5 Effective Sales Strategy for Small Business

Sneha Hull | February 21, 2022 | 79 views

Sales Strategy for Small Business
As a small business owner, what is the first thing that comes to mind when you think of a sales strategy? If you are of the opinion that sales strategy is for large organizations or multinationals, it is not true. A strong sales strategy for small businesses is just as important to staying in the game and succeeding.

You may have a fantastic marketing team, superior customer service, and sound management decisions, but still feel that you are not growing. There is a possibility that something is amiss with the sales strategy. Thus, it is important to have a reliable sales strategy in business plan to ensure that the right things are sold to the right people in the right way.

5 Effective Sales Strategy for Small Business


Concentrate on Small Niche Markets

“Build something 100 people love, not something 1 million people kind of like”.

- Brian Chesky, Co-founder and CEO of Airbnb

This saying by Brain Chesky perfectly encapsulates the essence of niche marketing.

You can make a huge difference in your reach and sales by targeting a specific niche market who shares common pain points or tastes. Focusing on a limited group of companies to pitch is a time-tested sales strategy for small businesses.

For instance, if you are selling inventory management software to a construction equipment manufacturer, choosing a small market segment leads to pitching only to businesses that deal in this. By adopting this sales strategy, you will be able to perfect your pitch for this space much quicker than with a mixed pitch for all kinds of businesses.

Some of the factors that can be considered while identifying your niche market are:
  • Consider your passion and pursuits
  • Conduct research on the competition
  • Conduct a test of your product or service
  • Determine the customer's concerns and requirements
  • Define your specialty and the profitability associated with it

Determine Your Sales Channels

The sales channel is the path through which you sell your products and services to clients. There are various sales channels, but businesses use only a handful of them. You’ll not only get new consumers but also build good relations with other businesses in your field, which will result in increased income.

Here is an example to support the success of the sales strategy in business plan. A street food company was launched, which targeted office employees' during their lunch time. The owner wanted more sales channels because weekly lunchtime sales only generated 70% of sales. They began catering for weekend weddings and a monthly artisan cuisine event to enhance revenue. It also offered early evening deliveries to 20 big firms within a mile. The proprietor approached corporate event organizers with food catering offers. Together, these methods increased monthly sales by 30%.

Improve Your Sales Pitch

Once you've established contact with the appropriate person, prepare an excellent sales pitch. This will help you boost your sales and revenue. Having a sales pitch is an effective sales strategy for small businesses. A sales pitch should pique your prospects' interest and guide the conversation in the proper direction. However, sales pitches are sometimes referred to as 'elevator pitches' since they should be brief enough to be given within a single elevator ride.

Here is an illustration of the same. Gap is a renowned clothing brand. The corporation that powers it, Gap Inc., is a publicly listed company with a slew of profitable brands. A big part of Gap Inc's pitch to investors is that the company has a lot of market power and will be a good long-term investment.

Negotiate a Win-Win Situation

Negotiating for a win-win situation may work wonders for your sales pitches. The purpose of negotiating with your prospects is to show your respect and your willingness to collaborate with them in the future. When you focus your sales strategy in achieving a win for your client, you will learn how you may win as well. This kind of connection develops into recurring business, greater orders, referrals, and recommendations.

Provide Product Demos

By demonstrating how your solution will address the concerns of your prospects, you eliminate the chance of uncertainty. Customizing your product demo to meet the specific demands of each prospect results in more closed sales. Delivering a sellable product demo requires more than a working knowledge of your product. When demonstrating a product, the goal should always be to demonstrate value, not features or functions. Nobody cares about the characteristics of your program; all that matters is what it will do for them.

However, this is the least utilized sales strategy in business plan.

Proven Sales Strategies Examples


Waldron Private Wealth

Waldron Private Wealth employs 50 employees and earned $16 million in 2018. They provide financial planning, trust services, next-generation wealth planning, and education.

They have a robust sales pipeline in place to collect leads consistently, which includes a live chat feature, contact form, and blog. Additionally, their marketing is highly customer-centric, emphasizing how they can collaborate with you to optimize your wealth. As a result of doing this, they have utilized two proven sales strategies to sell. They are also building a pipeline of quality leads and thinking about a win-win situation.

Lefty’s

Approximately 10% to 12% of the world's population is left-handed. Lefty's is a business in San Francisco that has chosen to specialize in items for this sometimes overlooked niche. Lefty's primary technique is to reach out to individuals online and through search engines.

Lefty's sells a diverse assortment of items that appeal to individuals of all ages worldwide. Nonetheless, their product is targeted towards a certain group of left-handed folks. Despite the fact that just 10% of people fall into this category, it still makes up a large part of the population.

Conclusion

Whether you are into outbound marketing or inbound marketing, or are a start-up or an established company, building a well-defined sales strategy for a small business will help you achieve your sales goals. The time-tested sales strategies above will enable you to maximize the time and resources you have and acquire more business.

FAQ:


What is the best strategy for small businesses?

The following are five growth strategies recommended for small businesses:
  • Concentrate on small niche markets
  • Determine your sales channels
  • Improve your sales pitch
  • Negotiate a win-win situation
  • Provide product demos

What is the most effective marketing strategy?

The most effective marketing strategies are those that target a specific audience, focus on essential advantages relevant to the audience's perspective and interests and offer them at the right time.

What are the sales strategies?

A sales strategy is a collection of choices, activities, and objectives that guide how your sales staff promotes your business and get close to new customers.

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