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Archive for the 'Content Marketing' Category

How to Profitably Scale Your Business Using a Salary Cap

Integrating and Implementing a Salary Cap in Your Business

Sports fans understand the concept of a salary cap because most of the major professional sports leagues have some version of a salary cap. In business the term salary cap is used to define a determined payroll limit that restricts the amount of money to be spent on wages and salaries for a specific period of time. Some restoration business owners do not think about how their business could benefit from establishing a salary cap.

As a restoration business owner your single biggest expense is likely labor– the salary/wages that you pay to your employees (including yourself) and the money paid out to subcontractors or vendors for labor. If you want to impact your overall success and your profitability, then you need to start by looking at your labor productivity as the biggest component in your business.

In a growing business, labor costs can quickly balloon out of control. When small businesses are making the transition to medium-sized businesses it is possible to fall into a dangerous feedback loop of borrowing and spending. As you scale your business, your costs will grow, and it is tempting to see break-even (your previous measure of success) as sufficiently safe growth.

Greg Crabtree is the author of Simple Numbers, Straight Talk, Big Profits, and one of the great ideas in his book is the recommendation that every business should self-impose a salary cap just like the one that NFL teams deal with every year.

How to Calculate Your Salary Cap:

To keep the math easy we will use an example of a business that generates $1,000,000 in revenue. In this example the business owner has determined that they want a 10% pre-tax profit from the business after paying themselves a reasonable market wage.

The non-salary costs were calculated by adding up all the fixed costs like materials and subcontractors, and operating expenses like rent, utilities, insurance, communications, and advertising, etc.  This would also include the cost of goods (less labor and management labor) for $1,000,000 in revenue. In this example the non-salary costs are $400,000. As you can see, that means the salary cap is $500,000, which includes all labor costs.

A simple calculation can help you determine the total labor costs allowable with your current revenues.

Labor CAP Formula:

LC = (total revenue) – [(0.1 x total revenue)] – (non-labor costs)

($1,000,000) – [($100,000)] – ($400,000) = $500,000

Here is an example:

If the current payroll expense is more than $500,000 (and the other numbers are correct) then this business is not going to hit the profit target and the business is at risk. That gets us back to the labor productivity idea- the key is to generate $1M in revenue from that $500,000 of labor, and if you want to be more profitable than 10%, then you either need to cut your salary expenses without impacting your productivity (do more with less) or grow your revenue without increasing your salary (again do more with less…or technically the same in this case).

At BDA, we believe that every restoration business owner has the right to expect that their company can deliver to them what they want out of life- freedom and the ability to create wealth.

Make it a prosperous month!  Stay tuned for next month’s article.

LinkedIn’s “Sponsored Updates”; Tips for Restorers on Content Marketing

alt="linkedIn content marketing for restorers"
LinkedIn recently announced the addition of “Sponsored Updates” to their product suite, allowing members the opportunity to get their content in front of other LinkedIn members that are a match for the content of the update, even if those members are not following their company profile.

In the constant battle to win the content war, LinkedIn, much like Facebook, is offering another way for members to get their content put in front of the right people, and hopefully clicked on and read (while the social media giant makes a pretty penny of course, watching companies battle for market share via their platform).

Facebook, unfortunately, learned a hard lesson about going too far with using the personal information of their members for their former “Sponsored Stories” advertising product, ending up in a lawsuit that was said to be a potential revenue loss of $103 million. Facebook would then modify and re-market the same idea of paid advertising for content, slimming their 27 ad unit options to half the amount and making other modifications.

Done correctly and consistently, like any paid social media initiatives, the LinkedIn “Sponsored Updates” could be a great boost for companies as part of a larger integrated campaign for the product or services the paid update’s content is steering the B2C or B2B audience to. And, creating content that is compelling to the audience and speaks to their needs will always draw in higher click-through and conversion metrics.

As part of “expanding their content ecosystem,” LinkedIn’s new Sponsored Updates will allow for content to appear in the homepage feeds of targeted, prospective business partners or customers. Updates can be seen on both PC and mobile applications and will be marked as “sponsored” to the viewer.

For those purchasing the product from LinkedIn, you can choose either CPC or CPM pricing and track the effectiveness of the content through analytic tools provided by LinkedIn.

Tips For the Restorer:

By now, you have probably heard about content marketing and how it can help you boost your business. Creating viable content that keeps people watching your page, sharing your posts and hopefully, recommending and using your company’s services and products, is key to content marketing success. Be sure to share more than just about your restoration company–remember, it’s not all about you !

What do people really want to read about?

About themselves of course, and the things that affect them ! There is certainly a time and place to share content about your restoration company in your content marketing strategy-but be sure to engage and share things that your reader will find interesting. Instead of talking about the fact your restoration company performs mold remediation, share information about the dangers of mold in the home, for example. You’ll see your likes, retweets, shares and more start to improve!

And when your restoration company does great things, be sure to share that too. Did your company get involved in a community event? Did individual team members do something above and beyond? Share it! This is a great way to express your reputation-online!

And of course, be sure that social media is a piece of your overall integrated marketing plan, versus your only sales and marketing method! In today’s over saturated world of communications, restorers must have an effective strategy and accompanying plan utilizing several communication outlets to break through the clutter of communication in order carry out that strategy so they can predictably grow their business not only from a mass marketing perspective, but also through their 1:1 direct selling efforts.

If you’re a restorer looking to predictably grow your business, Business Development Associates might be the solution you’re looking for. Although we’re not a perfect fit for everyone, we’re helping many restorers across the country to predictably grow their business using a proprietary and proven marketing and sales system that generates millions in new business. For more information, call 847-386-6556 or email info@theBDAway.com.

Facebook Modifies Ad Offerings for Enhanced (and Simpler) Advertising for Marketers

In a press conference yesterday, Facebook announced that it will be simplifying its product offering when it comes to advertisements. The first step will be taking their current ad units from 27 to half that amount and helping marketers match the the type of Facebook ad they will need to their advertising goals such as in-store sales, online engagement and more.


Other changes include:

1) Removing the “Questions” ad product for Pages, as marketers can simply use the posting function to ask a question and receive comments.

2) Removing the “Online Offer” ad product, as marketers lean towards using the “Page Post Link” ad to drive people to promotions on their respective websites.

3) Marketers will no longer have to purchase “sponsored stories” in addition to the ad itself. Facebook will automatically include social context to a “Page Post Photo” ad which will eliminate the extra step of creating sponsored stories.

4) All ads will look more consistent as well, in efforts to have a more cohesive visual look. This not only reduces the number of types of ads, but, Facebook is also hopeful this will help marketers optimize their ad campaigns for digital and mobile.

The changes will start to appear in the coming weeks with a full roll-out over the next six months, and are a response to many marketers complaining that Facebook advertising “was too complicated for the marketers to figure out”, according to Andrew Bosworth, Facebook’s Director of Engineering and Design for ads.

As Facebook continues to deal with the growing pains of being a publicly traded company and the ongoing balance of creating both happy Facebook’ers and investors, advertising will be one of several (if not many) challenges they will face.

Tips For Restorers:
For the restoration contractor engaging in social media, choosing whether or not to advertise on Facebook or any social medium, can be a challenge on several levels. It’s important to remember that in social media or any marketing and sales activity for that matter, that you ask yourself these primary questions:

“Who is it that I want to engage with through this activity?”
“What are my goals out of engaging in this activity?”
“Is what I am saying relevant to target?”
“Is this the best bang for my buck?”

Social media is a moving target, but, by answering the above questions (and whatever other questions necessary), and disciplining yourself to be consistent in your efforts, you are setting the path towards success (and more sales!).

If you’re a company in the restoration and cleaning industry, and looking to find a predictable way to grow your business using a proven sales and marketing process that includes social media and a host of other activities that fit your marketing mix, Business Development Associates may be a good fit for you. Contact us at info@theBDAway.com or call us at 773-777-9956.

Don’t Miss These Upcoming BDA Sales & Marketing Seminars!

Don’t miss these upcoming BDA Sales & Marketing Seminars, where you can learn powerful strategies to predictably grow your business to the next level!

Contractor Connection 2013 Conference & Expo
May 21-23; San Antonio, Texas
Henry B. Gonzalez Convention Center
Tim Miller, President of BDA, Will Be Presenting the Course:
“5 Stages of Small Business Growth for a Restoration Contractor”
https://www.contractorconnection.com/contractorconference/Breakouts.aspx

Business growth often triggers other business challenges. Business owners tend to approach growing their company as one long continuum from the day they open to the day they retire. When in fact, there are distinct stages of growth, with different challenges, stressors, and potential outcomes. Growing companies can greatly profit from advanced knowledge of the challenges they are likely to face at each step.

This course will explore the five stages of growth for a small business while applying it to our specific industry. Detailed explanation of what each stage looks like, and suggested steps to successfully navigate those transitions, will be included in this course. Learn More About This Course By Clicking Here!

Sales Mastery For Restorers
August 7th; Columbus, Ohio
Cleanserv/Interlink Supply Classroom
Tim Miller, President of BDA, Will Be Presenting the Course:
“Sales Mastery for Restorers”
Hosted by: Totally Booked University/Jeff Cross, Senior Editor of Cleanfax Magazine

http://www.carpetcleaningrestorationmarketing.com/sales-mastery.html

This one-day course will teach show you how to increase sales by implementing a powerful, real world selling system that has been customized for the restoration salespeople and their targets! The course is hosted by Totally Booked University and Jeff Cross, Senior Editor of Cleanfax Magazine.

It has never been more important to maximize the ability of your sales team to deliver business. Most restorers agree that the average water loss is $3,000 with at least a 50% profit margin. That means that every sale you don’t bring in is costing you $1,500 or more! Plus, sales salaries and expenses add up quickly and you need to deliver a strong return.

Sales training isn’t new. But, sales training designed from the ground up just for restoration contractor salespeople is! There is no other program like this available anywhere! Click Here To Learn More About This Course!

If you have any questions about these upcoming courses and workshops, you can reach us at 773-777-9956 or email us at info@theBDAway.com.

We look forward to seeing you!

Restorers: How Managing Your Salespeople is Different From Your Techs

When it comes to managing salespeople, there are key differences between how to manage them versus your other staff. And this rings true in the restoration industry as well, as we see restorers who will manage their salespeople exactly like their techs and other staff.

In the article, “Managing Your Salespeople” by Tim Miller, President of Business Development Associates, discusses these differences and the importance of managing your salespeople differently from your other employees.

Salespeople have one of the toughest jobs out there and face challenges and obstacles everyday: daily rejection, facing their own fears and shortcomings and a constant stream of highs and lows can make most sales reps run for the hills.

And if their managers do not have the proper systems and processes for accountability, management and success in place, the sales rep will most likely leave the company seeking a better opportunity, or, the owner will let the rep go only to repeat the same mistake with the next rep. It’s important to note that having the right rep hired in the first place is of the utmost importance, and then backing that person up with all of the fore mentioned “best practices!”

That’s why it’s critical to implement proper management techniques in order to have a highly successful rep who in turn, will produce outstanding results for your bottom line.

Read more on this topic by clicking here to access the full length article!

And, if you’re a company in the restoration, cleaning and contents industry who is looking to create a unique and dynamic sales and marketing presence in your marketplace that will generate millions of dollars in new business, Business Development Associates may be the right fit for you. You can reach us at info@theBDAway.com or calling us at 773-777-9956.

Upcoming Seminar: “5 Stages of Small Business Growth for Restoration Contractors”

Join us at Contractor Connection on Wednesday, May 21st, for this exciting seminar presented by the President of Business Development Associates, Tim Miller.

Business growth often triggers other business challenges. Business owners tend to approach growing their company as one long continuum from the day they open to the day they retire. When in fact, there are distinct stages of growth, with different challenges, stressors, and potential outcomes. Growing companies can greatly profit from advanced knowledge of the challenges they are likely to face at each step.

This course will explore the five stages of growth for a small business while applying it to our specific industry. Detailed explanation of what each stage looks like, and suggested steps to successfully navigate those transitions, will be included in this course.

Upon Completion Of This Course, Attendees Will Be Able To Gain:
• The Ability To Identify Which Stage Your Business Is At In The 5 Stages of Small Business Growth
• What Obstacles Are In Their Way Of Growing Their Business At The Current Stage The Business Is In
• Suggested Steps To Be Taken In Order To Move Their Business To The Next Stage Of Growth
• What The Future Stages Of Growth Are To Come, and The Challenges, Stressors and Potential Outcomes of Each Stage

This course will be presented twice at Contractor Connection on Wednesday, May 21st, from 1PM-2PM and again from 2:15-3:15PM.

You can learn more about the upcoming Contractor Connection conference in San Antonio, Texas, by clicking here.

Unable to make it to San Antonio? Check out another upcoming workshop held in Columbus in August: “Sales Mastery for Restorers.” You can learn more by clicking here!

Free Webinar: Generating New Business

Register today for this free event, happening on February 27th at 3PM EST!

Brought to you by Cleanfax Magazine, this webinar will provide multiple guidelines and best practices for marketing your business in 2013 so you can position your company for growth this year.

Included on the panel of thought leaders will be Tim Miller, President of Business Development Associates, Inc. Other presenters include Chuck Violand, Steve Marsh and Jeff Cross.

See you at the webinar! Click here to register now!

B2B Spending Rises For Content Marketing

A recent study by the Content Marketing Institute and Brightcove shows that not only 91% of 1,400 B2B marketers surveyed are using content marketing, but they are increasing spending as well on this part of their marketing mix.

Interestingly, the study also showed that while they are increasing their use of and spending on content marketing, most B2B marketers are unsure if they are using their content marketing effectively.

Here’s some highlights:

-B2B marketers are spending 26% more than last year on content marketing than last year, with an average of 33% of their overall marketing budget dedicated to content marketing.

-54% plan to increase their spending on content marketing in 2013

-On average, B2B marketers use 5 social media channels to distribute content, with LinkedIn being the most popular

-On average, B2B marketers use twelve content marketing tactics, with social media topping the list, followed by articles, email newsletters, blogs and case studies and others you can find here.

And for those of us involved with content marketing, it’s no surprise that the biggest challenge is…Content! (Not a big surprise!)

Typically, website articles were the favorite of B2B marketers to use, but this recent study shows that all tactics including research reports, white papers and videos have all increased in usage for content marketing purposes.

Back to the content challenge…most B2B marketers also said last year that the biggest struggle they had was producing engaging content. In 2012, the biggest challenge turned into just producing “enough content”. As always, it’s important to reflect on why you are engaging in this type of marketing, and what your goals are to impact the botttom line.

Like any marketing initiative, it’s not just about doing what everyone else is doing, it’s about implementing what makes sense for your company and how you want to represent your brand to current and future customers!

If you’re interested in learning more about how your company’s brand can leverage content marketing and other unique sales & marketing strategies for your restoration company, contact us at www.theBDAway.com or 773-777-9956 for more information!



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