Marketing the small/medium sized businesses

shuv

Free Member
Feb 2, 2005
9
0
Surrey
Hi,

My name is Siobhan and I have recently gone self-employed as an HR Consultant so please be gentle with me!

I am operationally very knowledgeable and have the added advantage of working as a Business Partner for FTSE 25 to strategically to improve bottom line figures.

I see an opportunity to grow by offering services to small and medium sized business's who cannot afford a full time HR person.

What do you think is that best opportunity to market myself to companies in this bracket?

Siobhan
 
A very good, but difficult question.

Rather than there being one specific answer there are a number of factors to take into consideration.

I am in a similar position to you in that I am trying to sell a service and not a more cleary tangible product (such as goods that can be sold on) to the SME market. I am also in the good position of being an SME trying to help other SME's.

I would say the first vital thing is how you can go about getting across the message that although SME owners could do the service you are offering themselves, you would do it better (or more efficiently) thus allowing them to concentrate on the day to day running or strategy of the business they have.

I have found and have always believed that you need to be able to clearly demonstrate how, by using your service, the SME can improve their bottom line. This is what it all comes down to with SME's, improving the bottom line through increasing leads and enquiries which leads to, yep... increased sales. SME's (or I don't anyway :D ), have spare cash to spend on something I am not sure would help my bottom line.

Once you have all that set out, you can then move on to marketing techniques... marketing can be as cheap or as expensive as you like. I personally don't see the point of recommending expensive ideas just for the sake of it, or if i don't think a business will see a quick return on investment.

An example of simple marketing that i use is, "a loss leader"... I usually do a few free demo's for people of services or make a few suggestions on little things people can change to market themselves better, in the hope they will keep me in mind for future projects. If you have the time/budget/resource to do this I would go down this route to start with.

If that doesn't prove fruitful, identify a list of SME's you think you could help, research them, their market and then try to engage with them through something like a mailing letter, attending a networking function that you think they would attend or alike. You could go down the route of trying to get a media story in the media that is dedicated to their sector.. cheap as chips (as the bronze one says), all you need is a press release.

It is usually just simple marketing ideas that work the best so don't listen to marketing bods that try to convince you otherwise and try to get you to spend a few hundred spondooleys* on an online ad campaign. I could give more marketing ideas, but... that would be tellling.

If you want to discuss further, send me a private msg, of course... I will make a number of suggestions for free.

By the way, I am really interested to hear what other SME owners think about Shuv's post... what are the things that a service provider could do that you think would appeal to you

*Spondooleys is a slang word for cash. I am trying some new language out at the minute to see if it makes me appear more 'street' in preperation for a Goldie Looking Chain concert I am thinking of attending.... I am 28 and aware that I am no longer 'down with the kids'. Peace Out...
 
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Ozzy

Founder of UKBF
UKBF Staff
  • Feb 9, 2003
    8,332
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    Northampton, UK
    bdgroup.co.uk
    HR management in SME's is still a relatively new market in terms of being taken advantage of by the SME's, and this is being introduced by government so SME's are only now paying attention to it because they have to.

    I "imagine" this will give many small businesses concern and uncertainty as to where to go for help so you need to get into their resources of help.

    A typical example might be BusinessLink and the Chamber Of Commerce. Volunteer your time to be a speaker at some of the workshops they hold promoting the subject. As a member of the Northants chamber I get loads of information through from them about HR workshops, and you could be running them.

    Other possible avenues could be forming relationships with accountants as a recent FSB survey showed something like 60% of businesses owners will turn to their accountant for advice on an issue the owner was unsure of .. even if the accountant might not be the right person they assume the accountant will know where to go.

    Accountants are very important people in business ;)
     
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    B

    barry.hynd

    Hi,

    Some very good posts here. I myself own two small businesses and am becoming more and more aware of the requirement for HR in my business. Initially I did all the payroll etc myself but now having fifteen staff the payroll and HR has now become an issue. I myself like to give 100% focus on developing my businesses. There's definite merit in people providing these services providing the costs can be managed. The difficult thing I suppose for SME's is finding people they can trust to take over these aspects of the business.

    I'm lucky in the sense that i'm an accountant to trade so that part of the business takes care of itself but i'm also aware that I cant do everything and I dont know everything. This forum is great because by reading some of the topics etc you begin to identify with people who share the same views as you.

    Siobhan I think you have a great service and forums like this can also help you to get some business.
     
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    ajdriver,

    Hi there, not sure if I am misunderstanding your post, "SME - ?"
    If I read it right, you are asking what SME stands for... sorry it is Small to Medium Sized Enterprises.

    As for the use of colour, I know that I can waffle on so i use colour to try and encourage people to keep reading... plus, a splash of colour always brightens things up.
     
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    Siobhan,

    I'm in a very similar position, trying to sell H & S services to SME's. The problem is most don't want to do anything unless they feel pressured to do so. That's your primary hurdle.

    I attend several business breakfast meetings, and am now going to go on the offensive by being a speaker at one of the events. The pitch will be simple - ..'this is the law, and what you must do. If you don't want to do it yourself due to time/resource pressures, then I'll help you'.

    You may want to try the same approach? Worst case scenario is you get a good breakfast but no clients!

    Phil
     
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    Siobhan,

    As a small business owner I am inclined to manage as much in-house as possible. I agree with Andy that a primary success factor will be presenting your services as a solution. Some SMEs will likely give you only their gratitude for raising their awareness, but others will recognize that you can make their lives easier and more productive.

    Best of luck to you!

    Sally
     
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    shuv

    Free Member
    Feb 2, 2005
    9
    0
    Surrey
    Thanks Phil and Sally,

    In order to understand how to market my services, I think I need to really understand why it is that SMEs will use an accountant, for example, but not an HR service to get the most out of their expensive resources.

    Performance problems must occurr as long as people are employed so what do SMEs do? Sally, you said about managing it in house. What does managing it in-house look like and why do you choose this option? Do you have the knowlege and skills to do this in-house?

    All you SME's -what do you do when you have issues and why? Do you see no or little value in HR? Do you just not have accessibility at the right cost/timing/service? Be honest and tell me about your issues and what you do.

    Siobhan
     
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    M

    Mark Powell

    Siobhan,

    I think part of the problem you will face will be education.

    Many SMEs just don't understand what HR means and don't understand what they need to do.

    Before you can convince someone that they need your services you first need them to understand what your services are and then why they need them.

    As an Executive and Business Growth Coach I had the same problem. Many SME don't understand what business coaching is and dont know why it could help them.

    Writing articles is a good way of marketing you self and your services. How about an article detailing recent changes in HR legislation and what companies need to do about it. This would raise your profile as you would be seen as an expert, it would also raise the need for HR with your target audience.

    A well written, objective article on a topical subject is usually welcomed by many business and trade mags as well as the business sections of local newspapers. However a blatant plug or poorly disguised ad will go straight in the bin.

    Good luck with the new business.
     
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    Siobhan,

    As a sales trainer/manager I have experience establishing objectives, benchmarking performance, and coaching to outcomes. I manage HR in-house because I have the ability and interest to do so. I like the continuity of direction and I also enjoy the process.

    You asked about services that SMEs do outsource, like accounting. I outsource that because it requires expertise that I don't have and don't want to invest in aquiring. I think there's your answer. I do it because I recognize a need.

    One of the most valuable things I have developed along the way to today is a healthy respect for the power of inertia! A critical success factor for you will be getting people to understand that it is more beneficial to use your services than not. You need to profile your leads to determine who lacks the resources and/or experience to manage HR in-house, then demonstrate how you can increase their productivity and morale by taking care of this for them.

    I like Mark's idea about writing articles. Additional suggestions: professional networking groups, business organizations and volunteer opportunities.

    I'm interested to hear of your progress. All the best!

    Sally
     
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