By Kay Neth
Economic reality looks pretty forbidding these days: shaky consumer confidence, decreased consumer spending. You walk downtown and the real estate signs taped inside empty storefront windows tell you that small businesses are dying, and with them, dreams and jobs. Yet in spite of the gloomy financial climate, some small businesses are managing to thrive. Delicious Planet, owned by Randi Carter, is one of them.
Delicious Planet (http://www.delicious-planet.com)
is an almost three-year-old organic-meal delivery service that
charges about $100 for four to eight days' worth of dinner. The
company has enjoyed a year of profit at the EBITDA level (earnings
before interest, tax, depreciation and amortization). Yet its
challenges are compounded by the fact that although the organic
industry is doing well, agribusiness, pesticides, GMOs, heavy
processing and Big Macs are the hallmarks of the American food
chain.
So what is Randi Carter doing right?
Marketing
Delicious Planet's pan-seared lemon rosemary tofu will release
a bewitching choreography of flavor and texture on your tongue.
Herb mingles with citrus, and with every bite the tofu's crisp
browned edges collapse into its unctuous soft interior. But one
thing that pan-seared lemon rosemary tofu will not do is sell
itself. Nothing does.
So, when Carter took out a $44,000 business loan more than two
years ago, about a quarter of it went into marketing. Carter hired
a graphic design/ad expert who developed the business's motto
("Eat Healthy. Save Time. Enjoy Life.") and its logo
(a bell pepper surrounded by Saturnine rings of produce: a strawberry,
a mushroom, a broccoli stalk). Thousands of dollars were then
channeled into buying ad space and printing color brochures, business
cards and other promotional material-all as carefully coordinated
in color and design as a boxed eight-piece tableware set. Was
it worth it? Carter, who averages 50 to 70 customers a week, says
yes.
But as a business owner you have to spend money strategically.
For instance, mass mailings didn't win Delicious Planet any customers,
notes Carter, who asks clients where they heard about the business
to track the effectiveness of her marketing. "You know what
my biggest mistake was?" says Carter, referring to the earliest
days of Delicious Planet. "Not going for a target market."
Which brings us to answer number two
Owner |
Niche Marketing
|
In the spirit of niche marketing, Carter spends her advertising
budget to reach a specific audience (with the aforementioned exception
of community newspapers). Sound Consumer-the PCC newsletter-is
the rare forum that attracts new business quickly. Carter's advertising
in other media takes awhile to bring in new clients, but she says
business owners shouldn't expect an instant response from advertising.
An ad needs to run in the same publication, consistently, Carter
advises, for at least six to eleven months. For instance, an ad
in a natural-living magazine, The EcoVision Journal, appeared
in the publication for months before it began to regularly attract
orders every month.
Networking
Carter insists that networking doesn't come naturally to her.
Visiting naturopaths (who might recommend her to their patients)
and attending business breakfasts and other networking functions,
she notes, is "a stretch." "To go out and sell
yourself-that's hard for me," she says. But she believes
that meeting a handful of the right kind of professionals on a
regular basis, who can then refer her business to their customers,
will mean more customers.
And, after a referral, "[T]o acknowledge that someone has
referred you-it's a big deal," says Carter. Customers who've
brought her new clients receive handwritten thank-you notes and
an offer to knock 15 percent off their next order.
Education
Much has changed since Delicious Planet beginnings, when Carter
was posting ragtag flyers at the PCC, had set aside just $500
a month for advertising, and was guessing at what she should be
charging customers rather than costing out materials and labor.
"I had no experience with anything," says Carter, "except
Bastyr University," where she studied nutrition. These days,
she sees a business coach (Carter explains: "I feel like
I have good ideas all the time, I just don't execute them.").
She's also become a prolific reader of books offering business
guidance, even ones with histrionic titles and promises that make
her eyes roll-the ones that pledge doubled profits in the time
it takes to read this sentence. And "I talk to everyone,"
Carter says, to learn more about "what the hell" she
should be doing. She then sifts through the advice to find the
pieces that make sense to her.
Adaptation
Even a profitable business has to review its strategy. During
holidays, Carter's clientele drops. She compensates with catering.
She's also had to experiment with different staff sizes; "I've
been overstaffed, and I've been understaffed," Carter says.
(Currently, she has four full-time and four part-time employees.)
And, as noted, her marketing plan had to be refocused to reach
a niche audience.
It's also important to be flexible with your marketing materials.
Carter's original brochure had nutritional information listed
after each menu item, specifically regarding carotenoids and antioxidants
that help prevent cancer. Someone suggested that having the word
"cancer" listed near food items was bad marketing. Carter
agreed and rewrote the brochure.
Persistence
Times are tricky for the entrepreneur. Those realtor signs in
newly empty storefront windows can seem daunting. But you can
persevere, even as large companies struggle, and sometimes sheer
force of will brings success. "The most important thing,
I think, is determination," says Carter. "There is something
in me that will not stop."