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Rhonda Abrams The Passionate Entrepreneur

Rhonda Abrams, The Passionate Entrepreneur

Landing a First Customer

by Rhonda Abrams

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Posted on Wednesday, January 3, 2007, 12:00AM
Congratulations! You've decided to go into business for yourself. You've figured out your service or product. You're ready to start. But how do you get your first customer?

Your first customer is always the hardest to land. While the starship Enterprise may boldly go where no one has gone before, customers follow where others lead. Let's say there are two restaurants on the same street; one has a line of customers waiting for tables and the other is empty. I'll almost certainly go the restaurant that's full even if I have to wait.

This "follow the herd" mentality also applies to businesses. Companies like to know that others, especially those in their own industry, have also used your product or service. You've got to have a track record for prospective clients to feel comfortable.

What a dilemma -- you have to have customers to get customers. Don't despair, though; there are a number of tricks to snare that first one:

1. Give your product or service away.

Technology companies often give potential customers trial versions of their software as a way both to improve their product and to expose future buyers to what they make.

Whether you're creating web sites or wedding cakes, you, too, can offer your first customer your product or service for free. Even if this costs you some money, it's probably cheaper than most other marketing activities.

If possible, select a customer who's in an industry you want to serve and someone who can provide you with future referrals. Treat these customers exactly the same way as if they were paying. Draw up a sales document, indicate what you're providing and what direct costs they'll pay (if any), and then specify that you're "waiving" your fee. Use this experience as practice to learn how to deal with paying clients.

2. Offer deep discounts.

In the early stages of your business, it's always appropriate to give clients a favorable rate since you're still learning. But to get your very first customers, charge far less than they could get elsewhere.

If, for instance, you're opening a hair salon and you'll normally charge $40 for a haircut, run an "Opening Special" of just $10 for the first week or two. This encourages people to give you a try and helps you build a clientele.

3. Ask your competitors for their excess work.

Yes, I said competitors. One of the biggest mistakes I made when I started in business was that I avoided talking to others in my field. It turned out my competitors were a source both of new business and for industry information. If they're very busy or have small clients they can no longer serve profitably, they may be interested in subcontracting or referring work to you.

4. Ask your former employer if you can work for them.

If you were downsized, your former employer may be looking for outside contractors to do some or all of the work you did before. Why not see if you can be that contractor? You may not want to work for them forever, but they might be a good first customer.

A final word: Make sure you leverage referrals from those you work for first. Ask them to make a specific number of referrals and give you names to follow up with. Word-of-mouth advertising doesn't just happen; you have to make it happen.

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