MT-Chapter 1

The matter of marketing a small factoring business or consultancy is one of the first issues facing people who decide to enter this field. Surprisingly little is written on this topic and most people are destined to learn by the all-too-familiar “Spaghetti Technique” - throw a lot against the wall and see what sticks.

I first addressed the topic of marketing a small factoring business in the chapter “Marketing: How to Find Clients” in

Marketing Tools for Small Factors and Consultants

Chapter 1

The complete first chapter
is printed below.
(© Dash Point Publishing, Inc.)

The Story Behind This Book

the book Factoring Small Receivables. That chapter presented many of the marketing methods included in this book. After briefly describing these methods in Factoring Small Receivables, I added an observation after some of the methods as to whether they were recommended or not. The feedback I received was consistent: “This is helpful, but we need more.”

Many readers, and many more consultants and factors new to the industry, all have the same questions: “Which marketing methods are most effective?” “Which are a waste of time and money?” “Which should I use?” “Which do you use?”

After hearing these questions time and again, the need for this book was obvious. Yet I hesitated writing it because I have never felt marketing to be my strong point as a small factor. I enjoy working with consultants, operations and running the business, and working with clients; but I’ve never possessed an innate skill in finding them. Some people seem to be born marketers, but I’m not one of them. Marketing has never been my forte, so I left the subject alone for quite some time.

After the success of the book Factoring Case Studies, a joint effort between myself and eight other small factors (which, to my thinking , is in many ways the most instructive book of The Small Factor Series), I realized a similar approach would provide the most value for a book on marketing. Rather than just telling what marketing methods are being done and what has worked for me, readers could benefit more from learning what works for several small factors and consultants. So I set out to ask a number of colleagues if they would be willing to contribute to this effort.

Like the response from Factoring Case Studies, the interest was strong and several people were more than willing to share their experiences. After completing and presenting their contributions, many of these colleagues said words to this effect: “This was really beneficial for me. It helped me take a good look at my marketing efforts and analyze them seriously. I’m glad I did this.” The lesson is clear for all small factors and consultants seeking success: plan your marketing efforts, carry them out, then continually review and hone them.

Each writer was given the same nine points to address, which were the following:

•	Give a brief definition of marketing and the role it plays in your factoring or factor consulting business.
•	Describe marketing methods you’ve used and indicate their financial cost and time involved. Separate your responses this way:

■	The top three marketing methods that work best for you, and why they are successful.
■	Other marketing methods you recommend which have brought new clients, and why they are worth using.
■	Methods you have used which aren’t as productive, and why they are less beneficial.
■	Methods which have never worked for you or you will never use again. Explain why you think these methods aren’t worthwhile.

•	Discuss approximately how much (in dollars and/or percent of your budget) you spend on marketing per month and per year.
•	Describe approximately how many hours per day, week, and/or month you spend in marketing efforts. If you have a schedule for marketing, tell us what it is.
•	If you have developed a marketing plan, give an outline of its contents and briefly describe your overall strategy.
•	Do successful marketing methods for small factoring clients differ from those for larger clients? If so, how?
•	Do you have a standard presentation or “talk,” especially the first time you speak with prospects in person or over the phone? If so, please share what you say, and/or look for, in such discussions.
•	What advice would you give to new factors and consultants as they search for clients?
•	Discuss any other information about marketing you think is important.

The Contributors

As you will see, each writer answers these questions in his or her own style and from a distinct perspective. While we’ll find some overlap as to what has worked and what hasn’t, each writer’s unique experience is valuable for newcomers to hear, absorb, and apply to their own businesses.

The mix of the nine writers’ backgrounds is intentional.

•	Four are women, five are men.
•	They are from all areas of the country:

■	the Northwest (Washington state)
■	the Southwest (Arizona)
■	the Midwest (Missouri and Illinois)
■	the Northeast (New Hampshire and Massachusetts)
■	and the Southeast (South Carolina and Florida).

•	Eight are small factors. Five received training with the American Cash Flow Association (or one of its earlier organizations) as factoring consultants before they started buying receivables. One was already purchasing receivables when she took the training. The other two began buying receivables without formal training.
•	Five work full-time and two work part-time as small factors; one is a part-time small factor and also a Master Consultant, and the other is a specialist in marketing with extensive experience in the factoring and cash flow industries.
•	One has been a factor since the 1980’s; four have been in factoring since the mid-1990’s. Three began factoring in the early 2000’s following a strong background in the business world.

Book Sections

The book is divided into four sections.

1.	The Introduction by Jeff Callender, and an overview of the subject by marketing specialist Kendall SummerHawk, set the stage.
2.	The bulk of the book is in the next section, “Viewpoints from the Field,” in which seven of the small factors’ contributions are found.
3.	The next section, “Putting It Together,” contains a summary of the contributors’ findings in the previous section. Copies of each contributor’s business cards are printed, showing each writer’s version of this critical marketing tool. Next a chart compiles the many resources (books, web sites, software, etc .) the writers mention as being especially helpful to their marketing efforts. Finally, another chart summarizes the contributors’ experiences of the relative effectiveness and cost of all the marketing methods identified. This final chart puts much of the book’s content in one convenient place for very easy reference. An analysis of this information follows.
4.	The last section, “Specialties,” contains three chapters. Each chapter addresses in detail a specific marketing method mentioned by the contributors as being the most effective. Here you’ll find another chapter by Kendall SummerHawk, which is a guide to effectively using your a web site. This is followed by material from Master Consultant Richard Shapiro: first a chapter on networking, then a complete marketing presentation with accompanying slides. The book concludes with closing words encapsulating the entire work

While the subject of marketing is a daunting one, the information in this book will provide an excellent starting point for new small factors and consultants. Those who have been in the business for some time and are looking for new ideas, or want to see how their colleagues tackle this crucial part of the business, will benefit as well.

Let’s begin!

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