One of the largest challenges which new businesses face is attracting sales. As without an established brand and a loyal customer base, it’s difficult for new businesses to attract sales.
Josh Melick, a respected business guru, teaches entrepreneurs that they have to be willing to chase sales, in the first few months of their business operations. As even if they have attractive, functional websites, traffic to their websites will be low, during the start-up phase of their businesses.
One strategy which Melick teaches entrepreneurs is to find creative ways to attract customers. Examples of which include running a huge opening day sale, which can be extended for a week, and offering free gifts with purchases over a certain amount. As potential customers will be far more likely to shop with a business that offers fun promotions, that promise great one-off deals.
However, Melick warns that business owners should steer away from offering products or services for free, which will give customers the idea that a business’s products or services have little value. Worse yet, customers who initially are given a product or service for free will be unlikely to pay money for the same product or service in the future.
He also talks extensively about the importance of cold selling in the early days of a new business. The reason why entrepreneurs should use cold selling as a tool to get their first sales is that people are more willing to trust a face which they already know. So it’s usually a lot easier for people to sell products or services to people that they know, over complete strangers. However, Melick does warn entrepreneurs that it’s important to meet their first customers’ expectations as if their first customers feel lied to, not only will they never shop with the same business again but they’ll be likely to tell all their contacts about their less than stellar experience.
Melick also has strategies to convince potential new customers to complete transactions with new businesses. For example, he advises entrepreneurs to get comfortable with giving sales pitches. Instead of preparing and practicing a single pitch, Melick suggests that business owners prepare multiple pitches. A quick elevator pitch which is ideal when a potential customer’s time is limited as well as a full sales pitch and a secondary sales pitch. The latter of which can be used at a follow-up meeting, in order to seal an important deal.
Melick also warns entrepreneurs to practice all of their pitches in front of their friends and family members in order to see whether or not their pitches are effective. As their friends and family members should be able to give valuable advice on the parts of the pitch which they found convincing and the parts of each pitch which they believe should be changed for each pitch to be effective.
While it’s certainly challenging for a new business to attract sales in the first few weeks of operation, entrepreneurs can use a number of strategies to successfully accumulate sales.