“If you want to succeed, you should strike out on new paths, rather than travel the worn paths of accepted success.” — John D Rockefeller
Report by Phillip Chichoni
One of the major challenges faced by new entrepreneurs is the struggle to get their first customers.
A few months ago, a young man sent me an email on this subject. An experienced carpenter, he had just left his job and had decided to start his own thing. After producing a few units, he tried to sell them. But it was a struggle to find buyers.
This challenge also faces those in the business of providing personal or professional services.
There are many qualified accountants, bookkeepers, computer service persons, home and office cleaners. There are also others who are skilled and good at their work, but are struggling to get clients.
Without enough clients to give you growing revenue, your business will not grow.
Most customers already buy goods or services similar to yours from someone. For them to change and start buying from you, they will need a very good reason.
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Most decision makers do not care about what you are selling. What they care about is only what it does for them. This article will help you create that reason and use it to start getting more customers.
Have a compelling value proposition A value proposition is the answer to the question, “Why should I buy from you?” It is a clear statement about the tangible results customers will get from using your product, service or solution. Can you think of one or two real and tangible benefits a customer will get from using your product or service? A good value proposition is based on the primary needs of customers — their reason for wanting to use your offering. Your offering should solve a pressing problem and improve the customers’ situation. For example, for me to buy a computer from you rather than from an established computer supplier, you must give me a better price, a good guarantee, better specifications, more modern technology, more functions or better after-sales service. If you cannot offer a better value proposition, why should I change from the status quo and buy from you?
A strong value proposition should always involve movement. Words such as “increase, cut, improve, save, accelerate, reduce, enhance, squeeze, strengthen, improve, grow, balance, free-up, eliminate, minimise, revitalise, shrink, maximise”, involve movement and are likely to attract customers’ attention. Just read or watch advertisements flighted by leading companies, they always include these words in their message. Don’t forget to use metrics. For example, “Our clients save up to 85% in telephone costs by using our call logging software.” Real figures will make your value proposition more believable than generalisation.
If you are struggling to come up with a clear proposition, you can download a useful Value Proposition Generator at my website to guide you.
Communicate your value proposition A value proposition won’t do much good sitting in your head or in your office; it has to be communicated to customers. Your website and brochures should clearly state your value proposition. Customers reaching your site should immediately be met with clear reasons why they should try your product.
When you make a sales proposal to a customer, you should clearly state this value proposition. One consultant entrepreneur told me recently how he cleverly does this.
One time, upon being introduced to an executive of a transport company at a business event, he leaned to his ear and whispered: “Do you know we helped XX (a close rival to the executive’s firm) reduce fuel costs by 18% per month through our new fleet management technology?”
Interested, the executive wanted to know more and invited the guy for a meeting at his office.
Be careful though, to use actual facts and not lies or exaggerations. Always look at the value your present customers are getting from you, and use that to attract more customers.
At this month’s BusinessLink Networking Breakfast meeting on October 26, renowned and award-winning entrepreneur and founder of one of Zimbabwe’s largest security firms, Securico Holdings, Divine Ndhlukula, will talk about her experiences and inspirations.
Aspiring and existing entrepreneurs, especially women, will learn a lot from this hardworking and extraordinary businesswoman. Don’t miss it. visit my website for more information.
- Phillip Chichoni is a business planning and financial management consultant who works with entrepreneurs and growing businesses. You may contact him by email on [email protected] or visit http://smebusinesslink.com
