Frugal start-up ideas and concepts
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Frugal tools and concepts to help get your business started. Please "Google" these terms to learn more as these concepts are imperative to businesses structure, price-point strategies and gaining a competitive advantage. Studies by Dan Ariely, Jonah Berger, Richard Thaler, and more are included. Books that I recommend are also at the end.
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Frugal start-up ideas and concepts
- 1. “Opportunities are manufactured” –Biz Stone
- 12. W. Chan Kim and Renée Mauborgne
- 18. Expert Social Proof: Approval from a credible expert, such as an industry blogger or other authority Celebrity Social Proof: Approval or endorsements from celebrities, especially those that are unpaid User Social Proof: Approval from current users of the product/service, such as customer testimonials, case studies, and those all-powerful reviews (McD, Amazon.com) 'Wisdom of the Crowds' Social Proof: Approval from large groups of other people (Our traditional examples above would fit nicely into this category of social proof.)
- 19. People may drive across town to save $5 on a $15 calculator but not drive across town to save $5 on a $125 coat. (Relative vs Absolute) Footlocker: $100.00 Champs: $89.99 .99 vs .00
- 20. <$100, use % discount @ $50, use 10% looks better than $5. >$100, use $ discount @$500, use $50 instead of 10%
- 21. People will spend more by virtue of not keeping tracking their records. Also, cash is a finite transaction.
- 25. Pin to Top: Keeps post at the top of your feeds for a week Highlight: Extends the feed to take double the space
- 26. http://blog.hubspot.com/blog/tabid/6307/bid/33423/19-Reasons- You-Should-Include-Visual-Content-in-Your-Marketing-Data.aspx 5353% more 104104% more 8484% more click-throughs
- 27. the ability to transcend traditional ideas, rules, patterns, relationships, or the like, and to create meaningful new ideas, forms, methods, interpretations… (doing more with less).
- 29. Definition: An unconventional way of performing marketing activities on a very low budget.
- 31. Gamification: The use of game mechanics and rewards for non- game applications in order to increase engagement and loyalty (badges, scoreboard, competition, social currency)
- 33. Rewards/Loyalty program Point accrual system, rewards for purchasing Status/Power Memberships, Social Status (Gold member, Chase Saphire Card)
- 34. Flash Sales, Deal of the Day, limited time offer: Rue La La, Amazon, Newegg “Lightening Deal” Creates “insider” / exclusivity, scarcity feeling (status)
- 35. Freemium – Free + Premium. Free – to a certain point. Add-on features will cost ya…
- 36. Referral program, raffles (weekly drawings):
- 38. Teach and educate (for free!) Provide insight to certain topics via workshops, posting on social media, youtube videos, newsletters
- 39. • Average American (subconsciously) engages in more than 16 word-of-mouth references to brands, products or specific services a day.
- 45. Red –excitement, strength, sex, passion, speed, danger. Blue –(most popular color) trust, reliability, belonging, coolness. Yellow –warmth, sunshine, cheer, happiness Orange — playfulness, warmth, vibrant Green — nature, fresh, cool, growth, abundance Purple –royal, spirituality, dignity Pink — soft, sweet, nurture, security WhiteWhite –pure, virginal, clean, youthful, mild. Black –sophistication, elegant, seductive, mystery Gold — prestige, expensive Silver — prestige, cold, scientific
- 48. Blue –trust, reliability, belonging, coolness.
- 49. Silver — prestige, cold, scientific
- 52. • Market research / demographics – Census data – Google! • Survey/feedback – Away from business – At your business – Social media / polls • “people watch” (at competitors) • View competitor marketing tactics (in-store)
Editor's Notes
- Most of the information I will provide today will be from a variety of sources. Please ask me if you would like the source information and I can provide that. Also, there is a plethora of information that may or may not pertain to you. With that said, anything pertinent, please write down and we can spend time on any topic that you all deem appropriate.
- Work The entrepreneur&apos;s work is strategic in nature, and involves focusing on the future and developing a vision of where s/he can take their business. This vision is specific in terms of what the company will do to serve the wants and needs of the owner. The manager&apos;s work is both strategic and tactical. The manager&apos;s focus is on the present and achieving results through others. The manager is the pragmatist, planner, and organizer who turns the vision into action. The technician is directed by the manager, and follows the guiding structure of the company&apos;s systems to get the work done. The technician&apos;s focus is on the present and performing the hands-on work of the business. Time The entrepreneur organizes time so that each day is spent in doing strategic work - ensuring that the company is on course to meet the vision. This time is critical to the entrepreneur&apos;s future. The manager knows that time must be utilized so that the company&apos;s personnel and other resources use every precious moment to produce. Managers take the company&apos;s strategic vision and plot moment-by-moment tactical action to accomplish that vision. Time for the manager has both long and short term considerations. The technician&apos;s time is in the present moment, and concerns what can be done today. The technician strives to make as much as possible happen now. The technician knows that the more produced within the day the more money made. Money The entrepreneur pays particular attention to the balance sheets, knowing that the real value of the business is reflected in the equity. The higher the equity value, the greater the price that can be commanded for the business in the market place. The equity value ultimately serves the entrepreneur&apos;s exit strategy - the plan to sell the business and move on. The manager&apos;s focus is on controlling costs and increasing profits. The manager conceives a tactical plan for growth through proper employment of people and assets. This requires up-to-date financial information that allows the manager to make adjustments when necessary. The manager is called to tactical action in order to meet strategic goals. The technician looks at money as earnings for work performed. Technicians are always trying to figure out how to do it better and faster in order to make more money. The technician&apos;s efforts are the source of better competitive strategies that allow for a strong, profitable position in the marketplace.
- As an entreprenuer, one wears many hats. The CEO has to determine strategy, then runs to be the CFO when taxes come about, then HR when hiring and firing, then CCO when dealing with customers, then CMO to market and sale the product or service. Clearly, there is not enough time to do all this. What is the solution? – technology.
- So what is the solution to this dilemma of the entrepreneur? So many hats, so little time – technology. I know this may be a bit intimidating to some, a formidable, daunting task, albeit this is not as hard as it seems. Technology is your friend in business as it facilitates the mundane, tedious tasks and gets your mind to think creative. As Steve Jobs ironically stole the famous quote “Good Artist copy…”, most ideas are adopted and manipulated to fill a need.
- So lets focus on the Don’t know what you don’t know paradox.
- And we lack the omniscience of technology, marketing etc. And ultimate this leads to “you don’t know what you don’t know”. Bounded Rationality, as we call it, asserts that, how can one possibly do something so easy when one does not know that this technology exists? This is what I am here to teach you.
- Expanding the pie.
- Once you figure this out, you are golden. This is the hardest part of business.
- When picking a name, logo, slogan you need to bear in mind that this is for the consumer, not you! Sell the WHY, not the what. Loyal customers and clients will buy the purpose. Do you want to make a greener earth? Make more quality time for mothers or fathers to bond with their children? Then explain how you plan to do this. Then sell the what. This build loyalty, acolytes if you will.
- Camera:photo4nex – staying away from real etate, focus on other applications for product such as police, construction sites, auto dealers
- Another quick, important graphic I think pertains a lot to marketing strategies. As you can see, there are 3 influencers that help determine a purchaser make a decision. Harvard Business Review made the same assumptions in which a purchaser/consumer decides to buy something based on their past experience with the brand/product, the actual marketing endeavors that of the company has made, and of course the referrals and research one does to purchase a product. Ironically, it has been shown that women review make-up post-purchase. No conclusive evidence as to why at this point.
- Camera:photo4nex – staying away from real etate, focus on other applications for product such as police, construction sites, auto dealers
- Behavioral economics:a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.
- And to understand your customers, you need to know what you don’t know. Why are psychographics important? This is how you are going to create your brand by knowing who your customer is prior to developing your brand. That is why a business plan is for… https://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/8_psychographic_segmentation.php
- Why are psychographics important? This is how you are going to create your brand by knowing who your customer is prior to developing your brand. That is why a business plan is for… https://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/8_psychographic_segmentation.php
- This demonstrates how a smiley or sad face can elicit emotion and actually change behavior.
- 1.Night clubs and bars limiting entry, making patrons wait in line outside to increase the perception that the venue is popular to attract more passersby. 2.TV shows playing canned laughter or recorded applause to elevate the perception of funny or applaudable situations. 3.McDonald&apos;s fast-food restaurants displaying signs boasting &quot;Billions and Billions Served.&quot;
- Here are some other key points to consider: Some people get caught up in their business that they forget that they are a consumer themsevles and rationality kinda goes out the window, because s/he would “buy it”—so everyone else should too, right?! Well, here are a couple paradoxes. Kahneman and Tversky started their research investigating apparent anomalies and contradictions in human behavior. Subjects when offered a choice formulated in one way might display risk-aversion but when offered essentially the same choice formulated in a different way might display risk-seeking behavior. For example, as Kahneman says, people may drive across town to save $5 on a $15 calculator but not drive across town to save $5 on a $125 coat. Relative vs Absolute Definition: the property that changes in a variable have less impact the farther the variable is from a reference point. Application: If you had $20 and you lost $10, it would seem like a greater loss than it would if you had $100 and lost $10 regardless of the fact that the losses are the same. Furthermore, .99 vs .00, psychologically people will opt for the .99 due to the brain registering this as cheaper. Appeals more to the untrained eye.
- Here are some other key points to consider: Some people get caught up in their business that they forget that they are a consumer themsevles and rationality kinda goes out the window, because s/he would “buy it”—so everyone else should too, right?! Well, here are a couple paradoxes. Kahneman and Tversky started their research investigating apparent anomalies and contradictions in human behavior. Subjects when offered a choice formulated in one way might display risk-aversion but when offered essentially the same choice formulated in a different way might display risk-seeking behavior. For example, as Kahneman says, people may drive across town to save $5 on a $15 calculator but not drive across town to save $5 on a $125 coat. Relative vs Absolute
- Here are some other key points to consider: Some people get caught up in their business that they forget that they are a consumer themsevles and rationality kinda goes out the window, because s/he would “buy it”—so everyone else should too, right?! Well, here are a couple paradoxes. Kahneman and Tversky started their research investigating apparent anomalies and contradictions in human behavior. Subjects when offered a choice formulated in one way might display risk-aversion but when offered essentially the same choice formulated in a different way might display risk-seeking behavior. For example, as Kahneman says, people may drive across town to save $5 on a $15 calculator but not drive across town to save $5 on a $125 coat. Relative vs Absolute
- Also focus on email, e newsletters, business cards, website for online presence
- Facebook has a nice feature to track your likes
- Quick facts and power of social media
- Coke came out with diet coke and started getting “creative” by soliciting celebrities…
- Great guerilla marketing tool, went viral for less than a couple hundred dollars. Almost 17 million views since 2010.
- Guerrilla marketing is an unorthodox approach to marketing—iconoclastic if you will created by a man named Jay Levison in 1980s. This has transformed the market of marketing in which is affordable for most, if not all, businesses.
- How to sells.
- You should use most, if not all, forms of social media as possible. Each has its own uniqueness, albeit you should be on a few.
- Earn badges and points, share on social media, compete with others. Free branding for you as people post about their achievements.
- Once again, people share their “rewards” and status with others, free marketing for you.
- Flash sales, daily deals. Gets customers to come back. Psychological component of anticipation of not knowing what will be on sale next. Increase e-newsletters and subscriptions. Limited-time offers at which you anticipate selling the items at that price anyway. If people have too many options at once, the value tends to decrease; however, if there are limited options, this increases the percieved value as this deal is not forever and may never come back. 2005, Smart Bargains launched. 2007 Ru La La launched after sales stagnated. This encouraged flash sales of high end designer goods with a focus on flash sales in which access to these deals were by invite only—exclusivity created the value. The paradox here is that Ru La La sold the same items it did on Smart Bargain. In 2009 Ru La La sold for $350 million.
- Entice the customers with the product and lure them to purchase by showing the benefits of paying for the service/product. Angry birds – want to pass the level easily? Purchase a spell or bird for $1 and you can maximize points. Want more features? Pay for it.
- Referral program, great for getting clientele. One even offers you a choice as you may not like the money factor but something else resonates with the customer.
- German vs french music at a winery. No one noticed the music but the music influenced the purchase by the consumer. French music made people buy french wine, more often.
- This is my strongest selling point. Establish a strong rapport with the community, partnering with agencies to provide profound knowledge about specific topics.
- Average American engages in more than 16 word-of-mouth references to brands, products or specific services a day. (Contagious, book)
- Here is the mind of a consumer.
- How does this information pertain and why is building a brand so important? You need to build a brand that will garner loyalist as 80% do not buy unknown brands to save money! This is the ultimate goal of each business. Apple has done a tremendous job on this end.
- Branding consist of so many items that some can get lost in this mess. Ultimately, this comes down to how people perceive your brand and there are three crucial elements that do this. Branding are three essential things – you pick a name, a logo, and a slogan. But bear this in mind, pick the reason why. Aim your business towards your customers, do not pick a name you think is cute – think about how your customers will react to such a name, color etc. You are selling to the customer, not yourself!
- The name has to MEAN something. Elicit some emotion, be catchy and easy to remember.
- Here are a couple descriptors of names.
- Color matters.
- Logo has the same implications as the name.
- Three simple shapes that transpire into something else.
- Circles
- Work The entrepreneur&apos;s work is strategic in nature, and involves focusing on the future and developing a vision of where s/he can take their business. This vision is specific in terms of what the company will do to serve the wants and needs of the owner. The manager&apos;s work is both strategic and tactical. The manager&apos;s focus is on the present and achieving results through others. The manager is the pragmatist, planner, and organizer who turns the vision into action. The technician is directed by the manager, and follows the guiding structure of the company&apos;s systems to get the work done. The technician&apos;s focus is on the present and performing the hands-on work of the business. Time The entrepreneur organizes time so that each day is spent in doing strategic work - ensuring that the company is on course to meet the vision. This time is critical to the entrepreneur&apos;s future. The manager knows that time must be utilized so that the company&apos;s personnel and other resources use every precious moment to produce. Managers take the company&apos;s strategic vision and plot moment-by-moment tactical action to accomplish that vision. Time for the manager has both long and short term considerations. The technician&apos;s time is in the present moment, and concerns what can be done today. The technician strives to make as much as possible happen now. The technician knows that the more produced within the day the more money made. Money The entrepreneur pays particular attention to the balance sheets, knowing that the real value of the business is reflected in the equity. The higher the equity value, the greater the price that can be commanded for the business in the market place. The equity value ultimately serves the entrepreneur&apos;s exit strategy - the plan to sell the business and move on. The manager&apos;s focus is on controlling costs and increasing profits. The manager conceives a tactical plan for growth through proper employment of people and assets. This requires up-to-date financial information that allows the manager to make adjustments when necessary. The manager is called to tactical action in order to meet strategic goals. The technician looks at money as earnings for work performed. Technicians are always trying to figure out how to do it better and faster in order to make more money. The technician&apos;s efforts are the source of better competitive strategies that allow for a strong, profitable position in the marketplace.
- Taglines and slogans
- How to build a robust marketing scheme
- Free resources that you should take advantage of
- Library has ample resources and tools SCORE has various services that can help Networking events help tremendously! Be around those who you want to be.
- Most, if not all, of these books are available in the library. Even the HBR magazine.
- Work The entrepreneur&apos;s work is strategic in nature, and involves focusing on the future and developing a vision of where s/he can take their business. This vision is specific in terms of what the company will do to serve the wants and needs of the owner. The manager&apos;s work is both strategic and tactical. The manager&apos;s focus is on the present and achieving results through others. The manager is the pragmatist, planner, and organizer who turns the vision into action. The technician is directed by the manager, and follows the guiding structure of the company&apos;s systems to get the work done. The technician&apos;s focus is on the present and performing the hands-on work of the business. Time The entrepreneur organizes time so that each day is spent in doing strategic work - ensuring that the company is on course to meet the vision. This time is critical to the entrepreneur&apos;s future. The manager knows that time must be utilized so that the company&apos;s personnel and other resources use every precious moment to produce. Managers take the company&apos;s strategic vision and plot moment-by-moment tactical action to accomplish that vision. Time for the manager has both long and short term considerations. The technician&apos;s time is in the present moment, and concerns what can be done today. The technician strives to make as much as possible happen now. The technician knows that the more produced within the day the more money made. Money The entrepreneur pays particular attention to the balance sheets, knowing that the real value of the business is reflected in the equity. The higher the equity value, the greater the price that can be commanded for the business in the market place. The equity value ultimately serves the entrepreneur&apos;s exit strategy - the plan to sell the business and move on. The manager&apos;s focus is on controlling costs and increasing profits. The manager conceives a tactical plan for growth through proper employment of people and assets. This requires up-to-date financial information that allows the manager to make adjustments when necessary. The manager is called to tactical action in order to meet strategic goals. The technician looks at money as earnings for work performed. Technicians are always trying to figure out how to do it better and faster in order to make more money. The technician&apos;s efforts are the source of better competitive strategies that allow for a strong, profitable position in the marketplace.