In a small business, sales are critical to maintaining positive cash flow, which is the lifeblood of any ongoing business.
While most small business owners consider obvious factors in making sales (such as direct competition), there are three factors which are often not considered.
Indirect competition is a challenge, while bundling/unbundling products and services, and combining initially unrelated services and goods are opportunities.
Here's why these factors can impact sales for small businesses:

1. Indirect competitors to services and goods
Indirect competition can cause problems for a small business, when the services and goods provided rely more on discretionary spending from other consumers/businesses.
For instance, a golf shop might not only face competition from other golf shops (direct competitor), or tennis shops (same recreation/leisure category), but even apparently unrelated categories, such as business seminars.
The reason for this is that a business seminar can provide some of the same benefits (making new business contacts) that the golf shop might normally provide to a golfer, although the services seem dramatically different at first.
To guard against this, the small business owner has to have an excellent grasp of how the end consumer ultimately benefits, and should choose products and services which provide the benefits distinctly better than indirect competitors can.

2. Bundling/Un-bundling services and goods
As a customer makes a major purchase, they will often buy (or need to buy) accessories to accompany that purchase as well.
As one example, a new car buyer will be more likely to buy upgraded options, such as a better radio/sound system, nicer speakers, and upgraded warranty at the beginning of the purchasing process, rather than later.
Clearly, it's best to sell these items when they are most likely to be purchased.
Furthermore, once existing customer complaints have been fixed, they can pay additional dividends by showing what options should be recommended to new customers, so that future complaints will be prevented.
Of course, the reverse is also true for price-sensitive consumers: if features are removed to make additional sales, the consumer should be made aware of the tradeoffs, so that their final decision is an informed one.

3. Combining seemingly unrelated services and goods
Seemingly unrelated items can appear as sales opportunities when trends among existing customers are noticed.
These trends can occur due to similarities in customer age, gender, race, occupation, or other demographic or psychographic trends which would suggest unfulfilled needs.
Simply asking customers about some of their other interests and hobbies can also reveal these needs.
By pairing up previously unrelated items, more buying opportunities are created, which in turn can lead to more carefully targeted offers for those customer segments.
To cite one example, most major book stores now offer an in-store coffee shop.
While not directly related, the pairing works well and is beneficial for most consumers.

In short, any small business sales strategies must account for indirect competition (as well as direct competition), and consider which goods and services to package together, even if they at first appear unrelated.
By doing so, small business owners can serve their markets better, and increase customer satisfaction and profits.
Copyright 2010, Marc Mays