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Five More Small Biz Sales Tips

August 19, 2010

Last month we brought you five great tips for making small business sales. We heard from many readers that found them useful, so today we have another five for you to consider.

Ask Questions: If you want to get inside the head of potential customers and find out what they actually want, you need to ask them. Instead of wondering where your sales pitch went wrong, ask the customer directly why they decided not to purchase from you.

Focus on benefits: Product features have never been a deciding factor in anyone’s purchasing decision. A prospective customer only wants to know what your product can do to benefit them. A good salesperson is able to build a picture in the prospects mind of how a product or service will improve their life.

Evaluate yourself: This tip is useful if you attempt to conduct telesales. It is very easy to record your phone conversations and analyse where you went wrong. Sometimes you can even pinpoint the moment when you lost the sale. However, as we mentioned last time: don’t obsess, learn and move on.

Follow-up: A common trait of many successful salespeople is their willingness to pursue a sale. At times it may seem annoying, but the truth is that unless you remain in contact with a prospect then you will never close a deal. Just try not to irritate them too much!

Take your time: Very often, especially with high-value products, the sales process is not something that can be rushed. The buyer will need to take their time making a purchasing decision, there is no magical solution or method to speed this up without resorting to unethical sales tactics. Your only option is to have a number of sales leads in the pipeline at once and try to avoid becoming frustrated.

Selecting a Distribution Channel

August 9, 2010

When it comes to launching your product, selecting the right distribution channel is a critical decision that requires a lot of research. You must decide on the best way to deliver your product to consumers. If you get this crucial decision wrong, it could result in the failure of your business.

Different types of product require different methods of distribution and more than one type of selling. Push selling is the term given to selling your product through an outlet (e.g. a shop), whereas pull selling refers to the effort that you make to try and sell it, usually through marketing activities. The amount of push and pull needed will vary depending on the distribution channel you choose.

There are various factors that come into play when selecting a distribution channel. You must decide whether your product is suitable to be sold via post and consider the packaging materials that would be required if you decide to sell this way. Generally the more stages involved in your distribution process, the more sturdy (and expensive) your packaging will have to be.

You should also remember that by using some distribution channels, there will be no guarantee that you will receive quick payment. Retailers will often take 90 days or more to settle bills with suppliers, so this delay must be factored into your cashflow forecasts.

If that does not appeal to you, small stores will often stock products for no fee and then give you a share of the profit. Wholesale is also still an important channel for many products that can be bought and sold in large quantities.

For a more hands-on approach to sales, there are the traditional door-to-door and telephone selling methods. This is a hit-and-miss approach, plus it requires very strong personal sales skills. Another option is the ‘party plan selling’ method used by companies like Avon and Tupperware.

The Internet is probably the best distribution channel for many small businesses. A good website is all that is needed to build a successful company. You could also make use of Internet auction websites and sell products directly this way with a link back to your online shop.

Top 5 Sales Tips

July 22, 2010

Selling your product or services can be very difficult for small business owners, especially if they are not a natural salesperson. However, anyone with a warm personality and an in-depth knowledge of their product can be successful at selling. Here are some tips to get you started on the path to being a successful salesperson:

Be Confident: Your pitch must be as convincing as possible in order to convince people to purchase from you. Try to avoid any words that are not totally persuasive, such as “probably” or “might”. Words like this can soften the effectiveness of your pitch without you even realising it.

Diversify Strategy: Try to think about sales as being more than just making a lot of phone calls and visiting potential customers. Social media is the most low-cost way of widening your reach. You need to learn how to use social media to start new relationships that could lead to sales and also to keep existing relationships strong.

Become an Expert: You can use social media and blogging to become known as an authority on your industry. This makes it much easier to sell your products and services because people will trust you and feel like they are purchasing from an expert. Plus, they know that you will still be around and accountable even after they make a purchase.

Listen and Learn: By making sure that you listen carefully to your customers, you will be more attuned to what they require. You can even start to use the same terminology that they use when they talk about your products, this is a useful psychological trick.

Keep Informed: It is important not only to stay informed about the changes in your business, but also changes in the circumstances of your customers. Try to establish regular communication with your clients by sending them a newsletter and try to engage with them using social media to establish two-way communication.

The Basics of Making a Sale

February 25, 2010

If your business is currently suffering from a lack of sales, it is often useful to re-examine your current selling techniques and identify what you are missing from your repertoire.

The most important aspect you should remember when selling is to accentuate the uniqueness of your product or service. You must convince potential customers that your offering is superior to the competition in some way.

A very in-depth, almost encyclopedic, knowledge of your product is essential. You should be able to answer any question about it without hesitation because knowledge is the most powerful tool in the world of sales.

Whatever the mood in your personal life, don’t let any negativity cross over into your working day. The last thing potential customers want to hear about is your problems. Instead they should be excited by your enthusiasm, even if it means you have to fake it!

Make sure you listen to what the customer actually wants, before adjusting your sales pitch to better suit their needs. Remember that people always love to buy, but hate to be sold anything. Don’t put your foot in it with an overly aggressive sales pitch.

Finally, always bear in mind that selling is a difficult task. You need to be prepared to hear “no” from a huge number of potential customers and not allow it to affect your emotions. Great salespeople are able to think outside the box and find a way to successfully sell any product or service.

Client Conservation Tips For Small Business Owners

February 9, 2010

It is no secret that working to retain your existing customer base delivers far greater rates of success than attempting to attract new clients. As a small business owner, statistically around 80% of sales will come from just 20% of the existing customer base. Despite this, the majority of business promotions are aimed at attracting new customers and exclude the people who have purchased from them before.

There are a number of ways in which you can encourage your customers to make repeat purchases. If you are having little success at attracting new customers, consider switching your marketing focus towards previous clients. Let them know that you still exist by sending them a regular newsletter – but make sure you provide interesting content or share useful resources instead of just delivering a weekly sales pitch. Try to keep your brand at the front of their mind.

Consider a loyalty scheme to reward your best customers. Even if it is just a small discount, it will give them less incentive to try a competitor. Sending Christmas cards to your customers is always a nice gesture too, especially if you include a price reduction!

Try to have greater interaction with your existing customers. Social networking sites such as Twitter and Facebook have made it easier than ever for small businesses to reach out to clients and connect with them on a personal level. Encourage feedback from customers as this will make them feel valued and hopefully provide you with an opportunity to learn from their input.

WinWeb BusinessServices provide a number of marketing services for small businesses – find out more by visiting our website.

The Importance of Networking for Small Businesses

January 23, 2010

The importance of networking must not be underestimated when you are starting your small business and this holds true whether you are opening a restaurant or an online shop. But what is networking?

Entrepreneurs often hear, and even use, the term ‘networking’ but in order to network effectively it is important to understand the principles of networking and that it isn’t just a case of merely having a chat will the right person; what you say, how you say it, and how you follow up the conversation are all vital.

Networking, in the traditional term, is attending an event or presentation on a matter relevant to your business where influential or like-minded people will be present. So, you are at an event where there are people who are all interested in small business, but where do you go from there?

Top five networking tips:

• Make sure you do your homework- be knowledgeable about your industry and those attending the event.

• Exude confidence in both yourself and your business, without seeming arrogant!

• Memorise a 60-second marketing pitch for your company. Try and be able to explain what you do in a few sentences, making it engaging and interesting. Sell yourself!

• Give your business card to everyone you speak to, and ask for theirs. Be sure to ask what other people do, too.

• Send an email to the people who you felt could help you, preferably within a week of the event, being sure to say how much you enjoyed meeting them.

Most of all enjoy it, be passionate about your business and have fun!

Sales Basics for Every Small Business Entrepreneur

November 17, 2009

In the end sales is what makes or breaks your business, it is the way your business, no – every business makes money. Even when your phone rings and visitors come to your shop or website – you have no sale until the order is signed or the money handed over.

The last moments before a sale often decide if you will get the business or not – here are some basics to remember to increase your chances of success:

• People buy from people.
• Build trust & internal relationships.
• Create confidence in you and your company.
• Make a good impression.
• Take note of your customers style and needs.
• Dress appropriately.
• Do not take your customers for granted.
• Involve your colleagues to cement the relationship.
• Travel with your client to venues.
• By yourself.

This all sounds very trivial – next time you don’t get the sale go over this list – you may be surprised. We can help you to find new customers, but you need to make the sale, it is often a little thing that makes you not get the sale.

If you need to find new customers look @ OnlineOffice ProEdition.

Recession Survival – Re-Activation & Retention Of Your Small Business Customers

September 26, 2009

There is no easier sale to make than to sell to people who are already customers. Why? They know your business and they know you, so they know what they get – since they will hopefully have been served well by your business when they bought from you last.

This is especially true in a recession. Finding new customers is expensive and takes time, both problems in a recession. So how can you do more business with existing customers?

1. Work out what it would cost you to get new customers – and then offer your existing customers a discount of a similar value, making them feel special.
2. Keep reminding them of your business, its products and services. This way they will remember you when they are in purchasing mood. Good tools to use for this are email newsletters.
3. Think about a promotion you could run together with some of your customers, so you can build fast relationships with new customers, based on the recommendations of your old customers.

So it may be time to get your old customer records out and renew your relationship with your future customers.

Managing Your Small Business Day-to-Day

August 29, 2009

Keeping your business running smoothly requires discipline and efficient time management. It’s easy to get bogged down with tasks that seem urgent and postpone activities that might not seem to require an immediate response. The following tasks should be scheduled into your working week and stuck to! Postponing something by half a day can make good business sense, letting it pile up for 3 weeks can leave you in more trouble than you realise.

Bookkeeping. Keep on top of your bookkeeping. Know what is going into your business bank account and what is going out. As always, this seems like an obvious statement but it is also an important one. Having an up to date knowledge of your accounts will assist you in making your business decisions and not leave any nasty surprises at month end!

Cash-flow. We’ve mentioned this before but keep on going back and revising your cash-flow plan. It’s very unlikely your first, second or third attempts will be completely accurate and as with the bookkeeping, it will help you make a more informed business decision in the long run. Your cash-flow will help you make positive decisions about the future of your business.

New orders/business. When you’re up to your neck trying to serve your current set of customers this can seem like the last thing you will need. If you have the luxury of being busy with customers, you will probably get the benefit of word of mouth advertising that is invaluable for any business. However, there’s a chance that your products and services are seasonal or will not need regular renewals by your customers. Ensuring you have as steady a stream of customers as possible knocking on your business’s door will keep your business ticking over in the quiet times (which every business goes through).

Get paid on time. This isn’t only about being strict with customers who haven’t stuck to your credit payment terms. It is also about being diligent enough to send out your invoices on time, to the correct address and making sure they are completely accurate. Any administrative errors could set back your invoices by weeks and if you are waiting for a large sum of money this could have a significant impact on your business.

Contact. Make sure people can contact you. Although your customers should be number one here, you should consider suppliers, contractors and whoever else is involved with your business. Missing a message because you’re away from the phone is no longer acceptable with the technology available today. A customer will feel better leaving a message with a person (even if that is a family member or Virtual Assistant) rather than a voicemail that could go un-noticed for some time.

Finding New Customers

Finding new customers for your business involves marketing, a concept that many new small business owners are unsure of. Marketing can be a full time job in itself and for this reason can seem overwhelming to someone with little or no experience. We’ve provided another brief guide of where to start your marketing campaign to help find new customers for your business, re-activate old customers and retain your current customer’s business.

Maintaining the business bootstrapping mentality, small businesses need to find new customers without spending a large amount of money on flyers, mail-shots and radio adverts. While these all have their place, they are not immediately necessary.

Start with your website. Assuming it is already set up (if not it should be!) your website will help gather an international audience for your products and services. It gives you space to explain with high quality images why your customer should buy your products or services and provide references of other satisfied customers.

Include your website in the free search engine directories. Optimize your website using ‘Metatags’ so that search engines can find you and your business. The more optimizing you do, the higher your site will appear in the search engines results for your customers to see. Exchange web links with other web sites in your business space to improve your Google ranking.

Advertise in other places online. Write short blogs posts about your business, your new services or news stories affecting your area of work. Your customers can use your blogs as a way to keep in touch with you and send you their comments or ideas. Listen to your customer’s ideas, they will play a large part in the success or failure of your business!

Use Twitter, LinkenIn, Facebook or discussion forums to help build your brand online. Using Social Media such as these can help elevate your small business brand quickly and easily and provide you with another medium to interact with your customers.

The Tweets you send out on Twitter may have a short shelf-life in terms on how long they will be displayed on your customers pages but they will enable your customers to interact with you daily rather than browsing your site once a week/month or however often they need a new product. Not only can Twitter be used to advertise a new offer, you can share useful articles with your customers, listen to their feedback on your service and that of your competitors.

As you would expect from all the advice in the ’small business, big ideas’ series, the ideas above are all free of charge as well! If you’re unsure, use Google to find (free) techniques to help improve your use of Social Media, or just use our WinWeb Support Team to help you. Social Media can be time consuming so you should remember to focus and potentially outsource it if it starts to become a burden on your working day.