Why Your Business Cannot Afford Not to Advertise on Craigslist

Craigslist is not always the best advertising option but there are certain situations in which a business cannot afford not to advertise on Craigslist. For the purposes of this article we will examine two common scenarios where a business owner should definitely consider advertising on Craigslist because failure to do so can be detrimental to his business. These examples include small startup companies without a large advertising budget and existing companies whose direct competitors are advertising extensively on Craigslist.

Small Startup Companies Benefit from Advertising on Craigslist

Small startup companies often have a great deal of work ahead of them to begin competing with existing companies who are already thriving. These companies may already have established client bases and may have substantial funding budges for the purpose of obtaining new customers. Customer loyalty can be difficult to break and new companies either have to offer significantly better quality products or services, comparable products or services at reduced prices or a slick marketing campaign with consumer appeal.

However, smaller companies rarely have the advertising budget necessary to orchestrate an elaborate advertising campaign. This is when Craigslist becomes a necessity. Smaller companies can focus their energy on creating outstanding advertising copy without spending exorbitant amounts of money to run these advertisements in other forms of media such as newspapers, magazines, television or radio.

It is important to not that while free advertising is appealing, the advertising should be just as sophisticated as it would in markets where the business owners would be required to pay a fee to run the advertisement. This will help the business to maintain a professional image and will entice potential customer to try their products or services.

Don’t Let the Competition Corner the Market

Another scenario where a business cannot afford not to advertise on Craigslist is when direct competitors are making use of the advertising opportunities on Craigslist. This is important because businesses who do not advertise in the same locations as their competitors are essentially conceding potential customers who peruse those locations to the competitors.

Imagine you own a dog walking business in Portland, Oregon. If there are a large number of members of that community using the local Craigslist website to find dog walkers, you will likely miss out on these business opportunities because these individuals will likely select one of the individuals advertising on Craigslist for their dog walking needs. If you were to place a well written advertisement in an appropriate section of Craigslist you may find you are able to gain a market share of the available business.

There is, however, one caveat to placing advertisements wherever your competitors are advertising. This practice is not considered worthwhile when the market is already saturated with competition. Consider the above example of a dog walker in Portland. If there are a small number of competitors competing for business on Craigslist it is worthwhile to place your own advertisement here. However, if literally hundreds of dog walkers are flooding the website with their advertisement it is not worthwhile to post an advertisement because your advertisement will likely be lost in the shuffle. It is much more worthwhile to advertise in other locations. Checking Craigslist periodically may still be a good idea because those advertising on Craigslist are likely to not see great gain from this advertising and may resort to other options. When you notice a decline in competitor advertisements, it is a great opportunity to add your advertisement.

Consulting Salary - What Can Your Business Afford?

Consulting salaries are an important factor in your ability to hire the type of talent you will need as your business expands. You will probably do much of the work yourself, but as your business scales up you will need to employ others to help you. The consulting salary and payment scheme you offer will be key to attracting and retaining top talent.

You need to ask yourself very early on in your business operations, "Will I be able to afford the kind of technical person that has the skills that are needed for sweet spot clients?" If your business is only generating enough revenue to cover a consulting salary of $27,000 per year, you might be in for a shocking answer.

Consulting Salaries and Scenario Analysis

When we think about consulting salaries we have to use the triple billing rule: 1/3 of revenue goes to sales and marketing, the second third goes to taxes, insurance, and administrative expenses, the final third includes consulting salaries as well as all the other business expenses.

A great tool for figuring out potential consulting salaries is an Excel spreadsheet set up for scenario analysis.
Run different hourly billing rates through the analysis
Allocate the overall revenue into the general thirds
Take out a reasonable amount for general businesses from the final third
Analyze what is left for consulting salaries

You should try to run billing rates between $75 per hour to $125 per hour and come up with a rate that will support a consulting salary of $40,000 and up.

The Bottom Line on Consulting Salaries

The overall revenue of your business must be able to support a consulting salary that is sufficient to attract good, solid employees. A some point you will likely need to hire some help. If yo use the Triple Billing Rule you should be able to set an hourly billing rate such that you can afford to pay an attractive consulting salary to yourself and your future employees.

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Can You Afford What Rudeness Is Costing Your Business?

Have you ever thought about how much rudeness may be affecting your bottom line? What is the cost to your company when you or the people who represent you lack proper manners? Do you know how many clients are turned off by employees who would rather carry on a conversation with each other than with the person who came to purchase your service or product? Can you count the number of people who hang up and call someone else because the person who answered your phone put them on hold without asking permission? How does the client rate your professionalism when the employee who welcomes him to your office looks as if she is dressed for a day at the beach? Do your employees understand that it is more offensive then friendly to call the client by first name unless asked to do so? Are your employees treating each other with courtesy and respect? Do they honor the invisible walls of each other's cubicles? Do they work as a team and help each other or do they act like cast members on Survivor?

In today's fast-paced business world where too many people claim that they don't have time to be nice, it's easy to overlook the details that can help you grow your business, increase your profits and build long lasting client relationships.

Try taking this quick true/false quiz to test your own business etiquette expertise. Then run it by your employees.

1. Business etiquette is based on rank and hierarchy. True/False
2. If the information on your business card is incorrect, draw a line through it and write the correct information on the card. True/False
3. Business casual means dressing down one notch from business professional. True/False
4. In today's relaxed business environment, it is not necessary to ask your clients' permission before using their first names. True/False
5. Callers do not mind holding for information as much as holding for a person. True/False
6. You don't have to smile or make eye contact with your customers unless you feel like it. True/False
7. Handwritten notes are out of place in the business world. True/False
8. A man should wait for a woman to put out her hand in business before offering his. True/False
9. When composing an e-mail message, complete the "To" line last. True/False
10. Small talk around the office is a waste of time. True/False
11. People can hear you eating, drinking and chewing over the phone. True/False
12. If you receive a call on your cell phone when you are with a client, look to see who is calling, but don't answer it. True/False

Answers:

1. True. In business, you always defer to the senior or highest ranking person, regardless of age or gender.
2. False. Handing out business cards with information that is outdated or crossed off is unprofessional. Have new cards printed immediately.
3. True. Business casual is not an excuse to wear your favorite old clothes to the office. It is still business, and everyone needs to look professional.
4. False. Don't assume because our work world has become more informal that you can call clients by their first name. Use their titles and last names until they ask you to do otherwise.
5. True. Clients will wait contentedly while you search for information, working on their behalf. However, if they have to wait more than thirty seconds for you to come to the phone, they begin to wonder how much you value them or want their business.
6. False. This is only true if you are planning a going-out-of-business sale. Every client deserves a genuine smile and eye contact.
7. False. Handwritten notes have become almost as extinct as the typewriter. You will stand out from your competition every time you send off a short note written in your own hand.
8. False. Every woman should be prepared to shake hands as soon as she meets someone in business. For either a man or woman to hesitate could indicate a lack of confidence.
9. True. You can send e-mail without inserting an attachment, without checking for grammar and punctuation and without a subject line; but you cannot send e-mail without an address. If you wait until you have carefully proofed your message and added all attachments before you complete the "To " line, you will never be embarrassed or have to apologize for your mistakes.
10. False. Small talk carried on at the right time, in the right place and on the right subject is a great way to build relationships among co-workers.
11. True. Mouth noises are even louder over the phone. Just because your clients can't see you eating those potato chips doesn't mean they can't hear you munching on the other end of the line.
12. False. It is just as rude to pull out your phone to see who called as it is to have it on and take a call in front of a client. Turn your phone off and check your messages later in private.

If you had trouble with any of these questions, your employees will, too. If you want your employees to be at ease in business situations, to represent you well and help build your business, give them the information they need. If you haven't done basic business etiquette skills training lately, do it now. Don't let rude behavior cost you business.

Make sure that your employees know how to handle clients over the phone, that they understand the importance of being attentive and alert to clients' needs, that the value other people's time and that they can deal with difficult people and situations with grace.

No one is born with good manners. People have to be taught, and from time to time, they need to be reminded of what they already know.

(c)2006, Lydia Ramsey. All rights reserved. Reprint rights granted so long as article and by-line are published intact and with all links made live.