What is Entrepreneurial Thinking?
One are where most business people get caught is when they have to sell their products or services. Say you have a great product and you want to increase your sales. When you ask a Sales Person to do this, they will think “let’s discount” and then the sales will increase. This is not at all smart thinking because you now have to sell many more items just to make the same nett profit. If your sales does not increase, you have actually lost money for no benefit.
An entrepreneur on the other hand will think, how can I make more profit. One of the easiest way to do this is by increasing your prices. It will instantly add more dollars to your bottom line without having to acquire any new clients. The smart question here is: “How can I add more value to my products or services so that clients will be happy to pay me more money”. Once you ask this question you will get lot of ideas and that is entrepreneurial thinking.
Here are some way for you to add more value:
- You can raise your standards. Any person and every part of your organisation can easily do this. Ask each group of people to come up with a list of 10 things how they can increase their standards.
- Dress better. Client will perceive people who dress better to be worth more. Why do you think top lawyer dress the part? They know how to be paid top dollar.
- Have more regular contact with your clients. Find out how you can help them more and better.
- Give away something that costs you nothing. you could give away great discount vouchers of a partner business. This way he gets new leads (at a small discount) and give away something of value. For example if you are tyre retailer you could give away vouchers for the local garage who help you out by sending you their client who need tyre. With a bit of thinking you can get some great ideas here.
- Bundle your products. Sell something at top $$$ by giving something else away at cost. In the end it is the $$$ that is important, not the %. You can’t buy anything with a %.
- Increase your prices. Simple – just do it. Train your sales team not to discount.
- Reduce your initial investment and make that up by charging more later on. This is a winner and always works.
- Offer finance. For some businesses this is a great way to get higher prices and make more profit
- Make it easy to pay. Eftpos, Credit Card, Finance.