Things You Need to Know Before Hiring a Marketing Consultant

Have you ever watched the show Dragons Den?  Or the American version, Shark Tank?  I’m addicted to watching those shows every week.  There are a few of the Dragons and Sharks that I would love to partner with in business and some that I could do without.  Some of the Dragons and Sharks have changed over the seasons and some have made a big impact on my own business decisions. 

I think what’s really amazing to me when I watch Dragons Den or Shark Tank is the sheer number of people who come on the show completely clueless about doing business.  Time and time again, people have spent countless hours and money developing a new product.  But they obviously have not done their research first.  People go out there on national television absolutely, solidly believing in their product but it’s clear that the market doesn’t want or need it.  Their valuations are often ridiculous too, usually because they have valued their company at a million dollars or some other crazy number but they haven’t made any sales yet.  But what really gets me (and I think it’s because I’m a marketer) is the people who go out there and have no clue who their customer is.  They go into this dramatic sales spiel about their product but then one of the dragons cuts them off and says, “But who’s going to buy it?”  It amazes me that they often can’t answer that question.

Whether you’re going on Dragons Den or Shark Tank to pitch a product or you’re approaching a consultant to help you move your business forward, there are things you need to do to prepare for this meeting.  So, here are some thoughts about what you need to know before hiring a marketing firm.

·         Do you have a business plan?  If you don’t have one that’s an issue because it shows me that you haven’t taken the time to do your research.  And if you wrote a business plan 5 years ago and haven’t looked at it since, you need to do that and update it.

·         Do you know your numbers?  You need to know how much it costs to produce the product, how much to sell it for, what your expenses are, what your profit will be and an accurate sales forecast for the next 12 months.  You also need to know how much you will be allocating to marketing expenses.  I can help you with that, but you need to come in prepared.

·         What are your marketing objectives?  Many clients come to me and say, “I need help with my marketing.”  Well, that encompasses a lot of things, so what exactly do you want help with?  What are your goals and how do you think various marketing activities will help achieve those goals?

·         What makes your product so different and special?  I can help you further define your differentiating factors and help you align those with the right target market, but you need to be able to clearly tell me why this is such a fabulous product and why anyone would buy this from you as opposed to buying it from a competitor.

Marketing is one of the most time consuming and expensive aspects to operating a business and it is absolutely crucial to any business.  But you can’t expect to sit back and just let it happen.  You need to do your homework first.  Here is also a list of questions to ask your marketing consultant before signing any contracts with a marketing firm.