Now, a lot of us run our own businesses because we want freedom, and also because it is one of the most rewarding things you can ever do. Because your success, comes out of you constantly improving yourself and pushing yourself to do better. However, if you’re not making enough money, you are not closing sales regularly, and you’re not going to get your freedom and heck … you’re in trouble.
Managing a business’ finances is kind of like baking a cake. You are going to need what would seem like random ingredients, which together work towards your masterpiece. But….What if all the ingredients are there, but the cake just flops time after time?
Now it is no secret that sales are the raising agent in the cake. Most people start to add more expensive ingredients: best technology, greatest team, most automated website – but without sales, you’re doomed.
I want you to watch this 22 seconds clip of what is sales!
Our gorgeous friend Ben Affleck, makes it pretty clear, you either make the sale or you get sold. And as Ben pretty much says it, the ABC’s of closing sales is:
A – Always
B – Be
C – Closing
Here are the three most common reasons why you may not be closing your sales:
# 1 Reason Why You’re Not Closing Sales – Screen Your Prospects
Now at the beginning you might when you are starting out you probably won’t have this in place, but as you evolve you are going to realize this will get more and more important. Everyone has dealt with shitty clients who pay late, don’t pay in full and are a pain to deal with.
When it comes to any service job, you should always have a check in to gauge if you would be a good fit. Have a bit of chat, to see how they are doing financially. Can you add value to them with their challenge?
One of my favorite examples to illustrate this, if you were selling a $15,000 Burberry Leather bag, you would not be wasting your time, unless you screen the person coming into your store to see what your prospect is wearing, her shoes, her watch, her bag, her presentation and outfit.
Now you don’t have to have a high end product to kind of assess, if you gauge your customer might struggle to pay you, offer them a payment plan. If you don’t feel comfortable extending credit to a customer, don’t do it. You can simply just tell your customer that it is company policy to get the payment upfront.
Now, if you don’t feel comfortable and you think it will cause more harm to your business, let it go. Tactfully refer them to a competitor or simply just say no. Tell your prospect that you are too busy, or that their business is not aligned with your company goals.
# 2 Reason Why You’re Not Closing Sales -Customer Procrastination
One of the most frustrating aspects of running a business, is customer procrastination. Sometimes you meet customers and you help them identify what their needs are. They tell you what they are looking for and you give them the answer and either they don’t commit to buying or they don’t follow through. At first, I used to think, something was seriously wrong.
But, everyone procrastinates, and here is the psychology behind it.
According to Psychology Today “20 percent of people chronically avoid difficult tasks and deliberately look for distractions—which, unfortunately, are increasingly available. Procrastination in large part reflects our perennial struggle with self-control as well as our inability to accurately predict how we’ll feel tomorrow, or the next day.”
The most common excuse procrastinators give is that they perform better under pressure, but in actual fact, they are usually justifying why they are procrastinating.
So putting this number in perspective: ⅕ people procrastinate chronically, ⅖ people procrastinate and if you can imagine the other deadlines and commitment, it gives you a better understanding of where people’s time is.
So why does that matter? Well in actually fact its for two things:
Are you procrastinating with your customer?
Now we hate to admit to ourselves when we are wrong, but are you following through? Are you really following through? Its pretty basic that it is crucial for you to stay the course.
It is crucial for you to:
Focus on providing excellent service to existing customers: because it actually will be 6 times cheaper to keep a customer than to get a new customer.
Don’t harass the procrastinating customer by constantly asking if he or she has made a decision. This is not going to work rather address the reasons for procrastination (keep on reading…). The world is smaller than you think, if you are targeting a certain industry you don’t want to be a pain in the butt hard sales person.
Are your customers procrastinating with their decision making process?
Now we already know that everyone has reasons for procrastination. Maybe the customer doesn’t want to spend money on your product, or maybe she doesn’t trust your company or your product. Perhaps you’re just in the wrong place at the wrong time.
In short, they don’t see the need for buying what you are selling. You can address this problem with good marketing, which is the second reason why you’re not closing sales.
# 3 Reason Why You’re Not Closing Sales – Poor Marketing
Good marketing will ensure that your product flies off the shelves. When planning a marketing campaign, you need to ensure that your marketing message appeals to your target market. Perfect marketing has the following features:
It makes your product stand out
It challenges the customer’s current supplier
It has a clear strong call to action
How To Close Sales and Increase Your Bottom Line
If you did a needs analysis before starting your business, you already have crucial information about what your clients need. You can now refer back to that information to refresh your marketing strategy. Remember that your business exists through the pure fact that your clients need what you have to offer. Now offer them what they need so that you can start making money!!!