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  • How to Not Fail as an Entrepreneur

    5 December 2011

    Entrepreneurial SuccessWhy do most entrepreneurs fail? Businesses fail everyday for a variety of reasons. They may have run out of money, may have underestimated the competition, may have not known how to operate efficiently, or may have had trouble keeping track of their accounting information. Most of these problems can be avoided if an entrepreneur does one thing before investing in a new venture: marketing.

    If you have a good product or service…before signing a lease, hiring a graphic designer to make a fancy logo, or hiring anybody, you can gauge the future success of your business by prospecting, the process of obtaining leads for your product or service. So many people get caught up in the non-essentials of business because it’s fun. Prospecting, however, is not so fun, but it will determine whether or not you succeed as an entrepreneur. Customers disappear because they move to another place, switch to a competitor, or decide to make do without you for a variety of other reasons, which is why a steady stream of new customers is your life line.

    Before you use one of the prospecting tools below you have to make sure that the leads you are pursuing actually want your service, can be contacted, have the power or authority to buy, are able to buy, and can buy in a way that makes them a valuable, profitable customer…

    Network

    You likely already have a network of people. Business partners, university professors, friends in the same field of business as you, etc. Use LinkedIn to help people with power and influence introduce you to new leads and/or other people of influence. Of course, in order to be introduced in a favorable way, you have to provide them first with value. At the very least, keep in touch with them through a phone call or email so that they have something invested in you.

    Contact Current and Past Customers

    If you have a database of satisfied customers stay in touch with them through email, social networks, or friendly birthday cards in the mail. You can also ask satisfied customers if they know of anyone else who may want to use your services. Satisfied customers are more likely to buy from you again because they’ve already had positive experiences with you. Furthermore, their praise can be used as testimonials in your promotional material.

    Offer Something for Free

    When was the last time you said yes to a salesperson asking if you wanted to buy a $100 product within the first 10 seconds of meeting you? We buy from people who we already trust. You can establish this trust by writing for prominent magazines, blogs, etc., conducting webinars or seminars, and/or giving speeches which relate to your product or service. You will gain leads and establish yourself as an expert, a reputation which you can use to sell your business in the future.

    Aside from gaining trust through your perceived expertise you can gain trust among your prospects by offering something for free when you send a sales letter (free consultation), attend a trade show (give away free samples), or build a website (offer valuable advice to targeted traffic from PPC and/or organic traffic).

    Nickolay Lamm is an internet marketing specialist who helps inventors determine the quality of invention promotion firms. See more at InventHelp Scam Help.

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    13 Responses to How to Not Fail as an Entrepreneur

    1. Transcription Company December 5, 2011 at 4:40 am #

      There are several reasons of failure of any business may be capital, labor, lack of market knowledge, underestimating competitors etc. That’s why i always use to suggest that before entering in any business you must have good knowledge of related industry and jump with full preparation, so that you will be able to solve out the business issues. Here proper network, effective business strategies, creativity, latest trends in market etc are required,so go with the important and effective tips to boom as an entrepreneur.

      • item trader December 7, 2011 at 5:30 pm #

        I agree with you. The main reason is as you say, industry knowledge and preparation. One of the best books I read was from Harvard Business School professor Michael Porter on Competitive Strategy and his 5 force industry analysis concept. There are lots of great business books out there for entrepreneurs. My estore features my book which I naturally consider a very good one called How To Compete With The Industry Giants which is available everywhere and on Amazon. I was the district sales manager for the Middle-Atlantic states for copy and print sales for Staples and pioneered their print and copy business from 2004 to where it is today a multi-million $ enterpries with over 200 employees nationally. Prior to joining Staples I owned and operated my own commercial print manufacturing enterprise for 5 years. After I completed my MBA, I realized that I could put my MBA to much better use in lending or in a larger organization with deeper pockets that could put my skills to greater good and hire a lot more people into good careers. Your comment is spot on about understanding the competion.

    2. Extreme John December 8, 2011 at 5:50 am #

      This post makes a lot of sense. Failure for me is part of growing whether it be in business or in personal life experiences. Experience can be the most brutal of all teachers. But you really learn a lot from it and the learning marks in our lives forever.

    3. rrr December 10, 2011 at 2:05 pm #

      Of course failure isn’t good. But think of it from the other side. It will give you the neccessary experience to avoid mistakes. But one should be smart enough to learn not only on his but on others mistakes. It’s not how much you’ve failed, it’s how much you got up.

    4. Play School Activities December 15, 2011 at 12:56 am #

      I have also worked with other entrepreneurs who have spent years building ‘it’ — that great big idea which, once built, would have customers knocking at the door, and is validated by market analysts’ reports. However, when they actually showed ‘it’ to others, they didn’t understand ‘it’.

    5. multiplication chart December 17, 2011 at 9:44 pm #

      Remember the pareto rule, namely the 80-20 rule, whereby 20% of efforts create 80% value.. Most enterpreneurs concentrate on the 80% that does not create any value..

    6. Abhikr December 25, 2011 at 12:05 pm #

      Entrepreneurship is not easy task,so before starting your own business all aspects should be analysed.failure are always pillar of success,by falling they reinforce their way of success

    7. Chery Schmidt December 27, 2011 at 9:38 pm #

      I Loved Your Post! One must just think that Failure is not an option- Yes You can spend lot’s of money getting up and running, which some feel isn’t necessary, but in order to brand yourself the right way it can help to start doing things the right way. Of course it is important to just take action and learn along the way Yes by making mistakes, you will learn. Happy Holidays Chery Schmidt

    8. Laser Centre January 13, 2012 at 12:03 am #

      This post makes a lot of sense. Breakdown for me is part of increasing whether it is in business or in individual life experiences. Knowledge can be the most brutal of all teachers. But you truly learn a lot from it and the learning marks in our lives forever.

    9. Hitech Crane January 24, 2012 at 5:41 am #

      This post makes a lot of sense. Breakdown for me is part of increasing whether it is in business or in individual life experiences. Knowledge can be the most atrocious of all teachers. But you truly learn a lot from it and the learning marks in our lives everlastingly.

    10. Mark Benson February 13, 2012 at 2:48 am #

      This post makes a lot of sense. Breakdown for me is part of increasing whether it is in business or in individual life experiences. Knowledge can be the most brutal of all teachers. But you truly learn a lot from it and the learning marks in our lives everlastingly.

    11. Jessie March 5, 2012 at 5:28 am #

      One of the best ways to prevent failure is to have a good support system…. finding the right investors can be a blessing in disguise and really aid a new business venture

    12. Georgi Vasilev May 2, 2012 at 1:53 pm #

      If you start business on your own you must be really good. Just think a few times before do anything and give the maximum you can. I think this is kind of a receipe to success. Never give up – givinp up is the easiest thing you cauld do.

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