Category: Customer Service

Identifying 7 Infamous Risks Every Entrepreneur Must Face

People usually focus on the success stories of entrepreneurs and don’t bother about the road that led them there. Honestly, entrepreneurs have the hardest job as they have to prove on a consistent basis the reason why they decided to pursue their venture in the first place. Until you make it, not everyone is rooting for you so you have to be steadfast and decisive as an entrepreneur to really make it in the industry. In order to manage risks as an entrepreneur, you need to be aware and prepared for the risks and challenges you may have to face.

Liquidity Risk

For a business to run, it needs to have a consistent supply of cash flow which acts as its bloodline. There are regular expenses that the business needs on a daily basis for operations to proceed smoothly. Petty cash and expenses keep the business running and not having the cash to meet these obligations can prove to be catastrophic for your business. You can mitigate this risk by forecasting and budgeting cash flows and making sure that income always precedes expenses. This way, you will always have extra cash in hand.

Counterparty Risk

This is the risk you gain from your counterpart in business who may be providing an essential service or good to you.

So are they reliable? What areas of your business are dependent on them? Always ask yourself these questions to determine if your service provider will be able to meet their end of the deal. Failure to deliver essential services on time may prove to be costly for your business. To minimize this risk, check testimonials from other clients and back it up with a thorough background check.

Reputational Risk

This is by far the most crucial risk of them all as it will determine how popular your business will be to the public. A bad reputation means that people have made bad reviews about your product and services which may thwart any potential business deals from happening. Ensure you have a positive social media presence such that when background checks are done, you come out clean. Other people and businesses associated with you are also worried about the counterparty risk you will bring. So make sure you are in good standing.

Operational Risk

When mistakes happen during business operations, it’s important to get in front of them before a bad reputation is developed. An operational risk occurs when there are inefficient policies, rogue employees or a poor IT system in place. No matter the case, ensure you have an outstanding management team to mitigate the mistake.

External Risks

External risks are those that happen beyond your control. They include factors like economic recessions, inadequate raw materials, natural disasters or currency volatility. All of these could end a business idea in an instant. Use financial and insurance institutions to deal with this type of risk.Abandon A Steady Paycheck

This sort of venture requires total commitment which means you may have to quit your job. In the first months of your business, there is usually no guarantee of any personal income from the business venture.

Sacrificing Personal Capital

Some entrepreneurs are unable to secure external funding which necessitates them to dig into their safety net to get the business started as well as keep operations running.

Risk is synonymous is entrepreneurship. It’s a basic business principle that in order to attain rewards, you must be willing to take on risks head-on. How you manage the risks really determines how great the reward will be. It doesn’t necessarily have to result in a profit thus you must be prepared for the risk to backfire terribly. An entrepreneur really needs to be strong-minded and persevere through the tough times if they really want their business venture to succeed. However, for that to happen you will need to put your finances, career and mental health on the line. That is the price you will have to pay to take charge of your destiny. Risk has its upsides and potential drawbacks so ensure you use proper risk management techniques.

7 Selling Techniques That Work

7 Selling Techniques That Work

Selling is an art. One has to learn how to interact with customers in order for selling to occur. Salespeople need effective strategies that can enable them to be able to convert sales. It is important for businesses to train their staff to be able to learn selling techniques.

Some may say that selling is a talent. Well, it is not. With the proper techniques, one can be able to learn how to go about selling. The following 7 selling techniques can be applied to ensure that effective selling is achieved:

1. Be Proactive

Do not sit and be comfortable. As a salesperson, you need to get out and find prospective customers. The more customers you talk to the more likely you are to make a sale. Always remember it is a game of numbers.

An individual needs to be outgoing for this to work. The energy levels within oneself need to portray confidence. A positive attitude works well when one is selling.

2. Helpful

Appearing as helpful and concerned assists in selling. Offering information to a customer makes him or her pay attention to what you have to offer. Being helpful somewhat camouflages you as a salesperson. This technique is one of the most effective currently.

Being helpful appeals to customers. One needs to come off as genuine in order for it to work. If customers sense that you are untrustworthy, it will not work. This technique can be applied by anyone.

3. Aggressiveness

Salespeople need to be aggressive when in fast-paced environments. In such environments, salespeople have to be go-getters. This selling technique is where one goes straight to the point. You don’t beat around the bush. This technique, however, is not suited for many personalities.

4. Do Not Be Desperate, Make It Scarce

At no point in time does a customer need to feel as though you are desperate. It should not come off as though you really have to sell something. You should be composed throughout your selling. The attitude that you portray should reflect that you are selling something worth a customer’s time.

Scarcity should be used in the place of desperation. Make customers feel that what you selling is the only one left. This plays with their emotions. A little bit of convincing will make customers feel like they should really buy a product or service. The thought of a commodity being scarce will make them get into rash decisions.

5. Customer Led

Selling does not involve talking alone. You also need to hear what your customers are saying. After you listen to them, you need to agree and let them know you are aware of what they want.

This technique needs people who are patient. This is because it may take a long time before reaching an agreement. Several meet-ups may need to happen before a sale occurs. However, the conversion rate is high with this technique.

6. Rapport Focused

Salespeople need to build rapport with customers. Body language is very essential in this technique. Effective application of this technique can increase sales tremendously. It is applicable in almost all industries when making sales.

7. Learn From Mistakes

Mistakes are an important stepping stone. Learn from your mistakes. Find out what you should have done better. Embrace your own successes and learn how you can build on them.

Learn from the mistakes and successes of other salespersons both experienced or not. Consulting experienced sales person on how they would have gone about a sale can provide insights that you need. One on one coaching and observing an experienced salesperson pitch can greatly help you.

Selling is a learning curve. You have to master it day by day. You don’t wake up and be a great salesperson. These techniques can be implemented in order for you to brush up your skills and become better at selling.