Before a start up company arrives at a decision to spend on marketing, the company has to evaluate their business model thoroughly before they go to the market. These are the five most important things to be analyzed to verify your business model:
· Is there a real Problem?
· Is the solution offered by you the right one?
· Is there a market for your solution?
· Fix your sales strategy.
· Get in a good revenue model.
“Spend on lead generation campaigns rather than on Brand awareness campaigns”. A Start-up company needs to spend more money on lead generation campaigns rather than on Brand awareness to grab their first few good customers who would give them fixed revenue on a month on month to sustain.
One common mistake done by start ups is that the CEO delegates the marketing function to a marketer and then forgets it. The best marketer for any start-up company is the CEO himself. In case if the CEO delegates the Marketing function then make sure that the CEO spends enough time with the Marketer, brain storming ideas and getting the right marketing campaigns in place.
Organic growth is the best way to get more new customers. The Customer Acquisition Cost (CAC) just doubles in a pay per click campaign when compared to driving traffic organically. Today most online marketers buy on tracked ROI. So if you are considering an advertising model, I highly encourage you to develop one that delivers results that will minimize the need for a sales team. Hence start-up should start off with a lead generation campaign rather than a branding campaign.
AJ&VG can help you evaluate your business model and get you start with your first few clients. We understand the importance of revenue generation for your business so that get our pie from you as a valued customer. We also help you get the right strategic alliance to get you the right business mix for your Go to Market strategy.