People become entrepreneurs in order to gain a higher level of personal and financial independence and freedom. Entrepreneurs go into business to better serve their goals and commitments in life.

Yet the majority fail. In fact, 85% of all people going into business will fail within five years.  Further,  90% will not be around at year ten. That leaves only ten successful people in 100! These statistics are truly alarming and are optimistic compared to some studies.

So why do so many entrepreneurs fail?

They fail because they don’t ask enough people to buy their stuff at a profit, often enough.  Too few profitable transactions is the biggest killer of businesses.

"But I make a great product.  Isn’t that enough?  Won’t people find me?"  The short answer is NO.  A great business that is a well kept secret… Starves!  So what to do?  Advertise?

Not necessarily.  Most small business owners cannot afford the expensive advertising campaigns of larger companies. And unless an advertising program can generate more business on a net basis than it costs, it’s just a waste of money.  In a small business, advertising needs to be used very selectively, with a measurable ROI. If at all.

A far more effective method of gaining customers is simply to start talking to more potential customers, more often.  A life insurance industry study uncovered an interesting fact. The more often you contact people, the higher the percentage that become customers:

Number of contacts    |    % that will Buy

                4                                    20
                8                                    50
                12                                  70   
                15                                  90

These numbers are for an intangible product where customers have to die to have their family get the benefits… yet they pay for it constantly now, while alive! These figures show that regular multiple contacts will increase sales, even for your business. 

Remember: people need a relationship sufficient to do commerce.  The higher the level of commerce, the stronger this relationship needs to be. 

Increased contact over time develops relationships, and familiarity encourages repeat business.

You become the only choice in your customers mind!

Many entrepreneurs just go after the quick and easy sales, without thinking about how to nurture longer-term relationships.  Yet using a simple contact management system, even index cards in a "bring-forward" recipe box, will help increase the number of customers you have. 

Commit to making a set number of contacts to build your relationships. Create a system that your business follows. For extra bang for your buck, set up a tracking system so that a year from now you know when people become customers. You can determine your ROI then. Don’t let this complicate getting started!

What system do you use?  Do you have a way of tracking up to 15 contacts with the same person, or do you try keep it all in your head?  Do you actually use the system you already have?  Contact tracking takes time to set up and maintain, and some systems are better than others.  Any structure is a great start. Pick one and use it.

In the 21st century, it’s a requirement to market online. Put your customers into a mailing list and send them an email twice a week, or more.  And/or set up a blog and post an article, comment, interesting item you’ve found (online or otherwise) there – every day. There’s lots of ways to multiply the effect, but the first and important step is to get started! This will only grow in importance.

Work it out… if you have to delegate and have someone else post for you, keep your hand in and write at least a post a week yourself.  

By designing a way to track your contacts, and by contacting enough people often enough, you can beat the odds, and have your business thrive in order to truly support your goals and commitments in life.