Sometime during the Christmas holidays I had a long chat with my uncle. By all standards he is a great man, I have always valued his counsel. However, I was taken aback by how he was still running his business. I call it the day 1 business strategy.
What is the day 1 strategy?
This is a very common way in which many people run their businesses. It typically entails daily repetition of almost everything that was done on day one to get a sale. This may include extensive advertising, running a promotion or giving attractive discounts. Though it may keep one busy, it is not only inefficient but also physically and mentally taxing.
Signs that you are using the day one strategy
If you have been in business for at least a year and not had any referrals from any of your past customers, you might be solely focusing on sales which is a common trait of people who fall into this category.
A lack of value in what you sell is also another sign. If people only buy from you because of price, then you are $1 away from losing them.
The absence of a sales process in businesses that are older than 3 months also gives off the vibe that it is not properly organized and not customer oriented.
How to avoid this practice in business
Take time to understand your product/service and market. What is the best way you can deliver your product/service and convey a sense of quality that will make you stand out?
Have a non-complicated, transparent and professional way of engaging your market. Investing in these will improve the appearance of your business, the quality of what you sell and will promote repeat business or even referrals.
By avoiding practicing of the day 1 way of doing business, you gradually move towards a hands-off role to a more value adding, customer satisfaction and innovation focused mindset.
Customers are loyal to businesses that make them feel appreciated and satisfy their needs beyond what is advertised. Repeat business = less marketing and advertising costs = much higher profits and growth.
Let me know your thoughts below.