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Business Plan a Must For Businesses, Small Or Large, Rich or Poor

By Eugene Peterson

Sales slow? Phone not ringing?  If so, it is time to pull out and dust off the old marketing plan. No plan? Then it is high time to get one.  The basic purpose of marketing is to make the phone ring and generate new business.  When tuning up or creating a marketing plan, recognizing that referral business is extremely powerful and often the most cost effective way to generate new clients is key. And referral business comes from what I refer to as birddogs. Birddogs do not make the sale, but consistently point out potential customers or clients. Creating a plan around people who can give consistent referrals should be top priority in the tune up.  Start by asking:
•What is my most profitable type of job or product? Make a list of the top five or six.
•What percentage of business does each of these jobs/products represent?
•What is the percent of margin or gross profit do each of these jobs/products get? 
•Identify 10-20 people that are your best birddogs or sources for referral.  If you are a home builder, the list might include mortgage brokers, real estate agents, past customers, etc.  If you are a plumber, the list might include past clients, contractors, other subcontractors, plumbing supply houses, etc.