It’s been 12 months since I wrote about the business uncertainties of 2024.
Since then, we’ve explored local startups that have added to Northern Nevada’s favorable ecosystem. We’ve explored strategies for sustaining value during uncertain times. We’ve looked at local, cutting-edge technologies that may change the world. We’ve interviewed small businesses adapting to change. In this column exactly one year ago, I was stating that by now, we’d know who is going to take the White House (we do); we’d know if we were going to be in a recession (we’re not); we’d know if we’re going to be in one war or two (we’re not yet in any).
We are about to see formidable changes in our federal government and how it does business. Many believe this dramatic change is exactly what we need; others believe it’s the end of our business supremacy as we know it. Our democracy will survive and hopefully thrive if we cut some of the crazy government spending; my businesses couldn’t ignore debt and survive. Will this be the administration that cuts the deficit? I’m not counting on it, but for my kids’ sake, I hope so. The last Trump administration added $8 trillion to the deficit. In any case, we are ever optimistic.
I’m heading back to CES, the Consumer Electronics Show, in Las Vegas in January to meet many of our clients from central and eastern Europe. It’s the largest trade show in the world for cutting-edge tech and new innovations. Many of the advancements in television tech are introduced there; flatscreens by Sharp and Sony debuted in 1997. This year, I’m giving a workshop in conjunction with our Polish sponsors on “Trade Show Strategies and Management” for 30 companies. I’ve given this workshop to chambers of commerce and businesses for more than 15 years.
I’ve been exhibiting and walking conference and trade-show floors since my first startup in the ’80s. It’s an incredible opportunity—if you’re correctly prepared and ready for diligent follow-up afterward. Why are trade shows so bloody important to most every business? It’s because they give you a deep dive into the state of your industry and the innovations being debuted for the focused market.
The trade show is where all of your customers will be. It’s where all of your competitors will be. It’s where all of your partners and alliances will be. It’s an opportunity to see who has the cool new tech or gadget. Speaker seminars and breakout sessions provide intimate settings to meet, ask questions and become known as an expert in your industry. It’s a place to look at perceived competitors and figure out how to make them partners. It’s where you see honestly how your product or service values stack up to the true competition. There are no excuses or veiled values when you stand face to face with your competitors. It can be very sobering.
Do you have a tradeshow strategy for 2025? For small businesses, one or two shows a year will keep your thumb on the pulse of the industry, and it’ll keep you in front of your customers and partners. You should prep for six months to one year prior, to be sure to maximize your return on your investment in the show. Show rules vary by industry, city, venue, etc.; be sure to know what is and isn’t allowed. Some shows allow and promote sales; some forbid it. If new to an industry, I recommend that you just walk the show the first time as an attendee. It’ll allow you to see how the floor is laid out, who is exhibiting, who is speaking, and what breakout sessions may be of importance to you and your biz before you invest.
Most of the people and companies that do not get results blame the show, its organizers, the industry, the reps or the venue. The truth is that it is usually a lack of preparation, a cohesive show floor strategy, a timeline, personnel training and, especially, follow-up. According to ColorCraft, a leading designer of trade show exhibits, only 6% of exhibitors believe that they effectively convert leads into sales. Wow! Then why do it?
Even for my small companies, I expect to spend a minimum of $25,000 to attend a West Coast show for four days, including booth space, booth accoutrements (table, marketing swag, electricity/internet, displays, fliers, etc.), hospitality, flights and booth shipping. That’s a lot of hassle and investment for a 6% return.
My goals and expectations are fairly simple: I want a minimum of 10 to 20 times of my investment over the time period that is equivalent to one typical sales cycle. What does that mean? For my software company, it was a six-month cycle from the time I met a customer until the time I closed them and got fully paid. For the custom paperclip company, our sales cycle was nine to 12 months for a customer paperclip order. So, my tradeshow payback was always calculated at 12 months. If I spent $50,000, I set the goal for $500,000 to $1 million in residual ROI.
Most of the people and companies that do not get results blame the show. The truth is that it is usually a lack of preparation, a cohesive floor strategy, a timeline, training and, especially, follow-up.
So how do we get to that confident spot where we are ready; we’re prepped; and we’re set to go hustle at the break of day? That’s when the show floor opens for exhibitors to set up. My companies are always set up the day prior. We do this so I can casually walk the show with no one in the hall to distract me. I want to be able to look at the booths with no crowd so I can get a feel. Which company may have access to my potential customers? If I ingratiate one key player, I can get many customers! I call it the “One to Many”; it is key to success.
Once the doors open for the attendees, we are at the booth, dressed in coordination, standing (not sitting!), smiling and drawing attendees into the booth to chat via whatever creative means possible. Giveaway prizes are always a hit. We coordinate the booth coverage so someone is always there, repping the company happily and respectfully during all show hours. We are always collecting business cards and annotating the back of the card to remind us what we chatted about so we can follow up. We also letter grade each card:
- A= Hot lead and ready to close
- B= Warm lead; needs to be nudged to an A
- C= Cool but could be sold with some decent follow-up
- D=Everyone else—the cafeteria lady, the swag thieves, the other booth rats, etc. Throw them away!
Focus on closing the A leads ASAP. Then nudge those B’s to A’s, and nudge the C’s to “B’s—but you only have one to two business weeks to do it. After that, they’ve forgotten about you.
If you commit and plan ahead, the right show and the right strategy can catapult your business into places you can’t imagine. Good luck in 2025!
Excellent article and insight. The information is especially helpful to new business owners who may need tips to gain a following or learn ways to develop a competitive advantage in their industry.