Let’s be honest. Whenever we start a business, we are not actually looking forward to failing. But obviously most of the choices we make, slowly and gradually make us crash right into the wall. Below are 3 of the rules I follow and have found them to be very reasonable.
1- Keep your costs low
This is a no-brainer and obviously you don’t need a Masters degree in Sales and Marketing to realize how important this point is. The biggest mistake most people make when they start off their business is that they spend a lot on almost everything they see the other companies doing. Don’t forget that they too are humans like you and might be making the same mistake of overspending where it’s not needed, actually overspending is NEVER a thing that will make you money, so be careful. If you are looking to launch a website, try setting up WordPress and buy a theme from a site like this. If you are looking to launch a few products, look around and don’t go with the first offer you get. I have launched a dozen products and have sampled four times as many providers to get the best product for the lowest cost, because in any business, if you are spending more than you have to, you will fail miserably. So once again, keep your costs low. Ask yourself this question every time you are looking to reach the next stage in your business, “Is this a need or a want?”
2- Build relationships
This is a core quality that every entrepreneur should have. If you are not good with people and are unable to carry a conversation with a smile on your face, you will not go far. The hardcore businessmen we see in movies that have a strict regime, and a face without feelings etc, that doesn’t happen in real life. In reality the way to move forward is when your clients and customers are comfortable in your presence. No client deserves to be put on the spot, and pushed against the wall in negotiations. With my clients, I focus on building relations and visit them often even when I am not selling them a new product. This is something your clients and customers will respect, because it’s a known fact that people like to spend their money on people they “like”, be like-able and money will follow.
3- Give more for less
I know this could be a tough one for more, and you might have a mindset that if you give more for less, you won’t make anything. Well that’s not true, at least not for me. If you deal with products that need to be shipped or delivered to customers, and even if you have digital products where we usually have huge profits, there is always room to squeeze in some special discount. If someone says it’s impossible, they are lying to themselves. As I mentioned in point 2, that people like spending on people they like. You would have to realize that in order to be different than your competition, you really HAVE to be different. And that is only happening if you do something that they appreciate. We are all in this to make money, but we need to realize that giving a 5% or 10% discount to a customer who buys from you often is not a bad deal, especially when you have a 30% to 40% profit on that product in the long run.
Find ways to give more for less by promising and over-delivering. Try to give extra service to your clients and customers by making them aware that you are available and never underestimate the power of being flexible. If you can manage to push the price of a product down just because you can, please do so.