Stop the Casualties
Stephen Fear, Entrepreneur in Residence at The British Library, discusses Risk Reversal Strategy…
Many new and experienced business people come to see me at The British Library each month and the question of finance and where to find it is always high on their agenda.
I was asked to launch a new initiative & website from the British Bankers Association at The British Library conference centre last year. BUFFY, as it is known, focuses on directing people to sources of finance which they may not know about, including grants, and was very well received, so take a look at the site regardless of your business because there may well be something of interest that applies directly to the business you run.
Finance isn’t the only thing that concerns business owners and entrepreneurs, there is marketing, accounting and employees.
I am always bashing on about keeping your overhead low but how about growth? Well there are many techniques for growing your business, many of which employ what I call Gorilla tactics, instead of those taught by many business schools.
If you think about a typical business transaction, one side is always asked to bear the risk. Asking your customer to do this is a big mistake. If you want to sell more then you need to tell more and remove the psychological barrier between you and your prospective customer or client.
You will know your product or service, you will be familiar with its benefits & of course its shortcomings. Only you can know the true value.
It is important to understand that the one burning question every customer has before they buy is:
Will this really do what they say and work for me?
Will it do what it says on the tin?
The more you remove these doubts, the more you remove that dreaded psychological barrier between you and the more sales you will generate.
So how do you do that? How do you remove this barrier of entry blocking their purchase? It’s simple really! You reverse the risk of purchase from them to you by including in your sales message a statement that, if it doesn’t do exactly what you say it will, you will return their money NO QUESTIONS ASKED.
I expect that you may at this point be afraid that prospective customers will take advantage of you? Well here are the facts. When you employ a Risk Reversal Strategy you will typically increase your sales by 300%, yes, you will sell three times the amount, so even if one of these return the goods you have doubled your sales at no extra cost, and because you have honoured your promise you will have won many fans who will sing your praises whenever asked whether your business is worth dealing with.
If you want proof of this strategy just take a look at John Lewis or Waitrose. People love buying from those businesses because they stand by their product and make the customer feel safe. That’s the key to increased sales.
Stephen Fear, Managing Director and founder of The Fear Group, is a successful, self-made multimillionaire and entrepreneur who runs over 70 companies with his son, Leon Fear. His investments cross multiple sectors, including property, green technology, IT, care homes, hotels and manufacturing. Fear is currently the Entrepreneur in Residence at the British Library and also very active in charity work, including being a patron for the organisation Heropreneurs.