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Tag: Expansion Opportunities

  • How Entrepreneurs Can Identify Opportunities in Disguise — Even When Times Are Tough | Entrepreneur

    How Entrepreneurs Can Identify Opportunities in Disguise — Even When Times Are Tough | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As every entrepreneur knows, there’s no way to escape complications and setbacks when running a business. But business is not just about taking the good with the bad. To be successful, you’ll have to embrace challenges for what they are: opportunities in disguise.

    I recently wrote about a few contradictory personality qualities that will help you to be successful in the world of business. Pair these practices with those traits to adeptly navigate the tumult of entrepreneurial life.

    Related: 4 Steps to Take as an Entrepreneur When the Going Gets Tough

    Launch or expand your business when the markets are down

    By the time you see a trend and start moving on it, you’re in a bubble. As an entrepreneur, you don’t want to be in a bubble — you want to be out in front of every trend. So when the going gets tough, it’s often a great time to start your business or expand into new markets.

    There are a few reasons why taking a risk during hard times might pay off. First, there is much less competition when the markets are down. Investors may be more risk averse, but usually, they are still open to new investment opportunities if you impress them with an innovative concept. You are much more likely to get that call or lock down that meeting when your investors need to improve their revenue.

    Alternatively, when times are good, there’s less reason to take risks.

    I know what you’re thinking: How am I supposed to attract new customers in a bad market? You’ll have to bootstrap during a bad economy, but just know that you’re laying the groundwork for better days ahead. When the markets take off again, you’ll have an invaluable head start on everyone who waited until times were good. You only need enough money to make it through the first two or three years of operations, which means that you should think through alternative income streams for this period.

    Don’t expect people to believe in you during the first couple of years of your launch. If you can make any money at all in that time, you’re lucky. Have the patience to make it to years three and four. If you heed this advice, you’ll start to see the money coming in.

    Practice stoicism (even when times are tough)

    You’ve probably got an image in mind of a hotheaded businessperson, who’s not afraid to “show ’em who’s boss.” This person rarely wins.

    In business, you’ve got to pick and choose your battles wisely. Some people might irk you, but getting into a fight with them could cost you. In most cases, the best approach is to focus on the positive rather than obsessing over the negative.

    Practicing stoicism involves accepting the inevitability of adverse circumstances, and being able to discern when you need to step in and fix a problem, and when you’re better served by letting it resolve itself. That leads us directly into my next piece of advice.

    Related: 6 Ways to Turn Your Obstacles Into Wildly Profitable Opportunities

    Learn when to duck a wave and when to ride one

    When you go out on a limb and launch a business, you’re going surfing. And when you go surfing, some waves will beat you up and others will carry you forward. The key is knowing when to duck a wave and when to ride one.

    While some challenges need to be survived, others should be embraced and taken as opportunities. The covid-19 crisis is a good example. For some businesses, covid-19 was devastating and there was just no way around it. They were unable to service their customers, and their revenue streams were entirely cut off. Others were well positioned to pivot, and even thrive because of the new realities introduced by pandemic life. But only if they recognized the opportunity.

    For instance, many businesses in the travel industry were hit particularly hard by covid. Some drowned while others didn’t. My business, which facilitates individual, group and corporate hotel bookings, was able to pivot by taking advantage of the gig economy. People had lots of questions about local protocols, which hotels were open and the state of their operations. We answered. As we’ve come out of covid, the demand for personalized service has increased, and we’ve kept up. Whatever challenge you face, it’s important to know whether to embrace it or be stoic in the face of it.

    In order for any of this advice to be useful, you’ve got to keep your purpose in mind. Who are you serving? Think fundamentals, focus on your purpose and don’t force anything. Success will come if you focus on solving the problem you’ve set out to solve.

    Prepare yourself for the challenges, so that when you catch a wave, you’re ready to ride it to success.

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    Tim Hentschel

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  • How to Identify Upsell Opportunities to Maximize Your Profitability | Entrepreneur

    How to Identify Upsell Opportunities to Maximize Your Profitability | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    For agencies and other service consultancies that specialize in small businesses, few things can be more helpful for increasing revenue and the lifetime value of your clients than making the most of upselling opportunities.

    The business-to-business equivalent of a McDonald’s employee asking if you’d like to upgrade from small to medium fries, upselling is your way of offering more to clients so they deepen their commitment to your agency. By better understanding what upselling opportunities look like, why they matter and how to better implement them in your own agency, you can maximize your earning potential like never before.

    What do upsell opportunities look like?

    There’s no one size fits all approach to upselling. Some of the most common types of upsells include a product or service upgrade, encouraging customers to buy products in multiple quantities, offering product or service customizations and extended service periods.

    For agencies, this provides valuable flexibility — and multiple ways to upsell.

    For example, an agency could offer monthly marketing service plans but upsell to its clients by also offering an annual plan. This annual plan could be offered at a slight discount compared to the monthly plan but has the advantage of keeping clients “locked in” with the agency for an extended period of time.

    Another option could be encouraging clients to purchase additional marketing services. For example, a small business client might come to an agency seeking a new graphic or logo, and the agency could also offer to provide web design services so that the company’s website matches its new graphics. With each of these upsell opportunities, the end goal should be finding ways to create additional value for your clients.

    Are there services adjacent to the ones you already offer that makes sense for clients but aren’t in your wheelhouse? For example, maybe your agency writes great content but lacks the ability to optimize it for search. Or maybe you capture new leads for your small business clients but don’t use triggered automation to nurture those leads. In cases like these, it might make sense to team up with other providers and technology partners so you can white-label their services.

    Related: Customer Service Is the New Upsell

    Why upselling matters for agencies

    In a survey of small businesses conducted by vcita, over 68% of respondents said they handle all of their own marketing, compared to under 24% that outsource their marketing to an agency. This is indicative of the fact that agencies often struggle to offer value to small business clients — or to effectively communicate how they can offer value — and it points to major opportunities for agencies that excel in this regard.

    Upselling is easier for agencies that are great at communicating their unique value propositions and that can tailor their packages to the specific needs of potential clients on an agile basis. Depending on the type of upselling offer you make, it can showcase the extent to which you’re paying attention to the needs of your clients. It also helps highlight the versatility your agency offers — how you can become a true “one-stop shop” for clients to effectively manage all of their marketing needs.

    Then, of course, there’s the fact that upselling can be a powerful driver of revenue. A survey by HubSpot found that 72% of salespeople who upsell report that it drives up to 30% of their company’s revenue.

    The 80-20 rule (or Pareto Principle) also applies here — where 80% of revenue is derived from the top 20% of clients. Upselling can help you maximize the profitability of your agency’s top clients, ensuring more focused sales efforts that deliver stronger results.

    How to maximize your upselling potential

    The previously cited HubSpot survey found that 88% of salespeople try to upsell their clients. Of course, this doesn’t mean that every upselling attempt is going to be successful. The most effective agencies focus on ways that their upsell offers create genuine value for the customer rather than just getting a one-time profit increase.

    This requires truly understanding the SMBs you work with and their unique pain points. Analytics are only part of the story. You need to take the time to talk to prospects and understand their specific needs. Listen to their feedback so you can build trust and strengthen your relationship.

    By taking the time to know your clients and prospects, and pairing that with a deep knowledge of your diverse network’s capabilities and services, you can then provide tailored, compelling upsell recommendations. When recommendations are truly aligned with a client or prospect’s needs and pain points, they will see your ability to provide relevant service that truly adds value.

    To do this successfully, Adobe recommends limiting how many upsell options you provide a client. Too many options can ultimately lead to analysis paralysis that makes it harder to reach a decision — or could drive a client away entirely. Upsell recommendations should also strive to remain within 25% of the SMB’s planned budget, as a dramatic price increase can similarly deter clients.

    Upsell can (and should) be a priority with current clients — those who already have some level of trust in your agency. Something as simple as a quarterly or semi-annual check-in can help gauge whether a client is satisfied with your agency’s services, as well as provide opportunities to identify new ways your agency can add more value through upselling. Active listening during these client conversations can be especially crucial for identifying upsell options your sales team can pitch at the moment.

    Related: 4 Things That Make for Unforgettable Customer Experiences

    Make the most of your sales opportunities

    Regardless of the client, you should consider potential upselling opportunities with every sales interaction. Whether that’s getting a client to order additional deliverables or having them upgrade to a higher “tier” of service, upselling isn’t just a chance to get a one-time bump in revenue from a client.

    It is also a way for you to further showcase your best work — and why you’re worth partnering with for the long haul. When you upsell effectively and then deliver on the promises you made during the sales process, you will set your agency up for lasting success.

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    Lucas Miller

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