I cannot possibly overstate the advantages of going to trade shows.  Before you go into your desired business, you should attend the trade shows in your target industry just to walk around and network.  Through this process you can begin to develop relationships with industry people, identify suppliers, identify other support services, and start to conceptually put together your exhibit plan. 

Generally speaking if you have the capital reserves, the dollars, and if you are in a business where exposure to customers will convert to sales, then you should exhibit at trade shows.  However, there are some things you should know about exhibiting: 

1. Expense – Trade shows can be an expensive event.  In addition to booth fees you want to have a decent display and/or booth accouterments.  Depending on the location of the trade show you will have shipping costs that can be very expensive, especially if you have heavy equipment or wide product lines.  If you need any labor done at the trade show like electricity hook up or other labor it is outrageously expensive. Also if you need to rent chairs/tables and/or other furniture, the cost is through the roof.  You also may rent some lead tracking software to track your leads. 

2. Customers have two personalities – I found out that many (not all) customers have two personalities: one personality they have at a trade show and another personality they have after the trade show when it is time for them to make a decision to buy your product.  I have had many trade shows that I thought were successful because I got a lot of favorable customer feedback.  What I found was that customers are relaxed and over-complimentary.  For a lot of customers, walking a trade show and seeing all the  new and exciting products is interesting to them almost to the point of the trade show being a field trip.  So many customers will rave about your product and be  complimentary, mainly because the trade show puts them in a complimentary mood.  I wouldn’t put too much stock in those compliments until you see what their reaction is after the trade show when you follow up and ask for an  appointment or an order.  I point this out because the majority of business owners are excited out of their minds when they go to trade shows mainly because of all of the compliments.  Most trade shows are not writing shows which means customers usually do not write orders at shows. Sometimes they do, but for the  most part they are just looking.  So when business owners come back from shows, they are excited because they got so many compliments about their products they think everyone will probably buy.  What they find is that the second personality of customers kicks in and the excitement and compliments wane. 

3. Follow up on all leads – Statistics show that 80% of trade show leads are not followed up.  Can you believe it?  Companies spend all this money and all this time and only follow up on 20% of the leads.  This is an incredible waste.  Make sure you follow up on all your leads.  After all, each lead costs an enormous amount of money.

A part-time CFO with business ownership experience can be a great tool in helping you prepare for and carry out your trade show strategy!