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The 4 of Small Businesses

There are 4 basic reasons why people go into business for themselves…

Whether as small business owners or solopreneurs people that decide to go into business for themselves can be categorized in 4 groups.  The freedom seekers, the legacy builders, the passionate and the artisan.

1) The Freedom seekers: These are people that have had it working for someone else and with their work experience launch out to create their own business. For the most part being an employee of their own business, working longer hours and usually last to get paid.

2) The legacy builders: These are usually people with an idea they want to convert into the next big thing and build a legacy they can leave behind for their families and mankind. The Steve Jobs of the world.

3) The Passionate: These people just love what they do, and have figured a way to create that passion in a product or services and then sell it. Because of this passion for its product or service this group has typically a greater chance of successful

20% will fail at some point in the first two years and only 1 in 4 will succeed past the 15th year.

BLS (Bureau of Labor Statistics) Tweet

4) The Artisan: These small business owners are people that buy or make a product or provide a service usually associated with a group’s global or region, belief or traditions.  They are easily identified and are able to attract the consumers of that region to form a group of interested consumers to buy there product.

For the successful entreponer, it is not uncommon to start as one type of category then find passion and change.

 And through they may seem different from each other, they actually share a few things in common.

  • They are competing for the same consumer dollar as the big guys.
  • They all need help and support in one form or another.
  • They need to sell to make money and make a living

Wanting freedom, building a legacy, having passion and just wanting to do it yourself is not enough.

According to the BLS (Bureau of Labor Statistics) only 1 in 4 will succeed past the 15th year. 20% will fail at some point in the first two years.

So how does a small business owner find success? There are 4 key principles that are vital to all SBO and SoloPreneurs. These are the principles of:

1. Passion
2. Attraction
3. Engagement 
4. Retention

The First Principle…  PASSION

The Principal of Passion… is the easiest one to understand. We have all run into the sales clerk that dislikes her job and sells us a product with a bad attitude, almost as if we were bothering her. It’s an awful experience.

Now imagine a business owner that hates what they do. Excitement and passion are transmitted, the lack of it, is as well.

If you are not in love with your product or service there are mentors and agencies like SCORE (Service Corp of Retired Executives) that can help through a series of consultations on how you can find a product or service you’re really excited about.

The Second Principle…  ATTRACTION

Attraction, means to attract a steady stream of new customers to your business. It stands to reason that if you have a product you’re passionate about now you want to show it to someone. Once you have exhausted your friends, family and neighbor -who do you present then?

If you are to be successful you have to have a constant flow of potential customers called “consumer traffic” . The best and proven way to drive that traffic to Your business is to advertise. but not any advertisement. It must be effective and efficient advertising. To be effective the advertisement must solve a consumer problem or at least where the consumer perceives your product to be a benefit to them. In other words posting a picture of your product or service with nothing more than a price on whatsAPP of FB community groups does not solve the problem for them, it tries to solve a problem for you. that to make money off a sale.

To solve the problem for the consumer they must see a benefit in it, as how it benefits them. This is why coupons and companies like Groupon have been so successful. a consumer is looking to stretch their buying dollar and therefore is attracted to the offer of 50% off a product or service. 

The danger with using this type of strategy is that it attracts only bargain hunters and they would only come when you’re offering a huge discount off your product or service. In most cases businesses cannot survive with it with this type of campaign for too long.

 This is why Agora perks has commission free convertible Coupons that initially attract a consumer with a 40 to 60% discount on a product or service and then converts to a customer rewards program – Awarding points for regular purchases and the promise of a prize when enough purchases have been made then and only then is another discount offered

Let me better explain with an example if you have a restaurant, you can attract a new customer with a 50% off for dinner but it only applies to the first dinner. Then enrolling the customer in a rewards program with the promise of a FREE dinner after 5 purchases of dinner entree at regular prices. so when your customer has dined 5X, then and only then do we give them a free dinner. In reality you only gave a 20% discount because they already paid for 5 meals. This is what they mean when they say it cost 5X more to attract a new customer than to keep a loyal one.

The Third Principle…  ENGAGEMENT

Third principle is the principle of Engagement

This principle states that you must engage your customer with feedback information and valuable content that they perceive important enough to dedicate their time to. Imagine visiting a website that never changes. It’s always the same information, it’s like reading January’s newspaper in September – the same thing every time you visit.

Order Your Website Today!

engaging your customer means 1st – you should have a virtual address, an address in the virtual world where customers can find you, with a full responsive website but if that is too expensive then just a single page site, somewhere where your customer can find your product and you.

Today’s customers are Savvy customers and are able to quickly compare your product with similar offerings by other companies. They can quickly compare price, delivery, customer reviews and determine who they will buy from. If you fail this test and do not engage your customer they will buy from someone else.

Sadly, that happens everyday. Today we see that out of sheer frustration or lack of knowledge many small-business owners are posting their product or service in chats like Facebook Community or Whatsapp group chats. Statistics will show but less than 1% of those posts result in a sale and when that sale occurs it’s usually purchased by someone that the small business owner actually knows.

It is highly unlikely that a stranger would be motivated by such an unprofessional demonstration of a product or service. The perception is, if the business owner doesn’t care – why should I.

Think about it – would you buy a product or service from someone you DID NOT know that just posted a picture, a price and a phone number on WhatsApp. Be honest. Would you not think, is it a legitimate person, will they deliver what is promised, can I return it if I don’t like it.

What are other customers saying? If you don’t know them, how do you don’t trust them? Trust is earned in the small things. A website, a terms and conditions policy, reviews and referrals, a rewards program. Think about how Amazon, eBay, Allibaba or Etsy present themselves. And before you say oh they are not my competition – your customers are looking at them at the same time. Who will rank higher in confidence of purchase? The funny thing is – per number of visits to purchase ratio, that is the number of times a website is visited for a purchase to the times the purchase is actually done. The small business owner has the better results. It turns out people want to buy from local people they can trust and see a human face to the business. If we fail them here they will buy from the big guys.

The Fourth Principle…  RETAIN

The 4th and final principle is the principle of loyal customer retention.

Statistics show us that it costs 5X more to attract a new customer than to retain a loyal customer. That means, you could potentially stay in business as long as you spend a constant and specific amount of money on advertising to drive in new customer traffic. In other words, if you’re constantly focusing on only attracting new customers you would spend $5,000 as compared to only $1,000 to keep a customer that buys from you over and over again.

So the real question becomes; “how do you make a customer loyalty a business?” The answer, you make them feel like they belong to something special because you treat them special. Like a close friend, so they feel like they are having fun, have trust and confidence in you and most important feel appreciated.

Think of successful businesses like Starbucks, DSW, Nordstroms, Panera, Target, Domino’s, CVS at the center of their success is a customer reward program.

A successful business of any size has a customer reward program to recognize and show appreciation to loyal customers purchasing from them on a regular basis.

Most small businesses and self employed businesses do not have customer loyalty programs. A recent study revealed the top three reasons why small businesses do not have a formal customer reward program are they think it’s too expensive, too complicated or the customer don’t use them…. Right….

Too expensive:

A Full feature self managed Rewards Stamp or Perks Programs start at $179 a month. That’s less than the price of a happy meal from Mcdonalds to keep all your customers happy.

Too complicated:

Agora Perks Rewards Programs could not be easier.
There is NO equipment to rent and no credit card registration required.

Step 1: Customer Registers with any email.,
Step 2: Business awards points for orders (delivery or pickup), referrals, birthdays and of course in house purchases.
Step 3: Customers accumulate points and present points on their phones to claim rewards.

The System does all the accounting and tracks points.

They think customers won’t use them. I love this one

>> 84% of Gen K, 49% of Millennials, 85% of Gen X and 70% of Baby Boomers say the loyalty program makes them want to keep shopping with this brand (Rare)

>> 76% of both Millennials and Gen X view a store that invests its marketing budget to “pay back” loyal customers more positively than one that spends advertising dollars elsewhere (CGK)

>> 80% of Gen K, 43% of Millennials, 76% of Gen X and 53% of Baby Boomers say the loyalty program increases the frequency with which they buy from the brand (Rare)

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>> 65% of customers say they enjoy loyalty programs (Criteo)

Source: blog.accessdevelopement.com

In summary, if you are a small business owner and you intend to be successful you need to recognize that even though you may be a solopreneur that you are not alone. That you need to consider the needs and wants of the consumer just like large companies do. Just posting a picture and a price on whatsAPP hoping to sell just creates a sense of professionalism and a sense of no confidence. To engage in a successful business today you must have a virtual location, an virtual address where customers can find you, that engages customers with feedback, customer reviews and product details. You need an offer that catches the needs of the customer. Like a discount coupon. Putting your product image and price shows your need to sell not their need to buy. And finally you need a way to keep them coming back to make purchases again and again with a forma reward program.

Agora Perks has digital, shareable coupons and formal rewards programs that we can place in the Instagram account of your future loyal customers for as little as $179 a month – that includes the instagram paid ad. You will find no more effective advertising and you will find no less expensive program. Agora Perks was designed for the SBO. We can help you visit and contact us and together we can design a plan to help you finally reach your sales.

AgoraPerks.com/help or contact us at 786.343.1821 or admin@agoraperks.com

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