Entrepreneurs Should Focus On Sales
Written by Bobby Jan for Gaebler Ventures
One of the most common mistakes entrepreneurs make is that they neglect sales. This article will show you why it is important to make sales your top priority.
Making a sale is, essentially, what for-profit businesses are all about.
Without sales, you will not have cash flow and without cash flow, you go out of business.
One of the most common mistakes entrepreneurs make is that they neglect sales.
Most entrepreneurs have wonderful ideas for products. They believe that if their products are wonderful enough, it will surely sell itself.
This line of logic leads entrepreneurs to neglect sales whiling spending most of their time and effort on perfecting the product, printing professional looking business cards, setting up a business, buying office equipments, etc.
Before they know it, they have already gone through most their startup money without ever proving that there is a market for their product. This is a big mistake.
Let me give you a four reasons why you should make sales a priority from the get-go.
Reason #1: You don't really know if there is a demand for your product.
No matter how enthusiastic you are about your product or how much research you did on the market, you really don't know for sure if there is a demand for your product. Business is about providing a valuable product to your customers, not selling something that you think is valuable. Focusing on making sales from the beginning will give you a reality check.
Reason #2: You don't know how to make your product better without real feedbacks.
Of course, you do not want to start selling junk to your customers, but you also don't want to wait until the product is absolutely perfect either. If the product is good enough to sell, you should sell it.
Again, if you spend a lot of time and money on making the product "perfect" without actually selling it, you are actually neglecting your customers' preferences in order to focus on your own. The only way to improve your product is to satisfy the needs of your customers.
Reason #3: You generate essential cash flow for your startup business.
If you don't make sales from the beginning, you might soon run out of cash. Focusing on sales from the very beginning will provide you the essential cash flow to help your business fix mistakes and expand.
Reason #4: You reduce risk by focusing on sales.
What if you spent millions of dollars perfecting your product and setting up your business only to realize that there is no demand for your product? Sure, if you got everything right, you will make a lot of money.
However, if you are tight on capital and waited to sell your product until everything is just right, you are taking on unnecessary and excessive risk.
Remember, failing to focus on sales is a common reason why businesses go out of business. Don't let it happen to you.
Cheng Ming (Bobby) Jan is an Economics major at the University of Chicago who has a strong interest in entrepreneurship and investing.
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Do you agree that many entrepreneurs don't focus on sales enough? We welcome your comments on this article.