Business is a privilege. Just as middle and high-income areas benefit from more disposable income, so do the businesses that occupy such areas. These small businesses are provided a higher chance of survival…pending a decent marketing strategy. But, how about the small businesses that are not afforded such a benefit?
Research uncovers that low-income areas are home to 2 out of 11 self-employed workers. This seems alarming; however, it’s not surprising if you consider the various start-up expenses required to start a small business and the requirements to make it sustainable – raising capital, employee retention, recurring sales, etc.
In these areas, the average household income is about $46,432. Therefore, as a small business in low-income areas, how do you avoid becoming the 50% of businesses that fail within five years? Or, more importantly, how do you produce enough revenue to feed your family and every employee that depends on the success of your company?
THE SOLUTION ► INCREASE SALES
Credit cards were invented in 1946. And, so came the arrival of consumer deficit spending.
The fact of the matter is people are spending heavily and not just on necessities. Therefore, as a small business in low-income areas, the focus must become giving consumers a reason to spend with YOU and increasing sales volume.
This is the pillar of mass-market retailers such as Walmart and Costco’s. These companies make pennies on the dollar, but massive sales volume leads to over $100 billion in yearly revenue.
GETTING THE MOST OF YOUR SALES
Here’s how small businesses in low-come areas can create this effect:
- Become An Indispensable Brand: Are you a plumbing company, OR a local plumbing company known for stellar service, overdelivering, and being timely? The ladder is a business that gets repeat clientele, referrals, and can charge a premium. The former has its prices compared on Yelp. The fastest way to create this level of branding is to use where people research you – your website. Place your customer reviews center-stage and use keywords that address your customer’s pain points. If you want to go to the next level, create content that establishes you as a trusted authority in your field.
- Cross-Sell Your Services: Your best prospect is your already paying customer. Create packages or products that coordinate. Even low-income consumers purchase products that align in a beneficial way. And, if you only have one product or service, get creative in your offers. Choose an aspect of your product or service that can be offered at a lower price point. This will draw in more leads and makes your primary product or service appear more accessible to your target market.
- Double Your Online Marketing: You may not be online, but your customers are. Gone is the age of social media and internet browsing being a young person’s game. Even your oldest client is likely to see and purchase from a digital ad. That purchase should be from your company. The more your target market sees your business; the more likely they establish familiarity and purchase from your business. Increase your spending on high-converting and properly targeted ads. You will see your leads increase exponentially.
The problem of succeeding as a small business in a low-income area is not a matter of economics. It is a matter of differentiation. How is your business any different from one of the same services?
Regardless of income, people are spending on needs AND desires. Therefore, you must be creative in delivering a product or service that is the object of that need or desire at a faster, recurring rate. Your business, employees, and lifestyle depend on it.
ACTION STEPS: Take time to align your differentiating factor with your ideal customer. Then, create a scalable system that creates loyalty, increases per customer spend, and generates a referral network. If you are having trouble uncovering your defining factor or want to implement these strategies faster to ensure your business succeeds, click here to be connected with an expert. We will analyze your business to show you exactly which services to cross-sell and the changes you can make today to create an indispensable brand…it’s FREE.