Is your business as successful as it could be? All entrepreneurs want their businesses to thrive, but many of them don’t realize that even small mistakes result in profits left behind. You already know how not to waste your money – but do you know if you’re leaving money on the table? Here are seven mistakes you could be making:
Competing on price is the number one way businesses leave money on the table, and it’s an error that almost every entrepreneur makes. Never, never, never compete to be the lowest-priced provider – it’s a race to the bottom and it cheapens both you and your services. Instead, focus on the VALUE you can create for your customer, and set your prices based on that value. Create different levels of value and set different prices – that allows your customers to decide where they want to be
Every business needs to be intimately familiar with the customer problems they’re trying to solve. Yes, your product or service might be new, clever, and innovative – but does it solve your target audience’s real problem? Simply being clever or new isn’t enough – you have to understand your target customer and make sure you’re actually solving a pressing issue that they’re facing. If you aren’t truly helpful – or if the issue you’re solving doesn’t affect enough people to make your product profitable – you could be leaving money on the table.
It’s important to realize that your prospects may not immediately understand what you can do for them and how your product or service can change their lives. You have to tell them – clearly, professionally, and frequently. Many business owners make the mistake of having a “me, me, me,” focus on their websites, rather than focusing on the customer problems they solve. Don’t make this mistake – clearly communicate the value you bring, and your customers will be happy to buy your product or services.
One thing that’s easy for business owners to forget is that consistency creates relationships. We’re not advocating that you pester people to death, but don’t give up after one or two touches. If you meet someone at a networking event that might be interested in working with you, keep track of your contacts and continue to keep in touch over a period of months. That way, you’ll be top-of-mind when they’re ready to pay for your product or service.
We get it. You don’t want to be one of “those” business people – the ones that are always hounding people to buy from them. Unfortunately, if you’re not willing to ask for the sale, you won’t get one. There are ways to sell without being a jerk. At the end of the day, if you don’t have a call to action asking for the sale, you’re leaving money on the table.
You made a sale – great job! Now what? Do you let the customer just walk away, never to be heard of again? Remember that happy customers are the best source of repeat business and referrals, so don’t miss this opportunity! Follow up with your current and past customers to make sure they’re having a great experience with your product or service. If they are, ask them to tell their friends or leave a positive review for your business online.
Getting a new customer is expensive, but repeat customers are very profitable. If your business has only one product or service, think about other ways you could be serving your customers. Could you offer framing services if you’re a photographer? Could your subscription service have multiple membership levels? When you add additional value for your customers, you can bring in additional income without having to find new prospects.
No business owner wants to leave money behind on any deal, product, or service. By making sure to avoid these seven mistakes, you’ll be able to ensure that you’re earning – and keeping – every dollar you deserve.