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n e w h a v e n b i z . c o m | N o v e m b e r / D e c e m b e r 2 0 1 9 | n e w h a v e n B I Z 39 ACCOUNTING/FINANCIAL PLANNING Uh, no. "ey don't know, and they don't care. ey're not going to come unless you give them a reason to come." And, except for business owners with thousands of close per- sonal friends, perhaps, the only way to tell potential customers that you exist is to invest in advertising and marketing. And that costs money. On the other hand, "You can spend a lot of money on advertising and marketing," Otton notes, "but if it's not effective it's not going to get you anything. You need to speak to the right people" — those who are most likely to buy your product or service. Niche marketing is there- fore key. • Don't be afraid to raise prices. In many industries there's a powerful correlation between price and per- ceived value, Otton notes. Would a pair of Air Jordans be as sexy if they retailed for $29.95? • What if you have no revenues? Otton cites the example of an entrepreneur who pours his or her life savings — not to mention hopes and dreams — into a new business, expecting customers to flock to it from the day the doors are first flung open. But is that entrepreneur financially prepared for a launch where sales don't begin to meet expectations? Oen not — and that can spell disaster not only for the nascent enterprise, but sometimes for the financial fortunes of entire families. "I tell business owners they should be able to live for a year" with no revenues, Otton says — "to pay your rent, pay your personal expenses. It may be a year before you can take a paycheck out of that business — and maybe two years before you can expect to earn a decent living." On the other hand, "If you've been in business for five years and you're still not making a decent living," she adds, "there's something wrong with your business." n GrowthCast CEO Judi Otton helps entrepreneurs build companies that are built to last.

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