It may sound like a silly question but I run into people all the time who don't seem to realize that there can be too much managing going on and not enough real business.
Often people get into business without knowing anything about business management or the day to day aspects of operating a business. They seem to think that keeping busy doing what I call housekeeping tasks -- sorting inventory on shelves, getting just the right look for their website, getting books, papers, even pencils, arranged just right, etc. These things need doing at some point, of course, but they do little to move your business forward. And when they are done at the expense of the things that matter like promotional exposure, designing effective advertising campaigns, networking, listing more items, and the like, it can be disasterous for your business.
I recently consulted with clients who were having difficulty getting their businesses moving. They both have online stores in well known selling venues and had not sold much, or anything, for several months despite site claims of large volumes of traffic.
I asked each of them about the following points as they related to the period in question:
- average number of listings running
- maximum number of listings at any one time
- number of new items listed each day/week/month
- personal and/or business networking participation
- dollars spent on formal advertising spots
- time spent on free promotional efforts
- relevant and non-relevant forums participated in
- research into competitors activities
and a few other important things. The anwswers from both clients were strikingly similar and would, to some, seem surprising. I was not surprised at all. It was the same resonse I had come to expect time and time again.
Both clients had an average of about 15 items listed with a maximum of not more than 25. New listings were infrequent. They were both "waiting for the current items to sell before listing more". Neither had time for personal or business networking and they didn't feel it was important anyway. They didn't spend any money on formal advertising because they couldn't afford it. "Maybe," one commented, "I will do some of that if I start selling a lot more." No time was spent on free promotional efforts. They didn't know of any and they felt it was the responsibility of their selling site to bring customers to them. They did participate in forums and live chats but these were mostly with online friends and they didn't feel it appropriate to bring up their business activities. The didn't have a link to their selling site in their signature line. Neither had any idea how to research what their competitors where doing.
If you find any of these situations applying to you then you are, potentially, on a track to failure with your business. These are key places where your efforts can make a distinct difference in your business outcome. These are places where you should be applying your business management time and effort. Let's consider each one in turn.
The number of items you have listed is important. There is no magic number I can post here that will make things perfect for everyone but you do need enough items listed so that people have significant choice. There are exceptions to this, of course. If you happen to have the corner on the market for the current pet rock, Cabbage Patch Kid doll, or whatever widget is in demand you will probably sell out all you have no matter how many you list, but for most of us we need to offer enough selection. 17 sewing patterns isn't likely going to cut it whereas 17 different website packages may be enough. The key is you need to understand your market and list appropriately.
The frequency of listing new items is also important. If you have a collection of baseball cards to sell and you list all 250 of them and just want to wait until they all sell then that's fine. But if you want to develop an actual on-going business with returning customers who will buy from you again and again you need to offer fresh choices for those repeat customers. Weekly, or even daily, additions may be necessary, even (and, perhaps, especially) if you haven't been selling anything.
Participation in personal and/or business networking sites, relevant and non-relevant discussion forums, and other no-cost promotional efforts are critical to your business success. You can get extensive exposure on these sites leading to increased traffic and, ulimately, sales. Most sites, even those with restrictions on commercial postings, allow you to put a link to your selling site in your posting signature. Talk about the things you sell without blatently advertising. Become an expert on your product area. Answer questions and help others. You would be sought out.
Consider carefully placed commercial (paid) advertising. The easiest way is to run a Google Adwords campaign but it still takes effort, thought, and management. Your money may be better spent placing small banner or display adds on a variety of blog and forum sites where others go who would be interested in your products or services. Long contracts may not be necessary. Carefully managing well-placed short-term ads can be very successful.
Staying on top of market trends and knowning what your competitors are doing can be important research worth doing. Your competitors actions aren't always right but they can give you new ideas and a heads up as to the direction they are moving. Following them blindly isn't the point of the exercise. Making informed decisions is.
Managing your business is important. Putting your management efforts into the right places is critical!