1. Developing a sales strategy

1.1. Ensure you know as much about your target audience as possible.

Go back to your business plan. You should have carefully researched your target market and considered how you will sell to them in the early stages of setting up your business.

Check you understand what your target customers do, what products they need and why, what key benefits they require and when, where and how they buy.

Keep an eye on key trends in your market, such as changes in buying patterns and the activities of competitors.

See Write your start-up business plan

See Research your market.

1.2. Decide which customers in particular you want to target.

Be clear how much each potential customer is worth to you. This will allow you to determine the time and effort you should put into selling to each one.

Aim to focus most of your efforts on customers who will provide the most profitable business.

You should have a good reason before selling to unprofitable customers. For example, a large customer which helps you establish credibility in the market or provides a regular revenue stream.

1.3. Ensure you are clear about the unique selling proposition (USP) of your product or service.

Your USP is what makes you stand out and is why customers buy from you rather than your competitors.

Offering the lowest price for your product or service can be a USP, but it is dangerous to compete on price alone.

1.4. Decide which sales methods to employ.

Using a mixture of methods might well be appropriate.

Direct sales methods include selling face-to-face, direct mail, telesales and e-commerce.

Selling face-to-face is best for high-value sales and for complex products or services that require demonstration or explanation.

Direct mail and telesales are more cost-effective options for lower-value products. E-commerce can be the cheapest method of all - but you need to be sure that your target audience is prepared to buy online.

You might use an intermediary, such as a retailer or wholesaler, to enable you to sell goods to individual consumers. You will gain exposure to more people, but the intermediary will take a significant cut. In this case, you will need to focus your sales efforts on selling to the intermediary.

If you want to sell your product or service overseas, you might wish to consider using a sales agent.

Contact the British Agents Register on 01423 560608 or the Manufacturers Agents Association on 01582 767618.

1.5. Consider how you will price your product or service.

Analyse what level of pricing your market will bear and check what competitors charge. Phone your rivals and ask for quotes, or look at what their products sell for. Analyse what they charge compared with the benefits their service or product offers.

There are two basic pricing models you can opt for. These are cost-plus pricing, which involves adding a margin to the cost of producing your product, and value-based pricing, which involves linking prices to the value customers perceive in your product or service.

Remember that it is easier to lower a price than raise it. Rightly or wrongly, low pricing can often be seen as a sign of poor quality. Some businesses actually attract more customers by putting their prices up.

See Price your product or service.

1.6. Set yourself sales forecasts.

Map out monthly sales targets for the year ahead. The first predictions will be difficult, but try not to be over-optimistic.

Remember that it may take longer to make sales to begin with - especially with a new, or untested product or service.

Setting targets will be easier once you have a sales record, because you can make predictions based on previous results.

Monitoring actual performance against your forecasts can help you identify potential problems and areas for improvement.

1.7. Back up your sales efforts by marketing to potential customers.

Advertising can build up recognition of your business and its products or services.

Consider producing promotional material such as product brochures.

See Market your business.

1.8. Remember the importance of generating repeat business.

Once you've got your first customers, it's important not to neglect them in the push for new business. It's far cheaper to sell to existing customers than to generate new business.

A computer database can help you to keep records of dealings with customers.

2. Plan your approach to customers

2.1. Identify decision-makers and people who influence purchasing decisions.

You need to talk to individuals who have the authority to make purchasing decisions (decision-makers) and those with a need for your product or service (influencers). This won't always be the same person.

Decision-makers will not necessarily be managers. For example, stationery is often purchased by a relatively junior employee.

Looking at a company's website or having a brief conversation with a receptionist can often reveal information about a business's structure and who you need to talk to.

2.2. Be clear about what you want to achieve before you make contact with a potential customer.

Do you want to make an immediate sale or set up a meeting, for example? Or is your aim to simply ensure that the customer will be receptive to future contact from you?

2.3. Prepare your pitch.

Define which key benefits your product or service has for this particular customer.

Anticipate possible objections from the customer and prepare responses. To do this successfully, you need to know your own product (and those of key competitors) inside out.

3. Making the initial contact

3.1. Plan how you will deal with the person who answers the phone.

It is unlikely that you will get straight through to key decision-makers or influencers - so you need to consider how you will handle secretaries.

Be polite and explain who you are. Try to get their name early on, because this will help you next time

Show knowledge of the company and explain the benefits that you can offer. For example, "I think that Mr X will want to speak to me because our shelving products sell well alongside your sheds."

Make the contact believe that their company will miss out on an opportunity by turning you away.

Ask for help. For example, "I am trying to get an appointment with Mr X. Can you help me?"

Ask for an appointment at a definite time.

3.2. Be ready to be persistent, particularly if you do not have an existing relationship.

If you get an immediate brush-off, try to keep the conversation going. For example, if you are asked to put something in the post, say that you would like to send something tailored to the customer's specific needs.

If customers say they need to think about it, ask what their concerns are.

Stay focused on what you want to achieve. If you want a meeting, ask for one.

Use each time you make contact to increase your understanding of the customer. Record details of the customer's circumstances and needs. Note down other useful information.

4. Understand your customer's needs

4.1. When you make contact with key decision-makers or influencers, ensure you treat them considerately.

Check you are calling at a convenient time and be ready to keep your call short.

4.2. Ensure you engage the customer's interest immediately.

You need to establish right away that you are not wasting the prospect's time.

Introduce yourself and establish the basis for talking. It can help to start with questions to which the answer will be yes. For example, "Are you interested in reducing your production costs?"

Briefly outline the key benefit your product has for this particular customer.

Ask if the customer is interested in what you have said so far. If so, go on to ask more questions. If not, ask if your product or service might be of interest at a later date.

4.3. Find out the customer's particular needs.

Use open questions that cannot be answered with a simple yes or no. For example, "How do you plan to reduce your production costs?"

Identify areas your product relates to and needs that it can meet.

Try to establish what the customer's business would be worth to you.

Show your understanding of the customer's field of business. For example, "Yes, now you are getting orders abroad, distribution must be more of a challenge."

Encourage the customer to ask you questions.

4.4. Listen carefully and take notes.

Check you have understood the customer's needs by summarising in your own words what they have said.

5. Making your pitch

5.1. Emphasise the benefits your product or service offers - not the features.

A feature is an attribute of the product or service, such as size, design or simply what it achieves.

A feature of a new PC might be that it has a processor speed of 3GHz, but the benefit is that it lets you do things twice as fast.

5.2. Set out how these benefits meet the customer's needs that you have identified.

Make sure you can sum up the benefits of your product or service and get this across to an audience quickly and concisely.

The same product might be sold differently to two different customers, according to their priorities. For example, if you are selling a car, you might stress the benefits of its safety features when selling to parents of young children, while focusing on style and design when selling to a single person.

Try to quantify the benefits perhaps by stating how much money a customer could save by using your product or service.

Stress the knock-on effects your product's benefits could have. For example, "If your accounting software was easier to use, your accounts staff could spend more time chasing debtors."

5.3. Take objections seriously.

Listen carefully to find out what the customer really means. For example, "The price is too high" could mean "I don't have enough budget" or "I'd buy it if you gave me a discount."

Summarise what you understand the objection to be. Look at it from the customer's perspective. If there are several objections, clarify what each one is before tackling them all.

Test each objection. For example, ask "If I could satisfy you that delivery would be reliable, would you place an order?"

If an objection is valid, address it and then ask if you have satisfied the customer's concerns.

5.4. Ensure you have some responses ready for some common objections.

You will soon begin to recognise what these are for your particular product or service.

If the customer has an objection about price, check to see whether this is the real objection. Then show why your product or service represents good value. Demonstrate the savings it would bring and sell the full package you offer. You might also offer flexible payment terms to make the deal possible provided this is in your best interests.

If doubts are voiced about quality, explain how your product meets the customer's specification and stress your quality control procedures.

If the customer says it has an established relationship with an existing supplier, try to make an opening for your business. Emphasise the benefits you offer and suggest the customer tries you out with a small order.

6. Closing a sale

6.1. Create a sense of urgency.

Try to convince the customer that they need to make an immediate purchase. Link a quick sale to meeting the customer's own needs and deadlines.

6.2. If the customer makes buying signals - stop selling.

Typical buying signals might be: "When would you be able to deliver?"; "What other colours do you have?"; "That would be really useful"; "This is just what we need".

If you do not stop selling, you might go on to talk yourself out of a sale.

6.3. Take responsibility for closing the sale - the customer will not do it for you.

The simplest way may be just to ask, "Can I take your order now?"

Take your cue from the customer. For example, if they ask about the price of a product, say, "So is that the product you would like to buy?"

Propose alternatives. This makes it more difficult for the customer to say no. Ask, "Would you prefer it in green or blue?"

When only one objection remains, make closing the sale conditional upon removing this obstacle. For example, "If I can guarantee to bring the delivery date forward to meet your schedule, will you place the order now?" A hesitant buyer can often be won over by this approach.

Once you have asked for the sale, stop talking. Your silence encourages the customer to think things through and reach a decision.

6.4. Agree actions and confirm these in writing - including timescales.

Confirm that you have understood correctly what the customer wants.

Give your customers good after-sales service, so that they will want to buy from you again.