Join our club

Not many people are brave enough to start their own business.

People like us, we took a risk.

We made a stand.

(by the way, if you’d like to subscribe to the podcast, click these links – Apple Podcasts/iTunes, Google Podcasts, Stitcher or Spotify)

We decided that we weren’t going to put up with working for an idiot or being told what to do.

We were sick of working incredibly hard, only for the rewards to go to some high-up who has no idea what we actually do each day.

We’ve chosen flexibility.

We’ve chosen responsibility.

We’ve chosen working from home, so we can look after the kids.

We’ve chosen doing things the right way.

We’ve chosen being fair with the money we earn.

But it’s difficult.

Most businesses fail within the first year.

If you’ve made it that far, congratulations. You’re doing an amazing job.

Even worse, almost all small businesses die within four years.

So if you’ve hit that milestone and made it to five years or beyond, you’re in an elite club.

The reason for this is simple.

The things that you have to do when you start a business are different (year one) to the things you have to do to keep that business running (up to year four), which in turn are different from the things you have to do make the business work without your constant attention (year five and beyond).

There are five areas where you need to make those changes – profits, operations, sales, marketing and time. Taken together, it’s a big set of changes, a lot of learning to do all at once. But break it down, attack one piece at a time, and it becomes manageable and a natural part of building a business that gives you the life you want.

If you’d like to know what could make a difference for you, check out my quick and simple quiz.

It’s designed to pinpoint the area of your business that you can make the most improvement on, for the least effort.

So you can actually get a bit of that flexibility, that extra cash, that free time and that freedom that we were all wanting when we started our businesses.

It only takes a couple of minutes to complete and could make a real difference to your business.

Photo by Miroslava on Unsplash

I don’t want the sale

Earlier this week, we talked about attracting potential clients, by understanding what they want, why they want it and where they hang out.

Then we looked at making sure that they are interested in what you offer, by explaining your offer, showing that it works for other people, taking away their risk and then adding some urgency.

Yesterday we looked at dealing with price objections by adding more to your story; by giving a compelling reason for them to ignore the price.

But there’s one more thing that we need to talk about.

When my business was primarily all about software development, I made one change in how I did things and suddenly the invoices I was sending to clients increased in value by a factor of 10. And the clients were happy to pay it.

It was incredibly simple.

It was also really, really, really difficult.

I just said “no”.

I had been meeting with potential clients, going in to meetings with the expectation that I would be trying to persuade them that what I offer is really good, that the software I could build for them would solve their problems, that the price I wanted for it was something that they could afford.

But I realised that I had it all wrong.

My best clients were ones that I had a long-term relationship with. Because we trusted each other. We knew each other’s strengths and weaknesses and we dealt with them. We worked well together.

So I brought this to my sales process.

Every meeting, I started looking for reasons to say “no”. I started giving them reasons to go with someone else. Have you considered outsourcing the job to India? I know a really good app guy in Aberdeen who could do this for you. This isn’t really my strength, so I should turn it down. Actually, looking at it, the cost is going to be at least three times your budget. There’s no way I can get this finished before next March.

This worked. Some people went away. But the ones that stayed really stayed. I had put all their objections up in front of them, before they had even thought of them. They looked at the objection, came up with their own answer to it and moved on to the next stage. So when it finally came to the deal, I could name my price and set my own payment terms – they were so invested in the project that they didn’t want to go with anyone else.

Take action: Make sure you “qualify” everyone who comes in to your sales funnel. Do you really want their business?

Photo by Masaaki Komori on Unsplash

I know someone who can do it at half your price

That’s one of the most frustrating things you can ever hear.

Someone who complains about the price.

The thing is, it’s actually your fault.

Now there are some businesses where you don’t have much control over the price. Commodities – where there are so many available vendors that the “market” sets the price and you can’t differentiate yourself.

But most businesses – retail, products, services – have room for differentiation.

Your difference might be that you’re cheaper than everyone else. Personally I think that’s a dangerous game to play, as there’s always someone who is willing to go cheaper – maybe as a loss-leader to destroy your business.

But if you know your ideal customer (who we spoke about earlier in the week), you understand why they want your stuff and how much it’s worth to them, you should be able to choose points of differentiation that make price irrelevant.

Let’s say you’re a second hand store. You buy up used goods, clean them up a bit and then sell them on. Necessarily, the price you offer for a particular item is going to be less than the price someone can make from it by selling it themselves. You need to spend some time cleaning it up (which costs) and you need to add some markup, in order to make a profit.

So, straight away, we’ve got a price discrepancy. I can take my X and sell it with you for £20. Or I can take my X and sell it on the local Facebook buy/sell page for £30.

Why would I go with you?

This is where your story comes in. You need to go back to your customer’s “why”. You need to connect it with you.

So maybe you tell the story of how you were selling something on Facebook, got scammed and ended up out of pocket. The burning injustice of it, though, was you were going to use the money to buy your niece a present for getting through her exams. When this happened, you vowed to ensure that no-one had to go through a scam buyer like this again. And you make sure that everyone who sells through you is treated fairly, with guarantees, up-front pricing and safe and understandable terms.

Suddenly, there’s a reason to take the £20 instead of the £30. It’s all to do with peace of mind. Of trust. Of safety. Which is easily worth the £10 difference.

Take action: Don’t compete on price – come up with a differentiation

Cheers

Baz

PS: If you’d like a hand coming up with your differentiation, drop me an email – hello@clientrobot.com

Photo by Jordan Rowland on Unsplash

How much do I charge to write lead generation emails?

So I saw this question being asked the other day and I thought it interesting.

“How much should I charge to write emails for a company – I’m writing emails to generate leads. It’s my first time doing this .. can you recommend any sites for guidance?”

The thing is, given the information there, I wouldn’t even touch the job.

What conversion rate are they expecting?

What’s the value of the sale?

How many emails are they sending, what’s the target audience and how closely does the list match that target audience?

If you don’t know those things you’re setting yourself up to fail. The campaign will fail, the client will blame you and you will feel terrible.

You need to remember that, deep down, the client doesn’t want an email from you, they want you to get them more sales.

And that information, requested at the top, will help you achieve that.

Then you can use that to calculate a price.

Don’t figure it out on an hourly rate, because that undervalues your expertise. Think of it this way – next month, you’re going to get a similar job and you’re going to be better at writing these emails. Six months on, you’ll get more jobs like this and you’ll be better yet. And each time you get better, you get faster at writing more effective emails. So if you charge by the hour, you’re getting paid less for doing better work.