The results are in from our latest Entrepreneur Poll: What Is The Best Way For A Startup To Earn Revenue? The number one answer that came in was:
Focus On The Sale
- The number one thing to focus on is your first sale. A lot of businesses fail because they spend their time on letter head, furniture, office space, etc. What really matters is getting in front of your customer, finding out what they need, and providing that service/product. It really is that simple but is by no means easy. Sales is hard work and is a required skill for every entrepreneur. If you have no sales or marketing experience I recommend you get a sales job before going out on your own.
- Hi there, The best way to earn revenue for a start-up is at some point stop setting things up and just start SELLING. Sales is a life blood of any business and the sooner you start the sales the sooner the money comes in.
- This is the only logical answer… The only way to generate revenue is to sell your product or service. There is no need for a poll or a survey… just sell.. thats all you need to know!
- Easy…Start selling a good product as soon as possible. Receiving revenues right away begin to offset the cost of a startup. There are those who want to read, research, plan, etc. all day, but it’s those who take action that succeed in this society.
- Earn revenue by having great sales tactics–selling while not getting caught up in the backoffice work and creating sales methods. Finding a smart way to have sale prices often, showcasing your products or services through sales, or adding some extra incentive or package pricing for the client. Also teaming up with a business that targets your audience. The key is also making sure keep expenses level while selling–so gross margins and profitability ratios don’t get messed up.
The second most popular answer was: Create A Marketing Plan
- No one will know that the business exists if it doesn’t launch a marketing effort soon after the ink is dry on the business plan. Create a clear and concise message and repeat it at every exposure avenue visited by your targeted audience.
- To create a marketing system that can attract customers easily. First, you need a way to make sure customers will come back again for your products. Subscription based works well. 2nd, you need to come up with a reason for them to buy. Maybe a one month free etc.
- Put together a marketing plan based on your projected cash-flow needs. How much money does your business need each month to cover costs and stay afloat? How much will it need to begin making a consistent profit? Now look at what you sell. How much business do you need to do each month to bring in that required revenue? Then build a marketing plan based on bringing in that amount of business for the lowest possible investment. And create incentives for customers to act now. There are two big mistakes small business owners make when starting out. One: not paying themselves, which forces many to give up too soon. And two: taking on all the work themselves instead of running the business. A healthy business can pay you a salary, and is scalable enough for you to bring in workers when needed, while you concentrate on running (and growing) the business.
The third most popular answer was: Advertise
- You have to spend money to make money as a new business. Advertise!
- Hi Evan! Good to see you on this forum. I believe that to get a business up and running successfully, you have to do a combination of the things several of you are saying: advertising and selling. Your advertising has to be very smart at first, being sure not to waste a dime. Many things can be done for free now, even if you’re a brick and mortar business. Get involved right away in the Chamber of Commerce in your area. Be evident at fundraisers and work your elevator speech into conversations somehow. Use your kids to pass out flyer’s. Do co-op advertising with local businesses. Just be a positive role model in the community and you’ll earn respect; which goes a long way in business. I think when your business is just getting going is the time you really have to be frugal with any money that you can get your hands on.
Other answers from our member were:
Don’t borrow if you don’t have customers
- In my opinion one should not borrow if he does not have customers.. avoid it as far as is possible…
Rent ad space on your website
- The best way for a startup to start earning revenue is to rent ad space on their website (asuming that they are online). You can setup a Google Adsense account or try something more original like … Rent-A-Webpage for $30 or $50 bucks a month. I believe that online startup is much easier than offline startup. If your business turns out to be a success online, you can eventually move it offline, especially if it involves hard goods or a service. The transition will be a lot easier because then you will already have a customer base.
Networking / referrals
- I would definitely consider networking to get referrals. Your local small business association is a great place to start. And I would second hold on to some of your money before you spend it all business cards, stationery and magnets for your clients-which you may not have yet. Be resourceful about marketing.
Use a blog to promote your business
- Consider using a blog to market your business. It is a fast growing trend and a low cost way to begin marketing online.
Cut expenses
- I think the best way for a startup to earn revenue is cut expenses. It seems when most people start a business they get a loan and overspend thinking it will all be earned back, this may work in the long run, but for 3 to 6 months, do more of the work yourself, spend less on everything that you think you need.
Put profits back into your business
- By putting back any profit no matter how small back into the business. Growth is the key here.
Implement your business plan
- Hi Evan, The best way for a startup to earn revenue is by implementing a business plan that can give more values and solutions to what people need.
I hope you find these results useful as you plan out your next startup business. Stay tuned next week when I’ll launch our next Entrepreneur Poll!
Great post.
Some of the ways we were able to increase our sales were to:
1. Offer Products at different price ranges
2. Draw People In by offering a low price product
3. Offer free shipping for sales over a certain amount
4. Cross sell your products with other products in your store
5. Coupons or Rebates
Great post Evan,
As an inventor of a new piece of technology the temptation has always been to tweak it a little more and make it as perfect as possible before letting any one really pull it to pieces. In hindsight if I’d put more into marketing and letting people use the technology I would have made more progress because I’ve found that it doesn’t matter so much what I think. It’s what the customers want that matters. At the end of the day, they’re parting with good money so the sooner they get a chance to express their opinion the better. And the only opinion that matters in the end is the one that says ‘There’s enough value in what you’re offering for me to part with the money you’re asking for.’
So true Evan. I think we all get excited about the company and see the end results in our mind. But in all practicality, getting the sale ASAP on the books is omnipotent. All the dazzle and sizzle in the world doesn’t pay the bills. Get the sale. Build the business. Good stuff.
Great way to kickstart a business and get movement right away is to have an exact step by step plan on how to meet your first goals and objectives. Programs like QuickPlanner Plus have systems to help the creative entrepreneur to develop goals, objectives, vision, strategies and programs for success.
I would also like to add that do not mistake people that show interest but don’t buy as time wasters. Those are your leads and you should keep their details safely. You can always send out a sales letter to them.
Yes, and you need to market yourself and your product. Customer service will lead to profits
Why dont you sign up for free account at saleshout and promote affiliate products? This would be a great way for young people to make money with NO investment at all. USE saleshout.com website as your website and signup for affiliate accounts and post to saleshout and you make commmision off products sold not saleshout
I am at a start-up company. We have been in start-up mode for about 8 years now. Profit is there – however we have reached an impasse of sorts. We have saturated the markets we serve with over 90% of the customers in those markets – this translates to flat line growth over the last 3 or 4 years as we have a very loyal customer base. So the good news – we aren’t losing any market share. The bad news is we cannot afford more head count and we need head-count to grow into new markets areas/spaces.
Ideas?
Specifically, we manage risk for title insurance companies in the real-estate market and our software is used in every ‘closing’ regardless of it being a buy, sell, or foreclosure type transaction.
-All the best,
Chris