If you’re ready to greenlight a business idea that you feel has money-making potential, then it’s time to create your road map to entrepreneurial success! Learn to build a Business Plan that will become both the foundation and launching pad for your exciting new venture. We’ll take a deep dive into all the ingredients of a basic Business Plan, including how to evaluate the profit-making potential of your business idea; define your ideal customer groups; evaluate competitors; develop a savvy marketing and social media plan; and build a solid financial strategy that will sustain your dream. Thursdays March 28 & April 4 6:00 PM – 9:00 PM. Register here.
The number one job of a business owner is to sell the company’s products and services (at a profit). To achieve this goal, numerous activities are undertaken to promote, support and sustain the sales process and its co-dependent twin, the buying process. The push-me, pull-you of businesses selling and customers buying rests on a vital and complex foundation.
The business model, i.e., the rationale for how a business will generate sales and make a profit, is the starting point. In the business model, the products and services that will be sold and the target market(s) are identified. The method(s) and location(s) by which customers will obtain the products and/or services and the payment protocols are also detailed (E.g., do customers pay in full in advance, or do they pay a deposit and then the balance when the product or service is delivered? Is this a bricks & mortar or e-commerce operation?).
The value proposition, perhaps the most important component of the business model, will describe why prospective customers are expected to value and purchase the products and/or services that the company plans to sell. Estimating business start-up costs and preparing a credible Break-Even Analysis to provide a time line that predicts the expected pace of sales revenue growth that products/ services are expected to achieve, will determine when profits can be expected to accrue and is yet another purpose of the business model.
Business strategy rests on the business model and marketing strategies, campaigns and tactics lend still more support to driving the selling – buying process. Yet after all is said and done, it’s imperative to get the products in front of potential buyers.
Savvy business owners know that those with motive and money to buy what your company sells need a little help. Offer your products and services (where applicable) through different sales channels and make your products/ services easy for customers to buy. Map the selling – buying process at your organization, talk to and survey your customers and then consider which sales channels, direct, indirect and hybrid, will make it more convenient for customers to do business with you.
Direct Channels: The selling – buying is done through channels, or might we say venues, that you control. Customers may visit your office or store, or they may buy online through your website. You might also offer certain of your products and services on your Facebook page.
According to 2018 research conducted by Hootsuite, there are 2.32 billion Facebook users globally, 1.1 billion speak English and about 10% live in the U.S., 232 million. 78% of American users have discovered retail products to buy on Facebook. Customers will click your Facebook Store tab once you build it out and take it live. Payment processing and customer transaction history are handled by Shopify and Facebook does not take a commission on your sale.
Indirect Channels: Have you ever booked a plane ride or hotel through Expedia, Hotels.com, Orbitz, or Travelocity? If so, you are comfortable buying through an Indirect Sales Channel and you could be ready to sell selected products and services through this method. I’ve promoted and sold my P.R. and writing services on Upwork and LinkedIn ProFinder. Self-published authors who produce books through Create Space have Amazon for an Indirect Sales Channel.
Tangible products have a much longer history with Indirect Sales Channels. A company can investigate the possibility of selling products to a wholesale distributor, who in turn sells to retailers. Freelance artisans often place their hand-crafted items into (typically locally owned) stores on consignment. In both scenarios, products gain access to a significantly larger pool of target market customers than would be possible if the business only used Direct Sales Channels.
Hybrid Channels: Describes two or more sales channels utilized to provide a multi-channel product promotion and distribution system that will maximize product sales. Starbucks offers an easily visible example of Hybrid Sales Channel product distribution.
The primary sales channels are the free-standing Starbucks restaurants that are sprinkled throughout commercial and residential neighborhoods in countless cities and towns across the country. Secondary Starbucks sales channels are found in many Barnes & Noble bookstores, chain grocery stores, hotel and hospital lobbies and airports. By way of Hybrid Sales Channels, Starbucks successfully carpet bombs key shopping districts coast to coast.
Small and medium business owners cannot compete in this manner, but it may be possible to offer products and services through two or more sales channels to broaden product exposure and drive sales.
Thanks for reading,
Photograph: Leslie Jones (1886 – 1967) Pushcarts on Blackstone Street, circa 1940 Haymarket in Boston, MA. Courtesy of Boston Public Library.