Case Studies
HOW TO LOSE $140,000
By Cynthia Renee Frazier
Before we started working together, my client Rima was a co-partner in an event planning company. She had an office and a staff of 15 full and part-time workers. Rima’s work required many meetings with clients she planned events for. At the time, Rima hired an in-house Marketing Manager as part of her 9 to 5 staff. Rima’s monthly expenses included office facilities, utilities, a PBX phone system, and other costs that totaled $18,000. Because of the high overhead, Rima could only take on clients with a big budget. Eventually, Rima had to lay off the Marketing Manager. In three years, she and her partner were out of business. Rima estimates that her loss was around $140,000.
Here’s some advice I would have given Rima today that could have saved her $140,000.
1. Hire a Virtual Receptionist.
For less than the cost of a phone line, and for a small fraction of the cost of an in-house receptionist, a Virtual Receptionist can provide live professional services 24 hours a day, 7 days a week.
2. Hire a Virtual Assistant.
A Virtual Assistant provides the same services as an Administrative Assistant without the staffing and training costs associated with in-house personnel. A Virtual Assistant is a highly experienced worker who can complete a number of critical tasks including bookkeeping, accounting, office administration, travel arrangements and more.
3. Use an Online Conference Room
Most small businesses rely on regular meetings with staff, clients, and potential clients. For as little as $30 per month, a small business can host an unlimited number of meetings which are held in real time. This is a big cost savings. It eliminates the need for meeting space and all of the associated costs that go with it like utilities. It eliminates the need to travel saving big money on travel time, food, and gas.
4. Online Conferencing
A company can save thousands of dollars in expenses by taking a conference online. Online conferencing offers everything that a local conference offers without a hefty price tag. Speakers, exhibits, breakout sessions, networking, door prizes, and so much more. Now, an event management company like Rima’s can take on clients with small and mid sized budgets which increases the market share.
5. Viral Marketing and Viral Advertising
Viral marketing and viral advertising refer to tools such as blogs, email campaigns, online social networking, and word of mouth recommendations. These highly effective techniques can reach literally thousands of potential customers with the click of a mouse. The cost savings from traditional marketing and advertising is tremendous.
By the way, today, Rima has two very successful Internet companies, www.BusinessResourcesPodcastDirectory.com, a great place to get valuable information for running a successful business and www.VirtualReceptionists.biz, a premier virtual call answering service company for small business entrepreneurs.
Cynthia Renee Frazier is the Author of 101+ Proven Growth Strategies for Small Business Entrepreneurs, and proud sponsor of Walk the Walk for Financial Freedom www.BusinessWomensGrowthSummit.com. Visit her blog to learn more about business growth strategies. Share your growth dilemmas at www.EnergyTourCafe.com.
