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Recently, I spent a number of days with aspiring entrepreneurs, conducting what I called "speed consulting." For five to 10 minutes at a time, I met one on one with people of all walks of life who dream of starting their own businesses. In many cases, they already knew the service they would offer or had made the products they wanted to sell. But they were stuck. They didn't know how to get their very first customer.
Getting your first customer is a major hurdle for many new entrepreneurs. Typically that's because they're either afraid of asking for the sale or potential customers are afraid of being the very first to buy.
How can they conquer these issues?
- Overcoming the fear of making a sale: Let's face it; it's not easy to ask someone to give you their money. But if you're in business, you're going to have to do this over and over again.
Getting up the gumption to ask someone to pay you is tough. But here's something you must always remember: you are offering customers something of value. If it's of value to them, it's appropriate for them to pay you.
You have to recognize - and believe - that you are as entitled as anyone else in the business world to be paid for your work, your assistance, your time.
You can take classes or read books on how to become a better salesperson. You can eventually hire someone to make most of the sales for your business. But you still need to be able to make sales yourself, and there's no way to conquer the fear of making sales except by making sales.
Try out your sales pitch on friends and relatives. Work on what you're going to say, how much you're going to charge, but then - get out there!
- Overcoming the "I don't want to be first" mentality: Customers follow where others lead. If there are two restaurants on the same street, one crowded and the other completely empty, most customers will wait for the popular restaurant. Companies, as well as consumers, do the same thing. You've got to have a track record for prospective clients to feel comfortable.
What a dilemma: You have to have customers to get customers. Don't despair; there are a number of tricks to snare that first one. Here are a couple you can try:
1. Give your product or service away for a limited time. All types of companies do "sampling" to help entice potential customers or clients. Technology companies offer trial versions of their software, new food products offer tastes in supermarkets.
Whether creating Web sites or wedding cakes, you can offer your very first customers your product or service free. Even if this costs you some money, it's probably cheaper than most other marketing activities.
Look for ways to maximize the exposure you'll get from those who receive your products or services free. If, for instance, you are making beaded jewelry, you might offer to give some free jewelry to a friend if they'll host a house party to introduce you and your products to their friends and relatives.
Or, as another example, if you're creating new Web services, offer those services free to key people in your target industry who agree to allow you to use their name in your marketing or who will refer customers to you.
2. Offer deep discounts. Even if you're not in a position to give your products or services away completely free, in the early stages of your business, it's always appropriate to give clients a favorable rate. Remember, you're still learning your service, working out the kinks in your products, and trying to develop a customer base.
So don't be afraid to make drastic, but limited-time-only, introductory price cuts. If, for instance, you're opening a hair salon and you'll normally charge $50 for a hair cut, run an "Opening Special" of just $10 for the first week or two. This encourages people to give you a try and helps you build a clientele.
A final note: Sales takes persistence. Yes, you are likely to get many rejections. That's part of the reality of business life. But keep at it. Nothing makes you feel more like you're really - finally! - in business than making your first sale.
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Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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