Crafting a Successful Business Strategy for 2002

The Paradox of Business Failure

It's an odd paradox. Many individuals who venture into entrepreneurship, regardless of the nature of their business, inadvertently set it up for failure rather than success. It's a baffling reality, but it's true. The most disheartening aspect of this is that they are oblivious to their impending failure, which is often inevitable long before their dreams crumble.

Statistics reveal that 90% of all small businesses fail within the first five years of operation. My personal experience indicates that this figure rises to 98% for home-based businesses. But why is this the case?

The answer lies in the lack of fundamental skills, education, and development necessary to plan ahead, anticipate challenges, and capitalize on opportunities. Here's a crucial secret to business success: it's "easy to do," but it's also "easy not to do." This principle applies to everything in business.

The Three Pillars of Business Success

On a more positive note, there are three specific actions you must focus on if you want to build a robust and dynamic business in 2002:

• Attract potential customers to your business.
• Encourage those customers to return.
• Motivate them to refer their friends, family, and associates.

These steps may sound simple, but they require conscious effort. If you're not actively aware of these business realities, you're probably not implementing these three actions.

Attracting Potential Customers

Regardless of your business, product, or services, and whether you operate online or offline, you must dedicate 50% of your time and energy to attracting new customer inquiries (80% if you're just starting). Use every method and resource at your disposal to encourage people to call you, visit your website, or send you a form.

Customers are the lifeblood of your business. They are your primary source of income, representing the very reason you went into business in the first place - to make money. So, attract them and do it quickly.

Encouraging Customer Retention

It's a proven fact that most people will not buy from you on their first contact. Prospective customers need an average of 5 - 8 exposures to your business before they will even contact you. The world of professional selling tells us that most sales close on the 7th contact.

If you work hard at attracting new customers but fail to encourage them to return, you're setting your business up for failure. Ensure your sales systems allow for automatic or semi-automatic follow-up. Use contact management software to keep track of potential customers.

Motivating Referrals

Referrals are the most valuable prospective customers. They are already pre-qualified and interested in what you have to offer. And the best part? You don't have to spend a dime to get them!

If your business is online, you can do this with a simple "refer a friend" script. If you're offline, you can use a business card referral system. But here's the kicker: you must ASK people for their referrals. Don't be shy. If you ask, most of them will happily give.

The Choice is Yours

All these steps are easy to do. But most people opt for the easier choice - not to do. The choice is yours. Build your business for success in 2002 with a steady flow of qualified customers, and you will reap the rewards.