Thoughtful Thursdays - Sales and business management

In most new or emerging small ventures the owner is responsible for managing all aspects of the business. No surprises here.

As discussed in an earlier post titled "Do you manage your sales activities?", time is the resource that the new business owner often runs out of first.

Today's thought is about managing your sales force activities from a business management point of view. As sales manager, you work closely with other members of your management team; marketing, operations and finance.

Exceeding sales expectations is a cause for celebration yet requires and benefits from detailed analysis, just as much as the opposite situation of having a sales shortfall does.

• What affect are your actual sales having on cash flow forecasts?
• Are accounts receivable being received on time?
• Will enough cash be available to pay for forecasted expenditures?
• Do activities have to be postponed or can they be accelerated?
• Are your costs of sales higher or lower than expected?
• How will this affect your planned activities?
• If activities have to be postponed, or can be accelerated, what effect will that have on achieving future sales?
• Is the excess or shortfall significant enough to warrant re-forecasting?
• Are you prepared to scale up or pare down?
• Are you set up to hire contractors or employees?
• Have your operational costs been accurately estimated?
• What affect is that having on profitability?
• Is your business profitable?

At any given point in time it is critical to know where you stand with respect to the following:

• Sales revenues
• Accounts receivable - what money you are owed
• Accounts payable - what money you owe other

There is an interesting case study about a business that experienced dramatic early growth. This sounds like a good situation, and if well managed it can be.

Click here to view the Ivey Institute for Entrepreneurship case study.

Good selling,
Richard

Thoughtful Thursdays - Dealing with the stall

What do you do when your potential customer keeps putting off giving you the or

All questions have been answered and concerns addressed, but they just keep stalling and you feel like you are getting the run around.

There has to be reason for the objection, but you have yet to uncover it. Here are a few suggestions that might help discover the reason and accelerate the decision making process:

• Review your calls, re-confirm the situation with your prospect and reinforce the value of dealing with you - make sure you have not missed anything.
• Did you ask for the next order? - Don't laugh, this happens more often than you might think!
• Confirm the timeline and make sure your expectations are reasonable - do they have inventory to work through before they change suppliers?
• Do you have to be set up as a new supplier in their system? Is there any additional information they need to get from you about your company?
• Develop a call to action that will result in an overt benefit if they place the next order with you.
• Do you know if the incumbent supplier has been able to make a counter offer? Are you getting the 'last look'?

Good selling,
Richard

Thoughtful Thursdays - High Quality for a Low Price

During recent conversations with potential new business owners I was impressed that the majority spent time talking about the importance of providing a high quality product or service to their customers. If they did not know it at the time, they were beginning to get an idea of value.

I say beginning, as the majority I refer to had difficulty or did not clearly relate quality to value. In most cases they were undervaluing their product or service.

Entering the marketplace with a strategy of introductory offerings equating to pricing slightly below the market is reasonable and often used. What many new business owners forget to do is tell their customers what a great deal they are getting and that the introductory price was just that - introductory.

Be sure invoices show the true value of the product or service. If a discount is offered, have it listed as a separate line item.

The likelihood of a new small business being the low cost provider is rare, and taking business on price without consideration of the consequences can be devastating for a business. You do not want to have your introductory price turning into your ongoing price. If this is what happens, your customer does not appreciate the value of your product or service, and that is a topic for another day.

Good selling,
Richard

Thoughtful Thursdays - Do you manage your sales activities?

I planned to to it, but I ran out of time.

Either you planned too many activities in the first place or there was a distraction that took you off your schedule. Many distractions are unplanned and out of our control, that is a part of life.

Today's thoughts focus on what is in our control. Planning for more than what your personal capacity allows will inevitably lead to someone being disappointed. Hopefully it will not be your prospect or customer.

Whether you are able to allocate all your time to sales, or have the responsibility of running an entire company, the business will benefit significantly from a well managed sales process. The benefits include shorter sales cycles, faster receipt of payments and happier customers.

• Have detailed account plans for all key accounts
• Plan your daily schedule to minimize excess travelling time
• Allow enough time between appointments to complete sales reports, check voice mail, make return calls and travel to your next meeting
• Keep meetings on time
• Allocate entire days for sales activities, avoid mixing activities to stay focused
• Each call should lead to the next. Make sure to have a plan of action for the next call. Don't leave the customer without setting up the next meeting
• Prepare for your calls  in advance - make sure you are ready
• Set aside time each week to review your sales activities, measure your results against expectations and confirm your activity plan the for the next week
• Avoid "reflex" reactions to customer requests - stick with your plan. Most of the time it can wait for a day or two

Good selling,
Richard

Thoughtful Thursdays - Happy Birthday Canada

Thoughful Thursdays is taking the day to celebrate the July 1st holiday and will return next week.

Happy Canada Day from everyone at Toronto Business Development Centre.

Have a safe and enjoyable day.

Good selling,
Richard