Why doesn’t business go
Your friends, and possibly yourself, have come across a situation where a lot of effort, energy and money has been invested in the business, but it does not give the desired effect. An advertising campaign has been carried out, the office is equipped with the “latest word” of design and technology, a normal price has been assigned to a product or service. But there are no customers. You ask yourself the question “why?”.
Finding an answer to it is difficult right away, but you definitely understand that if a business does not make a profit, you will have to close it very soon. To understand why the business does not work, you need to find out what you are doing wrong and how to fix it.
Do not go business in business? Perhaps you are making one or more common mistakes among aspiring entrepreneurs. The problems described below are common to any business, and if you can deal with them, you will immediately see how things went up.
Ignorance of the business in numbers
This applies to advertising costs. The situation at many private enterprises is such that business owners always know what revenue and profit they have received over the past few months, how much of these funds went into developing and maintaining a business, and how much they can afford.
But they don’t always know how much money was spent on the product’s advertising campaign, and what is its return. These are exactly the numbers that affect the increase in your sales. Only half of all advertising campaigns that you run (especially if you’re new) will work. If you don’t have any systems that can track which advertising is effective and which is not, then how can you plan further actions? Making advertising decisions based only on how much the company has made and not the campaign is wrong.
Trying to compete on the basis of price, constantly reducing it – you only throw yourself problems, and the whole market too. If you carefully study the technology of effective sales, it turns out that selling expensive is not difficult, and sometimes even much easier than cheap. The main thing is to find the right approach.
A constant competition with competitors in those whose goods are cheaper will not lead to the worst consequences. And then, always ensure that your customers are loyal to you for the quality of the product and the level of service, and not for the price of the goods.
Customers are potential and current. However, more often than not, all the advertising forces are thrown only at attracting new customers, this is a significant problem in business. Using the right leverage to sell something to a customer who was already your customer is much easier.
Work with the customer base, and not just bring customers there “for show”. You can earn much more on existing clients than on potential clients.
Lack of proper work with the client who contacted you
A potential client came to you or called, found out some information, looked at the product and left without buying anything. And the seller (or business owner) and let him go in peace. This situation is quite common, and it only slows down your profit.
All efforts should be focused on turning everyone who has already turned to you into a real buyer. Remember, if a person came to you, called or wrote a letter, it means that something already interested him. You just have to “squeeze” it, and it will already become your client, and maybe even permanent.
Susceptibility to human laziness
All of us are sometimes lazy. However, if you become an entrepreneur, you will need to forget about this phenomenon. The business will not develop on its own, you need to constantly work with it. Even if you are satisfied with the current state of affairs and existing profits, sooner or later there will come a time when it will be necessary to take the business to a new level. And for this you must be prepared to “turn the mountains” for the sake of a future result.
Simple Sales Schemes
“Forehead sales” if they work, then very briefly. To achieve a better result, you can use more complex schemes – multi-stage sales systems. For example, if your product is specific, then you can offer customers free training on how to use it. Then they themselves will come to buy it. And this stage of training will already be one of the elements of the sales system.
Opt out of all site benefits
Each, even a small company should have its own website. We think no one needs to explain how powerful the sales tool the Internet can be. And if the site does not exist, or if it just idles idle, you lose great opportunities.
Pathological pursuit of excellence
Perfectionism is a problem that is a much stronger threat than it seems at first glance. The desire to do everything perfectly – what’s wrong with that? – you say. And the fact that there is no limit to perfection. And if you decide that you should start a certain process only when you bring it to the ideal, then you will never start it.