Being Overly Optimistic About Sales and Money
Being Overly Optimistic About Sales and Money
Do you want to make more money and grow sales. One of the hallmarks of an entrepreneur is that they are typically a confident bunch. You need that confidence to start a business. I often hear people say “they would be profitable in year one.” I also hear “I can sell anything.” Reality often provides a different lesson.
When I first started my business, I thought people would see my experience and appreciate how safe it was in working with me. They would see how knowledgeable I was and immediately understand the benefits of working with me. They would flock to me.
Boy was I wrong! I never met a sales projection in my early years.
To grow sales, I had to learn new sales and marketing skills, budgeting skills, and time management skills. The effective hourly rate was too high for the market I was selling into. The competition was intense. I was dealing with job seekers who were taking the work at pennies on the dollar just to put food on the table. Some of these guys were good. Some just wanted the work. Since their primary effort was on the job search, understanding how to price was not important to them. After all they just wanted to pay the bills.
I underestimated everything because I did not understand the market. When I did close a sale, instead of closing in one call, it would take three, four or sometimes five sales calls.
It seemed they always had to check my competitors.
If I had built my business plan first that addressed growing sales, I would have understood these problems before I went to market. I would have understood my weaknesses better and put a plan in place to address these weaknesses. I would have understood the competition better. I would have understood why people buy this particular product or service and how to price it based on market demand.
Here are some rules to follow that work.
RULE # 1: Never be overly optimistic. What you want always takes longer that you expect. Budget both time and money for this.
I was speaking with an accountant and he said people always underestimate the road to profitability. It usually takes 3-5 years just to start making money and 10 years to reap the rewards we expect. I am not sure I totally agree but I can understand where he is coming from.
RULE # 2: Test your assumptions. Ask others who have been there and done that. They will help if you ask correctly.
In other words, do your homework! Call prospects and ask them why they buy and how they buy. Call customers and ask them why they buy from you. I was cold calling and reached an owner of a business. I asked him if he ever bought from someone who cold called him. He said no. If he needed something and he did not have an existing relationship, he called his friends and asked them who they used! I stopped calling him because I knew it would be a waste of time, both mine and his.
When you understand the market and do your homework it is hard to be over optimistic about money and sales. It almost always takes longer that you think.
Call me if you have questions or need help to grow sales.
Your Business Coach
Ron Finklestein
303-990-0788
ron@akris.net
www.rpfgroupinc.com
