Friday, May 11, 2012

How Long Does it Take to Make Money?


We have a lot of small business clients and being that CWI is also a small business, we like that.  It helps us to relate to our clients and understand them.  One of the questions we are asked the most is, “How long does it take to build a brand?” or “How long until this marketing stuff works?”  When we ask the client to elaborate, we find that what they are really asking is, “How long until I make money?”

Good question, since both building your brand and making money go hand-in-hand.

The old adage goes:

“The first year you lose money, the second year you break even and the third year you make money.”

Now, we aren’t saying you should plan on going bankrupt your first year in business, but if you plan on starting a business and striking it rich within the first few months, you aren’t being realistic.  We also aren’t saying that it can’t happen, we are simply saying that if it does (especially in this economy), you are lucky.  You are the exception, not the rule.

When starting a business, it’s important to plan and have enough resources to get you through the first difficult year.  Don’t start too large!

When it comes to building your brand, just like making money, it takes time.  The most important part of building your brand is consistency.  There is no old adage or definite time frame when it comes to having a strong brand that is easily recognized. However, not being consistent in your branding will definitely slow down the time it takes to build your brand.  As I mentioned earlier, building your brand and making money go hand-in- hand.  If your brand isn’t well recognized or perceived as a good value, your company will have a harder time being successful.  On the contrary, a company that has a brand that is well known and recognized as a good value, will be more successful.  Your brand helps you attract new customers and maintain existing ones.

It’s important that the work you put into positioning your brand is ongoing.  Don’t make the mistake of only working on your marketing and branding when business is good and there are a few extra dollars in your budget.  That strategy will take away from the effectiveness of your brand.

If you would like some more helpful hints and ideas for building your brand, we’d love to help.  Feel free to give us a call 540-295-5139, or drop us an email.