Desperately seeking sales
We recently received a plea for help from an entrepreneur who just started up a consulting business. She was having a hard time getting initial customers. A lot of people who are just starting up have the same challenge–they’re desperately seeking sales.
It’s tough to ramp up sales volume when you’re a new business without a track record, repeat customers or brand familiarity.
But here’s a strategy that you should consider to get your sales jump-started: give it away!
That may sound strange since you’re in business to make money and your instinct is to sell every product (or hour of service) for a profit. In reality, though, who cares if you lose money on some products as long as you make money in the end?
The idea behind giving away a limited quantity of what you sell is to get people exposed to your product, to get them talking about your product and to get them to coming back for more.
If you’re clever in how you use this ‘give it away’ strategy, you’ll be able to generate interest from the local press, giving you a PR kick in the pants, too. You’ll also be able to create written testimonials of people who’ve enjoyed your product.
This is just one strategy to kick start your business. Can you recommend others to the brand new startup entrepreneur?
July 5th, 2005 at 9:17 pm
We had success with giving an unconditional money back guarentee. We felt that "free" really reduces the overall value statement. Instead, we took out any objections with the money back statement.
July 5th, 2005 at 10:48 pm
I’m in the process of starting my third company (the other two were successfully sold). I have found that giving your services to *CREDIBLE* non-profits is a great way to build up a portfolio/referral base without sacrificing others’ value perception about your company.
July 5th, 2005 at 11:01 pm
For each new client, I give away a couple of hours in the beginning to see if our services are a good fit. They almost always are and our clients stay with us for years.
We also appeal to a niche of executives and I am careful to remember birthdays, anniversaries and special holidays for our clients. For larger clients, I also make certain to send gifts once or twice a year on memorable dates as a way of saying thank you. I have also found that a concrete confidentiality agreement wins clients - we have used these all over the world successfully as well as with executives and government contracts.
July 6th, 2005 at 12:49 am
I’m no hugely successful entrepreneur but I’ve found that people like to hear these two words:
‘discount’ and ‘package’.
I’ve also found that creating a sense of urgency gets people to commit.
So something like, "We’ve got a XYZ package" and replace XYZ with the potential customer’s industry. So if you client is into real estate, say that you have a real estate package.
Then throw in the discount line, "We have a Summer Special happening right now. If you sign up before the end of July, you will get 30% off your first bill."
July 6th, 2005 at 7:48 am
I’ve had tremendous success with press attention. I would pinpoint some of the publications that your potential customers are reading and pitch your story to them. You can also offer to serve as an expert for a radio program or column related to your field.
July 6th, 2005 at 8:22 am
Try "leapfrogging" to get referrals. I’ve found that many new business owners are reluctant to approach acquaintances from their "previous life" or friends or former clients as prospects. Try this approach: "Jim, I’ve got to believe that you have your (the business you’re in) needs well in hand. However, you may know some folks in similar businesses who aren’t as well taken care of as you. If that is the case, I’d like to know if you would introduce me to one or two of them." If Jim is happy with his current provider, you’ve lost nothing and he may refer you. If his situation is not under control, you may have - gently - backed into an opportunity to talk to him about what you do.
July 7th, 2005 at 8:41 pm
I really do not believe in giving something away that has value, except to non-profit organizations. It sets a wrong precedence with customers.
The better (and more profitable) way is to spend a few hours with new clients to establish trust and identify their needs, determine whether you can really address those, propose a solution, and quantify - and if possible demonstrate - the value of your solution for the customer’s business. If the customer perceives the value you provide higher than what he has to pay you, you’ve got the business and will earn money for your work, independent of whether you have references or not.
For people who start a new business, especially in consulting, I recommend the book "Getting Started in Consulting", from Alan Weiss, Ph.D. (ISBN 0-471-47969-1).
July 8th, 2005 at 2:00 pm
Dear Sloan Brothers:
Your article in this week’s newsletter, "Getting Paid - Collection Success for Startups" hit home. As an entrepreneur and small business owner, getting paid for the services we provide is how we survive.
But in today’s economy it is getting harder and harder to collect. That is why I live by the principle of getting paid first. In fact, in law school, my law professors taught me three important lessons: (1) Get paid upfront; (2) Get paid first; &(3) Don’t begin any work until you received some money or percentage of the contract.
Last night, I spoke with a fellow entrepreneur/military reservist who managed to keep his printing business afloat while oversees, only to come back and find out his customers have not paid their invoices. As a result, this servicepreneur is looking to sell his business and associate with a more stable employer.
To avoid delinquent customers, I recommend constantly communicate with your customers. Whether it is by weekly phone calls, an e-newsletter, a quick eMail of an interesting item or an update on their account, it is important to always communicate with your customer.
If you have trouble collecting from a customer, I recommend that you retain a collections attorney to help in preparing letters. It is amazing what a letter on a law firm’s letterhead can do for collecting a fee.
Finally, to assist you in collecting your fee, I recommend that you obtain as much information from your customer as possible. For example, if you have their social security number and a signed agreement you may be able to garnish their wages if they do not pay you or obtain money from some other revenue source. Regardless, you should have signed agreements with your customers to protect yourself, to ensure you will get paid and what action you can take if you don’t get paid, as well as being on record should your client/customer file for bankruptcy, you can become a secured creditor and collect from the bankruptcy court.
Keep it up! I love the newsletters.
Dan C.
July 9th, 2005 at 10:57 am
I am new to the retail sales world , but it is almost like all businesses i have had. Get a catchy name ,use name recognition when possible. simple is best. engage with those who have been there and done that for a way to succeed quicker, Get on National Television Show like Jay Leno if possible. I did, and the response is awesome. The pitch to america I did for Jay Leno is a great way to accelerate and give credibility to your product as you seek buyers or interested investors. Thanks and stay with the Sloan brothers for excellent help and assistance in your growth. David Kirby the Crapper King. Never give up on your dream and be tenacious in your efforts to achieve them. Always thank God for your blessings. David Kirby my web is http://www.crapperzapper.net.
July 11th, 2005 at 9:48 am
Great post!
I posted a similar strategy for consulting on my blog at startupguide.typepad.com
I have started a consulting company for individuals starting new businesses. For the month of August I am going back to my home town and offering free consulting services to any one planning to open a business in the local area. I gain further experience, test demand, build my personal brand, and give back to my community. Everyone wins.