the hospitality industry) and Seeking Alpha (financial commentary website) raised $7 million and $10 million respectively.
And the angel market was also booming from coast to coast. Next Big Sound in Boulder, CO (music services) raised $1 million, PBworks in San Mateo, CA (wiki hosting) raised $650,000 and FitnessKeeper in Boston, MA (fitness platform) raised $400,000 among many, many other deals.
And hundreds of other startup and early stage companies raised debt financing and funding from numerous creative and alternative sources.
So, money IS out there. And lots of it.
The key is, as it has always been, to know what sources of financing are right for you and how to get them.
This 14-week course covers 40 sources of capital. It teaches you what they are; helps you determine which sources (note that "sources" is plural on purpose) of capital are right for your business, and most importantly, gives you step-by-step action plans to raise each one.
As you know, last month we opened the doors to 100 new Growthink University members.
And to make it even more exciting, I offered to donate, from my own pocket, $10 to Habitat for Humanity for every new member. Plus I offered to donate the $1 trial fee that all new members paid.
As you might have imagined, the 100 spots filled up quickly, leaving me with an obligation to donate $1,100.00 to Habitat for Humanity.
So, I wrote the check. And I wrote it with a smile, knowing two things. First, that I was helping Habitat for Humanity succeed with eliminating homelessness. And second, that I was helping the new Growthink University members succeed in building more successful businesses.
Here's a picture of me holding the check:
Now, next week, I am going back to raising money. But this time, the tables will have turned. This time I will not be raising money for a charity. This time, I will be raising money for you! To start or grow your business!
That's right. Next week I will be releasing my brand new Capital Raising Course. This 14-session course is the culmination of all of my best capital raising products. It provides step-by-step action plans for you to raise capital from 40 different sources.
Even if you think you only need one source of capital, I will show you how most successful companies raise money from 5 or more sources. And more importantly, I will show you where and how you can raise capital too. And you'll that it's a lot easier than you think - if you follow my directions!
If you haven't already done so, you should listen to my 45-minute long MP3 entitled "The 7 Secrets To Capital Raising Success."
I originally intended to include this audio as part of the Capital Raising course (and charge for it), but I wanted to give everyone access to it, since it's that important.
Click here to download (right-click and "Save As..." MP3 to your computer), or click the blue triangle below in the player below to stream the MP3: