Marketing Plan vs. Risk Capital

It Takes Time, Money or Both


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If you are a small business owner or self-employed professional, the most important thing for you to understanding about creating a marketing plan is that some of your money invested on marketing should be ‘risk capital’.

By ‘risk capital’, I mean money you can afford to invest without it keeping you up at night…money you do not need to pay the rent…money that, if you lose it all, it won’t hurt you financially or have a big negative impact on your business or life.

Marketing plans can be sometimes like the stock market or gambling; you can grow your business, but you can also lose the investment, especially if you don’t do it right.

In all three activities, there is no guarantee you will make money or grow your business.  In fact it is quite possible in all three areas (though a lot least likely in marketing) to lose all of your money.  The odds are in your favor with an applicable to your business marketing plan, when it’s done the right way.

A conflicting case in point is a client in the energy business.  I recommended that they do a small e-mail marketing campaign to generate leads by offering a free report.

They found a ‘cheap’ e-list from a source I considered questionable, as cheap lists almost never work.  But despite my counsel, they rented the cheap list.  And, as I predicted, it generated no results.

The client was hesitant to try again with a list I was informed from a reliable source that was considered trustworthy, because the reputable list broker that was recommended quoted him $1,500.

The price was fair; $1,500 for 5,000 ‘targeted e-mails’, but was more than the client was willing to risk.

The client asked me, “Do you have any alternatives?”  My answer was this: “I have some ideas, but here is the problem: they all cost money.”

List brokers, copywriters, ad agencies, and business consultants, like me, are able to generate leads for you, but can’t do it for free.  You have to be willing to invest some cash, just like at the casino or the Dow.  The odds are 100 times better in marketing, but not 100% guaranteed.

Action step: decide and write down the maximum dollar amount of money you are willing and comfortable to risk on new marketing efforts.  Then proceed in creating your documented marketing plan from there.  For instance, Perry Marshall, the pay-per-click guru, suggests that small marketers can test Google AdWords for as little as $100 a day.

It costs nothing to write an article on your area of expertise for your blog, local newspaper or a trade journal, if you do the work yourself.

My parting observation; do you need both time and money to be successful in marketing?  No, but you need at least one of them.

If you have no marketing plan and no money, you’re forced to use ‘sweat equity’ and do all the work yourself.  However if you are able to invest in marketing (and you absolutely should), create a written marketing plan, allocate and invest (note I did not say spend money), and hire me (please excuse the blatant plug), to create with you, your business growth and marketing plan.  At a minimum, invest in my book, Profit and Cash Flow Marketing…Fast 10 Ways to Out Think…Out Market…Out Sell the Competition In Any Economy.

However, if you have neither time nor money?  Then you’re not able to do marketing for your product or service until you find one or the other.  Sorry.

This perspective has given you proven concepts on marketing vs. risk capital and it can be applied continuously to help you get what you want and grow your business.  Also, check out our FREE test drive for the most comprehensive system of marketing tools and resources at

To get more information and receive other no-cost special audio downloads, reports, articles, blog posts, and more, visit Ron Hequet where I cover valuable topics that every person wanting to grow their business or career needs to know.  And, if you’re ready to take your business to the next level, get a free assessment from me personally at Free Business Assessment or for those wanting to build your career go to Complimentary Coaching Assessment.

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