Category: Entrepreneurship

 

Recently, I’ve been getting more connected with investors around my area. The last time I was at an event filled with investors, I decided to capitalize on the opportunity.

 

 

It was a small event by the beach and the investors wanted 5 entrepreneurs to pitch their product or service in 3 minutes or less. With hundreds of entrepreneurs trying to present themselves, only 5 were given the opportunity to go up there and do it.

 

 

Lucky for me, I somehow maneuvered my way on stage as I was 1 of the 5 people picked to go on stage. They gave us less than 5 minutes to prepare our elevator pitch. There were hundreds of entrepreneurs, dozens of investors, and a few very nervous presenters in the audience.

 

 

Even though I did not walk away with an investment in 3 minutes, my presentation got a lot of praise from the investors and other entrepreneurs in the building. Not only that, but there was an elderly lady who was able to walk away with a 6 figure investment in 3 minutes.

 

 

I was able to talk first hand with each of the investors and was able to get some really good information out of them. They told me why the lady won the investment in 3 minutes and how anyone can do the same. Here’s what I learned from my day at the beach:

 

 

Bring It

 

When you’re pitching in a 3 minute setting, it’s more likely that you need the investors money and help than they need you. Your whole presentation needs to be upbeat and show them how passionate you are about your product.

 

 

If you cannot get excited about your own product, don’t expect others to do the same. Even though the investors or panel may be watching you during the 3 minutes, it doesn’t mean they are really listening.

 

 

You need to go out there and catch their attention by bringing it. Show them the potential of the product or service through your own passion and delivery. Catch their attention by being energetic and exciting them about your business.

 

 

Connect The Dots

 

3 minutes isn’t a lot of time. However, investors want to know what personally drew you to the product or service that you have created. You should take 30 seconds to give them a brief summary of your background and how it led to the creation of what you are presenting.

 

 

If you have a compelling story or reason why you created the business, you can really emotionally appeal to the investors. At some point, you need to make a connection with the investors on a personal level because that’s what really sells them to invest.

 

 

Say What You Do, Without Saying It

 

One of the biggest reasons why entrepreneurs do not walk away with an investment in 3 minutes is simply because they cannot simplify their product or service. When you have 3 minutes, it should not take you more than 1 minute to clearly summarize what your company does.

 

 

You don’t need to tell them every nitty gritty detail about how things work. You simply need to address the need or problem in the world and give a clear answer on how your business solves that pressing issue.

 

 

In your 3 minute pitch, you need to answer many different questions that the investors want to know. You cannot bore the audience by explaining everything about your product or service. Keep it short, sweet, and most importantly, simple.

 

 

Talk Numbers

 

If you have ever watched Shark Tank, you know that investors love money. They want to know why their investment in your product is going to net them a large return. You need to talk numbers, show statistics, and give factual data that backs your presentation.

 

 

The best way to talk numbers with an investor is to give them the numbers that matter. They don’t care about the problems you have faced, they want to know how long your business has been out and how much revenue/profit you have generated.

 

 

If your business is an early stage company, don’t give them profit or revenue numbers. You may want to talk about things like a ‘patent’ that you may have on the innovation or the size of the market, which would make it appealing to investors.

 

 

At the end of the day, the investors are sitting in that room listening to you because they want $10 back for every $1 they give you. While most companies cannot net them a large return like that, they need to believe that your company is different.

 

 

Data is the biggest way to move an audience. If you can shock the audience by providing factual evidence that really backs your product, you have a better chance of walking away with an investment.

 

 

Think Past Today

 

Investors care about the future, you should too. Stop flexing your muscles and saying what you have already accomplished. The money that you have made will not make the investors any wealthier.

 

 

They want to know what your exit strategy is, future plans for growth, and how they can trust that your business is stable. You need to show them in less than 30 seconds that you have put considerable thought into the future and how you will leverage it.

 

 

Investors want to know they are making a secure investment. The greatest way to show security is to prepare a plan for the future. If you can show the investors you not only have a plan for the future, but you can bail them out if things do fail, their chances of investing are much higher.

 

 

Scale or Fail

 

If your business cannot scale fairly quickly, you have a lot of issues. Investors want businesses that can scale rapidly. You need to show your investors in about 15 seconds that you have plans for using their investment to scale the business.

 

 

One of the mistakes I made during my presentation was focusing too much on how their money would be used to sell what we have already created. However, one of the investors told me he would have been far more interested if I could have shown him ways to scale the product within the next 6 months using his money.

 

 

If a product is not scalable, it’s a very risky investment. Risky investments are the last thing investors want to make unless the numbers are really favorable. Before you begin pitching, create crystal-clear ways to scale your product or service.

 

 

Punch Line

 

At the end of your presentation, you need to do two key things. First, you need to tell them how much money you are asking for and what equity you are willing to give them. Before you value your business at a ridiculous amount, be realistic.

 

 

Investors know what your company is worth and so do you. Don’t go into an elevator pitch unless you are serious about acquiring an investment. If you’re business is worth $100,000 and you’re looking for a $40,000 investment, expect 40% of your business to be taken.

 

 

It’s real simple math. The biggest reason why investors say no is because the entrepreneur tries to rip them off. Before you go into the presentation, know how much money you want, what you will do with their money, and what they will get in return.

 

 

Lastly, before ending the presentation you need to drop a punch line. Something that will make them remember you, your product, and why they should invest in you. Everything you have said for the last 2 minutes and 50 seconds is splendid, but the last thing you say needs to keep them up at night for not investing in you.

 

 

The last thing you say on the stage is what everyone will remember about your presentation. Finish strong and give everyone something to think about after you leave.

 

 

Conclusion

 

Walking away with an investment in 3 minutes is really an art. It’s more than just being a great salesman, you actually have to show value in what you say.

 

 

If you’re serious about locking in an investor in a short pitch, you need to employ a lot of the strategies mentioned above. You may not be successful the first few times because it takes a lot of practice to become good at pitching.

 

 

However, using the techniques mentioned above and a ton of practice, you can get an investment in less than 3 minutes like many others have. Good luck!

 

 

photo credit: ecstaticist via photopin cc

 

As a business ownerfor the last few years, I’ve always found it much easier to sell products and services to existing customers than to new ones. If you’ve done it once, why can’t you do it one more time?

 

Unfortunately, many people tend to forget about their old customers and only focus on acquiring new ones. Not only does that require you to spend more money on customer acquisition, but your business tends to stay at a standstill.

 

 

Every successful business can tell you the importance of keeping your old customers as you acquire new customers. For example, if you can retain your old customers and acquire new customers, you are gaining +2. If you totally forget about your old customers and only focus on the new ones, you are gaining +1.

 

 

While it may not seem like a big difference at first, 50% growth in customers has a huge impact in the long run. Through my experiences as a customer and a business owner, I would like to share with you the most effective tips and strategies to retain customers.

 

 

Reward Your Customers

 

If you want your existing customers to come back, you really need to give them a reason to want to come back. One of the most effective customer retention practices is the reward system.

 

 

On the day that your customers purchase a product or service, you give them a discount or some sort of lucrative offer that they can use on their future visit. Whether it’s relevant to their purchase or not is completely up to you!

 

Here’s an example of what I am talking about. Recently I had a brunch aboard The Queen Mary ship. On the way out, they gave me a flyer that provided me a discount if I came to their Halloween event a few weeks later. Since the discount was substantial and I felt like it would be fun, I came back. However, if I did not receive the coupon, I probably would not have even known about the event.

 

Customers are driven by rewards, coupons, or other promotional items. If you want to save money on marketing costs, find a way to strategically bring your old customers back. Having a strong base of loyal base of customers goes a long way.

 

Resell All The Time

 

Many business gets questions, complaints, or feedback from their customers after a purchase has been made. One of the best ways to hook a customer in is by reselling your products/services at any opportunity that arises.

 

If you receive an email, phone call, or even have a customer come to your store, solve their problems or concerns first. Once you have done that, start using their previous purchase as a threshold to resell them.

 

For example, if you own a furniture store and your customer just bought a television set, you can attempt to resell them on accessories for the television. If you’re talking to them via email, here’s a simple structure you want to follow:

 

Hello So&So,

 

Thank them for making the purchase.

 

Address their issues here. Find solutions for it.

 

I am going to attach our new Fall Catalog that just got released. Seeing as you bought an amazing 50 inch television, I think you will find some great accessories or even a nice stand for it. Closing.

 

Sincerely,

 

Business Owner

 

 

As you can see, the email is simply driven around their original issue or complaint. Once you have given them a solution and eased the situation down, you want to quickly sell them on another purchase. By attaching the Fall Catalog, you do not harm your cause in anyway. It never hurts to let people look at what you have to sell.

 

 

 

Customer Satisfaction

 

“Well done is better than well said,” is a very famous quote by Benjamin Franklin. While you can sell your existing customers on future purchases by handing out discounts or talking to them, there is nothing like customer satisfaction.

 

 

 

In order to retain your customers, you need to impress them the first time. Nobody ever comes back to the store that gave them a cheap product. You need to value your customers and give them the highest quality of products or services.

 

 

 

Not only that, but you need to satisfy your customers every demand (with reason). There’s nothing like putting a smile on your customers face the first time around. If you can make your customers happy with their purchase, you are that much closer to selling them on your products or services again.

 

 

 

Loyalty Card

 

For some reason, loyalty cards work beautifully. You give people a loyalty or stamp card and reward them for frequent visits. The more times they come to your store, the more freebies they earn.

 

 

 

For example, Pinkberry has a loyalty card that they stamp for each purchase of frozen yogurt. Once you get to a certain number of stamps, you get 1 free cup of frozen yogurt. While this doesn’t seem like an exceptional reward, customers are itching to get their cards filled with stamps.

 

 

 

Loyalty cards are very strategic because they require the business to pay very little to maintain ongoing business. If the loyalty cards work the way they should, customers should come back on their own. You don’t need to spend any money on advertising or bringing them back into your store.

 

 

 

If you can find a way to lure your customers in with a loyalty card, you should take advantage of it. It’s a cost-effective method to keep your old customers for less and helps you grow your business by letting you focus on the new customers.

 

Be Lenient

 

Often times, business owners are too strict about their business policies. Instead of understanding the value that a customer brings, they refuse to give in to their customers. Often times, especially in retail, customers have issues and want refunds after specified deadlines.

 

 

Even if they may be a few days past the return policy, I would highly recommend accepting the refund to build a positive rapport with your customers. Sure you may lose some money on that purchase since you have to re-shelve the item and do damage control, but how much is their long term value?

 

 

 

A good customer is often times much more valuable than a bad return. Even though you may lose some money initially, your customers will applaud you for the superior service. The best way to create a loyal customer is by giving them what they want.

 

 

 

Sometimes you have to go above and beyond your limitations to please others. While it may not pay off at times, it can be a great investment at other times. The value of a return customer supersedes anything else. Be fair and understanding with your customers to promote future business.

 

 

 

Conclusion

 

Meeting the needs and demands of customers is a very hard art to master. Combine that with a variety of other factors, and creating a loyal base of customers can be a challenge. However, there is nothing like having a customer who knows you and comes to you without needing to be pushed.

 

 

Before a business can really grow over a long period of time, they need to create a loyal base of customers. Once you have a loyal base of customers that you do not need to spend tons of money on, you can use your efforts to acquire new customers.

 

 

photo credit: davitydave via photopin cc

 

Regardless of what industry or type of work you do, at some point you really have to sell a product/service, information, ideas, or even yourself. With every scenario, there’s a different approach of selling.

 

 

Often Times, people are unsuccessful at selling because they get caught ‘telling’. When you become a teller, your words lose face value. Once you lose value, you’ve lost any chance of selling to this individual.

 

 

Having the ability to sell has become an extremely powerful tool in the world. While every niche or industry has specific selling points, they all share a general approach.

 

 

Whether you’re trying to sell yourself in an interview or sell to clients, there are some key techniques you should be using. I am going to discuss some key psychological strategies that will help you become a seller instead of a teller.

 

 

Appeal to Emotion

 

Today, the unlock button on my i Phone 4S got jammed. I was real upset because my battery was draining fast and my phone was semi-broken. I went to the Apple store and they it would take me 3-4 days to get an appointment with a specialist.

 

 

What a joke. I could not live with a half-broken phone for 3-4 days. I immediately went to Verizon and here is where I really began selling it to them. The greeter told me I needed to schedule an appointment with their specialists and that wouldn’t be available till later.

 

 

Having to run to a meeting soon, I decided to talk to their sales reps about upgrading to the i Phone 5. While talking to him about how I could potentially find a way around my upgrade date of next June, I began talking about how difficult my day was because of the issue on my phone.

 

 

I started to talk about how frustrated I was and how hard it would be for me to carry on my business because of this phone issue. He then told me that he would order a replacement and get a new i Phone 4S sent to my house by tomorrow.

 

 

I sold him by simply appealing to his emotions and getting him to empathize with me. Somewhere along my calm chatter, he must have realized how bad his life would have been if he was in my situation. Thus, he took the extra step to help me out and I was very thankful for it.

 

 

Long story short, I was able to get a brand new i Phone 4S and he was able to qualify me for the new i Phone 5 tomorrow. Not only that, but I was able to save $20 a month on my cell phone plan and built a personal relationship with the guy there.

 

 

We exchanged contact information and I’m even going to get a text message from him at 6:30 AM letting me know what the lines for the i Phone 5 look like. I was able to achieve all this with a 15 minute trip to the Verizon store.

 

 

If you can really connect with an individual and appeal to them on a personal level, you will close them. Don’t yell or tell someone what to do or how to do it. Express things from your point of view and just try to be human. If you can do this, I guarantee you will be a successful seller in whatever it is that you sell.

 

 

Bring The Value

 

When you’re trying to sell to an individual especially, you need to bring a specific value. As much as people love hearing about what you know or do, people want to know what they get out of it. Everyone is in it for their own benefit, the quicker you show them their benefit, the closer you are to a sale.

 

 

Before anyone ever makes a purchase or decision, they must see some kind of value or benefit for themselves. For example, I have a subscribe box on the right side of my blog. By subscribing your notified every time a new blog post has been posted.

 

 

However, very few people have signed up for this. This is probably because people don’t see a strong benefit in exchanging their email address just to hear about my new blog post.

 

 

From the number of emails I’ve been able to amass in the last one month, it definitely has no value to my readers. However, I am going to be giving away a FREE e-book to my subscribers and I am sure people will find that to be a stronger benefit.

 

 

Whenever you are selling someone or something, always show them the benefits. Examples of phrasing this could be, “The benefit of using our services is…..” or “If you buy this product, you will….”. Instead of assuming your ‘customer’ knows the benefits of your offer, you need to directly tell them so that it is clear.

 

 

Help People Visualize

 

 

It’s one thing for you to say that your product will change my life and another to actually show me. Often times, we as sellers completely forget to let our results or product do the talking for us. Anybody can say they have a life changing product, but how many of them can actually prove it?

 

 

If you can show your customers the truth of what you are saying, it’s an easy close. As I have gone through the ropes of hiring multiple teams, I have always hired the teams that have proved me their worth with data, visuals, or actions rather than their words.

 

 

Tell people what you offer, how you do it, why they will benefit, and then show them visually. If your visuals can stay up to par with your words, I guarantee you will close more customers than ever before.

 

 

When selling, there’s only so much you can do with just your words. Instead of talking in circles, show your customers exactly how serious you are. Use statistics, metrics, images, success stories, or anything else that can prove what you say.

 

 

 

Put Yourself In Their Shoes

 

 

Before you can really sell someone on something, you need to put yourself in their shoes. Not only do you need to know what they might be thinking at the time, but you want to get a good idea of how their day has been going and what’s on their mind.

 

 

If you can psychologically be in the mind of your customer, you are one step closer to selling them something. Before you begin your selling pitch, always ask the customer how their doing to get a general sense of their mood.

 

 

If someone is irritated or has had a long day, their level of patience is much less than someone who just had a great vacation in Maui. You need to analyze your customers mind and act accordingly.

 

 

As I was saying above, before you sell to your customers, you want to get on a friendly level with them. If they just went to vacation in Maui, ask them how it went and relate by mentioning a similar trip you had.

 

 

Instead of jumping out to a sales pitch from the start, chat about a similar interest or something going on in the world. Anything that essentially breaks the ice and loosens up your customer is a good starting topic.

 

 

The worst thing you can do is give your customers a feeling that their only here to be sold. When someone feels like their in a ‘sales pitch’ situation, their mind isn’t paying attention to what your saying. Instead, they’re trying to figure out the quickest way of getting away.

 

 

Put yourself in their shoes, connect with them in a friendly manner, and you will automatically begin to see results. The key is to become a seller, not a pushover or a teller. You need to find the balance between too convincing and not convincing enough.

 

 

The Bottom Line

 

 

Becoming a great seller takes a lot of time. It’s a fine art that needs a lot of tweaking and practice before it can be perfected. Even through my years of experience selling, I find ways to improve each time.

 

 

Nobody becomes a great seller overnight. If you can use the strategies and techniques mentioned above, you will find yourself closing deals at a much higher rate. Just remember, you can sell anything anywhere. Don’t just limit yourself to clients or customers.

 

 

Do you have any great techniques or tips that have worked while doing sales? Feel free to share your thoughts on this article or by adding your own strategies by commenting below.

 

 

Regardless of what industry or type of work you do, at some point you really have to sell a product/service, information, ideas, or even yourself. With every scenario, there’s a different approach of selling.

Often times, people are unsuccessful at selling because they get caught ‘telling’. When you become a teller, your words lose face value. Once you lose value, you’ve lost any chance of selling to this individual.

Having the ability to sell has become an extremely powerful tool in the world. While every niche or industry has specific selling points, they all share a general approach.

Whether you’re trying to sell yourself in an interview or sell to clients, there are some key techniques you should be using. I am going to discuss some key psychological strategies that will help you become a seller instead of a teller.

Appeal to Emotion

Today, the unlock button on my i Phone 4S got jammed. I was real upset because my battery was draining fast and my phone was semi-broken. I went to the Apple store and they it would take me 3-4 days to get an appointment with a specialist.

What a joke. I could not live with a half-broken phone for 3-4 days. I immediately went to Verizon and here is where I really began selling it to them. The greeter told me I needed to schedule an appointment with their specialists and that wouldn’t be available till later.

Having to run to a meeting soon, I decided to talk to their sales reps about upgrading to the i Phone 5. While talking to him about how I could potentially find a way around my upgrade date of next June, I began talking about how difficult my day was because of the issue on my phone.

I started to talk about how frustrated I was and how hard it would be for me to carry on my business because of this phone issue. He then told me that he would order a replacement and get a new i Phone 4S sent to my house by tomorrow.

I sold him by simply appealing to his emotions and getting him to empathize with me. Somewhere along my calm chatter, he must have realized how bad his life would have been if he was in my situation. Thus, he took the extra step to help me out and I was very thankful for it.

Long story short, I was able to get a brand new i Phone 4S and he was able to qualify me for the new i Phone 5 tomorrow. Not only that, but I was able to save $20 a month on my cell phone plan and built a personal relationship with the guy there.

We exchanged contact information and I’m even going to get a text message from him at 6:30 AM letting me know what the lines for the i Phone 5 look like. I was able to achieve all this with a 15 minute trip to the Verizon store.

If you can really connect with an individual and appeal to them on a personal level, you will close them. Don’t yell or tell someone what to do or how to do it. Express things from your point of view and just try to be human. If you can do this, I guarantee you will be a successful seller in whatever it is that you sell.

Bring The Value

When you’re trying to sell to an individual especially, you need to bring a specific value. As much as people love hearing about what you know or do, people want to know what they get out of it. Everyone is in it for their own benefit, the quicker you show them their benefit, the closer you are to a sale.

Before anyone ever makes a purchase or decision, they must see some kind of value or benefit for themselves. For example, I have a subscribe box on the right side of my blog. By subscribing your notified every time a new blog post has been posted.

However, very few people have signed up for this. This is probably because people don’t see a strong benefit in exchanging their email address just to hear about my new blog post.

From the number of emails I’ve been able to amass in the last one month, it definitely has no value to my readers. However, I am going to be giving away a FREE e-book to my subscribers and I am sure people will find that to be a stronger benefit.

Whenever you are selling someone or something, always show them the benefits. Examples of phrasing this could be, “The benefit of using our services is…..” or “If you buy this product, you will….”. Instead of assuming your ‘customer’ knows the benefits of your offer, you need to directly tell them so that it is clear.

Help People Visualize

It’s one thing for you to say that your product will change my life and another to actually show me. Often times, we as sellers completely forget to let our results or product do the talking for us. Anybody can say they have a life changing product, but how many of them can actually prove it?

If you can show your customers the truth of what you are saying, it’s an easy close. As I have gone through the ropes of hiring multiple teams, I have always hired the teams that have proved me their worth with data, visuals, or actions rather than their words.

Tell people what you offer, how you do it, why they will benefit, and then show them visually. If your visuals can stay up to par with your words, I guarantee you will close more customers than ever before.

When selling, there’s only so much you can do with just your words. Instead of talking in circles, show your customers exactly how serious you are. Use statistics, metrics, images, success stories, or anything else that can prove what you say.

Put Yourself In Their Shoes

Before you can really sell someone on something, you need to put yourself in their shoes. Not only do you need to know what they might be thinking at the time, but you want to get a good idea of how their day has been going and what’s on their mind.

If you can psychologically be in the mind of your customer, you are one step closer to selling them something. Before you begin your selling pitch, always ask the customer how their doing to get a general sense of their mood.

If someone is irritated or has had a long day, their level of patience is much less than someone who just had a great vacation in Maui. You need to analyze your customers mind and act accordingly.

As I was saying above, before you sell to your customers, you want to get on a friendly level with them. If they just went to vacation in Maui, ask them how it went and relate by mentioning a similar trip you had.

Instead of jumping out to a sales pitch from the start, chat about a similar interest or something going on in the world. Anything that essentially breaks the ice and loosens up your customer is a good starting topic.

The worst thing you can do is give your customers a feeling that their only here to be sold. When someone feels like their in a ‘sales pitch’ situation, their mind isn’t paying attention to what your saying. Instead, they’re trying to figure out the quickest way of getting away.

Put yourself in their shoes, connect with them in a friendly manner, and you will automatically begin to see results. The key is to become a seller, not a pushover or a teller. You need to find the balance between too convincing and not convincing enough.

The Bottom Line

Becoming a great seller takes a lot of time. It’s a fine art that needs a lot of tweaking and practice before it can be perfected. Even through my years of experience selling, I find ways to improve each time.

Nobody becomes a great seller overnight. If you can use the strategies and techniques mentioned above, you will find yourself closing deals at a much higher rate. Just remember, you can sell anything anywhere. Don’t just limit yourself to clients or customers.

Do you have any great techniques or tips that have worked while doing sales? Feel free to share your thoughts on this article or by adding your own strategies by commenting below.

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