While these may be challenging times to be a small business owner, tough times can create opportunities for business owners who are in tune with the unique needs and desires of their community. Offer the right product at the right price, and you stand to differentiate your business from the competition. Now may be an opportune time to carefully review your pricing decisions.
Given the challenging economic climate, you might consider offering special incentives or offer to bundle or package your products or services to enhance value for your clients. Perhaps you could enhance a particular product or service and create a greater demand. The goal isn’t necessarily to offer the lowest price but to establish a belief among your customers that they are receiving good value from your offerings.
Pay special attention to these six points when pricing your goods or services:
1. Competition. Review the local competition (small and large) to assess pricing relative to yours. What is their strategy? Are they catering to a segment of your target market with more emphasis on a specific product or service? If it’s a product-related business, are they seeking to move inventory quickly by lowering prices? What kind of value are they providing relative to your business? By answering these questions, you can obtain a better understanding of how to distinguish your products or services from the competition.
2. Business Resources. Find resources for business owners in your community, such as chambers of commerce, trade associations or other local business groups, and consider becoming a member. Take advantage of any networking opportunities these groups may provide to gain insight from other business owners about “standard” pricing for products or services similar to yours.
3. Client Feedback. Feedback from your customers can be a tool to determine the right pricing structure. Consider speaking with them directly or conducting a survey to determine how they feel about the value of your products or services.
4. Supply & demand. Pay close attention to local supply and demand. If you are selling a low-supply, high-demand product, for example, you may want to consider incorporating this factor into your pricing and charge a higher, more competitive price.
5. Market. Review your local market to determine which items are moving and at what pace. Are the best-selling items more or less expensive? Consider whether your business should carry more items appealing to a large segment of the market or focus more on a specialised sub-segment of the market.
6. Cost. When calculating your cost of doing business, consider all of your expenses – such as materials, labour, transport and other associated overhead costs – then consider how much of a profit margin you are seeking. Would you be able to charge a higher price by distinguishing your business with exclusively tailored offerings, or would your business fare better by seeking volume sales with competitive pricing?
It is a wise idea to revisit these considerations on a regular basis. By examining your pricing structure, you may find more efficient processes in which to do business or perhaps learn of new resources that can reduce costs while improving the quality of your products and services.
By evaluating your pricing structure – keeping the evolving needs of your community in mind and adjusting it to meet the demands of a fluctuating market – you may discover new opportunities, all while increasing sales for your business.
6 Little Things That Make A Big Difference To The Value Of Your Company
Here is a list of six little details to get right before you put your business on the market.
With the Olympic Games just having taken place last month, it is interesting to reflect back on some of the big events of the 2016 Olympic Games in Rio.
In the Men’s 100m final, for example, the winning time of 9.81s was posted by Usain Bolt. The time among medalists was one of the closest in Olympic history, and while Johan Blake of Jamaica posted a respectable time of 9.93 – he finished out of the medals in fourth place.
In the 100m dash, vital milliseconds can be lost in the tiniest of miscalculations. And when it comes to selling your business, markets can be equally cruel. Get everything right, and you can successfully sell your business for a premium. Misjudge a couple of minor details and a buyer can walk, leaving you with nothing.
Related: Here’s How To Value Your Business
1. Find your lease
If you rent space, you may be required to notify your landlord if you intend to sell your company. Read through the fine print and ensure you’re not scrambling at the last minute to seek permission from your landlord to sell.
2. Professionalise your books
Consider having audited financial statements prepared to give a buyer confidence in your bookkeeping.
3. Stop using your company as an ATM
Many business owners run trips and other perks through their business, but if you’re planning to sell, these treats will artificially depress your earnings, which will reduce the value of your company in the eyes of a buyer by much more than the value of the perks.
4. Protect your gross margin
Oftentimes, when leading up to being listed for sale, companies grow by chasing low-margin business. You tell yourself you need top-line growth, but when an acquirer sees your growth has come at the expense of your gross margin, she will question your pricing authority and assume your journey to the bottom of the commoditisation heap has begun.
5. Tighten your agreements
If you’re lucky enough to have formal contracts with your customers, make sure your customer contracts include a “survivor clause” stipulating that the obligations of the contract “survive” the change of ownership of your company.
That way, your customers can’t use the sale of your company to wiggle out of their commitments to your business.
Have a lawyer paper the language to ensure it has teeth in your jurisdiction.
6. Get your Value Builder Score
It will take 13 minutes to answer the Value Builder questionnaire. You’ll see how you performed on the eight key drivers of company value and you can identify any gaps you need to fill before taking your business to market.
Like competing in the Olympics, selling a business can be an all-or-nothing affair. Get it right and you will walk away a winner. Fumble your preparation, and you could end up out of the medals.
7 Tips for Cold-Calling Success
The cold call can be painful. Here are some tips for getting through it successfully.
The aspect of selling that strikes the greatest fear in people’s hearts is usually cold calls. A good way to make cold calls more appealing is to stop thinking of them as “cold” calls. Try thinking of them as “introductory” calls instead. All you’re trying to do is introduce yourself and your business to the prospect.
It’s important to understand the purpose of introductory calls so you have a realistic attitude about this type of business development activity.
Phone prospecting takes longer to pay off than other types of marketing efforts, so go into it knowing you’re exploring a new frontier and it’s going to take some time to get results.
As with any marketing method, you should never make introductory calls without a plan. First, always use a targeted list of prospects when making your calls.
If your product is household cleaning services, why call a random neighbourhood if you have no knowledge of income levels, number of household wage earners, or number of children? If you sell nutritional products to hospitals, why call nurses or doctors if a third-party pharmacy makes all the buying decisions? Get the right list of prospects.
You can obtain information about prospects from the list broker who provides you with the list; if you’re working from your house list, you should already have the information. If for some reason you don’t, try an introductory call like the following: “We provide mobile pet grooming for dogs and cats. Would that be a service your customers would want to know about, Dr. Veterinarian?”
Next, determine the best time frames for calling. If you’re selling financial services to upper-income CEOs or entrepreneurs, wouldn’t it be nice to know when their corporate fiscal years end?
Perhaps most of their investment purchases are made two to four weeks prior to that year-end close-out. That’s when they know how much extra income needs to be sheltered in a pension plan.
Sometimes timing is your ace in the hole. Granted, follow-up calls throughout the year may make that one important sale possible, but knowing when to instigate the first call is a priceless piece of information.
Third, plan by preparing a “sales script.” Write down what you’re going to say, what responses the prospect is likely to have, and how you’ll reply to them. No, you’re not going to follow this word for word, but if you’re nervous about making calls, it helps to have something in front of you. Chances are, after you get beyond the opening sentences, you’ll be able to “wing it” just fine.
If preparation for cold-calling is easy but actually making calls is painful for you, here are seven easy steps to get you on the phone fast:
1. Personalise each call by preparing mentally
Your mind-set needs to be aligned with your language, or the conversation won’t ring true. You need to work on developing a warm but not sugarcoated telephone voice that has that “Don’t I know you?” ring to it.
2. Perfect your phone style alone before making any calls
If you’re self-conscious about calling, you need to feel safe to act uninhibited. Try this: Gather a voice recorder, a mirror, a sales journal of incoming and outgoing phone scripts, a pen, and a legal-sized pad. Either write or select a favourite phone dialogue, then talk to yourself in the mirror. Do you look relaxed, or are your facial expressions rigid? Our exteriors reflect our inner selves. If you look like you’re in knots, your voice will sound strained as well.
Press the “record” button on your recorder, and pretend you’re talking to a new prospect. Play back the recording, and listen to your conversation. Ask yourself how you could improve your delivery.
If your voice seems unnatural and the dialogue contrived, don’t despair. As you practice and participate in real phone experiences, you’ll improve. Mastering the art of cold-calling is no different than improving your golf swing or skiing technique.
3. Create familiarity all around you
Use family photos, framed testimonial letters, motivational quotes, or whatever gets you in a positive, enthusiastic mood. If you like, play some music that inspires you.
4. Use your imagination
Pretend you’re a prospective customer calling a bookstore to see if they have a book in stock. If it helps, record how you sound to get the feel of your inquiring phone voice.
It’s always easier to imagine you’re a customer in need of information than a salesperson trying to force your way into the customer’s time.
The inquiry call is good practice because the tone of the conversation is “Can you help me?” or “I need some information.” Try to convey that same attitude when you use the phone to contact future customers.
5. Watch your tone of voice
You don’t want to sound sheepish and embarrassed, nor do you want to be arrogant. The ideal tone is warm, businesslike, curious, and straight to the point.
A good option is a question or a cut-to-the-chase statement such as “I’ve got a question. We’re offering a two-for-one special during the next 30 days on all our coffee drinks, just to get people into the store. I need to know if you’ve ever stopped in while shopping at the mall, and, if not, why not? We have got the greatest ice-blended mochas in town.”
6. Make your goal a fast “50 in 150” — that is, 50 calls in 150 minutes
Three minutes per call is all you need. With so many voice-mail systems intercepting calls today, this should be easy. Never give people the impression you have time to chat. Chatting isn’t prospecting. You’re on a mission. Get to the point, then move to the next prospect.
7. Take five after 15
After 15 calls, take a five-minute break — stretch, eat, sip a soda, turn on some tunes, and pat yourself on the back because you’re making it happen. Then grab the phone for 15 more calls.
This article was originally posted here on Entrepreneur.com.
9 Tips to make your e-commerce business wildly successful
With these nine tips, you can be well on your way to becoming a successful ecommerce-based entrepreneur.
While the e-commerce economy is poised for significant growth in the coming months and years, you can only expect to see results if you approach it in the right way. That means focusing on the following critical tips for e-commerce success.
1. Don’t rush the launch
One of the biggest mistakes unsuccessful e-commerce entrepreneurs make is forcing or rushing the launch of a website. You only get one shot at launching your website and you can’t mess this up. While it’s okay to purchase your domain name and throw up some sort of “Coming Soon” page, you should avoid the big reveal until you’ve laid some substantial ground work (SEO, content marketing, social media, paid advertising, etc.).
2. Put the focus on the user
It’s no secret that the biggest shortcoming of e-commerce businesses is the inability to let their customers touch, feel, smell, and see (firsthand) products before making a decision. While there’s currently no solution for solving this problem, you can compensate for this deficiency in other areas of the business. Some of the best tips include offering appropriate pricing, giving free shipping and making the checkout process easy with simplified shopping carts.
3. Test absolutely everything
Before, during and after you launch any e-commerce business, you should invest in testing and analytics. Think like the customer and figure out what’s working, what’s not, and the why behind those answers. Here’s a look at some of the best A/B testing tools.
4. Work closely with social
Any e-commerce entrepreneur that tells you he outsources social media or delegates it to other team members is crazy. Social media is the heartbeat of your business, as it gives you an uninterrupted glance into the lives of your customers. While it’s perfectly fine to have a social-media manager, it’s pertinent that you’re involved with it, too.
5. Incorporate social elements
Going along with the previous tip, it’s a great idea to include social elements on your e-commerce sites. Things like product reviews and testimonials follow buttons and even social login options all help the conversion funnel.
6. Go mobile
Bill Siwicki of Internet Retailer references Goldman Sachs, saying, “Tablets will play an increasingly important role as worldwide consumer spending via mobile jumps from $204 billion in 2014 to $626 billion in 2018…” If you aren’t building e-commerce businesses with mobile in mind, you may be irrelevant in three to five years.
7. Stay on top of SEO
As the ecommerce economy experiences rapid growth, more and more businesses will be entering this increasingly crowded space. That means it will be more important than ever to stay on top of SEO in order to stand out from the competition. Connecting with a skilled SEO will help you stay competitive in the long run.
8. Collect information
Unless you plan on launching a single site and stepping away (most entrepreneurs are tempted to keep trying), it’s critical that you collect customer information and build databases to aid future launches.
9. Continue evolving
Finally, never stop evolving. Technology, trends and customer tastes will change, and so must you if you want to succeed in such a variable market.
With these nine tips, you can be well on your way to becoming a successful e-commerce-based entrepreneur.
This article was originally posted here on Entrepreneur.com.
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