How To Use Marketing To Eliminate The Riskiest Part Of Starting A New Business…

This works for better for some businesses than others. That is, where you don’t have to go through more extensive licensing requirements , but if you’re creative, you can still make this technique work for you in any situation…

So what’s the riskiest part of any business? Come on I know you know the answer…

Right! It’s the initial investment.

If you want to start a new business, especially one that’s not totally online, it normally takes you a lot of time and money for you to risk…

You have to save a lot of money, buy all the ingredients and tools to make your product (or get all your orders) before you get going, probably get a loan set up shop, pay for marketing and possibly salesmen, and pray that you get enough customers and sales to cover your initial costs and make enough to buy more of your products to sell.

If it you don’t get enough customers, you’ll go out of business, suffer huge losses and possibly lots of debt. Scary!

You could risk losing all the money you worked so hard to save for.

But what if I told you that you just might not have to go through the risk of the initial investment. What if you found out if your business would actually be successful or not before you bought your store’s building, all that inventory, and all that money invested along with a big loan?…

…You could find out with very good accuracy how well your sales will be once you actually start investing in your business…

No, it’s not a fantasy, it’s actually quite possible. But how? How do you eliminate the risks of losing all your money in starting a new business?

Jay Abraham often talks about pre-sales, and some of his clients have taken the idea to a whole new level…

Basically, the plan is to first create and use effective marketing, and possibly some samples of your product for sales reps, to get some “pre-orders” of your product long before you actually start investing. If you get enough, you know you have a viable business that can expand. If not, you can keep tweaking your marketing or product until find something that gets pre-orders. Then you start investing in those pre-orders to finalize the sale and start expanding your business.

You can test the waters without losing lots of money!

“Wait a minute!” You might think…”How do you know it will work, who’s done this before?”

Well it’s not completely full proof, as market trends could change pretty rapidly, but if you get the pre-orders in to a good sized target market, it’s very likely you’ll get more as you create the product just for your current customers and see how satisfied they are. I’d say you’re about 90% of way the way there that you could have gone without investing tons of money.

And who has used this before? Well anyone familiar with buying video games will tell you how some games are “pre-ordered”. Months before new video games hit the market, you can pay about $10 or so to pre-order a spot for the video game that’s they’re guaranteed to get it right when the game comes out. From there, the video game maker’s marketing department can determine how well the video game will sell, and if they don’t get enough pre-order, they may scrap the whole project entirely without losing much money.

Now isn’t that smart!

And there are different ways to pull it off depending on your planned business’s product or service. You can use this strategy on a new product or service you want to create for a current business also.

I’ve only scratched the surface of this technique, and I’ll talk about more about it future (maybe even make an entire ebook around it)

For now, think of ways you can use this technique to better serve your customers and see profits with you briliant business idea, before risking all your money into it. Measure your pre-sale success and use it as predictor of a worthwhile risk or not.

If you market your business idea correctly, you can save tons of hassle, risk, and money. You could easily avoid being one of the 85% of all business start ups that fail in the first year. Or in other words…

Don’t jump unless you know where you’re going to land 🙂

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