The 9 Challenges Every Successful Business Overcomes – Challenge #6

Posted: February 18, 2010 in 9 Challenges Every Successful Business Overcomes
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In this series of posts I am focusing on 9 challenges that every business faces.

I will post one of these challenges every week.  These are challenges that I’ve seen as I’ve begun consulting various businesses over this last year.

The more I’ve thought about it the more I’ve come to believe that these are the same challenges that any/every business faces – no matter what product or service they sell.

I also believe that successful businesses in any arena are successful BECAUSE they have overcome each of these 9 challenges.

Each post in this series will give a brief description of one of the 9 challenges that you face as a business owner.

Let’s look at the sixth challenge every successful business overcomes.

6. You need to get your prospects to take the step and buy from you for the first time.

This is the sticking point and the main problem for most businesses, isn’t it?

One of the hardest things to do is to get a prospect to take the “risk” and buy from you for the first time!  

Why is getting prospects to buy from you for the first time so difficult?

There’s ONE main reason…

They are afraid! 

They’re afraid of wasting their money.   But that’s not all!

Your prospects are unsure of what they need or want. 
Your prospects are not sure your product or service is the best choice (for value, effectiveness, reliability, etc.).  

They’re afraid to buy from you and then look/feel stupid afterwards! 
They’re afraid your product won’t fulfill their need/desire.

You might not think about it, but there is a degree of risk that your prospects are taking in buying from you.  You didn’t realize doing business with you could be so scary, huh?  🙂

The smaller the risk/consequences (in their minds), the easier it will be to cross the line and buy from you for the first time.

Think about it…

There are common/easy purchases (low cost/small consequences) you make all the time: buying gas, a candy bar, lunch, etc.

There are also uncommon/difficult purchases that you make like: buying a car, a house, etc.  Why are they so uncommon and difficult?  That’s because they have higher costs and consequences!

Where does your product or service fall on this continuum?

Low Cost/Small Consequences =>=>Higher Costs & Consequences

The more your product or service falls to the right of this continuum, the more difficult it will be to get your prospects to “cross the line”  and buy from you the first time.

Are you wondering why you’re having more problems nowadays when your product/service falls closer to the left of this continuum?

Well, I hate to tell you this but… in a recession or “down economy” even the “Low Cost/Small Consequences” products and services move closer to the right of the continuum in people’s minds. 

That’s because people have less income to risk.  Even smaller purchases suddenly have a greater “risk”!

What can you do to encourage prospects to buy from you for the first time?

Here are two quick things:

1. Lower the risk for your prospects to make that first purchase.  Maybe that means lowering your price or creating a smaller/cheaper “intro” version of your product or service.  Maybe that means increasing and amplifying your guarantee.

2. Make the reward that you offer greater than the risk that they’re taking to try out your business.  This could be done through “bonuses” or additional services or products that you give to new customers.

Successful businesses that overcome this 6th challenge are very effective at making the first purchase as easy and risk-free as possible.

If you want your business to have a chance of succeeding whether the recession is over or not, then you have to do the same thing.

*What can you do TODAY to make it EASY/RISK-FREE (and maybe even fun!) for a prospect to make their first purchase from you?

Next, I’ll post the 7th Challenge that every successful business overcomes.  Stay tuned.  I’m trying to post them every week, but sometimes.. it’s more like every other!  🙂

In the meantime, if you have thoughts about this sixth challenge you want to share, then post them in the comments.

  • What do you think?
  • Do you agree?
  • What has your experience been with this challenge?

Post your comments, thoughts and even questions – if you have any!

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(*Here’s the shorter version of the link -if you need it – http://wp.me/pfeEX-a5)

Oh yeah!  And speaking of twitter…

You are following my NEW account on Twitter right?  🙂
If not, you can now follow me @rampbusinesses.

If you enjoyed this post, spread the word!

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