Thoughtful Thursdays - What Do I Have to do Again?

This series of posts is all about closing a sale faster. Not being mindful of the topics on the list absolutely does not mean you will not make the sale - it might just take longer.

Things That Can Lengthen Your Sales Cycle - Failure to understand the buying process.

The process of scoping out a sales opportunity can take a few minutes or come as a result of several meetings with your prospect. A detailed understanding of your target's buying process will help you with your tactical plan.

Here are a few pieces of information that are on my list of what I like to know about my prospects' buying process:

• Are there other people that need to be involved?
• Are there alternate contacts?
• What are the time lines - is there any urgency?
• What is the product/service approval process?
• What is the supplier approval process?
• Are there any unique approvals or certifications required?

What you are seeking to know are the steps your prospect takes that result in making a purchasing decision.

The more you know, the better positioned you will be to minimize the time it takes to make the sale.

Happy New Year everyone!

Good selling,
Richard

Thoughful Thursdays - Know when to shut up

Things That Can Lengthen Your Sales Cycle - Overselling

Knowing when to stop selling is a skill that more often than not, comes with experience. As many have said in one way or another before; good decisions are based on experience and poor decisions are the experience one draws from.

Learn to recognize when your customer is ready to buy. Look and listen for the signs and when you see or hear them, stop selling. Close and resist the temptation to continue selling.

I would like to take this opportunity to thank everyone who is reading the TBDC Blog and posting comments. TBDC wishes you all the best for the Holiday Season.

Good selling,
Richard

Thoughtful Thursdays - No USP?

Second in the series about Things That Can Lengthen Your Sales Cycle considers your Unique Selling Proposition.

If you are not confident about differentiates your product and/or services, you can surely expect your sales cycle to be longer it you get the sale at all.

We spend a great deal of time with our clients helping them determine what makes them different. Beginning with market res each and analysis of the findings, a positioning statement is developed that fills a gap in the for the identified target market.

We rack our brains to identify the elusive USP. In many instances we focus too much on the product or service that is offered and not other differentiators. If you are fortunate to have customers already, my suggestion is to ask them why they like to do business with you. Just as they have answered questions about what they want, they will tell you what makes you different.

Use this information to your advantage and make it part of your discussions with prospects. It is likely that what your current customers like, others will also appreciate.

Sometimes it will be you that makes the difference. The fact that you are trusted, you return calls promptly, you always do what you say are examples.

Shorten your sales cycle by knowing what value you bring and communicate that message to your prospects. Once you have perceived value, your prospect will be more likely to want to hear about what you have to offer. From that point it is up to you to deliver on the expectations.

Good selling,
Richard

Wise Wednesdays - Give Yourself Credit

Just wanted to remind you that sometimes success is better measured in smiles received, giggles heard, and hands held, than in dollars earned,deadlines met, and kilos shed. And I must say, you've done well for yourself. - Notes from the Universe (www.tut.com)

There is a tendency to look at the past year and reflect on what hasn’t worked. However, focusing too much on what isn’t working can at some point be debilitating.

My recommendation is to reflect on the last year by making a list of all that has worked in your life no matter how small: taking that first step to test market your product, skiing with your family, researching your competition, taking on an new hobby. Success feeds off previous successes. This will instill in you that you are making progress. In effect, you’re training yourself to focus on making it happen.

There will time be for the critical mind but for now relish your strengths, traits, attitudes and actions that have brought you this far.

Happy holidays and best wishes for a fulfilling 2010 year.

Cheers,

Dominik

Thoughtful Thursdays - Fear Of Cold Calling

Last week I posted a list of Things That Can Lengthen Your Sales Cycle.

Let's address them one by one, this week the Thoughtful Thursday topic is Fear of Cold Calling.

How can the fear of cold calling lengthen your sales cycle? Arguably, if you have not initiated the sales process in the first place, the cycle is not affected. Reality will demonstrate that insuffcient numbers of potential targets in play will result in less than expected sales expectations and the consequences of not meeting sales forecasts can be devastating for any business.

The question is why might one fear cold calling? Once you identify why you do not like to make cold calls, you can work on ways to alleviate the fears.

• Fear of rejection?
• Fear of success?
• Fear of being asked tough questions?
• Lack of confidence?

I don't know anyone who can say they like being rejected, the key is not to take it to personally.

Afraid of taking an order because then you will have to make good on your commitments? Don't over commit.

There shouldn't be many questions about your product or service offering that you can not answer. Anticipate the questions and work on your responses ahead of time.

If you believe in and are passionate about your product/service and how it will help your prospect, confidence will lead you.

Good selling,
Richard

Wise Wednesdays - No Need for Noise

Seeking too much counsel, especially from people who know very little about your business or who give you advice because they read something in the news (i.e. housing sales are going up, there are constraints in consumer spending etc.) may in fact inhibit you to take action.

This is what I call Noise: People spewing advice or thoughts that are not based on much fact but opinion and mostly their biases.

However, it is important to seek wise counsel. Crucial. These are people who know your industry well, know what running a business is about or who have coached others. These people can offer what I call Golden Moments of wisdom.

The key, then, is to be able to differentiate between Noise and a Golden Moment and act on it. Entrepreneurs are more than doers – they’re deciders.

Cheers,

Dominik

Thoughtful Thursdays - Things That Can Lengthen Your Sales Cycle

In the process of cleaning up my files I came across an interesting list that was made some time ago. It is a list of obstacles that often get in the way of achieving sales targets on time. Many are inter-related, but are obstacles never the less.

In no particular order, here they are:

1. Fear of cold calling
2. Not having a unique selling proposition
3. Overselling
4. Failure to understand the buying process
5. Not knowing your prospects' hot buttons
6. Not closing
7. Not listening
8. Competitive pricing
9. Inadequate research
10. Not believing in the product/service you are selling
11. Hiring the wrong sales agents
12. Not developing the supplier/customer relationship - TRUST
13. Making a poor first impression
14. Failing to ask for referrals
15. Fear of rejection

Over the next several weeks Thoughtful Thursdays will address each of the obstacles.

If you have encountered other sales obstacles, send them in as a comment to the posting, and I will be happy to add them to the list.

Good selling,
Richard

Wise Wednesdays - Three simple (but not easy) steps

Here are three simple (but not easy) steps in developing a “stick-to-it” attitude in your business.

Step 1.
Success seems to be largely a matter of hanging on after others have let go. ~William Feather

Keep at it -- especially when you don’t feel like it.

Step 2.
Success and failure. We think of them as opposites, but they're really not. They're companions - the hero and the sidekick. ~Laurence Shames

If you’re going after what you truly want you will be given a “test” that you must undergo. Part of that test is failing. Learn from the lesson. Correct your course of action.

Step 3.
If at first you do succeed - try to hide your astonishment. ~Author Unknown

It’s rare to get it right the very first time. Savour those moments when things do work out. Build on your successes no matter how small or how infrequent.

Go back to step 1.

Cheers,

Dominik

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

Thoughtful Thursdays - Have You Ever Thought You Were Entitled To An Order?

We do not close every sales opportunity that we work on, and it is always disappointing to not get the order. It is more difficult to accept when you have done everything in your power to close the sale.

You may have been in conversations or overheard phrases like: "we really deserved to get that contract" or "we've got it in the bag - no problem!"

It can be dangerous to have a sense of entitlement. In my experience nothing is in the bag until the order is placed and confirmed, and even then, the train can go off the rails.

It reminds me of my learned colleague's post from last week: Wise Wednesdays - run with it! Did I detect a sense of entitlement to posting on Wednesdays?

As I have said before, there are situations that come up when it does not matter what you do, you will not get the order. Your business is depending on you to to minimize these occurences and be in situations where winning the battle over the competition is achievable.

So my suggestions this week are:

1. Do not assume you are getting the order
2. Do not rest on your laurels
3. Do not assume that if it happened before, it will happen again
4. Always have a rich list sales targets you are working on
5. Know as much as you can about the industry your customers and propects participate in as well as the industry you work in

Good selling,
Richard

Wise Wednesdays - Cash Flow is King (or Queen)

If poor market research is the number one reason why businesses fail to get off the ground then poor cash flow management kills more businesses once they are off the ground.

Simply put, cash flow is the actually money you receive in sales less the actual expenses for each month. The key word is actual. Not what you are owed. Not what you will pay off. But what is going out of your pocket and what is going in your pocket for that month.

This is crucial. For example if you know your basic living expenses are $2,000 a month then you know that is the minimum you need to make a profit a month to continue (don’t forget you pay taxes on any profit you make even if you pay yourself).

Otherwise what happens to many entrepreneurs is they start to panic after their third month when they realize they can’t cover their basic living expenses.

A cash flow allows you to see when it’s best to transition from working on your business part time to making the leap to full time. The cash flow can also help you identify future downturns in profit so you can prepare yourself.

In the end having a sustainable business is what matters. A cash flow allows you to see if this is possible.

Cheers,

Dominik

Thoughtful Thursdays - Listen For The Signs

If you have seen the movie Glengarry Glen Ross, then you will be familiar with Alec Baldwin's speech on closing.

• A - Always
• B - Be
• C - Closing

If you haven't seen the movie, here is a link to You Tube where you can view the scene. Be forewarned that the language is course and may offensive to some viewers.

http://bit.ly/kT79V

Part of the A-B-C is knowing when to close. Listen for the signs from your prospect that the are ready to buy.

When your prospect sends you the signal and you recognize it - stop selling and begin to close! If you continue to sell, you may be putting the sale at risk. I can't begin to tell you how disappointing it is to miss an order because of the failure to hear the signs. Sometimes we get so immersed in our pitch that we stop listening.

Let's not let that happen to you. Here are some examples of the signs your prospect may send you?

• I like your idea
• Do you have a minimum order?
• Your product/service could help us
• I can see the value in your product/service

Listen for the signs.

Good selling,
Richard

Wise Wednesdays - run with it!

Small opportunities are often the beginning of great enterprises. - Demosthenes

Last week I did not get a chance to write a Wise Wednesday blog. I was just too inundated with other work. I was scrolling on our blog recently and noticed that someone else, a colleague of mine, Richard, had stolen my limelight.

At first I was upset. “How dare he steal my three minutes of imparting business wisdom”, I thought.

Then I realized that this was in fact a reminder to me and to everyone else what it means to be an entrepreneur: When opportunity presents itself run with it!

That is just what Richard did. More than anything else entrepreneurs seize the moment. Not recklessly but with preparation and some fortitude. Richard had been writing Thoughtful Thursdays for over a year that it was easy for him to add to the Wise Wednesdays blog when the opportunity presented itself.

And why not. It’s all part of becoming a savvy entrepreneur and growing your dream.

Wise Wednesday question: What skills and experiences have you mastered in the past that you can use today to create new opportunities for yourself?

Cheers,

Dominik

Thoughtful Thursdays - The Internal Sale

Whether you are a sole proprietor doing it all, or an employee in a large corporation with responsibility for a sales territory there there will come a time when your customers will ask for a product or service you are not currently supplying to the market place.

As a sales professional you want to keep your customer happy, and look forward to increasing your sales. Before you can offer the new product or service you will need the approval from the powers that be. This is the internal sale.

The internal sale is as important as the new sale to your customer. Before saying yes, you will want to know if it is going to be worth it, in other words, will it be profitable.

In the words of Peter F. Drucker: "There is nothing more useless as doing efficiently that which should not be done at all."

Here is a partial list of what to think about considering before approaching your business for a decision:

• What is the sales potential at the customer?
• Will sales transfer to your other customers?
• How much will it cost to develop?
• How long will it take to commercialize?
• Will there be external resources required?
• What are the expected margins?
• How long is the pay back?
  

Good selling,
Richard

Thoughtful Thursdays - "I'm working my website..."

If had a dollar for every time I have heard a new business owner say that they have not been able to achieve promotional or sales targets because they had to work on their website or design brochures... well you know the rest of this line.

I understand that many start-up businesses are on tight financial budgets. I also understand that with the way technology is today, most anyone can design and their own materials.

I have difficulty understanding why it appears, based on their behaviour, so many new business owners feel their value proposition - the reason people will buy from them - is their website or brochure. I am not including e-commerce businesses in this today's thought as it is a given that a website will be in place for an e-commerce business launch.

This is not to say that a website is not important, the point is this: should you be doing the work if it you are not an expert?

Here's a thought: How about having your customers pay you for your products/services and using the profits to hire a professional to design and develop your website?

Allocate your most valuable resource, time, to promotion and sales activities. The sooner you make sales, the sooner you will be able to hire a web firm and get the website you want.

Good selling,
Richard

Is Self-Employment For You?

If you had to make a decision about accepting a project with significant upside and knew the following before making the commitment:

• It was going to cost you more than you estimated
• The return on your investment would not be as high or as fast as you thought
• The project would take much longer to get off the ground than you estimated
• The level of work required would be much more than you thought
• You would have to spend more time on non-enjoyable tasks than anticipated

Would you still take the project on?

If you answered yes, maybe self-employment is for you. Contact our Advisor on Call and find out how TBDC can assist you in all phases of a business start up.

Richard

Wise Wednesdays - Where's the Beef?

I’ve read over 300 business plans to date and counting. My biggest beef is that most business plans don’t have any! Where’s the beef? People write 16 pages on the industry scope, fancy pie charts and complex cash flow and income statements. However, many miss the mark on one key question: How will they get and keep clients?

The first part of the question addresses a comprehensive Marketing plan. In this section many just lack the details. It is far more beneficial to list particulars of a networking strategy i.e. where you will network on a weekly basis, why this makes sense, who you will approach and what follow up system you will use then it is writing out a shopping list of all the 101 marketing activities you will supposedly do.

Less is more. Just be thorough.


The second part of the question addresses value: What the client actually buys. Many business plans skirt the issue. It’s not just about how “different you are”. After all I can put on a purple tiara on my head and be “different” but will people buy from me? Value is a combination of quality, customer service, the perceived value in the customer’s mind, the experience of the interaction and how you meet customer expectations.

What will you do to create compelling value? Be clear. Be detailed. Go deep. I want some beef!

Cheers,

Dominik

Thoughtful Thursdays - Competitive Pricing

Sooner or later we all encounter competitive pricing situations, this is a given for most any business.

How you handle the situation can have a significant impact, not only on your own sales results, but potentially in the market place you are participating in.

What do you do when a prospect tells you that your prices are not competitive? My first recommendation is to accept the information as true and secondly, avoid the temptation to immediately meet the competitive sitiation.

Is your propect comparing apples to apples? Here are a few points to consider:

• Volume of sales
• Delivery times
• Terms and conditions of sale
• Quality and performance
• Customer service
• Who is the competition?
• What is the price gap and is it beleivable?

How else might you validate the claim of lower price in the market place?

• Ask your existing customers if they have heard anything from your competition
• Ask your other prospects if your prices are competitive
• Ask the prospect to provide supporting documentation of the competitive situation

What you do not want to do is be the low price provider if that is not your strategy, especially if you do not have the lowest costs.

What you do want to do is validate the competitive situation before making any commitments. Everyone wants a better price, can you afford to leave money on the table? That can easily happen if you meet a competitive situation without having all the facts.

If you are new to the industry or not yet a major player, an established competitor will outlast you in a price war, so avoid starting one.

There are situations where you may not be able to compete, accept it and move on.

Good selling,
Richard

Wise Wednesdays - Two Clients Start a Business...

Two clients start a business…

Client A, a graphic designer, focuses on developing the latest and greatest website, spends time on Facebook, Twitter, develops a blog, occasionally network and rarely calls on new businesses.

Client B, also a graphic designer, focuses on networking consistently and calling businesses directly, and develops a simple but effective website, uses Facebook occasionally and has held off doing a blog and Twitter.

Client B is in business today. Client A has had to close shop.

The lesson: The order, the amount of energy and consistency you devote to the proper marketing activities will determine your success.

With all the hype about Twitter, Facebook and websites I feel too many entrepreneurs miss doing the most important things first.

Not that you shouldn’t do online activities – it’s just that the majority of your energy should be invested in activities that pay off in the long run.

Later on you can ramp up and have that marvelous website, and develop a great blog, Twitter etc BUT only after you’ve invested heavily in activities where you are face-to-face with your potential clients. Make this your priority.

Marketing is much more about investment, persistence, consistency then it is about glitz or because you believe everyone is doing “it”.

Happy prioritizing.

Dominik

Thoughtful Thursdays - How Well Do You Know Your Competition?

In my experience, the more you know about your competition the stronger your business can be.

Knowing your competition is more than being aware that they exist. Do you know:

• who the principals are?
• their products and services, and have you evaluated them?
• what their annual sales are?
• how they approach the market?
• their strengths and weaknesses?
• where they are located?
• who their customers are and why they deal with them?
• what their customers think of them?

Knowing as much about your competition as you do about your customer will help position yourself as an industry expert and 'go to' person.

When you are looking for a product or service who do you go to first and why?

Good selling,
Richard

Wise Wednesdays - Getting A Mentor

Take it easy -- but take it.--Woody Guthrie

Finding a mentor or coach takes time. TBDC offers formal coaching/mentoring programs like our partnership with CYBF, loans for youth 34 years or younger, or if you’re on EI or on ODSP and want to start a business. Please visit our website for more information.

However, for the most part, one has to be creative in finding a mentor/coach on their own.

Here is an approach you can use:

1. Do your research. Find out who is successful in your industry. Learn about that person and their organization.

2. If possible get someone to introduce you to that person (someone who has a connection with him or her). If not then go to step 4.

3. Get to know them (i.e. don’t rush into asking about them being a mentor right away).

4. Tell them your story i.e. who you are and your business idea. Make sure to let them know you have a passionate drive to make this happen. Then let them know your intention in looking for a mentor or coach – ask if they know anyone who would be interested or if they would be interested in mentoring you.

5. Let them know what is involved. I recommend meeting them once every two weeks or once a month, in person or over the phone.

6. If they are not interested ask if you could take them out for lunch (or the very least for a coffee). Arrange a time. At the end of the meeting thank them and ask them if they know of anyone you could possibly connect with? At the very least you will have gained some valuable insight.

Where possible see if you can offer something that would interest them (i.e. email them an article on a topic that interests them). This also helps you stay in touch with them.

This takes time. Yet it can be the best investment of your time and energy.

Happy mentoring.

Cheers,

Dominik

Thougthful Thursdays - Sales Transaction Strategies

Do your sales transaction strategies make it easy for your customers to deal with you as well as keep your business profitable?

Making it easy for your customers to do business with you is a good practice as long as you are aware of the costs and measuring the effect on your bottom line.

• Do you know your cost of money and the resulting effect of extended payment terms on profitability and cash flow?
• Are you allowing for discounts into your costs of sales?
• Are your credit card transaction costs built into your cost of sales?
• Do you allow for bad debt?

Know the consequences by running the numbers before you decide on your sales transaction strategies.

Good selling,
Richard

Wise Wednesdays - Do You Have a Coach?

Interdependence is and ought to be as much the ideal of man as self-sufficiency. Man is a social being.
- Mohandas Gandhi

Last week I talked about the importance of knowing “what game you’re playing” or knowing the competition.

What should be clear is that you can’t expect to succeed on your own. Yes you heard right. If it’s going to happen it’s up to you AND you can’t do it alone!

You may be the driver of your business but you need to ensure you are connecting with others. Especially with mentors or coaches: Someone who can advise you, guide you, champion you and support you especially when things are down. Someone, also, who can give you a good dose of a reality.

Dr. Basil Peters, who is a successful entrepreneur and has written, Early Exits (how to start a business and sell it for a significant profit) believes the most controllable success factor for entrepreneurs is getting a mentor. Sometimes a mentor is not possible but a good coach is.

The difference is that a mentor is a successful entrepreneur while a coach, may or may not be an entrepreneur, but knows how to make sure you stay the course and gives you valuable feedback. You may have to have various mentors and coaches along the way.

Next week I’ll tell you how to go about doing just that – getting a coach or mentor.

Cheers,

Dominik

Thoughtful Thursdays - How Do You Spend Your Time?

If you are like most successful business people you probably do not throw your hard earned money to the wind, you spend it wisely. Time is another valuable resource, but oddly we don't always place a similar value on our time even though we do spend it. Today's thought is about the adage "time is money".

Making the best use of your time can significantly increase your output. If you are thinking of ways to improve on how you use of your time, it is essential to know how you currently spend it.

Try keeping track of what you do with your time for a week. You may be surprised at what is revealed when you complete the exercise.

Record your activities and time spend on each one, do not leave anything out.

You can begin to categorize the time spent into marketing and sales, finance and operations. You will probably have another category called "other" to capture activities that are non-productive for your business.

So how much time did you actually spend selling during the week? Is it reasonable to expect to achieve the sales targets you have set based on the time actually spent on selling?

Do you spend a disproportional amount of time putting out fires?

Once you have a good idea of how you are currently spending your time, you can begin to develop goals, objectives, strategies and tactics to improve the way you spend it and ultimately end up with more time to allocate to your business priorities.

Good selling,
Richard

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Wise Wednesdays - Play The Game To Win

Last week I listed the findings of a report on what existing entrepreneurs felt were the top ten pieces of advice they would give to a start up business.

At the top of the list was knowing the competition. I like to call this, “How Do You Play The Game You’re In?” Do you know who the key players are in the industry? What clubs, associations, conferences, trade shows or networking events are they a part of? Join them.

What strategies do they consistently use to sell their products/services? Every industry has a “set of rules” on what it takes to succeed. It doesn’t matter that your product/service is different. Every business says they’re different, better, cheaper etc.

Even if you have a product/service that is completely new you will always have competition. For example, if you create a new energy drink, unlike anything on the market place, you will be competing against protein shakes, health juices, Gatorade etc.

Customers will decide whether to spend their money on a host of alternatives to get “re-energized” and yours is just another product in the mix.

Don’t make the mistake in thinking you’re a solo player. You never sell in a vacuum. You never play by yourself.

Know what awaits you. Otherwise you may find you’re playing the wrong game.

Cheers,

Dominik

Thoughtful Thursdays - The Angry Customer

We have probably all encountered situations where our patience has been tested and we became an angry customer.

Today's thought is about how to deal with that angry customer.

If you have been an angry customer, how was your situation dealt with? Were you satisfied with the outcome or not? In either case you can likely learn from both scenarios as to how you might want to address the angry customer.

In my experience, the number one step is to listen to what they have to say - and I mean listen, pay attention, take a notes if necessary. Secondly, never interrupt the angry customer.

Allow them to vent and when they are finished, pause a few seconds before responding. They may still have more to say.

There is usually a good reason why your customer is upset. Whether you think it is a good reason or not, is not important at this time. Do not begin your response by being defensive, try agreeing with them. If you were in the same situation, would you feel the same way?

Ask them what you can do to make the situation better for them, and then do it, if you are able to. If you can not accommodate the request, negotiate a position that will satisfy their needs as well as your ability to implement the solution.

The acid test for you as a supplier of product and/or services to this customer is to have them continue to purchase from you. There are few things less desirable as an angry customer or more gratifying than having an angry customer thank you for helping them.

Good selling,
Richard

Wise Wednesdays - Top Ten Tips

I came across this report, which I believe is very useful in understanding what it takes to succeed in starting a business. Next week I’ll talk about the implications but for now ask yourself how much have you done with the advice given below?

Cheers, Dominik.

"Top 10 tips on how to successfully start your own business", Special Report, RBC Financial Group, October 16, 2007.

These are some of the findings of an RBC poll conducted by Ipsos Reid between July 27and August 3, 2007.

The top ten pieces of advice existing entrepreneurs have for people hoping to start up a business, according to a survey by RBC Financial Group which compared the responses of aspiring entrepreneurs with those of existing entrepreneurs:

- Know your competition (51 percent)
- Develop a business plan (50 percent)
- Research the market (49 percent)
- Network, develop alliances (45 percent)
- Take time for marketing (38 percent)
- Seek out mentors (35 percent)
- Spend time defining the needs your business will meet (35 percent)
- Survey potential customers (34 percent)
- Do homework about where to locate your business (34 percent)
- Join clubs/associations (32 percent)

"The key piece of advice from Canada's veteran entrepreneurs is 'do your homework' before you open up your new business," said Rina Pillitteri, director, Small Business Client Strategy for RBC. "When successful small business owners look back on what helped them get off the ground, it's the fact that they knew what they were facing - they researched who their competition was, they understood what gaps they could fill in the marketplace, and they delved into the likes and dislikes of their potential customers. They also networked to find out as much as they could from other entrepreneurs."

Thoughtful Thursdays - It's just a minor change...

Today's thought is about how to avoid coming to the realization you have been a victim of scope creep.

It begins innocently enough with your desire to provide your customer what they want. After all, it will only take a few minutes and you want to keep them happy. You have just set the bar for your customer and they will now expect not to be charged for minor changes.

This may be followed by another small change or addition to the project and then another. I have seen this happen time and time again. Don't get me wrong, it is not a negative situation when the job grows, but if you are not duly compensated, your profits will end up down the drain unless you can put the plug in right away.

One way to increase the chances of keeping your customer and your accountant happy is to have a sales agreement in place before starting the work. The agreement might include, but not be limited to; a description what you will provide, how much it is going to cost, when it will be delivered, how you expect to be paid and what happens if anything changes.

It is up to you to make sure your customer to be absolutely clear with the terms.

Having an agreement in place will not stop the requests for changes, but will provide you with the option of re-negotiating the price due to the changing scope of project. Without an agreement in place, you may find yourself without this option - and your profitability may suffer as a result.

Good selling,
Richard

Wise Wednesdays - Razor's Edge

If you have to do it every day, for God's sake learn to do it well.
~Mignon McLaughlin

I remember watching the movie Razor’s Edge with Bill Murray; a movie about a man on a personal quest to find meaning in his life. A heavy topic. The premise was that we are so close to success and failure that we can go either way just as narrow as a razor’s edge. The answers lie in the “fine-tuning” of our lives.

In many ways successful businesses are created by how carefully they “fine-tune” their offering. Businesses that thrive are always improving what they have to offer by asking for feedback from customers, watching the marketplace, increasing their expertise, staying in front of their customers.

In other words running a business is very much like living fully -- not taking things for granted.

Cheers,

Dominik

Thoughtful Thursdays - Once More On Value

I think people get tired of me going on and on about how critical it is to establish the value you and your product and/or service brings or will bring to your customer or prospect.

Over the years I have been involved in sales, and helping people to sell, value is a constant I can count on to be a key point in most sales discussions. Value can be found in many different forms; and once established, communicated and understood can be very rewarding to the seller as well.

In a meeting this week with a client we discussed the fact that he had achieved his August forecast and was looking forward to exceeding his sales expectations for the month. He described a situation of how one of his customers came to choose his company over his competition.

They were impressed with his knowledge, the fact that he listened to their concerns, and answered all their questions before offering any advice or attempting to close the sale. Apparently the competitors were not as willing to take the time to make the prospect feel comfortable about engaging their services.

The value to the customer in this case was the confidence my client was able to gain over his competition during the early stages of the sales process. They trusted him.

The resulting value to my client is a customer that will be using his services again and recommending his business to their friends and colleagues.

It doesn't it get any better than that.

Good selling,
Richard

Wise Wednesdays - Opportunities to Pursue

Opportunity is missed by most people because it is dressed in overalls and looks like work. -- Thomas A. Edison


I just got back from a vacation in Europe visiting my parents on an island on the Adriatic. Not a bad place to be. I loved my early morning swims and evening strolls.

Naturally I kept my eyes open on how people run their business. There is great potential to further develop tourism in this region. I got excited over an idea and even thought of pursuing it. Then it struck me – would I pursue this idea because I really wanted to or because people were saying I could make a lot of money?

There is nothing wrong with making a lot of money IF the venture you pursue is who are.

I never recommend people go after an idea because it’s the “in thing.” They need to be interested in it for the long run. Running a business needs to have your true motives in mind.

Vacations sometimes act as wake up calls. Many times, however, vacations just act as reminders to take time off and enjoy life. Change is good but nothing beats a long relaxing leisurely rest.

Don’t fret over lost opportunities. Pursue ones that are close to your heart -- they will require all the energy and resources you can muster.

Cheers,

Dominik

Thoughtful Thursdays - If it's so good, why doesn't it sell?

We have heard it before, "What a great idea!", "I should get one of those!", "I know someone who could really use that.", "I could use those services"... but the orders don't materialize.

If it is so good, why doesn't it sell?

If you ask me, it is because the prospect has not been convinced the value of the product or service is worth the purchase price.

It is your responsibility to your business to find out why:

1. Have to correctly identified the prospects needs?
2. Is the prospect clear on what is being offered?
3. Have you confirmed #1 and #2 with the prospect?

In many cases it is the the third question where the process breaks down. We sometimes make assumptions that make it easy to come up with "excuses" as to why the sale does not close. It is easier than asking questions that may have answers we do not want to hear.

Do not be afraid to ask the question "Why?"

Good selling,
Richard

Thoughtful Thursdays - Need Orders?

My client meetings usually open with a question about their business and how sales are going. In a recent meeting my client said sales for the past month had been very strong.

This is always a good sign and begs the question, could he attribute this success to any single action or factor in his business environment?

I was pleased to hear his response. To paraphrase, he looked at his monthly sales forecast and saw that it would be challenging to achieve and began to systematically follow up with all his existing and potential customers and guess what happened?

Orders for his services were placed to the extent that the sales forecast was not only achieved, but exceeded.

The next time you are thinking about how to make your sales for the month and need more orders, try following up with your prospects. You may be pleasantly surprised. Sometimes all it takes is one more call to close the sale.

Good selling,
Richard

Thoughtful Thursdays - Say Thank You

It may sound basic, but when was the last time you thanked your customers in person?

For some businesses, the summer season can be a slower time for sales. There is no better opportunity to thank your customers for their ongoing business. Also let them know you are looking forward to continue supplying their requirements in the future.

As long as you are there, take the opportunity to confirm the timing of the next requirement. This will help you with your own planning and insure you are on track to meet their needs.

Good selling,
Richard

Thoughtful Thursdays - On Negotiation Part 3

Last week I discussed what information you might want to have before going into a negotiating meeting with your customer. Just to be clear, we are talking about a sales negotiation.

You have what you believe to be the required information for your meeting- what next?

I suggest planning out your approach is a good place to begin. Set your objectives and be ready to accept the order as well as prepared to walk away if you reach a point that goes beyond your 'walk line'.

Preparation is essential for your meeting. Anticipate objections, be prepared to discuss them and get back to 'yes'.

The goal is to arrive at an agreement that satisfies all parties involved.It is a process of give and take, be prepared to be flexible and at the same time firm with items that are not negotiable.

I recall an occasion where the company I was working for had a mandate to reduce the days to pay by 5 days on average for every customer who was paying beyond our standard terms of 30 days. As you can appreciate, this was not received well. The value to our business was huge, and was viewed by most of our customers as unfair.

It was a point that was non-negotiable for us. At the same time, we were not prepared to reduce prices or offer any discounts for early payment.

By being prepared we were able to address most of our customers' concerns and I am happy to report we were successful in achieving our mandate.

In some cases it came down to shipping goods to line up with when the customer customarily issued cheques. In others it was to ship more often in less quantity to reduce the exposure and ease their cash flow bottlenecks. we would also offer our services to help them reduce their days to pay.

The point here is that there are many ways you can add a lot of value and thinking outside the normal scope of the supplier/customer relationship can often provide you with all the value you need to maintain your profitability and most importantly keep your customer.

Challenge yourself and come up with creative ways to close the gap and proceed confidently into you meeting.

Accept that you may have to walk away from some business if it does not make sense to continue on, but do not walk away before exploring all your opportunities.

Anyone can sell on price, a successful professional sells value.

Good selling
Richard

Wise Wednesdays - The 3 Page Solution

“One can acquire everything in solitude - except character.” -Stendhal

One exercise that has served me well, both in business and in life, is what is referred to as journaling. I don’t do it every day but I do it when I have a burning question, dilemma or situation that is pressing.

Here’s how it works. First thing in the morning when you wake up go to the kitchen table (or any quiet space) and make sure there is no music or distractions. Write your question or dilemma at the top of a blank page.

Now write whatever comes to mind without stopping until you’ve filled up 3 pages. If you can’t think of anything write “I am writing” or “this is silly” etc. Do not censor your responses – no one has to read this but you. You can even rip it up when you’re done. Don’t edit or cross anything off. The key here is to keep your pen flowing.

I find by the time I am on the third page I have written some very insightful and sometimes surprising responses to my question -- always truthful.

Speaking of writing in peace and quiet I will be on holidays for the next 3 weeks and not writing any blogs.

Enjoy the summer.

Cheers,

Dominik

Thoughtful Thursdays - On Negotiation Part 2

Last week I talked briefly about negotiation and why you might find yourself in a situation where you need to negotiate with a prospect or customer. In my experience the bottom line is that they are not satisfied with the proposal and are offering the opportunity to save the sales.

Before you enter any negotiation, it will be to your advantage to be as well prepared as you can be. What is it that you need to know? I asked you to make a list and I would do the same. Here are some key pieces of information that I find essential to have before going into any negotiation.

1. Is your customer/prospect comparing apples to apples? In other words, are you on an level playing field with your competition? Are the product/service offerings equal in value?
2. Are you willing to walk away from the deal?
   
3. At what point you will be willing to walk away from the deal?
4. Crunch the numbers and determine when the sale will not meet your profit expectations. This may be tempered by the strategic importance of making the sale.
   
5. Calculate a dollar value on the gap that is keeping you from closing the sale.
6. Determine alternate ways to make up this gap other than dropping your price. Can you offer additional products and/or services? Will increased volume put you in a better position to work on price? You are looking for ways to add value equal to or higher than the gap your customer perceives.
   
7. What questions do you need to ask?
8. Will you be meeting with the decision-maker?
9. Are you clear on your expectations?

I look forward to adding this list should you wish to leave a comment.

Once you have the information you need, the next step is to plan your approach and that will be the topic for next week.

Good selling,
Richard

Wise Wednesdays - $50,000

If I gave you $50,000 to help start your business would you know what to do with it? Or would you spend it all only to realize you’ve made a mistake?

My experience is that many people want more money then they are prepared for. A case in point: I had a client ask for and receive $50,000 to finance a restaurant business. Within nine months they had to close their doors. Another of my clients asked for $40,000 but could only secure $10,000 for his high-tech company. His company today is thriving. He is now ready to secure a loan for a much higher sum.

Dream big. Start small. Think in increments.

Today the average start-up cost for new micro businesses is under $10,000.

Look around you and see what you can do before asking for more money. There is a saying, “you have everything you need to take the next step.” You may be surprised to find out that being resourceful and action oriented can go a long way.

Cheers,

Dominik

Thoughtful Thursdays - On Negotiation

In a perfect world your customer will understand the benefits you and your product and/or service brings to the table. They will also be able to equate these benefits to actual dollars and clearly realize how much they will be saving by dealing with your company.

We all know the world is far from perfect and there is also the competition to factor in. This brings us a something known as negotiation.

Over the next few weeks the topic for Thoughtful Thursdays be the process of negotiation.

In my experience the need for negotiating comes when the customer wants to do business with you as a result of your stellar selling skills, but your proposal as it stands is not acceptable. They are giving you a chance to save the deal and your success will depend on your ability to negotiate.

So what is it that you need to know before going into your next meeting? I will make a list and talk about it next week. Why don't you think about it as well and we can compare lists.

Good selling,
Richard

Thoughtful Thursdays - Your Value Can Help Your Customer Sell

When thinking about the value your product and service brings to your customers don't sell yourself short.

In many cases what you bring to the table can actually become a selling feature for your customer.

For example, an IT consulting firm providing a secure back up system for their customer. This gives them peace of mind and untold savings if there should be a catastrophic systems failure.
Wouldn't that be a good selling feature to their customers as well? Being able to say that their data is safe and secure can be passed down thought the entire supply chain.

Think of ways that the value of your product/service offering can become a benefit to your customers' customers as well. It may just be the difference they are looking for to swing the balance in your favour.

Good selling,
Richard

Wise Wednesdays - Get Your Priorities Straight

Get your priorities straight.

Twenty years ago when I worked for an advertising agency it was a given that companies would automatically need a brochure and place an ad in the newspaper/magazine or tv/radio. That form of marketing is slowly being eroded and replaced by online media.

It’s easy to get carried away with focusing on developing that website, sending out a e-blasts, being on Facebook, Twitter or even writing a blog when starting a business. These can eventually be valuable tools. However, placing too much of your focus on these tools at the expense of key marketing efforts can in fact drag your business down.

Even though technology will keep evolving the basics in business still holds true: Developing face-to-face relationships with your customers and with successful people in your industry. This includes networking consistently, selling directly to your target group and just sitting down with a business associate over a cup of coffee. You are in the building relationship business (regardless of what business you’re in).

Once you start to generate business and have a better understanding of what your customers really want you can write a blog – just like the one I’m writing.

Cheers,

Dominik

Thoughtful Thursdays - Passion + Commitment

This week was a tough one for me, as friend and colleague passed away suddenly and unexpectedly.

Today's thoughts today are for my friend. In remembrance, I recall the conversations we had over the past three years I was fortunate enough to have known him. We did not agree on every topic that came up, but with each conversation I was impressed with the passion and commitment he possessed, and the way he was able to communicate with excitement and confidence. It goes without saying that this was passed along to his clients, and their success is a testament to this. Looking back, every conversation was a pleasure, chocked full of good ideas, actions and laughter. I learned a lot from my friend and I feel fortunate to have known him, if only for a few years.

He would be disappointed if I did not have a sales thought for today, so here goes.

Build relationships with your customers with integrity, passion and commitment. Believe in what you are selling and the rest will come easily to you. Be excited about what you are talking about and focus on how your product or service will help your customer. Be relentless and flexible. Above all, treat your customers like gold.

Thank you Del.

Good selling,
Richard

Wise Wednesdays - Your Most Important Tool

What is your most important tool in your business? Your money? Your business idea? No. Your contact list and a follow-up system!

Your customers are your business and the relationships you develop with them.

It’s interesting to see that most business owners either don’t have a contact management system or if they do it’s too complicated.

Create a contact management system that you will use. Here’s one I recommend:

On a sheet paper write the client info at the top of the page. Below that have three columns: The date you talked to them, what you discussed and the action step you will take (most important part). If for example you met Samantha at a networking event you would write the date of the meeting, what you discussed and then the action step you intend to take with a definitive date i.e. call Samantha June 30 to set up a time to meet or email an article on July 2 about Deep Sea diving etc. Every connection has a follow-up. The follow-up could be to not do anything for 6 months (create an inactive file).

When you think about these contact sheets are you gem stones to reaching success in your business.

The next part is one that can make or break your business. Create a binder with tabs labelled 1 to 5 and another labeled Next Month. Place each contact sheet in the appropriate week or if it’s schedule for the next month in the Next Month section. When the first of the month arrives take the sheets from the Next Month section and file them and place them in the appropriate week or leave them in the Next Month section if you don’t have to do anything for another month. Follow-up with the people in each week.

Make sure that you keep assigning a new date once you talk to them or even if you don’t get a hold of them – set a new action step.

Business successes are created one customer at a time. One follow-up at a time.

Do you have a system that will ensure you are moving your business forward?

Create one.

Your business will thank you.

Cheers,

Dominik

Thoughtful Thursdays - New or Maintnenance?

When asked about sales goals, a colleague of mine put it this way:

"I want them to try me, and try me again. Then I want them to buy from me, and buy from me again. Finally I want them to buy more from me and eventually buy only from me."

This statement accounts for 2 of the 3 ways to increase sales revenues, see the Thoughtful Thursday post from February - Increasing Sales Part 1

1. Sell to new customers
2. Sell more to existing customers

Some love the challenge of closing the sale at a new customer and are not as enthusiastic about sales maintenance. Others would rather focus on the maintenance side of the business and take care of repeat orders.

Both are equally important to realizing sustainable growth for your business and can involve different skill sets or approaches. By no means am I saying that you can not do both. In many cases you must.

Today's thought is a reminder to be mindful of what the differences are and develop your approach accordingly. In my business to business experience, a major difference is the people you call on.

When pursuing a potential new customer you may spend more time with their product development people and less with the person or persons who actually place the orders. Once you have converted the prospect to a customer the opposite is not uncommon. There may be different personalities involved and therefore your approach will change.

Good selling,
Richard

Wise Wednesdays - Strangest Business Idea You've Come Across

People ask me what kind of businesses are people starting?

In addition to people starting website design businesses, photography & IT services there is a great wide range of businesses that people start like plush toys, alternative dispute resolution, feng shui consultant, sports magazine, children’s clothing using recycled material, men’s customized shirts, home inspection, t-shirts with a picture of someone else you’ve never met, professional organizer, organic granola, butterfly releases, cooking with booze ... and the list goes on.

You get the idea.

Here’s my challenge to you -- What strange business idea have you come across? Why do you believe it's a good business idea?

Let me know and I'll post it next week.

Cheers,

Dominik

Thoughtful Thursdays - Raising Prices

If you are facing increased costs what are you doing to regain lost profit margins?

Lets say your operations are under control and there is not much to gain through productivity improvements, where does that leave you? One of the most feared sales calls is the one where you are challenged with the task of informing your customer that prices have to be increased.

Excuses abound; "I'll loose the customer", "they'll never accept an increase"...

From your business' point of view, how long do you want to accept working for lower profit?

Approached properly, initiating a price increase should not be something you fear. Here are a few tips that may help you:

• Determine the reason for the price increase
• Calculate your new price(s)
• Determine when the increase will be effective, and how much notice you need to provide
• Prepare your script
• Anticipate the objections and prepare your responses
• Be prepared to negotiate
• Start sending signals early about the impending increase

If you are well researched and prepared, the discussion will be much easier to have. It may lead to a negotiation where you more business is made available.

I used to dread having price increase conversations with my customers, but through experience the process become easier. My success rate improved dramatically once I took the time to prepare, script and practice the presentation.

You may be surprised to hear your customer say they were wondering when prices were going up. If you do not act on your increased costs your customers may perceive you have been over charging.

Good selling,
Richard

Wise Wednesdays - Are you making it easy to do business with?

I received a business card once that looked like it was done on a computer with only a telephone number on it. No address.

I phoned them and wasn’t sure if it was the right business because their voicemail said “you’ve reached 416.333.3333 leave a message”. When they finally returned my call (2 days late )they sounded like they were calling to pay a traffic ticket not serve a customer.

I asked if they could fill an order that I needed in a week. They said they could fill the order but it would take 2 weeks. No attempt to work around my request. Not even a mention to rush my order with a surcharge. They only took cash and it had to be during business hours.

They never got my business.

Are you making it easy to do business with?

Here are some tips:

- A voice mail that’s clear. Please state the name of the business and your name. No boring explanations or long-winded speeches are necessary. Some businesses state that will get back to you in 24 hours, which can be a nice touch.

A signature in all you emails with you business name and relevant contact info.

A business card (nothing home made) on hard stock with a mailing address (no P.O. box number).

A clear system that tells clients what you will do, when and what they need to do to start the process.

A flexibile payment option -- the more options the better – paypal, visa, cheque. State terms up front – deposits, late payment charges etc.

People enjoy doing business with people who are clear and responsive. Make sure you do the same.

Cheers,

Dominik

Thoughtful Thursdays - Transaction Strategies

To my surprise, many start-ups do not develop a comprehensive strategy for sales transactions before launching their ventures.

Having company policy for sales transactions will protect you and your customer when something goes wrong and you have an unhappy customer.

Considerations for you transaction strategy:

• Cash payments
• Credit card payments - which ones?
• Debit card payments
• Extended terms - how long?
• Discounts for early payment
• Penalties for late payment
• Refund and return options
• Restocking charges
• Product or service guarantee
• Product warranty
• Shipping costs

Think about your transaction strategies and get one in place if you do not. Some businesses have their Terms And Conditions Of Sale printed on each invoice, and attached to every quotation they present. It establishes and communicates in writing, your company policy.

Good selling,
Richard

Forgetful Fridays- Hello Operator...

That’s right- you are most likely your company’s operations manager- along with all of the other titles that you have as an entrepreneur.

Being an operations manager is very different from being the person who is delivering your product or service on a day-to-day basis. Chances are you are doing both and are so busy trying to deliver in a way that makes your customers happy, you haven’t spent much time thinking or planning like an operations manager. The big problem with this, is that you are spending very little time improving your operations process, simply because you aren’t spending time thinking about how things could change.

I encourage every entrepreneur to review their operations process on a monthly basis. Identify where problems are arising.

Where are the bottlenecks?

Where is money being wasted?

Where is time being wasted?

Where have inefficiencies had negative impacts on customers?

Are there any quality issues arising?

Am I approaching capacity?

Doing this and coming up with strategies to tackle these problems will make the job of delivering your product or service easier. You will reduce stress by knowing that you are continually improving your operations process.

More to come on this subject...

Jen

Thoughful Thursdays - Don't Sell Your Customers Something They Don't Need

I took my car into a shop yesterday to have them determine if I need to replace the suspension struts. The 9 year old car has more than 200,000 kilometers on the odometer and it runs like a clock. I felt it would be worth having this work done as the ride has deteriorated over the past few years and I was concerned other damage may be occuring as a result.

I expected the estimate to be anywhere from $700 to $1000 and was quite prepared to pay.

As it turns out, there was nothing wrong with the parts; no broken springs or leaking inserts. They even took it out for a test drive to get a first hand feel for how the car rode and handled. The ride is what to expect for a 9 year old car that has travelled over 200,000 kilometers. They would be happy to take the work, but suggested I would not notice a $900 difference in performance.

The bottom line here is that the shop had the opportunity to make the sale, but in the interest of a very satisfied customer chose to save me a lot of money.

Guess who is going to be getting a lot more of my business in the future?

Good selling,
Richard

Wise Wednesdays - A soft spot for quotes

"Don’t let your victories go to your head, or your failures go to your heart."

"I don’t know what the key to success is, but the key to failure is trying to please everyone."

"A winner listens, a loser just waits until it is their turn to talk."

I have a soft spot for quotes. A good quote can capture the essence of an experience, or a deeper lesson in life. It can make us pause. In our busy- busy- hurry- hurry world taking the time to contemplate can be reassuring. Reaffirming. This is especially true for entrepreneurs.

Re-committ to you business idea, your passion. Everyday. Just be open on how it is to unfold.

Cheers,

Dominik

Forgetful Fridays- Reinventing the Wheel

Are your sales what you want them to be? What are your plans to grow your sales?

Before you start inventing new products and services and spending your precious time on research and development- not to mention creating new marketing materials for these new products and services- ask yourself if you have done all that you can to sell what you already have developed.

Are you:

-Going to networking events where your target market will be

-Making sales calls to qualified prospects

-Following up with all qualified leads on a regular basis

-Asking questions when you get objections

-Filling up everyday of every week with the above tasks

Until you have done these tasks consistently for a period of time that exceeds 3 months, you should not start inventing new products to increase your sales. 

If you start inventing new products or services to remedy poor sales results before you have given a concentrated effort to selling for more than 3 months, you will be:

-Spending time on research and development for a product or service that still will have no method in place to sell it

-Create consumer confusion by taking your company in more than one direction at a time

-Spend money that you cannot afford to spend on product development and new marketing materials

-Still not have addressed the issue that was standing in the way of selling your previous product or service

-Frustrate yourself and potentially “fail” at selling another product or service

Stay Focused,

Jen

Thoughtful Thursdays - 3 L's

We talk at length, sometimes ad nauseum, about how important it is to communicate your message of value to your customers.

Unfortunately one can be so focused on delivering a value proposition, the customers' needs become secondary. Be mindful that some get the point more quickly than others. Remember that it is about the customer, not the you.

There is nothing more frustrating than wanting to make a purchase, and finding the seller is not ready to take the order because they too busy talking about how much they are going to help.

Today's thought is to look, listen and learn from the signals given by your prospect.

Look for indicators that your prospect doesn't want to hear any more:

• Eyes glazing over
• Loosing interest
• Looking at their watch
  

Listen for the customer indicate their willingness to purchase.

• Agreement with you
• Questions about ordering

Learn from these signals

• Test close
• Ask for the order

Good selling,
Richard

Wise Wednesdays - Let Go

"Remember, if you’re headed in the wrong direction, God allows U-turns!" ~Allison Gappa Bottke


Let go of customers who require so much from you but don’t see the value in what you do - they will only drain you.

Let go of suppliers who provide poor service – the only reason you deal with them is because they have cheap prices – this will cost you in the long run

Stop hanging on to something only because your started in that direction i.e. you bought the wrong software, website, marketing material etc – cut your losses now or continue to get frustrated.

Don’t give up what matters to you but be prepared to change strategies - things rarely go according to plan.

Let go. Look ahead. Move on.

Cheers,

Dominik

Retreat! Retreat!

“Times are tough”- I hear it everyday and I understand these words to be true, but I also see many new entrepreneurs retreating because of it.

Making sales and growing your business in a recession is not an impossible task, but it certainly could become one if you retreat. Right now is the time to get out there and let people know what you can do for them and why you are the best person for the job. If you are business to business, let your potential customers know how you can help their business thrive. If you are business to consumer, let people know how you can help them save money, reduce stress, and solve a problem they are having.

People still have needs and you still have solutions that can help.

Thoughtful Thursdays - The Beautiful Noise

You have made the calls, set up appointments, met with the prospect, asked questions that correctly identified their needs, assessed the situation, offered solutions and made recommendations - so far so good...

Then it arrives. Deafening and mind-numbing - The Beautiful Noise.

The uncomfortable moment when there is nothing left to say and the conversation ends. Seconds tick by and it feels like hours. You can not stand it any longer, you open your mouth and begin to talk for no other reason than you feel that you must to put an end to the silence.

The inexperienced will often begin to sell again. This is akin to speaking louder to one who is visually impaired.

Relax and enjoy the peaceful moment. When you do decide to break the silence, attempt to close the sale. Your prospect will either say yes or no. Yes is easy, no will re-open the conversation and give you the opportunity to find out what more is required to make the sale.

Either way, it is a Beautiful Noise, so take advantage of it.

Good selling,
Richard

Wise Wednesdays -- Three Simple Questions

Whether you’re just testing your product/service or have an established business asking your cusotmers these three questions (and then following up) will make your buiness go from good to great:

1. What do you like about our product/service?
2. Is there anything we can do to make our product/service better?
3. What other services/products would you find valuable that would complement what we already do?

Question 1 will let you know what you’re good at. Build your business on your strengths.

In Question 2 listen to feedback on the quality of your product/service AND on the process of doing business with you. Many times people have a great product/service but terrible customer service.

In Question 3 discover untapped needs that your customers want. It is still important to stick to your core services/product however look at possibly adding new products/services or partnering with others. This will increase the value you bring.

When your customers say they love your product/service get it in writing. Use it as a testimonial. It can do wonders for your business.

Running a business or starting a business is a continual improvement process.

Cheers,

Dominik

Thoughtful Thursdays - Did You Ask For The Order?

It sounds easy, but how many times has an opportunity passed by because you did not take action?

A common reason for not asking for the order is the fear of rejection. After all, as long as you are making the calls and there are few objections, whay rock the boat? At the end of the day you need to put that boat in the water and test it for leaks.

Your goal is to make the sale and once you believe all questions have been answered and concerns addressed, the prospect should be in a position to make a decision.

You will have by this time determined the urgency of making the purchase and at what point in the decision making process they are. You will not be offending them by asking if they would like to go forward with the purchase and they will tell you if they are ready or not. If they are not, it is critical you find out what more needs to be done to seal the deal.

You may loose the opportunity if you do not ask, and you do not want to be thinking about that after the fact.

Good selling,
Richard

Wise Wednesdays - Implementor more important than Innovator

“Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats.” — Howard Aiken

Too many people are afraid to share their business idea because they think someone will steal it.

I don’t care how great your idea is -- what matters is how you will implement your business.

Entrepreneurs, are first and foremost, implementers. Ideas are dime a dozen. For every great idea there are probably at least a dozen other people who thought of the idea.

The difference is, that those who were successful, made it happen.

Cheers,

Dominik

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