Business Information for Entrepreneurs by an Entrepreneur

We are about halfway through this last quarter of the year. That means that there is about another month and a half to work to reach our goals… and the pressure is on not just to reach the goals for this quarter but to reach the goals for the calendar year.

How close are you? Can you reach the goals you've outlined for the quarter? What needs to be done differently to do so? What about your calendar year goals? Will they be reached by the end of the year?

With the holiday season approaching, many companies find that holiday shopping can really make or break their business and they set their goals to rely on it. If it “comes through” for you every year, than you may continue to do that… but if it seems to be sensitive to the whims of the economy and doesn't always help you meet your goals, perhaps you should consider basing your goals on the other 11 months of the year and work at raising those sales.

With just a month and a half to go, consider this effective business builder: Commit to making 2 more sales calls each day. That's an additional 10 calls a week or about 60 more calls by the end of the year. Now compare that to your closing ratio… how much more business will that bring in?

Laura asks, “Do door-to-door sales still work?”

Dear Laura,

According to SBTV , there are 13 million sales people making door-to-door calls resulting in over $28 billion in sales. The numbers show us that it is effective. But aside from the numbers we need to also do a gut check: What do your instincts tell you about door-to-door sales?

While it does generating buying activity, it may lower the perceived respectability of your business. I'm not saying that there's anything wrong with it, but I am suggesting that consumers may lump your business in with other door-to-door contact, including religious organizations or those companies that sound like they are the power company offering to lower your energy bill.

If you do want to use the face-to-face method of sales, it's okay to use door-to-door methods as long they are not your primary method of contact. Let people connect with you through the telephone or Internet first and then offer the value of coming to their home to display your wares. This makes you seem like you add value to their lives by saving them time.

Buzz

Dividing your customer base into segments is a helpful way to more effectively target them. There are a number of ways to divide customers into segments. One of those ways is on the price/value spectrum.

On one side of the spectrum are the people who will spend whatever is necessary to get good value. On the other side of the spectrum are the people who want to buy the product at the lowest possible price and who will willingly forgo value to do so. In the middle are the average shoppers looking to balance value and price in a reasonable way.

My advice to new business owners looking to start a business: forget about the price shoppers. Instead, focus on the groups looking for more value. Although the price shoppers can be a valuable customer base, they are also potentially fickle if you can't maintain your low prices.