Self-Devpt. Nuggets™

“Because its purpose is to create a customer, the business enterprise has two – and only these two – basic functions: Marketing and innovation. Marketing and innovation produce results, all the rest are ‘costs’.” – Peter Drucker

NB: This article is based on excerpts from an issue of my Self-Development Digest newsletter published in November 2008.

I share (by way of 3 tips) my hard won knowledge and experience in selling – profitably – in a VERY difficult business environment. Since these ideas worked for me in Nigeria, they will work for you anywhere…just like they’ve been working for me here in Benin Republic for over 6 months now!

1. Develop a Practical Marketing Strategy Suited to Your Target Market

In April 2002, I sent out my first introduction letters and flyers to many big and not-so-big name companies – within and outside Lagos.

I kept doing this for at least the first three (3) years – in addition to placing newspaper adverts. But very little reward came of it.

Over time I learned one hard lesson:

Finding the RIGHT clients for your products and/or services may not require you to do what others do.

I did NOT win a single project using those methods.

You have to develop something that works for you. Of course you can start by borrowing ideas from others.

But make sure to look carefully at your business environment, and come up with your own unique ideas. Mix it all up in as many creative ways as possible, then go out and TEST, TEST, and TEST!!

What I have said above is what I did years ago. And I still periodically do it today, to improve the results I get.

When I arrived in Benin Republic, I had to do it all over again. And it’s worked again!

It took me nearly four (4) years of hard work to get the “formula” right.

When I started out, finding clients was a haphazard process.

You see back in Nigeria (and here in Benin) reliable business directories and yellow pages – to search for prospective clients – are not easy to find.

The few available listings are often disorganised/unstructured and NOT comprehensive.

Over time, especially due my limited resources, this problem made it necessary for me to ultimately adopt what I call a 100% door-to-door, foot soldier marketing of my products and services.

In the process, I gradually learnt what to say and how to say it to get hired or make a sale. But I also learnt that pavement pounding was an inefficient way to market what I offered to those who needed it.

In short, I discovered that a lot of the stuff in imported sales and marketing books would NOT work without intelligent adaptation. They needed to be modified to accommodate unique socio-economic realities of our African societies.

Over time, I learnt to develop a marketing strategy suited to the environment in which I operate.

Today I get called up by prospective clients looking for custom spreadsheet software solutions I offer – instead of having to go looking for them.

More than 95% of the new or repeat business I have gotten has come as a result of my phone ringing. Either due to an existing client needing me again – or prospective client calling based on a referral.

Read my article titled: “To Win Profitable Clients More Frequently, Find & HIT Your Prospect’s Exposed Felt-Needs Nerve!”

2. Regularly Create NEW Products Addressing Your Target Audience’s Needs:

People will buy a software solution if it does something they want, which they CANNOT get from off-the-shelf commercial software.

In Nigeria, pirated copies are so widely available in the market, that selling your custom software for profit can be tough.

That was why I set about offering real-world relevant solutions that addressed unique peculiarities businesses faced – which existing foreign software did not cater for.

The result: Dramatic increase in clients’ perception of the relevance of the solutions I offer.

The lesson: Sometimes the market may be rejecting you because you have not yet done enough THINKING i.e. about how to communicate the value you offer that can benefit them.

You must be willing to “research” why they reject you, to identify what they really want. Never take it personal. The same people who reject you today will embrace you tomorrow if you get this right.

Just do the required thinking to narrow down to what they need…

The title of the book by Napoleon Hill was not a mistake: “Think and Grow Rich”!

3. Implement An Aggressive Zero Receivables Policy:

This is probably the most important one.

Ensuring that I get the ALL the money from EVERY sale into my hands, pockets or account.

Getting people to pay for almost anything they buy from you in my part of the world can sometimes be a big problem.

I believe (as a client of mine often says), that what you permit grows.

After some unpleasant experiences in my earlier years, I started by requesting 100% advance payment for my services. People paid – but I got to a point that I saw it was stopping me from getting more business.

So I began asking for 50 – 75% advance, and then offering the client up to 10% off if s/he chose to pay everything ONCE.

That way, I got my money in, and did not have to wait long periods, making endless calls and visits to get my balance.

In the few instances when a client tries to delay payment without convincing reasons, I simply use the strategy of “Confronting Without Being Combative”, to bring pressure to bear.

Very rarely has this failed to work.

Read my article titled: “To Win More Often in Life, Master the Art of Non-Combative Confrontation”

My reputation with my clients in this regard has earned me nicknames such as “Ijebu” – because according to them I do not joke about money”. But it has worked, and I enjoy very good relations with most of them – one in which there is mutual respect and consideration.

Others have noticed it:

For instance, another service provider with the same client once asked me:

“Mr. Solagbade, why is it that you always get paid immediately and my payment is often delayed?”, after he witnessed me collecting on three different occasions.

I think you can guess what I told him!

Final Words

Herman Holtz – the renowned (now late) consultant’s consultant, was right:

Any business that is making SALES (that is getting CASH in, NOT credit sales) is very unlikely to fold up. Even if it is mismanaged in every other area of its operations.

For as long as sales continue to come in, there will be CASH to keep running the business.

An outage of cash will bring even the biggest giant of a business to its knees.

Here’s ONE sign that could suggest a company is not making enough sales to keep going (or is engaged in undisciplined spending):

It obtains an overdraft facility from the bank to cover daily operating expenses!

The minute that happens, all sorts of bad things can follow, until it has to close shop!

Here’s hoping the above information will help you grow your sales log, so your business can flourish