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Archive for the 'mobile 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.

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.

Mobile Technology Adaption Growing in Small Businesses

A recent Constant Contact survey shows a strong trend among small business owners who are using mobile technology to not only conduct business, but also to promote their business, with conducting social media marketing (73%) and email marketing (71%) at the top of the list.

Other uses include engaging in advertising through social media outlets, as well as having a mobile-friendly site. A smaller percentage of the survey participants use tablets for point-of-sale purposes and use mobile apps to manage their business. 82% using a calendar/time management app tops the list of types of apps used, with others reporting app usage in customer communications, GPS/mapping, accounting/invoicing, travel planning and industry news updates.

In regards to social media advertising, a whopping 97% of those surveyed utilize many of the “biggies” of social media for advertising dollars: YouTube, Pinterest, Twitter, Facebook and Instagram.

For those that have mobile-friendly sites, 70% of participants reported that it’s not only mobile-friendly, but also social-media optimized. Other characteristics of these sites include:

-A Menu (44%)
-Individual Product Listings (40%)
-Videos (39%)

And, when it comes to what type of mobile device is choice among small business owners, iOS is still heads above the Android. (66% to 39% respectively). In tablets, iPad beats out the Android tablet, 49% to 15% respectively.

Now, not all small businesses are behind the mobile trend, and for various reasons, with the top reason (56%) being that their customers have not expressed demand for mobile communications. 28% said mobile is not relevant to their industry/business.

For the restoration contractor, there are many opportunities for both their sales and marketing force plus their operations team to benefit from the many advantages of mobile technology. Learning curves, costs of the technology itself and having very little time to learn and adapt to mobile technology are just some of the reasons why contractors, much like the non-mobile users in the owners surveyed, have not employed this trend into their own businesses. But, as any business knows, it’s vital to stay ahead of the curve for business trends that have a direct impact on best servicing their customers.

In an ever-increasing world dependent on technology, it will be critical for small business owners to adapt to mobile changes before their customers start demanding it-and for the company, to adapt to mobile technology before they get left behind while the competition roars ahead.

If you are a contractor or a company in the inspection, cleaning and restoration industry, and have found that what was working to grow your company from point A to point B is not working to get you to point C, Business Development Associates, Inc. might be the solution for you. We are helping companies across the country predictably control the growth of their companies with proprietary sales and marketing programs that are generating millions in new business. Email us at info@thebdaway.com or call us at 773-777-9956 today!

Facebook Conversations Get Easier With New Feature

Facebook announced a new comments feature that will allow for easier and more direct conversation between users.

As many know, a post can render many comments from other Facebook users. The owner of the original post could comment back to a specific person’s comment, but if not immediate, the owner’s reply could appear way down the conversation thread, thus leaving confusion and impact of the reply to the individual.

With Facebook’s new feature, users can reply to each other’s posts and comments directly by hitting the “reply” button that will be placed next to individual comments, allowing for the communications to be grouped accordingly. In a B2B setting, this can add even more power to the 1:1 interaction between the company and the customer on Facebook, allowing for a targeted, specific and meaningful interaction.

In addition, those comments and replies that are the most active and engaging will surface to the top of the post. This allows people visiting your page to see the best conversations occurring on your content.

For now, only profiles with more than 10,000 followers and pages will have the feature enabled at this point. For those folks, the reply feature will be automatically enabled on July 10, 2013 on your Page, but for now, you can go to your settings in your Page admin panel to enable the new feature. Mobile users will also have to wait to enjoy this future, but plans are in the works to have this feature in place for Facebookers “on the go.”

Small Tablets And What They Mean To Your Marketing

With the introduction of the new Apple iPad mini, small or “mini” tablets are starting to gain more notoriety. Although the Kindle Fire HD and the Google Nexus 7 are already on the market in this category, the introduction of Apple’s small tablet is causing both consumers and marketers to take even more notice of the latest technology in the tablet world.

These smaller tablets are appealing on many levels including being a cheaper and less bulky alternative than a laptop or regular-size tablet. The iPad mini is slightly larger than its competitors (7.9″ compared to 7.0″), but does not have as sharp a resolution as the Kindle Fire HD and the Google Nexus 7. The iPad mini actually has the same resolution as the original iPad and iPad 2, due to the need to maintain app compatibility. The larger size screen on the iPad mini will also (as stated by Apple), equate to a 49% larger web-surfing area in when viewing it in portrait style and 67% in landscape view. The iPad mini, although larger in screen size, is significantly thinner and lighter than the Fire HD and the Nexus 7. Because the iPad mini or any small tablet can virtually fit (and tends to be more comfortable) in your hand, it might start replacing the iPad when the consumer travels or wants to take something more significant in size than their smartphone out of their house for browsing and other purposes. Much like regular tablets are replacing laptops when consumers are sitting on the couch or traveling, the truly mobile small tablet could slowly start edging out the regular-size tablets for some of its current purposes, such as being more convenient to travel with, less bulk in your purse or briefcase, etc.

Its’ also important to know that while Google Play boasts a considerable number of apps, they are not all accessible via tablet, while iPad mini offers more apps than either of their competitors. Plus, some recent data shows that small tablets can lead to 20% more page views, and before the launch of the iPad mini, users stayed on sites approximately 36% longer than they did on the regular-size iPad when using a Kindle Fire. This could be because Kindle Fire users are already accustomed to reading long text, books and magazines on their e-reader device predecessor, the Kindle.

So, as small tablets continue their climb and place in both the B to B and B to C world, marketers should start looking again at how their communications show up, and what style they appear in to not only accommodate users on PCs and laptops, but now tablets of both sizes plus smartphones. You might or might not have noticed lately, but your smartphone might be popping up the request to use your location more and more. That’s because the current buzz in mobile marketing is to utilize location data, with the belief that the person that’s looking and viewing the phone at that time is in buying mode and on the move.

Small tablets can be seen as a hybrid between the smartphone and the tablet, as it allows for a better surfing/browsing experience than the typically smaller smartphone screen, but less bulky and more portable than its big brother, the regular-size tablet. In that, advertisers will need to experiment with what works on the mini tablet to gain maximum impact. Do you have magazine, larger-size ads like on a tablet, or, do you have more simple ads that have a direct call to action like you would find on a smartphone? It’s really all dependent on what you’re doing, what you want to say, and the best medium to put it into.

As with any new technology, marketers will have both challenges and opportunities. One example might that while click-through and browsing rates on ads and websites might increase with smaller technology such as smartphones and tablets because of their popularity, it also means that those numbers might be skewed because of accidental taps or swipes (while technology shrinks, our fingers stay the same!).

With the introduction of a big player like Apple in the small tablet market, marketers have yet another opportunity to capitalize on their mobile marketing efforts. And small businesses are no exception. A recent study by web.com shows that 60%, or 6 out of every 10, of small business owners surveyed (companies with less than 100 employees), had a web presence. 26% had a mobile friendly site, and 14% had a stand-alone mobile website. Of the 14% that had a stand-along mobile website (layout was designed specifically for a mobile phone), that 14% saw an 84% increase in new business activity due to their mobile marketing efforts and 69% somewhat or strongly agreed that “mobile marketing is key to their small business growth in the next 5 years.”

With numbers like that, it’s hard to deny the power of the mobile communication platform.

If you are a restoration contractor looking to predictably grow your business by implementing strategic marketing and sales tools, click here for more information!

Mobile and Tablet Usage Rising-Is It Right For Your Mix?

There is no question that smartphones and tablets have not only revolutionized how we engage with each other both personally and in business, but both technologies continue to provide greater marketing opportunities for both B2B and B2C purposes. And everywhere you look, it seems that everyone has one, and for those that are has a lower adaptability rate, (for example, the Silent Generation), they too are gradually increasing in their consumption of the latest technology.

And for marketers, increased mobile and tablet usage means the ability to leverage various tactics and strategies in order to communicate and provide interactive opportunities with their company, from QR codes, push messaging, Mobile Apps, mobile and tablet friendly Websites, sharing abilities, interactive TV, mobile banner ad opportunities, location-based marketing and much more.

For the consumer, the immediate gratification of finding information or products they want is also a big plus, as they can quickly perform a Google Search or buy the item they just saw on TV or in a magazine in a matter of minutes. For the company that consumer is buying from, the ability to maximize on the consumer’s impulse and need for immediate information or for the product itself can be result in shorter buy cycles and quicker profit. And to top all this, the rising market penetration rates of both mobile devices and tablets have marketers looking at a way to start shifting part of their marketing mix over to this new communications platform.

To give you an idea of how entrenched mobile and tablet technology is here in the U.S., below is a quick snapshot of US smartphone users and penetration into the population from 2010 and projected into 2016. In 2010, smartphones were used by 20.2% of the population, where in 2013 it will have jumped to 48.9%. In 2016, it’s projected that nearly 60% will have a smartphone.

- 2010: 62.2 million (26.9% of mobile phone users / 20.2% of population)
- 2011: 93.1 million (39.2% / 29.7%)
- 2012: 115.8 million (47.7% / 36.6%)
- 2013: 137.5 million (55.5% / 43.1%)
- 2014: 157.7 million (62.5% / 48.9%)
- 2015: 176.3 million (68.8% / 54.2%)
- 2016:192.4 million (74.1% / 58.5%)

The following numbers reflect those of tablet users. By 2014, it’s predicted that over a quarter of the U.S. population will be using tablets. As tablet adoption increases, older devices will get replaced and eventually, will become more like smartphones, which typically have a single user and less sharing.

U.S. tablet users and penetration, 2010-2014:
- 2010: 13.0 million (4.2% of total population / 5.8% of internet users)
- 2011: 33.7 million (10.8% / 14.5%)
- 2012: 54.8 million (17.3% / 22.9%)
- 2013: 75.6 million (23.7% / 30.9%)
- 2014: 89.5 million (27.7% / 35.6%)

Another advantage of mobile and tablet marketing in a company’s mix is not only the benefits we spoke of above, but the ability to be truly integrated and interactive with other elements of your mix. Marketers can cross-pollinate what can be considered a traditional form of marketing with the newer forms like mobile marketing. By doing so, you can give a “facelift” to what some people might be considered “dead” forms of advertising, like print advertising.

For example, in Quarter 2/2012, the use of mobile action codes In the U.S. top print magazines rose 61% compared to the previous quarter. In comparison to last year, the print-to-mobile marketing strategy rose from 5% overall to 10% and continues to rise. Action codes in magazines right now are actually outpacing action codes in direct mail. Direct mail is typically receiving about 4.4% overall in a response rate while catalogs garner a 4.3% response rate; a direct mail letter receives an approximate 3.4%). But, with the implementation of mobile code actions, that response rate on direct mail rose from 4.5% to 5.9%.

It’s important to note something here…one of the best rules in marketing is this: don’t implement a marketing activity into your mix just because it’s the latest buzz trend. Rather, does a proper analysis of your target market, how they engage with your applicable medium and then see how the rubber will hit the road, if it does at all. The numbers we provided here are some high-level stats. There’s lots of ways to drill down and seek out further information about your target market on a much deeper level, and you should make every effort to do so. But, with some powerful data and the obvious impact both mobile and tablet technology has had and will continue to make on our society, it’s certainly something that can’t be ignored and should be considered!

In the end, what you choose in your marketing mix and what you decide to say and how you say it are all integral, critical parts in acting strategically with your message. Finding the ways to communicate your message is half the battle — figuring out what to say is the other side of it!

What’s your experience with mobile and tablet marketing? Restoration Contractors are you currently utilizing any mobile or tablet strategies? We’d love to hear your thoughts and/or experience!!

For more information about Business Development Associates, Inc., visit www.theBDAway.com.



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