65% of businesses don’t make it past the first five years, according to data from The Bureau of Labor Statistics. With such an alarming rate of failure, it’s easy to see why leveling up your skills is necessary for your startup business to both grow roots and flourish. This article covers some essential sales negotiations class advice to help raising seed capital and finding your way through the myriad challenges that are known to bring down startups
Keep expenses on a tight leash
One of the main reasons many small businesses fail is the ballooning expenses that far outweigh incoming revenue. This is especially true in the early days of the business before establishing a noteworthy customer base. That’s why trainers in negotiations class recommend that you master techniques that help you get your supplies at a bargain. For example, you can get lower prices by:
- Asking for discounts at every opportunity. Vendors are rarely unwilling to bend when it comes to their pricing. So, consider offering your suppliers longer-term supply contracts in exchange for lower prices.
- Forging solid business-to-business relationships with vendors. Consider solidifying your relationships with your vendors by paying on time or giving them good reviews.
Expand your revenue
At the risk of mentioning the obvious, watching out for opportunities to increase your sales is one of the most important goals of a young business. Unfortunately, when you’re just starting out, it may be difficult to gain buyers’ trust to pull more business your way.
Plus, the stiff competition from the already established companies may paralyze your efforts. So how do you negotiate your way to playing in the big leagues?
Consider the following strategies from sales classes that can help to create a buzz around your products or services. For example:
- Prioritize satisfying and retaining customers. As statistics show, 65% of your sales are likely to come from your existing customers. Plus, 56% of customers will stick around if your business keeps them happy and satisfied.
- Ask your happy customers for reviews and referrals. According to Nielsen, 92% of people will put trust in a product or service based on a referral from someone they know.
- Use influencer marketing. Negotiate with an influencer who holds a considerable pull on your target market. Customers are more likely to resonate with a trusted influencer than a new business.
Seek out adequate funding
Without adequate funding, even the best business ideas and plans can crumble. Finding the best funding options for your business is critical to getting on the right track from the very start.
Business classes teach that, depending on your situation, you can opt to dip into your personal funds or get friends and family on board to give you a boost. External funding through loans or equity funding may also be an option.
Whichever option works for you, remember that using negotiation techniques can increase your chances of the funds you need. Some important negotiation tips for securing funding deals include:
- Be well prepared. If your books aren’t in order and you haven’t created a comprehensive pitch, investors aren’t likely to hear you out.
- Make your value apparent. Investors are more inclined to hang onto your every word if you make it clear what they stand to gain from supporting your business venture.
- Keep your emotions in check. Sitting across the table from investors comes with a lot of pressure. If your emotions get the better of you, you risk crumbling in the heat and failing to answer questions well. Practice simple techniques that distract your emotional line of thought, like performing a mathematical calculation in your head. This usually works because the analytical and emotional sides of the brain seldom work simultaneously.
As some of the best entrepreneurship classes say, you can better your growth prospects if you watch your expenses while propelling revenue. Plus, securing the funding that you need to thrive can help prevent your startup business from falling under.