Entrepreneurship Sales - ENT4122 - Go to Market Strategies

ENT4122: Go to Market Strategies Chapter 1 – Personal Selling Textbook Update Ingram, LaForge, et. al, SELL 7th Edition. Cengage Publishing: ISBN-10: 035790138X e-book program has changed from Brytewave to Willolabs - Should be set up in...

ENT4122: Go to Market Strategies Chapter 1 – Personal Selling Textbook Update Ingram, LaForge, et. al, SELL 7th Edition. Cengage Publishing: ISBN-10: 035790138X e-book program has changed from Brytewave to Willolabs - Should be set up in course tomorrow - I will send announcement out once available Entrepreneurial Traits Passion Determination Belief Risk Taking Instinct Resiliency Discipline Courage Adaptable Vision Entrepreneurial Mindset Test Entrepreneurial Mindset Entrepreneurial Mindset The ability to - Quickly sense, take action, and get organized under uncertain conditions - Persevere, accept and learn from failure Allows us to recognize and create opportunities Five Principles of Effectuation Don’t wait for the perfect opportunity Start taking action based on what you have: - Who I am my traits, tastes, and abilities - What I know my education, training, expertise, and experience - Who I know my social and professional networks Evaluate opportunities based on whether the downside is acceptable rather than the attractiveness of the predicted upside. Form partnerships with people and organizations willing to make a real commitment to jointly creating the future (product, firm) market with you Don’t worry so much about competitive analyses and strategic planning Embrace surprises from unexpected situations, remaining flexible rather than tethered to existing goods. Expert entrepreneurs believe the future is shaped by the people. They believe if they can make the future happen, they don’t need to worry about: - predicting the future - determining perfect timing to start or - finding the optimal opportunity. 5 Factors of Successful Entrepreneurs 1. Work with the resources they have and ask questions. - They know what they know…and they know what they don’t know. 2. Calculated risk takers who are willing to deal with affordable loss. 3. Listen to feedback on their products, thereby cultivating stakeholders and partners. 4. Find different ways to evaluate the opportunity. 5. Motivated to execute their idea. Why do you want to be an entrepreneur? What do you love? What are you good at? What can you be paid for? What does the world need? Skills Analysis Founders must have the necessary skills and a depth of understanding to build a long-term advantage in the market Synergy is essential Synergy: Connection between the entrepreneur’s skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone Skills Analysis Specific areas Skills are for skill idiosyncratic to Hobbies identification the individual include: Education Work experience Family history Choosing a Business Generation of ideas along the way to selecting a business is a process that takes time and frequent interaction Entrepreneur business ideas index Initial Analysis Potential entrepreneurs often have several ideas but need to identify one to analyze In-depth analysis may lead to scrapping the idea and starting over Analysis requires focus, time, and financial investment - Focus must be on one idea at a time One means to identify which business to pursue is through a gap analysis Gap Analysis Relatively simple process of systematically examining the difference, or gap, between what is expected and what occurs Type: Opportunity analysis Examines opportunities in the marketplace side- by-side with the individual’s ability to address those gaps Ways to Identify Gaps  Examine trends  Interview key successful local entrepreneurs  Discuss ideas with family members  Look for environmental changes that create opportunities  Brainstorm  Look at daily frustrations  Examine patent files: U. S. Patent Office You Don’t Have to be First Or Second or Third: - Sometimes it’s better to be the second or third to market instead of the first - "Often it’s better to follow somebody into the market because it’s so much easier to explain what you’re doing. We’re just like so-and-so except that we do it this way, or that way, obviously some better way."-- David Gold, Palo Alto Venture Capitalist Amazon.com was not the first website selling books Google wasn’t the first searcher (not even Yahoo). Neither Toyota nor Honda had the first hybrid auto Publix, Safeway and Kroger were not the first supermarkets You Don’t Have to be Unique  Most people overvalue ideas and being first to market. Far more important is: - Getting enough customers to make your business work - Giving your customers good value - Getting your customers to recommend you (word of mouth)  Relatively few successful start-ups depend on the ideas or uniqueness.  What matters is doing it, starting it up, getting it done.  Examples: - Apple Computer - started in 1976 Thousands of people had the same idea Two companies were already producing Steve Jobs and Steve Wozniak found the resources, contracted people, took the risks and started up  Other Examples: FedEx and Starbucks  By the time you’ve had a good idea, so have hundreds or thousands of others. Build some advantage first, develop the idea and work with it, bear down and make it work. Value Proposition What problem are you solving and for who? Entrepreneurial Keys to Success EFFECTIVE SALES SUSTAINABLE OPERATING BEING PROPERLY GENERATION MODEL PROFIT MARGINS FINANCED Entrepreneurial Multi-Tasking  Entrepreneurs wear many hats, including that of a salesperson  They must balance various responsibilities, from product development to marketing and customer support  Multitasking is a crucial skill Marketing & Sales  Marketing – activity, set of institutions (methods) and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. POTENTIAL  Sales – transaction between two or more parties in which the buyer receives tangible or intangible goods, services or assets in exchange for money. KINETIC Marketing Sales Potential conversion Actual Customer Plan Persuasion Comprehensive Strategy Interaction Guide Points of Contact Measurable Exposed Cost Effective Knowledgeable Entrepreneurial Sales  Entrepreneurial sales refers to the sales activities and strategies employed by entrepreneurs  Encompasses the process of identifying, prospecting, and acquiring customers or clients for a new or existing product or service  Entrepreneurial sales are distinct from traditional sales in that they often involve a more creative, adaptable, and hands-on approach Customer-Centric Entrepreneurial Sales Approach They focus on building relationships and providing value to customers Entrepreneurs have a deep understanding of their target audience and their specific needs Repeat business and referrals can be critical to their success Customer-Centric Financing Sales Approach Entrepreneurs often have limited financial resources They need to be resourceful and cost effective in their sales efforts Leveraging personal networks, using free or lowcost marketing channels, and finding creative ways to reach potential customers are common Hustle Entrepreneurial and Persistence Success Persistence and a willingness to overcome obstacles are essential traits for success Entrepreneurial salespeople often face rejection and setbacks A never-give-up attitude is necessary in this field Adaptability Market feedback and changing circumstances play a significant role Entrepreneurs must be adaptable and willing to pivot their sales strategies They need to experiment with different techniques and adapt quickly to what works best Product Knowledge  Entrepreneurs are intimately familiar with their products or services  This allows them to effectively convey their value proposition to potential customers  They often play a central role in sales as the face of their brand Product Knowledge  Entrepreneurs are intimately familiar with their products or services  This allows them to effectively convey their value proposition to potential customers  They often play a central role in sales as the face of their brand Importance of Selling Entrepreneurial sellers need to sell themselves as much as NCES EXPERIE their solution. VALUES Entrepreneurs don’t just sell products to get revenue, they sell: ETH NIC - AGEa good price Suppliers on providing good products at Y IT GENDER - Vendors on credit terms - Lenders or investors on capital - Advisory Board to potential members - Partnership - Company culture to potential employees Words of Wisdom Volunteers Needed for Activity Looking for students with active social media presence for an activity we’re doing later this semester If you’re active on social media and interested, email me at [email protected] and include: - Subject: ENT4122 Social Media - Name - Social media handles (Instagram, Facebook, LinkedIn preferred) Your accounts will not be made public to the class Worth extra participation points Conclusion Professor Roberts Email: [email protected] Office: 144 RSB Product Validation Method of collecting different data points and using them to determine whether a product has a good chance of selling. Interpreting data – some data more important than others Finding the right product requires research Technology Utilization Technology helps them be more efficient and productive Entrepreneurs frequently leverage technology to streamline sales processes They use customer relationship management (CRM) software, email marketing tools, and e-commerce platforms Measuring and Iterating Customer Feedback They need to gather feedback from customers Entrepreneurs should measure the effectiveness of their sales efforts Iterating on their strategies is crucial for continuously improving sales performance Changing Landscape of Measuring and Iterating Consumerism ME Marketing YOU Marketing Invasive Fit needs Charisma Focus on Customer Product Focused Solves Problem Condescending view of Recognizes power of consumer consumer Builds trust/loyalty Stages of Consumer Journey On average, the buyer’s journey provides an opportunity for 30 potential touch points to connect.