Entrepreneurs are persons who simply have the biggest responsibility for business innovation.
Often I want to apply the laws of physics in entrepreneurship as a separate discipline or science.
What is Gravity?
I would not use some really complicated definitions, factors and figures in describing the gravity, but would simply express it as:
Gravity: force of attraction that exist between two objects.
For example, when you let a stone from hand it falls to the ground because of gravity (the earth attracts the stone). Is there not an analogy that we can also apply it for companies?
What is something that is most wanted for every business? Every business and every entrepreneur needs a kind of gravitational force that will attract customers and potential customers.
Gravity and Business
The concept of gravity, business and entrepreneur is shown in the picture. We have a business that is a system that succeeds by selling the products and services to the customers. The heart of the business is you as an entrepreneur. Outside of your business are the entities that decide whether to give you success or not, and they are:
- Customers. This are the persons that already buying from your business. They were attracted by a gravitational force to buy that product or service from you.
- Potential customers. Here’s gravitational force is still weak, but should be established and strengthen so it would convert this group into your consumers.
Among them and your business must be a gravitational force which will attract them to your business. In other words, it will attract potential customers to enter your sales funnel, while current customers and clients to get back into your business and buy more and more from your products or services.
Gravitational force will be bigger if the desire of this group of people or businesses to join your business is greater.
Tasks for Entrepreneurs
What will be your tasks as an entrepreneur in terms of gravitational force? First you need to build, then establish and continuously improve the forces that bring new customers to your business and increase sale to existing customers. Finally, you must constantly expand it to the other groups of people outside of your business.
What are the Basic Elements that Affect Business Gravitational Forces?
- Products or services. This includes the features and benefits. Greater gravitational force we will have if the products and services are more useful for customers and potential customers.
- Price. Some customers and potential customers are attracted with lower prices, while others are attracted from higher prices. Depending on your target market, prices will have different influence on your business gravitational forces.
- Promotion. Many entities will be attracted by your promotional materials such as the advertisements, brochures, flyers, website, etc.
- Distribution. In some cases, crucial for the decision making process from the potential and existing customers is the distribution of products or services.
- You as an entrepreneur. Your reputation, behavior, a way of working is constantly followed by the above entities, and sometimes you can be a critical point to business gravitational force.
- Staff. Your employees are a reflection of your business. Your sales team has big influence in attracting potential customers and helping current customers to make a right decision.
- Combination of all above elements. Sometimes it is not enough only one of these elements for a strong business gravitational force. Therefore, all elements must be sufficiently strong in order to have a powerful gravitational force.
You may note that the above is a marketing mix of a business. So, marketing, entrepreneur like you, and your employees together are elements that increase business gravitational force.
Therefore, improve all these elements and increase business gravitational force, so the success will be here.
In one of the previous posts, I have covered the first layer of the entrepreneurial success factors pyramidal structure – Willingness to take action. If you’re willing to take actions it is necessary to upgrade your willingness with the second layer on the road to success, and that is knowledge and creativity.
Sell advisedly, not with pressure.
This question was rotated in my mind probably one year ago. I am a not big fan of pressure of every type of activities because I’ve been worked previously where everything must be accomplished with pressure. But, when I talk with some people with experience, they tell me that every sale that they made must be made with constant pressure of the potential customers.
On the other hand, if I take the place of the potential customers, I wouldn’t like to be on constant pressure.
Selling With Pressure
What is the process of this selling technique?
We have potential customers. Let’s say that we targeted some potential customers and with our marketing and selling technique our job is to transform that potential customers into real buyers. That transformation is made by pressure on the decision making process of potential customers.
What the pressure mean?
I will use a physical definition of pressure from Wikipedia:
Pressure is the force per unit area applied in a direction perpendicular to the surface of an object.
In this physical definition what I can extract for this purpose is:
- Pressure is a force. In business vocabulary this is marketing and selling force pursuant to marketing and selling activities of the business.
- This force is applied to the surface of an object. This is important part. The object in our case is the potential customer and surface of that object are human senses for hearing, sight and touch.
With this selling technique business uses different marketing and selling channels to make a pressure on the potential customer senses.
What Results Can be Achieved?
Because with the pressure potential customers will be constantly bombarded through different media (as a phone, mail, e-mail, TV, radio…) they can make two decisions:
- Become a buyer for the purpose to escape a future pressure. This is not so probably. If they feel the pressure, they will not be friendly to the businesses that make that pressure to him.
- To find the ways to escape from the pressure. They will block and not answer the phone calls, they will change the TV channel, they will pay less attention for mails in their mailboxes, they will not open and will delete unwanted e-mails…
In these days when customers are more cleaver, and they use different technology to escape different pressures from different business the second decisions will be more probably. Who want a pressure? Probably, nobody wants pressure.
My Recent Experience
I want to share my recent experience when I must decide what technique to use. I was contacted from one potential customers about my services for their business. They come to my office, and I give him an offer with different services and prices. When we finished the meeting, they tell me that they will think about our offers and will contact me if they choose to use one of my services.
After one month, my business partner tells me that we must to call him, or send e-mail because they cannot decide to buy if we don’t bother him. I don’t want to go with the pressure technique of selling and continue to wait for the answer. In that time, one of my clients are seen by that potential buyer, and he was asked about what is his experience from working with me. The testimonials from my current client were crucial that potential client to become my buyer.
What Was the Process
- First they found me somehow and contact me.
- I give him offer where I put my claims.
- They add on my claims (offer) credentials from my current client.
- They decide to buy my services.
Get found from potential customers is most important part in this process. These are inbound marketing techniques for which I write in Inbound Marketing – Marketing for Today and Future. They found me probably from my blog on Macedonian language (Pretpriemac).
You must give your claims that are what you promise that you can do. But, the claims are not enough for today’s customers. They need credentials that are simple proof of your claims. Without credentials probably they will not decide to buy from my business.
Yes, this is a simple but very powerful process: to get found, to give claims and credentials and wait for the answers.
Every entrepreneur wants their companies to be one step ahead of the competition. This goal will improve the overall market position of the company and will bring constant business growth.
As a part of 15 small business marketing advises one of those pieces of advice for entrepreneurs was to be one step closer to their customers and one step ahead of their competition. Here are some of the most important elements that can help you to be one step ahead of the competition.
The most important part of each business year is to achieve every goal that has been set at the beginning. Sometimes the achievements weren’t the same as planned. I would like briefly present some recommendations about how to achieve everything that you want in 2010.
1. Start with the previous year
Close the previous year with an analysis of what you’ve achieved and everything that you don’t have achieved. What you’ve done well and what you’ve not done well. And always ask a question why. Why I have achieved that goals and why I didn’t achieve that goals? In this way, you will make cause effect analysis that will give you possible improvements of the achievement process this year.
2. Look into the Future
Forecast what will happen in the future? What are the trends? What are the potential changes to your market, customers, competition, political environment…? What would be your objectives and goals this year? What changes do you would like to see within your business this year? Answer to these questions will give you better picture of what will happen this year.