Good things will eventually come from our current economic mess. Millions of Americans are getting kicked to the street. But among them is a host of talent waiting for the right moment to start new businesses. The loss of steady income isn’t the “right moment” they had in mind, but it’s the way many successful businesses have started since—forever.
Many of these new ventures will offer wholly new products and services. Others will provide new approaches to old problems that other companies have been unwilling or unable to fix. Many startups, if not most, are destined to fail. But a lot will succeed. And when each new business calls on its first prospect, they will worry about getting THE QUESTION: “How long have you been in business?” In turn, the new business will answer: “In minutes or hours?”
The fact is, that question doesn’t get asked as often one might think. When it does, don’t sweat it. A business’s age is important, but not critical, to its ability to deliver the goods. It certainly doesn’t guarantee the company will be around long. Disagree? Consider these companies:
AIG: Established 90 years ago
Lehman Brothers: Begun in 1850
General Motors: Started 101 years ago
How much confidence does the typical American consumer have in those companies today?
Wednesday, March 25, 2009
Friday, March 13, 2009
Be Logical
If you want to get a couple of salespeople flapping their gums at each other, ask them when the right time to talk price. An old sales "rule" says you shouldn't give the price until you've revealed all the dazzling features and benefits. It's like considering the price of a car. If someone wants to sell you a car for $20,000, you don’t know if it’s a great deal until you drive it, learn about all its options, and experience its quality. Twenty grand would be a great price for a new German import, but a terrible deal for an old Yugo with 200,000 miles on it, assuming any Yugo ever made it that far.
The thing is, withholding the price may be an acceptable approach for some types of sales, but not necessarily yours. Don't adhere to certain sales "rules" just because that's the way others have done it. As you try to snag your first customer, some things you hear and read will strike you as illogical. You’ll be advised to do things a certain way because they’ve always been done that way. But that doesn’t make them right for you. You may hear about various closing techniques that can help you land your first customer.
Look for the logic in things. If something doesn’t seem logical to you, examine it closely no matter how many so-called experts tell you otherwise. It may not be the right approach, at least in that particular situation. You find yourself in the position you are today—starting a company—because you have desire and smarts. Believe in yourself before you believe in anyone else. If something that I’ve written here doesn’t make sense in your situation, then question it closely. It may not ever make sense for you. Suspect any advice that presents itself as being the right choice in any case. With the exception of being truthful, there’s no such thing.
The thing is, withholding the price may be an acceptable approach for some types of sales, but not necessarily yours. Don't adhere to certain sales "rules" just because that's the way others have done it. As you try to snag your first customer, some things you hear and read will strike you as illogical. You’ll be advised to do things a certain way because they’ve always been done that way. But that doesn’t make them right for you. You may hear about various closing techniques that can help you land your first customer.
Look for the logic in things. If something doesn’t seem logical to you, examine it closely no matter how many so-called experts tell you otherwise. It may not be the right approach, at least in that particular situation. You find yourself in the position you are today—starting a company—because you have desire and smarts. Believe in yourself before you believe in anyone else. If something that I’ve written here doesn’t make sense in your situation, then question it closely. It may not ever make sense for you. Suspect any advice that presents itself as being the right choice in any case. With the exception of being truthful, there’s no such thing.
Friday, February 27, 2009
Tell them, and then tell them again
After graduating from college, I worked as a television reporter in Kentucky. Being a TV reporter was the biggest deal in my life to that point. I was on television. I was covering big news stories every day. Thousands of people turned on their TVs nightly, anxiously awaiting my balanced and comprehensive take on the noteworthy events of the day. At least, that was the warped perspective of a self-important 22-year-old. I assumed my exciting life was a big deal to those who knew me best back home in Missouri. But when I spoke to folks back home, the question always seemed to be the same. “So, how do you like working for that radio station in Tennessee?” And later, “you still a radio reporter?” It was a bit of a disappointment to learn most people weren’t sitting around the fireplace, wondering aloud what story I was reporting on the TV that night. I eventually realized that the things that consume my thoughts don't consume the thoughts of anyone else.
Admittedly, when I tell a lot of people that my company sells online registration software, their first reaction is something like, “Computers, huh? Maybe you can take a look at mine. Can’t figure out how to turn the thing on.” They may not understand the nuances of web-based registration immediately. But if I’m patient…
When you start a company, no matter how many times you’ve explained to Uncle Harris or cousin Diane what you do, explain it again. They won’t mind if you repeat yourself because they may not remember anyway. They have a lot of things on their minds and therefore don’t fully understand your business, but they may understand it enough to send a potential customer or two your way. They want you to succeed.
You can relate an anecdote that illustrates what you do. For example: “Boy, you won’t believe the size of opossum we extracted from the sewer the other day using the patented PossumGrabber® I invented in my garage.” When they have a passing understanding of your business, your friends and relatives might even know THE potential customer—the one that will make all the difference in your success. Unless you’re selling something that nobody in the world wants (in which case you have a larger problem than identifying prospects), you know somebody who knows somebody who could use your service. And unless all your friends and colleagues are doing hard time in maximum security, their word probably carries some weight with their friends and acquaintances, which just might be your future customers.
One of the best ways of getting your first customers is to be a blabbermouth. This may not be your style unless you are a born self-promoter, but it is exactly what you have to be. Nobody is going to be more excited about your company than you. If you can’t promote it, nobody else will. It is quite possible, depending on how narrow is the niche for your creation, that you do not know anybody who would want or need your service. But I'll bet you know somebody who knows somebody who knows somebody.
Admittedly, when I tell a lot of people that my company sells online registration software, their first reaction is something like, “Computers, huh? Maybe you can take a look at mine. Can’t figure out how to turn the thing on.” They may not understand the nuances of web-based registration immediately. But if I’m patient…
When you start a company, no matter how many times you’ve explained to Uncle Harris or cousin Diane what you do, explain it again. They won’t mind if you repeat yourself because they may not remember anyway. They have a lot of things on their minds and therefore don’t fully understand your business, but they may understand it enough to send a potential customer or two your way. They want you to succeed.
You can relate an anecdote that illustrates what you do. For example: “Boy, you won’t believe the size of opossum we extracted from the sewer the other day using the patented PossumGrabber® I invented in my garage.” When they have a passing understanding of your business, your friends and relatives might even know THE potential customer—the one that will make all the difference in your success. Unless you’re selling something that nobody in the world wants (in which case you have a larger problem than identifying prospects), you know somebody who knows somebody who could use your service. And unless all your friends and colleagues are doing hard time in maximum security, their word probably carries some weight with their friends and acquaintances, which just might be your future customers.
One of the best ways of getting your first customers is to be a blabbermouth. This may not be your style unless you are a born self-promoter, but it is exactly what you have to be. Nobody is going to be more excited about your company than you. If you can’t promote it, nobody else will. It is quite possible, depending on how narrow is the niche for your creation, that you do not know anybody who would want or need your service. But I'll bet you know somebody who knows somebody who knows somebody.
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