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Sales and marketing: Talk up your business or lose it

Many small business owners go into business for themselves because they are fed up with working for someone else or want a more flexible lifestyle.

They are usually very knowledgeable about their product or service, but don’t understand that, first and foremost, they need to be salespeople. If they do not learn to talk up their business, they risk stagnating or closing shop.

I learnt the power of sales the hard way when I moved to Sydney from New Zealand seven years ago. After doing contract work for a couple of years, I went out on my own, believing my contract network would help me find work. Unfortunately apart from a few small jogs that didn’t happen.

At the same time, a friend was made redundant and set up an office relocation business after being made redundant. In the first year her business flourished as she drew on all her existing contacts. But then the work dried up as well.

My friend concentrated on improving her systems. Six months later, she had incredibly efficient processes—but no clients. She closed her doors, saying her heart was no longer in the business.

Small business owners need to believe in their business to remain motivated. Otherwise the lure of the salary will win. They must learn to sell their products or services.

Zig Ziglar, an American sales expert, says, selling is essentially a transference of feeling. He tells the story in Secrets of Closing the Sale of when he was a successful sales salesman and Bill, his associate, was ‘starving to death’. Bill had been selling cooking pots for five years but hadn’t bought any himself because there was always a more pressing use for his money. So when his prospects said they didn’t think it was the right time to buy, Bill sympathised.

After a while, Bill realised the impact on his sales of not having any of the cookware. He bought a set of pots. The additional sales he made the following week, paid for his pots.

Strategise for success
Many start-up businesses don’t realise they have to talk up their business. They make the mistake of thinking customers will buy products on the basis of their quality.

In my experience, most small business owners don’t do a business plan in their first year of business. Or if they do, they regard it as a necessary evil for a loan and then archive it.

Yet a strategy is essential for success. It doesn’t have to be a lengthy document — it’s the thinking that counts. What a business plan basically does is make the business owner stand back and look objectively at their business.

First, they need to look at the business from their own perspective: What do they want out of it? What will the business look like in five years’ time?

And then they need to put on their sales hat. Who is their target market and what do they know about them? What’s the value of their products or services for this market?

Many small businesses start off with a ‘can do’ attitude and take every piece of work that comes their way. As they begin to grow, many specialise and develop a unique product or a specific target group.

For example, copywriting is a cluttered industry and many writers choose to specialise in an industry or on particular topics, such as finance. United States copywriter Bob Bly, author of more than 60 books, says specialist copywriters earn up to $25,000 more a year than generalists, and have an easier time finding work.

Targeted sales campaigns
The more businesses know about their market, the more targeted their sales pitches can be. They won’t waste money on glossy brochures that go into the recycling bin a year later (I’ve made that mistake).

They can plan their sales budget to include tactics such as cold calling, direct mail, public speaking, advertisements and e-newsletters. The tactics they choose will depend on their market, budget and personality.

I built my business, which is now mainly training, by telemarketing and networking. If done properly, telemarketing is fast, efficient and less expensive than many other sales methods. Over time, as business owners stay in regular contact with leads, they move from cold to warm prospects and the phone calls become more personal and easier to make.

Ask for referrals
For many small businesses, repeat sales and referrals are the best way of building their business, yet many do not actively seek referrals, saying it seems pushy or makes them look desperate for business. But if asking for referrals is part of normal business practice, that stigma vanishes. My business coach offers his clients a free half-hour session for each new client they refer—he’s so good, I’ve referred four people to him.

Stay in touch
But even if businesses have a good relationship with their customers, they risk losing them if they drop out of sight for too long. A busy customer may well accept a new deal from a competitor.

One simple sales technique is to make contact with customers and prospects at least once every three months. Some business owners allocate 15-30 minutes a day, others an hour or two a week.

Whatever sales methods small businesses use, the key to successful sales is being persistent and consistent. It pays off.

This article first appeared in The Weekend Australian, 28–29 October 2006.

You are welcome to use parts or all of this article, but please acknowledge Mary Morel and include a link to http://www.themfactor.com.au

If you enjoyed this article, you may also with to read:

How to write a marketing plan

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For more information, contact Mary on 61 2 9365 7711 or mary@themfactor.com.au