You will agree with me that revenue is the most important factor to the survival of a business, a business plan that cannot be sold will lead to a high sense of frustration to the business. But do you know as important as revenue is, most entrepreneurs and business owners never develop the most important skill to ensure the generation of revenue right from the start of the business. And that skill is called selling skills.
The truth is “About half of all new establishments survive five years or more and about one-third survives 10 years or more. Rather than 9 out of 10 businesses failing, as is commonly stated, the data shows us that approximately 50 percent will actually survive through their first five years
And looking at the major reasons business fail, its because they cant generate revenue that can cover the overhead cost of running the business, businesses structured with the right sales approach will make money right from inception, and that is a guarantee, the product doesn’t have to be known, it just have to solve a problem or prevent a pain, and be sold, it will make money right from inception.
In my entrepreneurship journey I have come to realize the some Pillars that help Revenue Generation in any business.
- PITCH :– For a business, service or product to survive in the market it must solve a problem or prevent a pain that is the point of contact with the customer. Fortunereported the “top reason” that startups fail: “They make products no one wants.” A careful survey of failed startups determined that 42% of them identified the “lack of a market need for their product” as the single biggest reason for their failure.
In Developing a pitch, it must meet this criteria… value proposition (what problem does it solve or what pain doest it prevent). Result proposition (what will they become after using your product and service). Action proposition (what is that big step your product will make them take, or in what duration of time will it do that). Question proposition (what are the problems they are going through that the product or service will solve immediately for them).
If the prospect can’t see how the product will take them from where they are to where they want to be, there will be no market need and the product and service will fail.
- PEOPLE/PROSPECTS: – Entrepreneurs underestimate the power of the contribution of people to the development of sustainable products… in making sure people buy your products, they must know about it, hence the need to get attention for your products everyday.
Through getting attention you will get feedbacks from people to adjust your service offerings and experience around your products. In today’s world getting attention is easier and cheaper than it has ever been with the gift of the internet given to us, through our social media platforms, information about our products can be rolled out to get the awareness out there even before it is launched in order to create a community of loyal following ready to buy a product once it is launched.
This simple tactic is called prospecting, and in doing this the heart of the prospect is been warmed up to make a buying decision. Successful entrepreneurs understand that they must work on their business, not in their business. The sincere truth of getting attention for your products and service, and getting people into your pipeline everyday should be your number one priority and it should never ever be taken for granted or relegated. Don’t get caught up with phone calls, emails, reports, that you forget to get attention.
It is required to go to where the people are and get attention, though scared it must be done, it’s the only way the company will survive.
- PRESSURE / FOLLOW UP: – This is the most important step in revenue generation as the ability to create a system for follow up is the single most important factor in generating revenue for your business. There are so many follow up tools in the 21st century that will make follow up never look like follow up. Some of these follow up tools include. Text messages, phone calls, personal visits, thank you notes, selfie videos, personalized images, community creation, direct link sharing follow ups and so many more.
Do you know that 48% of entrepreneurs never follow up a prospect, 25% of entrepreneurs make a second contact and stop. 12% make 3 contacts and stop and only 10% makes more than 3 contacts
Follow up is the greatest sales secret ever, you must follow up in such a way that your prospect will respect you and even chase after you for to purchase your product and service but only if you are creative.
But follow up will never look like pressure if you learn to use the follow up tools of the 21st century to follow up a prospect. Irrespective of how good your sales pitch is, or how wonderful your product is if you can’t follow up it will never sell.
Why should you follow up?
- It shows you are committed to the prospect and his/her success
2. It shows you are organized and structured
3. It shows you are completely convinced about the value of your product
2 percent of sales are made on the 1st contact
3 percent of sales are made on the second contact
5 percent of sales are made on the third contact
10 percent of sales are made on the fourth contact
WHOOPING 80 PERCENT OF SALES ARE MADE ON THE 5TH TO 12TH CONTACT
Because of this stat I personally developed a 365 day creative follow up plan and that is useful for every entrepreneur from the day you meet a prospect to the day they make a buying decision, they think of you as the go to guy..
- CLOSING RATE: – More on this in my next post..
For now let now know what you think