Thoughtful Thursdays - Think About Next Year Now

I usually begin to talk more about next years sales targets and budgets with my clients at the beginning of their fiscal fourth quarter. If your business year follows the calendar year, guess what? It's time to get down to business and set your budgets for next year.

Before we get to next year, is this year shaping up as expected ? Is the business on track to meet profit expectations? Were you able to hole price in a year that may have been one of the most competitive for your business in recent history? Is your product and/or service mix what you want it to be? Is the business heading in the direction you want?

If you can answer yes to most of these questions them you deserve to be very pleased and should congratulate the business for having a great year.

Looking ahead to next year, what are your expectations? Once you have decided on the your business goals for 2010 you can get down to the details of how it might roll out.

As I have discussed in past postings, there are three ways to increase sales

• Greater sales to existing customers
• New sales to new customers
• Price increase

Speaking to profitability, do you expect your costs to increase or will you be working on cost reduction and productivity gains? It is not the worst case to have flat sales while realizing higher profits.

Getting back to sales, use a tool such as the dynamic model described in my Thoughtful Thursdays post from February 2009 to determine in which of the areas you expect sales will grow the most and begin to fill in the specific details on the tactics you put into action to achieve your objectives and goals.

Once you have developed your sales plan and believe in it, there is only one thing left to do. Nike said it best - JUST DO IT!

Good selling,
Richard

Wise Wednesdays - Do it Lousy

The greatest amount of wasted time is the time not getting started. -Dawson Trotman

So much of business activity involves doing things on the fly; not having all the answers.

One of the misnomers is that you have to do things perfectly: You can’t. This way of thinking will only hold you back.

The key is to start. Set a date when you will begin working on that business plan, research the competition, make that phone call etc. Do it lousy. Yes, you read it right.

This will free you from getting it “just right”. Learn from the experience. Re-do it. Do it again.

As Gretzky has been quoted often, "you miss 100% of the shots you don’t take."

Cheers,

Dominik

Thoughtful Thursdays - Leaving a Good Impression

We all want to leave a good impression with people we meet, and future customers are no exception.

Using yourself as an example, what impresses you with when dealing with a sales representative? Over the years I have asked this same question of hundreds of people who have attended sales workshops and there are a few characteristics that are always mentioned:

• Sound product knowledge
• Asking relevant questions
• Neat appearance
• Good listening skills
• A feeling of trust
• Friendly disposition
• Being helpful
• Honesty

I believe you will find similar characteristics in your best friends and it is not unreasonable to expect that if you demonstrate the behaviour that you appreciate, you will make a good impression on your prospects and customers.

Remember that people buy from people.

Good selling,
Richard

Wise Wednesdays - How old will you be if you don't reach your dream?

You may be familiar with Malcolm Galdwell’s book, Outlier, which studied successful people. His conclusion: Those that have become successful are the results of deliberate practice in their field of work culminating in about 10,000 hours(roughly ten years).

Look at most business today and their success happens between 5-10 years of operation.

I like the idea of deliberate practice because it means that almost any of us can do it.

Deliberate practice is honing your craft as a business person: Practicing selling; implementing a well thought out marketing plan; developing and nurturing a list of contacts; managing your cash flow; observing changes in the marketplace; improving your day-to-day operations.

Deliberate practice takes time. The paradox is that you need to give yourself space that this business of yours will unfold yet create a sense of urgency to do the things that need to get done now.

Set milestones, goals, things to accomplish, monthly, weekly and daily. Keep practicing.

An audience member once told John Canary, a prominent speaker, “if I did all the things you say to do I’ll be 55 before I reach my dream. I can’t do that.” John Canary replied, “How old will you be if you don’t reach your dream?”

Cheers,

Dominik

Thoughtful Thursdays - Time Flies

My wise colleague, Domink Loncar, reminded me today that the publication of this post marks the one year anniversary of Thoughtful Thursdays. A year certainly seems to go by in the blink of an eye. Speaking of time flying by...

I took my car to RNJ Tire Sales today to have winter tires installed. I have known the owner, Paul Ross, for more than 30 years and my cars have never know another tire supplier. I have absolutely no reservations recommending RNJ to anyone who needs tires or tire service. This is my testament to the power of customer service, relationships and word of mouth.

While at the shop today we talked about how I came to be a customer. I know that it was a referral, but could not recall who referred me, until I started writing this evening. I still do not recall the person's name, but I remember the circumstances.

The car I was driving at the time was a bumpy handful at highway speeds. I had taken it to more than one shop for tire balancing and the technicians just could not get right. It was one of the technicians that suggested I go to see Paul - he apparently was an expert at on car tire balancing.

Imagine sending a customer to a competitor - if you can not meet their needs yourself, it may be a wise decision

To make a long story short; I went, he fixed and I haven't used anyone else for tires since. That was over thirty years ago!

The thought for the one year anniversary of Thoughtful Thursdays is long term relationships. As I have said before, treat your customers like gold and they will stay with you. They will become your disciples and sing your praises to everyone they know.

Good selling,
Richard

Wise Wednesdays - There is No Magic Pill

Arriving at one point is the starting point to another.- John Dewey


I had someone call me lately and ask about accessing financing for her business idea. After some discussion she revealed that she had gone online and paid some good money to a company that gave her a list of grants and loans -- none which applied to her.

The lesson: Don’t look for a “magic pill” to solve your business problems. For those who think money is readably available read last weeks blog (Wise Wednesdays – No One Will Give You Money) .

This advice also applies to those who are looking for “the” great marketing idea to solve their problems.

Instead replace the “magic pill” attitude with a “one-a-day vitamin” mentality. That means that great results usually occur from what you do day-to-day. No fast and easy answers. Have a big dream but start off in baby steps. Be steady and deliberate in your implementing.

Just ask any successful entrepreneur.

Cheers,

Dominik

Thoughtful Thursdays - Dealing With Unreasonable Customers

You know the kind I mean. These are the ones who feel your only purpose in life is to be at their beck and call, and no matter what you do to keep them satisfied, they are never happy. You have employed every sales tool to determine their needs, get their agreement, and still they not satisfied.

Don't confuse this type of customer with one who is demanding. They are related, but often the demanding customers can be reasoned with.

One of my colleagues refers kindly these customers as energy vampires.

As your business grows and time becomes even more valuable, take a few minutes to analyze how much time you spend with your unreasonable customer - is it worth it? Are you making money? Is there a need for you to have to have a loss leader? Is this customer strategically important?

Maybe it is time to let this one go. If you determine this is your best course of action, think of the consequences before you act. What is the worst that could happen if you lose them as a customer?

Meet with your customer and be very honest with them. Not every supplier can work with every prospect. History will support the fact that they appear to be unsatisfiable. If that is truly the case, there is no sense continuing the business relationship. Let them know that you appreciate their business, but they they may be happier with another supplier, remember that you are continuing to keep their best interests in mind by letting the business go.

One of two things might happen:

• They will be happy for the opportunity and thank you.
• They will not want to stop dealing with you; perhaps because no one else will. This opens the door to take the relationship in a direction that will serve both parties better.

Good selling,
Richard

Wise Wednesdays - No One Will Give You Money

Once in a while I come across an entrepreneur who really impresses me with their wisdom. Scott Gerber, is one these young sharp entrepreneurs (visit his website www.GerberEntertainment.com.)

Here is part of an article he wrote that I am copying verbatim. Read it. Know it. It’s the truth:

No one will give you money. There, I said it. No one will invest in you. If you need large sums of capital to launch your venture, go back to the drawing board. Find a starting point instead of an end point. Scale down pricey plans and grandiose expenditures. Simplify the idea until it's manageable as an early stage venture. Find ways to prove your business model on a shoestring budget. Demonstrate your worth before seeking investment. If your concept is successful, your chances of raising capital from investors will dramatically improve.

Cheers,

Dominik