Thoughtful Thursdays - Another Thought On Benefit

Here is one of my favourite examples used to demonstrate benefit versus feature. I like it because it is clear and simple... easy for me to understand :)

Don't sell a 3/8" drill bit, sell the 3/8" hole.

Good selling,

Richard

Wise Wednesdays - Starting A Mastermind Group - Part II

At the end of the mastermind meeting a new Chair is selected who is responsible for hosting the next meeting.

The new Chair decides where and when the meeting will take place and is responsible for following up with members. It’s usually a good idea to have a set time (i.e. the last Thursday of the Month so everyone can plan).

Have a quorum: A minimum of people who must be at the meeting. In our group we needed at least four people. This allows the meetings to continue without being held hostage to any individual member who can’t attend.

Each member needs to be committed to the process and the meetings. People can miss a meeting but if they miss two meetings a red flag is raised. If they miss three meetings they must let the group know why they should be allowed to stay. If they miss four meetings they are asked to leave. This ensures that people keep their commitments – this allows you to have dedicated people in the group.

Remind everyone that no one is obligated to give referrals nor is anyone obligated to meet outside the meetings. It is best if you do not have close friends or family in the group. Group members are less judgmental (because unlike your friends or family they won’t have a set opinion of you). The best groups are ones where members respect each other, are open but maintain some distance outside the group. Of course members can see each other outside the meeting.

It should be stressed that all meetings be kept confidential. Trust and respect are the cornerstones to any mastermind group.

Be diligent about setting the ground rules upfront. This will save you a lot of grief later on. These rules are guide posts to ensure things run smoothly. However, don’t be so rigid that all the fun is gone.

In fact, make sure you enjoy yourself.

The ideas you generate, the sorrow and laughter you share and the bonds you create can be immeasurable.

Cheers,

Dominik

Thoughtful Thursdays - Marketing Or Sales?

There is no doubt that marketing and sales activities are linked and a business will have difficulty surviving without the two working in unison. Often the line between the two functions is blurred.

What is the difference between the two functions?

Marketing activities produce prospects and sales activities result in customers.

And why is this important?

You want to have a rich list of prospects in order to generate enough customers to meet your sales expectations. Budget and plan your promotional activities accordingly so you will have enough prospects to complete your planned sales activities.

As I mentioned last week, a recurring reason why sales forecasts are not met can be attributed to not having a sufficient number of prospects.

Good selling,
Richard

Wise Wednesdays - Starting A Mastermind Group

“Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever does”-Margaret Mead


I was part of a mastermind group for five years. Once a month, for two hours, five of us would meet(all entrepreneurs). It was a great way to generate ideas, receive support and be heard. The purpose was to help our businesses grow and in the process we had another unexpected benefit: A great personal bond.

We started each meeting with general socializing for the first 15 minutes. The Chair would call the meeting to order and each person would have 15 minutes devoted to them. Usually a member would ask to talk about their next marketing initiative or needed help solving a time management issue. We would give suggestions, feedback and support. Once everyone had a chance to say their piece the Chair could decide to go back to a topic or introduce something new. The last 15 minutes was devoted for setting up the next meeting and winding down with social small talk. All this took roughly two hours.

For the next two blogs I will share what I learned from this experience and how to run a successful mastermind group yourself.

First, aim to have at least four but no more than seven people in this group. Having three people is too small a group. Anything with eight or more people becomes difficult to manage.

Look for people who are NOT your close friends: People who you meet in networking meetings, or people you know but don’t know well enough and respect . Ideally shoot for a good mix of genders – this is no time for a “gals” or “guys” club. This is not a social get-together.

Take your time in finding the right people. Keep your eyes and ears open. Ideally they should be different from you and other members. You want members with different experiences and who bring a unique perspective. This can create great synergy.

Everyone has to agree to new members joining the group.

Above all, the kind of people you want in the group need to be committed. Ask potential members how committed they would be to the process. What would get in the way?

With the right kind of people you could be on your way to a great experience (not to mention great input in helping you succeed).

Next week: The Best Way To Run a Mastermind Group.

Cheers,

Dominik

Thoughtful Thursdays - Do You Have Enough Prospects?

Now that we are well into the second quarter, you will have had the opportunity to review and analyze your sales results for the first quarter. How did you do against your forecasts?

If you are like many, you may have experienced some slippage. The question is what are you doing to make up the gap?

The majority of businesses I have worked with were not working with a sufficient number of prospects to produce the expected sales results. Once we developed a plan to increase sales activity and executed, it was not very long before the sales gap began to close.

I ask three questions to begin the process:

1. How many prospects do you think you need to approach before getting a sale?
2. What is the dollar value of an average sale?
3. How many prospects are you currently working with?

Now a bit of arithmetic:

1. Take the number of prospects you are working with
2. Divide by the number of prospects you think you need to approach before getting a sale
3. Multiply by the dollar value of your average sale

Does the resulting dollar figure support your sales forecast?

This simple exercise will demonstrate if you are not calling on, or reaching enough prospects to support your expected sales.

Good selling,
Richard

Wise Wednesdays - Good Spirits

Our business in this world is not to succeed, but to continue to fail in good spirits.
Robert Louis Stephenson

One thing I find fascinating is how people handle adversity. In running a business you will find road blocks, set backs and even downright disasters.

How do you handle these situations?

Do you blame others? Do you blame circumstance(fate)? Do you beat yourself up for making mistakes? Do you get easily discouraged? Do you push ahead without learning from the experience? Do you re-evaluate your strategy or approach? Do you lose your cool? Do you focus on what matters? Do you take an honest look at what is really required of you to succeed? Do you re-commit?

YOUR APPROACH in answering these and many similar questions does matter.

Keep up your good spirits.

Cheers,

Dominik

Thoughtful Thursdays - "...Houston, we've had a problem..."

Words spoken by astronaut James Lovell just after an oxygen tank on the Apollo 13 Service Module exploded.

Have you ever had a problem delivering on a commitment to a customer? I would hazard a guess that you have, and you certainly are not alone in this situation. Every day things happen, that may not be in our control, resulting in process delays - it is a fact of life.

In most cases these delays go unnoticed without apparent consequences. There are times however when the proverbial s**t hits the fan creating a very uncomfortable situation. The customer is expecting to receive their order and you know very well that commitment will not be made.

The worst decision one can make is to ignore the problem and hope it will work itself out. As absurd as this may sound, you would be surprised how many apparently level-headed, logical, customer centred people will suddenly put their faith in an unknown higher power they have never called on previously to solve their problem. The best part is that they do not even have to talk to this mystic problem solver.

No matter how bad the situation appears to be, the words embarrassing and humiliating may come to mind, suck it up and make the call. Your customer had enough trust to place the order with you in the first place and it is your responsibility to insure this trust is not broken. Delivering bad news is part of the job - and the sooner the better.

You would want the maximum amount of time to adjust your schedule wouldn't you?

Do not make excuses for what has happened, it is what it is and your job now is to work it out. Determine with your customer the worst case scenarios and the best ways to work through the situation. In many cases your customer will thank you for help and appreciate that you did not run from the problem.

Good selling
Richard

Wise Wednesdays - Money, Money, Money

Recent stories like Bernie Madoff’s and Garth Dabrinsky’s fraud schemes have made many people weary of people who earn a great deal of money.

I often hear this, “ those who earn the big bucks are all crooks.” The belief is that people who make a lot of money have made it at someone else’s expense. This generalization leaves one with two choices: Either you have to be dishonest (because you’ve made it clear that in order to be “rich” you have to cheat) or be totally honest and settle for not making much.

You’re trapped. Such a belief system won’t allow you to move forward.

The truth is that most business owners have had to work hard before making a good living.

For every unethical business story there are thousands of businesses that have made a good living at values we respect. We don’t hear about those stories in the media because they don’t sell. SEEK OUT STORIES where entrepreneurs are wealthy and have followed values you respect. That allows the possibility for your own success and abundance.

Your issues around money; how you manage it, what you believe about it, whether you believe you deserve to make more money – all have a profound impact on your business.

Money management is more than counting your dollars and cents. In the end, it’s about giving money its proper due: It doesn’t guarantee you happiness but it can certainly make you miserable if misunderstood.

Cheers,

Dominik

Thoughtful Thursdays - Your Price Is Too High...

...or is it?

Most of us have heard this objection more than once and will hear it many times again. It is one of the most common objections you will encounter.

I don't mind hearing this from a prospect because it tells me the negotiating phase of the sales process has begun or is still in play.

How you respond to this objection is key. I have seen some people accept this verdict, turn tail and leave - let's not have that person be you.

If you have successfully sold the idea of you being a viable supplier, it is now your challenge to determine the 'price gap' your prospect has told you exists and ultimately decide whether or not you can close it.

Think about what you need to know before making a second offer:

• How far out of line is your price and can it be quantified in dollars?

If you quote an hourly rate, taking fewer hours to complete the job can cost less that a lower rate that takes more time to finish.

• Are you absolutely sure you are on a level playing field with your competitor?

Have you considered freight costs, perhaps you are quoting a delivered price and your competitor has quoted freight extra. Is your packaging the same?

• Is price really the issue?

Does the prospect understand the value you bring? Recall that value is the sum of price and benefit.

In my experience there will be times when you just can not compete, you are not going to will all the battles.

The message today is to be sure that you have considered all that can affect your price, and not to have any questions unanswered. If you take this approach you will close more sales than you lose.

Good selling
Richard

Wise Wednesday - Choosing A Name

How do you decide on a name for your company? For starters don’t rush it. Brainstorm names for your business. Anything goes. Think about your target group – what would appeal to them?

Narrow down your list to three to five business names only.

On a sheet of white paper print-out out the names. Make sure that all the names use the same font and are the same size — do not try to turn them into logos. It’s important to keep the names the same font type and size otherwise a larger font or a “cooler” font can sway people.

Ask potential clients and friends for their instant reaction. Aim for a minimum of 20 people, ideally closer to 40-50 people. Keep track of their preferences.

Example:
I am starting a commercial cleaning business using only environmentally friendly products. Which name appeals to you?

Hand them the sheet of paper and say nothing else. Do not attempt to explain the names or go on about how great the idea is. Have them select the name based on gut instinct. This is important because you want people’s instant reaction. Name identification is an emotional not logical process.

This process allows you to soundly judge how others would perceive the name. You will get varying comments but what you are looking for is a consistent pattern. That is why a good sample size is important.

Have fun but don’t be married to a name. Don’t be fooled into thinking a great name is your ticket to instant sales and success. Otherwise it maybe the cruelest April Fool’s joke of all.

Cheers,

Dominik