Money: You got it and we want it!
One of the best lines I ever heard came from a CFO during a
meeting with potential investors. The
investors asked what we wanted. The CFO responded,
“Money, you got it and we want it!” If this concept is foreign or uncomfortable
to you, consider retiring rather than starting a company or small
business. Any entrepreneur focuses on
this key goal even if they are altruistic by nature. There is an absolute requirement for money to
start, build, run or even close a business.
That said, there are differences in the type of selling that is required
and many customers require extra effort to close the transaction.
Selling something requires showing the person that the product is
what they really want and need; i.e.
creating that desire for the person to have the product. This may be a real tangible item sold wholesale
or retail like software, drugs, diagnostics, or electronics. The item must appeal to the individual enough
that they are willing to hand over their hard-earned money to pay the full
value of the product.
The desire to own something also applies to investments. Investors seek to earn money by investing and
holding their ownership in a business until they can exit making a profit. Showing the investor how the investment will make
money and how your plan will protect the down side is a critical part of the selling
process. The investor needs to understand the retail product(s) and share in
the vision that retail customers will want the item or service. Showing the investor how they can earn a multiple
on their investment in a limited time is critical to the selling process.
The products may be different but investors and retail customers
are just buying a different output from the company. They each require being shown the benefits of
what they intend to purchase. The investor
buys part ownership in the company; the retail customer buys the output from
the company. Selling is so fundamental
to the overall process of building a business that being successful requires
development of the ability to convince people the product is what they must
have.
Showing people what to buy is part of the cycle. Getting them to CLOSE is the other part. Many people have a very hard time giving up
their money. This is the same for
investors and for retail customers. Getting
them to realize the value of what they intend to purchase requires lots of handholding
and demonstration. Eventually there
comes a time when it is important to press them to close the transaction and
handover the money! This can be a tense
moment where all the time spent selling was wasted if the person fails to
purchase. However, some people need that
extra push to close. For example, after
months of rounding up investors, informing them of the need to put their funds
in escrow or that they will be left out may help bring the financing to a close
(one way or another). Even then, it
may require constant pressure on the process until the financing is complete.
Selling and closing the transactions are two skills that must be developed. Applying to heavy of a hand on either selling
or closing may result in loss of the sale.
Likewise, not enough may result in the same negative result. Make sure you work on these skills and your
company will benefit and grow.
Taffy
Williams is on Twitter by @twilli2861. Email
questions to twilli2861@aol.com. More is
available via his company
website , photo website, or “LIKE”
ColonialTDC on Facebook. You can also find him in the group
Startup Group on
Linkedin. Other articles are in the Charlotte,
NC- small business section of Examiner.com.
