Generating revenue when starting any business is a big challenge. Do the negotiations that your sales team capitalize on offer all the opportunities for the fastest possible start-up growth?
In this article:
- Maximize cash flow for start-ups
- Concentrate on what's important … even from the beginning
- Low cost proposals versus high benefits
- Can conflicting strategies coexist?
- Create a sense of urgency
- Leverage synergies within your customer base
Protect your startup | Tips for a faster start-up growth rate
Maximize cash flow for start-ups
Revenue generation is one of the most critical goals for start-ups, especially for smaller units.
You may have the most competitive product offerings available in your market segment. Yet without enough money to finance operations and support overhead, your entrepreneurial efforts may be short-lived.
This is especially true at the beginning, when cash needs can be much higher than in stable operation.
Revenue generated from sales is generally the most important vital cash flow to pursue.
The trading tactics used by your sales team at the beginning of a business are extremely important. Are sales strategies aimed at maximizing cash flow well targeted?
Concentrate on what's important … even from the beginning
Starting a business is a very complex and time consuming task.
Not being clear on the level of sales required to keep the money is a mistake. This usually results in too many companies failing.
Instead of rapid growth, they are facing a dangerous decline in revenue generation.
Successful entrepreneurs are those who envision all the crucial elements of their business to create a complete customer acquisition plan. At the risk of stating the obvious, your sales pipeline simply can not be overlooked.
As an entrepreneur, the idea that you will master all the areas needed to run a business is not necessarily realistic. Do not make the mistake of focusing too much on your areas of perceived weakness.
You can be excellent in product development but not a lot of salespeople. It makes more sense to delegate the responsibility for effective bargaining to someone else or register yourself or your team for public training, such as this trade negotiation training in Denver.
RELATED: 3 tips for a successful sales negotiation program
Low cost proposals versus high benefits
When you bring your business to market for the first time, you can fight a little bit. Your company's product offerings (physical or service-based) and reputation may be unknown in your target market.
So what can you do to put your foot in the door and really develop your business?
A combination of normally conflicting strategies may well be your best plan of attack. This means being inexpensive and positioning yourself as a person with a high level of value.
Negotiating on a low-cost platform may be enough to induce customers to test your product. It's simply because you have reduced your client's exposure to risk.
When you traditionally negotiate from the point of view of major benefits, the cost is relatively less important because of the robust features of your products.
Can conflicting strategies coexist?
Can the two (seemingly contradictory) strategies coexist peacefully? With the right training and the right negotiating skills, the answer is "absolutely".
By defining the negotiations from a high profit perspective, you and your sales team will have the opportunity to demonstrate what your product can bring to your customer. In addition, you will see how the product can solve the problems of your customers.
Once the benefits are defined in the customer's mind, the low-cost approach can be presented. The intention is to create a need for the product or service.
Then we will show how to meet those needs at a profitable rate. In these situations, you need to make sure that pricing is presented as a unique opportunity with a specific call to action.
Create a sense of urgency
Your sales team must use additional techniques (from the trading workshops you have provided) to create a sense of urgency. Creating a sense of urgency may include an initial promotional pricing – with a set deadline before expiry.
Yes, these actions will affect the amount of sales revenue relative to the quantity of product or service provided. An important step to take into account is to make sure that your fixed cost structure will support these activities without actually losing money.
The intention is not to create a permanent loss manager, but to quickly convert customers (thus generating more sales revenue). The goal is to generate short-term income at the beginning of your business and then move to higher margins in the medium term.
Leverage synergies within your customer base
Converting customers early is difficult, so why not use your customers themselves as sales resources?
Here is a tried and tested game plan to consider. Once you have proven yourself with a particular customer, ask your satisfied customer to recommend your products or services to others in your target market.
Positive "word of mouth" advertising (which, as we all know, is the best possible advertisement) generally leads to increased customer acquisition. Your sales team can focus more on completing a transaction than on getting a customer's time for an initial sales meeting.
There have been countless company stories that had great potential when they were launched, but then stumbled upon launching the company.
Lack of start-up income is usually the main culprit.
Do not let your startup be a statistic. Make efforts to ensure – or if it is preferable, a highly qualified sales negotiation team – are in place from the beginning. This will ensure faster growth at startup and cash flow. If you combine the right team with the right growth and sales negotiation strategies, you'll have the recipe for success.
Have you already implemented sales negotiation strategies to accelerate startup growth? Do not hesitate to share them in the comments section below!
Next Step: The Five Billion Dollar Book with David Rudnitsky @ InsideSales.com