Most business people have one aim when they launch a company –
generate enough turnover to produce a profitable business. No matter
which path they choose to achieve this, they will need to grasp the
basics of their business in order to maximise their sales effort.
If you are preparing to set up a business, first do the following:
Define your proposition
Before approaching anyone else with your business idea you need to
fully understand your business proposition. This sounds obvious; it’s
your idea, after all. However, if you can’t verbally and succinctly
convey your offering (in what is often called the elevator pitch), how
can you communicate it to potential customers? It happens again and
again. Entrepreneurs have great ideas, but wordy websites and offerings
that are overly complicated and difficult to understand turn potential
customers off.
Recognise the value
You know what you’re selling - now you need to consider why you’re
selling it. What value does your product or service add that no other
business does? Start by listing your differentiators and then think
about how you can best explain your “value-add” to your prospects.
Identify your market
Your business may be amazing to you, but you’re not the customers.
You must identify your position in the market and consider the size of
your prospective customer base. This will help you to assess the
potential and viability of your offering. You need to be realistic. If
your plan shows you signing up more than 10% of your target demographic
in the first year, you are likely being overly optimistic. If your plan
depends on this to be viable, it’s not too late for you to go back to
defining the proposition and start again in order to identify your
market.
Route to market
Now you have the basics in place, begin thinking about your route to
market. How will you communicate the values of your offering to the
prospective customers you have identified? You can do this in a number
of ways, depending on the type of product or service you’re selling. If
you’re retailing products, you can open a shop in a location with a good
concentration of prospective customers passing your shop front. If you
intend to sell products online, you will need to develop a marketing
plan to drive prospects to your site. Whatever you decide, make sure to
do your research before committing any money.
Make sales
It’s time to make some sales and build your turnover. None of this
messaging and communication will be worth anything if it doesn’t lead to
converted sales, so be determined in your pursuit of leads and execute
your sales well.
A word of warning – maximising turnover is not always best for your
business. You need to ensure that your sales are profitable and convert
to cash quickly. However, if you get the above basics right, you will be
in the best position to succeed.
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