Subject: October 2007 Issue of Under the Oak Tree
 October 2007 

SOLID OAK CONSULTING      SERVICES      RESOURCES       CONTACT
 
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Tom Long, President
Solid Oak Consulting

 
Solid Oak Consulting Releases Results of New Study
 Why Some Small Business Fail - Or Fail To Thrive
As a management consultant, my job is to help small businesses grow. I lend my expertise to business owners in an effort to put their business on the path to success. While my experience and education assist me in this endeavor, I felt I needed to do further research into the reasons why so many small businesses fail – or fail to thrive – so that I could focus my efforts on where small businesses need the most help. I commissioned the research company Empire Research Group to help me compile a 79-page report entitled "Death of a Small Business: Five Threats to the Growth and Success of American Small Business."

I am offering the results of this study at no charge to any business that could benefit from the information. A snapshot of the study is available at http://www.solidoakconsulting.com/ResearchReport.html, and the full report can be obtained through a link on the Solid Oak Consulting Web site, www.solidoakconsulting.com. I welcome your input and the opportunity to speak with you about the results.

Do You Have Customers or Clients? Yes, there is a difference. A "client" is someone who expects you to "take care" of him or her over an extended period of time. Someone who offers professional services typically has clients rather than customers. On the other hand, a person who uses your products or services on a limited basis is considered a "customer." A store typically has customers as opposed to clients.

Knowing whether you serve customers or clients is crucial to determining not only your marketing efforts, but how you operate your business. After all, although your goal always is to provide the best products or services to all people – whether client or customer – your approach to handling the two types of people should be different. Well-known business coach Jay Abraham, does a great job of addressing this issue in his book, "Getting Everything You Can Out Of All You’ve Got."

Calculating the 'Lifetime Value' of a Client Since clients are with you for the long-term, they have tremendous value. If a client pays you $1,000 a month for your services and they have the potential to be your client for the next 20 years, they have a lifetime value of $240,000! Knowing the value of a client allows you to develop an appropriate marketing budget. Similarly, projecting the lifetime value of potential clients is the first step in determining how much to invest in a marketing plan targeting new clients. I would be happy to talk to you about the calculating the "lifetime value" of your clients.

Target Your Marketing Do you know your target market? I often hear "everyone" as the answer to this question, but every business has a unique target market. While we may like to think our business caters to everyone, the truth is that only certain groups of people will find value in our business’ products or services – and that’s who we want to target. It is imperative that business owners realize this fact and begin identifying the target market for their products or services. And, knowing your exact target market will help you narrow your marketing efforts, which can make your marketing that much more effective and cost efficient.
Helping Your Acorn Business Grow Into A Solid Oak™