Companies Can Live and Die by the Quality of Their Sales Force

8/6/2019 Companies Can Live and Die by the Quality of Their Sales Force

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Companies can live and die by the quality of their sales force. A dazzling sales team

can generate tremendous sales for an average product or service, but a clumsy sales

team might not be able to do much with even a first-rate offering.

Hire in-house salespeople. You might be tempted to hire outside agents who

represent products from different sellers. But an in-house sales force offers you direct

control over your team, and lets you take an active role in planning and executing a

sales strategy. In addition, in-house salespeople work for you and only you their

primary goal is to sell your company's goods or services. Outside agents, by contrast,

sell many products from various sellers, and have weaker ties to your firm.

Remember that you'll have to pay 100 percent of the expenses associated with an in-

house sales force, so make sure your company's offerings will sell well enough to

support those costs.

Hire carefully. A lot of people think they can sell ice cubes to Eskimos but truly great

salespeople are few and far between. look for salespeople with these characteristics:

1. Highly motivated by money

2. Eager to learn3. Self-confident

4. Appreciative of a challenge

5. Persistent

6. Competitive

7. Able to cope with rejection

8. Great listening skills

9. Physically and mentally energetic.

Spell out your expectations. Be sure to discuss sales goals. It might help to draft a

contract that lists what your company will do for the salesperson, and vice versa.

Spell out your expectations. Be sure to discuss sales goals. It might help to draft a

contract that lists what your company will do for the salesperson, and vice versa.


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Train the more you train your salespeople, the better they'll be at answering customers'

questions and making sales. Your sales professionals should possess detailed

knowledge of your products, the competitors' products, and the market in which those

products are sold. They'll also need the training it takes to understand their customers'

needs, practices, and concerns. Hold regular training sessions, and encourage your

team to attend outside training classes, as well as sales and industry-related seminars.

Motivate your team with a strong compensation system. Design your company's

compensation plan before you hire anyone. A commission-based approach usually

works best, but it should include a base salary. That way, a salesperson is guaranteed a

minimum income which can help morale during slow times. You can find

compensation standards by contacting your industry's trade association.

Make the most of nonfinancial motivators. Employees like to be recognized for good

work, and to feel that their supervisors listen to and act to solve problems. It's also

important to make your employees feel as though they're part of a team. And don't

forget the power of benefits paid holidays, or a good maternity leave package, or

medical and dental benefits can go a long way toward retaining the best people.

Management points

Managers come from different walks of life, possess various characteristics, and have

their own philosophies regarding how to manage a business and employees. In a broad

sense, there are common mistakes made by managers at different levels and in various

types of businesses. The following are 10 of the most common management mistakes.

1. Putting policies ahead of people. The smaller the organization, the larger the

mistake this is. Policies are made to be followed, within reason. Some flexibilitywith employees, particularly in a small company, is important. An even bigger

mistake is standing behind policies at the expense of losing loyal customers.

Weigh the significance of standing behind your policy in each situation. If it is a

matter of physical safety or security, policies must be upheld. However, in many


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other instances, there are reasonable solutions that will not alienate the customer

or create a strained relationship with your employee(s).

2. Lack of communication. In any industry, at any level, communication is the key

to being a successful manager. Employees need to know what is expected of

them and when specific projects or tasks need to be completed. Communication

needs to be clear, and any questions that arise need to be answered.

3. Failing to hear what your employees have to say. Managers make the

mistake of listening but not always hearing what their employees are saying. To

manage effectively, you need to understand the needs and concerns of your

employees.

4. Not acknowledging that you do not have all the answers. A good manager

does not make the mistake of trying to solve every problem. Seeking help from

individuals with expertise in specific areas is a sign of strength, not weakness. In

addition, a good manager must understand that his or her way is not the only

way to do the job.

5. The glass is always half empty. Manager who continually focus on the

negatives, without recognizing positive achievements or employee

accomplishments, end up with employees who are not motivated and often have

one foot out the door looking for a more positive work environment.

6. Not accepting responsibility. A common mistake made by managers is to

either delegate blame or simply not accept responsibility for that which happens

under their guidance. Eventually, avoiding responsibility will catch up with a

manager and usually not bode well for his or her future. Being in charge means

taking responsibility for whatever happens.

7. Favoritism. Once a manager has obvious favorites, he or she loses credibility

and the respect of the rest of the team.

8. Just do it. The Nike slogan does not work when employees are trying to gain an

understanding of the process or project. Rather than expecting your team to

simply work blindly on tasks they do not understand, a good manager takes the

time to explain what the project is all about and how the team's work is


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incorporated into the plan. Remember, the more the team is invested in a project,

the better the results will be.

9. Too much technology. New breed of managers are more tech-sense than they

are comfortable handling and managing people. Embracing technology is a key

to success in the modern office environment, but not at the risk of embracing

people skills. Do not hide behind e-mails and other technology.

10.Never change. In a rapidly changing business environment, not being open to

change can be a major mistake. While you may stick to tried-and-true methods in

some areas, you should consider and weigh the value of change in others.

Above all, be flexible.

Managing Large companies effective

Watching your company grow can be both exhilarating and terrifying. You enjoy the

revenue, but also worry about keeping up with the demand. And what about your staff,

especially when it grows so large that youre in danger of forgetting people's names?

How can you be certain your people are getting what they need to do their jobs well?

Follow these surefire tips for effectively managing a large staff:

y Pay attention. Its easy to focus on your own work when you have a large and able

staff supporting you. But if you neglect your people for too long, you could be in

trouble. Its important to pay attention to how your people are doing. Are they

overtaxed consistently working long hours and/or taking work home? Are you

articulating the companys direction in a way they understand?

y Learn how to tolerate growing pains. Before you can withstand the pangs of

growth, you must ask yourself questions like, Is my company ready for

expansion? How can I prepare my employees for growth? What kinds of

problems do I foresee, and do I have adequate resources to handle them properly?

Accommodating growth doesnt occur overnight; you must become comfortable with

the process of managing your growth.


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y Implement a solid system for performance appraisals. No matter how skillful

your staff may be, you must always provide a mechanism for employee evaluations.

With a small staff its easier to conduct informal reviews, but as you add more

people, this task becomes more challenging. Do yourself and your employees a

favor by putting into practice an appraisal system thats right for your company

one that truly facilitates understanding between you and your employees. Consider

adding peer reviews and self-reviews to your mix.

y Match people with projects. With a large staff, it is easy (even tempting) to

assume people are doing their appropriate tasks adequately. Lets face it: its not

easy to keep up with whats on everyones plate. One way to avoid losing track is to

make sure you match people with the right projects. If someone is mismatched witha particular task, that could slow down the whole company. Effectively aligning your

resources with the appropriate function adds to the companys efficiency, which

ultimately affects the bottom line. Division of labor becomes critical as your staff

grows.

y Commit to training and development. Identifying appropriate educational

opportunities, and making them available, lets your people know that youre

interested and invested in their professional development. Providing them with the

tools to do their best work will keep them motivated and increase their loyalty to the

company.

y Create a collaborative and friendly culture. Its just a fact of life: the more people

you have, the greater the chance of conflict. Create a workplace characterized by

mutual trust and respect. High ethical standards should be the norm, and those who

cannot abide by company rules should face the consequences. Be consistent and

firm but respectful, too. Communicate what's expected, and demonstrate your

commitment to that standard.y Simulate a small staff environment when you can. Occasionally, you might hear

someone grumbling about the size of your staff: I dont know anyone anymore or

Whos that? You cant stop growth (well, you can, but you probably dont want to),

but you can simulate a small office ambiance. Get everyone together for a


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spontaneous ice cream social, distribute an e-mail newsletter announcing all new

hires (including some background on them), and make sure you know

Develop the technology

While most small businesses require technology to grow, they are also likely to have

tight budgets and be unable to invest in "pie in the sky" IT projects with no guaranteed

returns. That's why it's important to lay down a technology investment strategy that

aligns with the specific goals of your organization.

Begin by looking at your business strategy over the next two to three years and

determine in which areas you plan to grow, change, or improve. It will be easier to

identify technologies that can help your business if you have a clear picture of where

you're heading and what steps you must take to get there.

Once you've set down your business strategy, you should appoint a member of your

organization to track IT trends and advancements in the marketplace. With the

explosion of possible technologies available to you, it can be helpful to have someone

on your team who is on top of the current products and trends.

Sit down with this person and list the key technology areas they should be monitoring

based on your business needs. For example, these areas could include business

applications, data warehousing, Web services, or wireless technologies. By creating this

list you can begin to assess which technologies are likely to impact your business. Do

any of the technologies you've listed present growth opportunities or offer significant

improvements in performance or customer service? Are other players in your industry

using these technologies to enhance their businesses, and if so, how?

This list of technologies and opportunities is a way for you to narrow down your

technology requirements and come up with a well-thought-out investment plan.


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Once you have some technology projects in mind, talk to a trusted IT advisor and run a

cost/benefit analysis. (If you don't already have an advisor, be sure to read How to

Choose an IT Consultant.) Look carefully at your technology budget over the next few

years, taking into account the cost of maintaining and supporting the IT you already

have.

Create a short list of IT investments that you can not only afford, but will also help you

achieve your stated business goals. Prioritize these investments according to the

benefits they will give your business and then start to look at factors such as the time it

will take to implement and test the new technologies, the staff required to support them,

and any necessary training.

The project that offers the greatest benefit may also be the one that requires the mosttime, money, and staff. Investing in one large project may mean you don't have the

resources to invest in others, so you will want to do a risk analysis of any significant

project you consider undertaking.

Technology projects are notorious for running over time and budget, so make sure to

plan for possible overruns. It's better to have a realistic idea of the costs you could be

facing. If the project comes in on time and on budget, it will be a pleasant surprise!

Finally, continue to update your IT investment plan and monitor new technology

developments. The last thing you want is an aged IT strategy that misses out on the

current opportunities in the marketplace. Keep in constant communication with your

trusted IT advisor, and once you embark on a project, update your investment plan with

new deadlines or cost estimates.

Keep in mind that while most recognize that technology advances at a rapid pace, many

small business owners neglect to plan for technological obsolescence. ReadAnticipate

Obsolescence When Planning Your Technology Investment Strategy for some good

advice.

Create a short list of IT investments that you can not only afford, but will also help you

achieve your stated business goals. Prioritize these investments according to the


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benefits they will give your business and then start to look at factors such as the time it

will take to implement and test the new technologies, the staff required to support them,

and any necessary training.

The project that offers the greatest benefit may also be the one that requires the mosttime, money, and staff. Investing in one large project may mean you don't have the

resources to invest in others, so you will want to do a risk analysis of any significant

project you consider undertaking.

Technology projects are notorious for running over time and budget, so make sure to

plan for possible overruns. It's better to have a realistic idea of the costs you could be

facing. If the project comes in on time and on budget, it will be a pleasant surprise!

Finally, continue to update your IT investment plan and monitor new technology

developments. The last thing you want is an aged IT strategy that misses out on the

current opportunities in the marketplace. Keep in constant communication with your

trusted IT advisor, and once you embark on a project, update your investment plan with

new deadlines or cost estimates.

Keep in mind that while most recognize that technology advances at a rapid pace, many

small business owners neglect to plan for technological obsolescence. ReadAnticipate

Obsolescence When Planning Your Technology Investment Strategy for some good

advice.

Performance reviews

Annual performance reviews can be stressful for both employees and managers. Here

are some simple but effective tactics to help minimize your employees' anxiety and

ensure reviews are both fair and effective:

y Explain the process ahead of time. Ideally, whenever you hire an employee you

should explain the details of the performance review process how often these

meeting occur, how they are conducted, and what the employee can expect during


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the discussion. Put these details in writing for easy reference. This way, the review

conversation will have a structure that is clear to both you and your employee.

y Schedule the review together. Some employers blindside their workers by

springing a review on them without much advance notice. This is a poor tactic, as it

puts the employee on the spot and denies them the opportunity to think through

their accomplishments, objectives, and questions. A far better approach is to

schedule the meeting with the employee in advance and even share your proposed

conversation agenda ahead of time. The employee will come into the room feeling

prepared and confident, and will be much more inclined to engage in an honest,

productive conversation with you.

y Flag any trouble spots in advance. If you unleash a series of aggressive

questions and complaints regarding a performance shortfall during the actual

meeting, you are sure to get a defensive, underdeveloped response in return.

Difficult as it might be to talk with an employee about their inability to hit their

professional marks, it is much more awkward when they enter the review under the

mistaken impression that things are fine. A smart tactic is to tip them off before the

date of the review by saying something to the effect of "We'll need to discuss why

goals X, Y, and Z were not met this year. Please come into the conversation having

given that some thought, so that we can work together on a solution."

y Have employees conduct self-reviews. In addition to the traditional manager-

delivered review, employee self-reviews are a new and viable alternative that are

becoming more and more prevalent in the workplace. Consider having your

employee provide you with a self-review in advance of your formal meeting. You

can gain valuable insight into what the employee is thinking and use this to craft

your later discussion. Read the Benefits of Employee Self-Reviews to learn more.

y Bring reviews into the round. Rather than have a one-way review process (a

manager reviewing an employee), consider a "360 degree review" in which the

employee also has the opportunity to evaluate your effectiveness as a manager.

Have the employee fill out a brief questionnaire rating your management skills. Or

you can simply alert the employee in advance that, during the review, the floor will

be open to a discussion regarding your management techniques what works for


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the employee and what doesn't. Encourage the person to suggest ways that you

could manage them more effectively going forward. In addition, invite your

employee to create a "wish list" of how he or she might expand upon or develop his

or her job duties.

y Don't begin on a down note. It is important to keep in mind that your opening

remarks will set the tone for the rest of the meeting. Starting a review by diving

immediately into the employee's failings is a sure way to start the conversation off

on a sour note and set up a barrier between the two of you. Even if you must

analyze performance shortcomings, a better approach is to initiate the conversation

by highlighting the positive aspects of the employee's performance over the past

year. The eventual conversation about what is not up to snuff will feel less dire, and,

as a result, the employee will be more likely to listen and work with you toward a

solution.

y Hatch a plan. A review shouldn't simply be about rating an employee's

performance. It should be a springboard from which the employee can grow and

advance in the company. For every criticism, provide suggestions on how he or she

could improve in the coming year. Working together can develop tactical, concrete

approaches to overcome shortcomings. Let the employee see that you are

interested in helping them develop and succeed. Inspire them to excellence by

indicating that improvements will be rewarded with enhanced responsibilities.

Knowing that your manager is on your side can be a powerful motivator.

y Don't let the conversation stop.A formal review meeting is a good opportunity to

stop and "check in" with your employee, but you should also strive to sustain an

ongoing conversation about job performance throughout the year. By making the

review process less formal, communication between the manager and the

employee will improve. Allow the employee some time to ponder what was said

during the review meeting, and then come back to the table to discuss any resulting

questions or ideas that may not have come to mind during the initial conversation.


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If you are an employee and need advice on how to turn your review into a positive

experience that inspires you to improve and advance your career, check out Maximize

Your Year-End Performance Review.

y Bring reviews into the round. Rather than have a one-way review process (a

manager reviewing an employee), consider a "360 degree review" in which the

employee also has the opportunity to evaluate your effectiveness as a manager.

Have the employee fill out a brief questionnaire rating your management skills. Or

you can simply alert the employee in advance that, during the review, the floor will

be open to a discussion regarding your management techniques what works for

the employee and what doesn't. Encourage the person to suggest ways that you

could manage them more effectively going forward. In addition, invite your

employee to create a "wish list" of how he or she might expand upon or develop his

or her job duties.

y Don't begin on a down note. It is important to keep in mind that your opening

remarks will set the tone for the rest of the meeting. Starting a review by diving

immediately into the employee's failings is a sure way to start the conversation off

on a sour note and set up a barrier between the two of you. Even if you mustanalyze performance shortcomings, a better approach is to initiate the conversation

by highlighting the positive aspects of the employee's performance over the past

year. The eventual conversation about what is not up to snuff will feel less dire, and,

as a result, the employee will be more likely to listen and work with you toward a

solution.

y Hatch a plan. A review shouldn't simply be about rating an employee's

performance. It should be a springboard from which the employee can grow and

advance in the company. For every criticism, provide suggestions on how he or she

could improve in the coming year. Working together, develop tactical, concrete

approaches to overcome shortcomings. Let the employee see that you are

interested in helping them develop and succeed. Inspire them to excellence by


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requires some time and thought, just like any other project your company takes

on.

2. Practice, practice, practice. Regardless of how tough it may be to estimate the

future, your forecasting accuracy will improve, and youll be better able to control

the results if you actively use a budget. Practice does make (almost) perfect.

3. Dont think your company is the exception. Any business can be budgeted.

The only question is how much practice it takes to strike a balance between the

time invested and your forecasting accuracy. Remember that a startup has to be

forecasted and budgeted in order to get financial backing. This includes

companies trying to do something thats never been done before.

4. Use a Gantt chart. This is an expanded timeline that tracks deliverable dates for

budget completion. It will tell you if youve scheduled too much to be completed

in too short a time given other business activities that also require your teams

participation.

5. Dont try to budget to the last penny. Predicting exact results down to the

penny is not the objective. Rather, budgeting is more about giving your

employees a direction to use for course corrections at a level of detail where it

matters. If you try to forecast every last expense no matter how small, the details

will drive you crazy.

6. Make tradeoffs when necessary. You have finite resources available to you. If

you must spend money for something you didnt budget, decide what budgeted

expenses can be removed to finance the new item. Without this discipline, you

will almost always overspend, because there are always good reasons to spend

money. They dont always produce more profit, however.

7. Set both profit and cash flow targets. These two measures are very different

and require different kinds of gauging and monitoring to prevent unpleasant

surprises. Dont believe it? Keep in mind that every year businesses with great

profits fail due to a lack of cash.

8. Ask three questions to assess your results. With budget comparisons in

hand, ask your team these three sets of questions at the end of every month: (1)

How are we doing compared to the budget? If the results are different from the


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plan, why did this happen? (2) What must we do now to have a better result next

month? How can we keep the positive differences and avoid the negative ones?

(3) What are we learning that will help make next years budget better?

Follow these tips and your income statement will be more informative, your bottom line

is more appealing, and your stress level a good deal lower.

1. Dont try to budget to the last penny. Predicting exact results down to the

penny is not the objective. Rather, budgeting is more about giving your

employees a direction to use for course corrections at a level of detail where it

matters. If you try to forecast every last expense no matter how small, the detailswill drive you crazy.

2. Make tradeoffs when necessary. You have finite resources available to you. If

you must spend money for something you didnt budget, decide what budgeted

expenses can be removed to finance the new item. Without this discipline, you

will almost always overspend, because there are always good reasons to spend

money. They dont always produce more profit, however.

3. Set both profit and cash flow targets. These two measures are very different

and require different kinds of gauging and monitoring to prevent unpleasant

surprises. Dont believe it? Keep in mind that every year businesses with great

profits fail due to a lack of cash.

4. Ask three questions to assess your results. With budget comparisons in

hand, ask your team these three sets of questions at the end of every month: (1)

how are we doing compared to the budget? If the results are different from the

plan, why did this happen? (2) What must we do now to have a better result next

month? How can we keep the positive differences and avoid the negative ones?

(3) What are we learning that will help make next years budget better?

Follow these tips and your income statement will be more informative, your bottom line

is more appealing, and your stress level a good deal lower.


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Employees Risk management

As work environments become safer, the number of workers' compensation claims

continues to decline. At the same time, the cost per claim has continued to rise along

with the rising cost of health care in general, making the business costs substantial.

Along with death and taxes, workers' compensation is something every small business

owner with employees must deal with.

As of September 2008, figures from the U.S. Department of Labor's Bureau of Labor

Statistics show that businesses spend an average of $28.87 per hour for each

employee. This includes salary, as well as benefit expenses such as health insurance,

vacation time, and workers' compensation benefits. Overall, 69.7 percent (or $20.13) of

the hourly compensation given to employees goes toward salary, and 30.3 percent

($8.74) goes toward benefits, with 1.6 percent ($0.47) of that benefit percentage making

its way to workers' compensation. Although 47 cents an hour doesn't sound like much, it

adds up over time and can severely impact your business expenses, particularly if this

per-hour amount increases.

Job classification is the main factor determining the cost of your premiums. Roofers and

construction people, who work around heavy equipment, have the highest risks,

whereas office workers have the lowest risk. The basic rates for each job classification

are set by each individual state, but there are more guidelines for insurance carriers to

follow than there are rules.

By working with your risk management insurance carrier, you can implement both pre-

and post-claims programs that will reduce your workers' compensation costs overall.

Besides implementing procedures that make your business a more desirable client in

terms of insurance rates, you can save even more on your risk management costs by

implementing the following practices:


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y When paying an employee time and a half for overtime, you may only have to

report the regular wages, decreasing the amount of payroll that determines your

insurance premiums.

y Implement programs that bring workers back into the workforce at a faster rate,

even if it means bringing them back part time or in a limited capacity. Rising

workers' compensation costs are primarily due to increased use of benefits and

longer duration of disability. The more time an employee spends on disability, the

more wage replacement and medical services increase in cost.

y Look for a pattern to claims. Do some locations or areas in your business have

fewer claims than others? Determine the reason why. Reducing the number of

workers' compensation claims gives your business a better safety record. This

makes you a much better risk to an insurance company, making it more likely they

will give you better rates in the long run. Overall, this is the best way to reduce your

risk management expenses.

Checklist: Additional Factors in Insurance Premiums

The workers' compensation insurance premium is negotiated between the business and

the insurance carrier and can be increased or reduced depending on factors that

insurance companies consider when calculating workers' compensation premiums.These factors include the following:

Proclaims Programs

y Level of employee health insurance offered by the employer

y Performance of regular safety checks

y Encouragement and reinforcement of safe working behavior in employees

y Emphasis on the use of safety procedures and proper equipment

y Instruction manuals that detail safety procedures

y Promotion of effective new-hire selection processes

y Employee education and training

y Management accountability

y Elimination of employee risk taking


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Post-Claims Programs

y Employer's safety record

y Elimination of hazards that cause injuries

y Consistent internal policies and medical referral procedures

y Return-to-work programs

Tip: Double-Check Job ClassificationCodes

A common but easily avoided classification error that affects workers compensation is

to assign the code of office clerk to all administrative personnel. Not all administrative

personnel perform the same job duties, and there are different classifications that carry

different levels of risk. A file clerk, for example, typically doesn't use a keyboard. A dataentry clerk, on the other hand, usually sits in front of a keyboard and a computer all day

long and runs a much higher risk of carpal tunnel injury. To be certain you're classifying

employees correctly, use the most up-to-date classification code book for your state and

thoroughly familiarize yourself with the appropriate codes for your employees.

y Implement programs that bring workers back into the workforce at a faster rate,

even if it means bringing them back part time or in a limited capacity. Rising

workers' compensation costs are primarily due to increased use of benefits and

longer duration of disability. The more time an employee spends on disability, the

more wage replacement and medical services increase in cost.

y Look for a pattern to claims. Do some locations or areas in your business have

fewer claims than others? Determine the reason why. Reducing the number of

workers' compensation claims gives your business a better safety record. This

makes you a much better risk to an insurance company, making it more likely they

will give you better rates in the long run. Overall, this is the best way to reduce your

risk management expenses.

Checklist: Additional Factors in Insurance Premiums

The workers' compensation insurance premium is negotiated between the business and

the insurance carrier and can be increased or reduced depending on factors that


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insurance companies consider when calculating workers' compensation premiums.

These factors include the following:

Proclaim Programs

y Level of employee health insurance offered by the employer

y Performance of regular safety checks

y Encouragement and reinforcement of safe working behavior in employees

y Emphasis on the use of safety procedures and proper equipment

y Instruction manuals that detail safety procedures

y Promotion of effective new-hire selection processes

y Employee education and training

y Elimination of employee risk taking

Post-Claims Programs

y Employer's safety record

y Elimination of hazards that cause injuries

y Consistent internal policies and medical referral procedures

y

Return-to-work programs

Tip: Double-Check Job ClassificationCodes

A common but easily avoided classification error that affects workers compensation is

to assign the code of office clerk to all administrative personnel. Not all administrative

personnel perform the same job duties, and there are different classifications that carry

different levels of risk. A file clerk, for example, typically doesn't use a keyboard. A data

entry clerk, on the other hand, usually sits in front of a keyboard and a computer all day

long and runs a much higher risk of carpal tunnel injury. To be certain you're classifying

employees correctly, use the most up-to-date classification code book for your state and

thoroughly familiarize yourself with the appropriate codes for your employees.

Advantage for factoring and leasing


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Most business owners who have been in business for any length of time understand the

power of financial leverage. Its especially important for manufacturing companies,

which usually require a significant investment in equipment, raw materials, and

inventory before they can begin generating revenue.

The key to success for most manufacturers is to spend as little out of pocket as possible

on these necessities, thus preserving cash flow for the actual operation of the business.

When used properly, financial leverage helps manufacturers achieve that goal.

Two particular kinds of leverage can be especially beneficial for manufacturers:

factoring and leasing. And when used together, factoring and leasing provide a powerful

one-two commercial financing punch.

Leasing

All businesses are built on cash flow and leverage, especially manufacturers, says

Andrew Kaplan, the president of United Financial Group in Maitland, Fla., which

specializes in equipment leasing. It doesnt make sense for them to use all their cash to

pay upfront for something thats going to generate income when they can lease it

instead. Also, if they spend all their cash on equipment, theres nothing left over for

materials, inventory, payroll, overhead, etc.

When leasing, you make a small down payment and then make monthly payments on

the equipment, usually for five years or less. When the lease term is up, you can own

the equipment by making a minimal buyout payment (often just $1). And because a

lease is expensed rather than capitalized, there are tax benefits to leasing compared to

buying equipment.

Leasing helps companies preserve cash and manage it more effectively, says Steve

Fix, a principal with Lease Source in Atlanta, Ga. Weve done equipment leasing for

Fortune 500 companies that could write a check for a hundred grand without blinking an

eye but recognize the cash flow benefits leasing provides.

Factoring


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Like leasing, factoring can be an important cash flow management tool. In the same

way that its usually not smart to lay out cash to buy equipment, it often doesnt make

sense to carry your accounts receivable, especially for slow-paying customers that may

not pay for 60 to 90 days or more.

By factoring accounts receivable, businesses accelerate their cash receipts drastically

while also outsourcing credit and collections, thus freeing up owners to spend more time

concentrating on core competencies. Factoring and leasing go hand in hand, Fix says.

For a manufacturing company, it might look something like this:

XYZ Manufacturing Co. needs to buy a new computed numerically controlled machining

center to take advantage of a government contract its just landed. The cost of the

machine is $100,000. While the company does have the cash to purchase this

equipment outright, it can lease it instead with a down payment of, say, $5,000 and

regular payments over the next five years.

At the same time, the company will need to purchase a large amount of raw inventory,

prepare its shop for the new machine, and hire another employee before it can begin

the new contract. Like many companies in similar situations, XYZ is cash poor but work

wealthy.

In addition, XYZ has outstanding accounts receivable totaling $75,000 from customers

that typically pay in 60 to 90 days. By selling these invoices to a factoring company, it

will receive up to 90 percent of the outstanding accounts receivable (or more than

$67,000) within a matter of days to begin fulfilling its new government contract.

In this example, using factoring and leasing together helps XYZ Manufacturing turn a

profitable new opportunity into reality quicker and more precisely than it could with any

conventional financing a bank could provide.

When properly maintained, equipment will still be making money for a business for

many years after it has been paid for, says Kaplan. Every manufacturing business will

eventually reach a threshold where it cant grow anymore due to a lack of capacity.

Factoring and leasing can help companies expand beyond this threshold.


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Trucking is another example of an industry that commonly uses factoring and leasing

together, with good results. Trucks are usually leased with a small down payment as a

way to conserve cash, and invoices are usually factored to accelerate collections and

provide the cash needed to keep trucks rolling.

Automatic Cash Flow

The bottom line is that it can be much easier to manage a business financially by using

factoring and leasing together, because all you have to do is concentrate on your

margin. Your cost to lease and operate a machine is fixed each month, along with your

factoring cost, so its easy to set prices that ensure the level of profitability you desire.

Meanwhile, youve created a scenario in which cash flow to your business is virtually

automatic and you can keep growing as fast as you can sell products. Need a new

machine? No problem, lease it. Need to collect receivables faster in order to keep the

machine running? No problem, factor them.

In todays fast-paced business environment, where conditions change on a dime and

opportunities often arise with little or no warning, companies must be nimble and

flexible. Using factoring and leasing together can provide the powerful one-two

commercial financing punch you need to succeed.

Factoring

Like leasing, factoring can be an important cash flow management tool. In the same

way that its usually not smart to lay out cash to buy equipment, it often doesnt make

sense to carry your accounts receivable, especially for slow-paying customers that may

not pay for 60 to 90 days or more.

By factoring accounts receivable, businesses accelerate their cash receipts drastically

while also outsourcing credit and collections, thus freeing up owners to spend more timeconcentrating on core competencies. Factoring and leasing go hand in hand, Fix says.

For a manufacturing company, it might look something like this:

XYZ Manufacturing Co. needs to buy a new computed numerically controlled machining

center to take advantage of a government contract its just landed. The cost of the


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margin. Your cost to lease and operate a machine is fixed each month, along with your

factoring cost, so its easy to set prices that ensure the level of profitability you desire.

Meanwhile, youve created a scenario in which cash flow to your business is virtually

automatic and you can keep growing as fast as you can sell products. Need a newmachine? No problem, lease it. Need to collect receivables faster in order to keep the

machine running? No problem, factor them.

In todays fast-paced business environment, where conditions change on a dime and

opportunities often arise with little or no warning, companies must be nimble and

flexible. Using factoring and leasing together can provide the powerful one-two

commercial financing punch you need to succeed.

Office managements

In order to successfully manage an office, regardless of your company's product or even

your customer base, you should adhere to some basic guidelines. Here are six areas

that you should keep in mind:

1. Employment and human resources. It's critical to have an employment policy

in place. A policy manual gives you a blueprint for the way the company

approaches employment. It spells out rules in a way that can prevent later

problems. (Imagine working for an organization that came to a standstill each

time an employment issue arose.) In addition, you'll want to include a training

and development program under this area. Even if your training and

development program is modest, you still need to consider building this into your

policy. Read Ten Employee Training Tips to learn how to implement an effective

training program.

2. Project management. Keeping track of projects is critical to the successful

completion of important tasks and represents an essential piece of

documentation. Knowing when things have to be completed and by whom gives

everyone a clear idea of what's ahead. Deadlines are less likely to be missed


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and people are more likely to know their roles. Plus, each project, through careful

documentation, can become a useful case study for future assignments.

3. Equipment and furniture requirements. You don't need every piece of office

equipment out there to run a smooth operation. But you do need certain products

that are going to optimize people's performance. What you need and how much it

will cost are simple but important considerations. Check out What Office

Equipment Do I Need for My Business? for a good introduction. And what about

software? Are you trying to achieve a paperless office? If not, do you know how

you'll store certain documents? Answering these and other questions about

equipment will help you

4. Inter- and intra-office communications. For many small businesses, the

responsibility for communication falls upon the office manager. Knowing how

and when to communicate key information is vital to successful office

management. E-mail blasts, posted instructions at the copier, and weekly staff

meetings are just a few of the types of communication that occur within a busy

office. Having a communication plan that everyone can adhere to will increase

an office's productivity and ensure that information is disseminated clearly and

quickly.

5. Conflict resolution. Conflicts are inevitable. Knowing how to handle them

properly, however, will make life easier. Whether you have a formal policy or

rely on your own wits, you need to prepare yourself for a wide variety of

disagreements. Even with an employment manual, such issues as equitable

distribution of work, pay rates, and job descriptions often arise in a company.

Ignoring a conflict or waiting for it to dissipate is never the right solution. Having

a plan or a policy for conflict resolution will help everyone navigate through a

disagreement in a professional manner.

6. The company and its people. Knowing how to run an office must include

understanding the company and its people. Knowing the product line and how it

fulfills a need is just as important as ordering more toner for the printer. If you

don't understand your company's mission, you won't know how best to support

its various functions. The same goes for people knowing employees' roles,


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Given the seismic shift that is taking place in the employment market there are

substantial opportunities for businesses to reorganize themselves so as to ensure not

only that they survive the economic downturn but also that they will be well placed to

increase their market share at the expense of less adept competitors. The challenge

facing an employer is how to retain its talent pool, by working constructively with its

employees to reach solutions that minimize the number of compulsory redundancies.

Demonstrating a sense of "fair play", notwithstanding the relatively free hand that

employers now have to impose changes to contractual terms, will go a long way to

ensuring that those employees who are retained during the downturn will not hit the

road at the time of their choosing, once the economic climate improves.

Below is a summary of some of the key issues that face employers seeking to imposefundamental changes to terms and conditions of employment and/or to reorganize their

business:

y Identify the key strategic objectives and be clear and concise in communicating

to the employees what changes are being sought and why those changes are

necessary. Establish a clear timeline as to when it is intended that the changes

will take effect.

y When proposals to vary contractual terms are being discussed with employees,

ensure that a draft of the proposed revised terms is available so that employees

have a clear understanding of the specific changes to which their consent is

being sought.

y Consider whether there is merit in establishing an informal consultation

mechanism for staff being affected by the proposals. However, if 20 or more

employees are going to be affected by any proposed changes to contractual

terms then the collective consultation requirements (set out in Section 188 of the

Trade Union and Labor Relations (Consolidation) Act 1992) may be triggered.

Whether such collective consultation requirements are triggered will largely

depend upon whether dismissals of employees who do not accept the proposed

changes are being threatened and the extent of the changes being made for


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employees retained. Clearly great care needs to be taken how the proposals are

put forward.

y Carrying out dismissals of employees who refuse to accept variations to their

contractual terms which an employer views as being necessary for the business

may be a potentially "fair reason for dismissal" and therefore provide a defense

to an unfair dismissal claim. The initial hurdle for the employer is to show that the

reason for the change is more than trivial or whimsical. Assuming that the

employer can overcome this hurdle and that appropriate individual consultation

has been undertaken in order to establish the fairness of the dismissal, a broader

balancing test will be applied by an Employment Tribunal, which involves

balancing the needs of the employer and the interest of the employee.

y Determine whether the contemplated reorganizations will trigger a redundancy

situation. Reorganizations and redundancies are two different concepts and they

are easily confused. Reshuffling duties amongst existing staff will not create a

redundancy situation nor will seeking to reduce costs by enforcing imposed

changes, such as reductions in pay. Redundancy, on the other hand, has a

specific statutory meaning and care needs to taken in establishing whether, if a

redundancy situation exists, any actual dismissal carried out will be regarded as

being by reason of redundancy.

y In the current economic downturn, if dismissals are required by businesses, then

in most instances employers can be reasonably confident in establishing that a

redundancy situation exists. A headcount reduction by reason of redundancy

offers the opportunity for an employer to reflect critically on the skill sets it needs

to retain in order to ride out the economic downturn. Redundancy selections can

be made accordingly, by reference to the skills which the employees at risk have

as well as a variety of other factors including their individual performance.

y Ensure that consistent treatment is applied to all affected employees (including

those away on long-term sickness absence, maternity leave or sabbatical etc) so

as to minimize the risk of claims of discrimination being raised.

y Bear in mind that employees often receive large awards at Tribunal not because

the employer has treated them particularly badly, but rather because


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economically they are substantially out-of-pocket as they are unable to reduce

their loss by securing income from alternative employment. Therefore, the

importance of following the correct procedures and giving due consideration to

the issues set out above should not be underestimated in a recession since

dismissing employees unfairly is likely to prove even more expensive for

employers in these difficult times.

Top Tips

y Dont procrastinate make a sales call NOW!

y Grab every little five minute wait time during your day to make a sales call

y Never switch off looking for subliminal sales opportunities, then.

y When you become aware of an opportunity, grab it, with both hands, immediately.

No matter how much planning you do, no matter how much research you gather, no

matter how many gadgets and gizmos you possess, the only way you make sales is by

getting in touch with prospects, generating rapport and giving it your best shot. It isnt

just that there is a time forplanning and a time fordoing, it is also about making and

taking time fordoingevery day.

You cant afford to wait until the product is made before you start to sell it; what if theguys in market research got it wrong and there is no market for the product? Taiichi

Ohno, the inventor of the concept of The 7(+1) Wastes, identified two of the primary

areas of waste in industry as overproduction and overstocked inventories. Both of

these link to creating and holding stocks that arent soldthese arent assets, theyre

liabilities! You need to be out there talking direct to customers long before the product is

gathering dust in a warehouse.

This goes for services too; the best problem to have is the one where you walk out ofthe clients office with the ink drying on the contract and think to yourself, Gosh, we are

going to have to move fast to put this together in time! You may be in a role where you

are responsible for the operational delivery of the service as well as the sale, in which

case this is your problem, if not it is the role of someone else in your organisation; so


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long as the two of you are communicating there is no reason why this Just-In-Time

approach will cause a problem.

Grab every opportunity to make sales calls. A sales call doesnt have to be an hour

long affair; two or three minutes is often more than enough, so make sure that everyday you have to hand (wherever you are) the ability to make a half dozen sales calls.

The prospect wont know that you are in the car park of his competitor, if you use text or

mobile email the prospect wont know that you are on the train! By grabbing every 5 or

10 minute waiting time in each day you can make an extra 30 or 40 sales calls a week.

I wasrunningasales training workshop inahotel in Leicestershire; Ipopped into the

gentsduringthe morningcoffee break,andcouldhearacandidate inoneofthestalls

talkingonhis mobile. He was makingasalescallfrom theloo!

Get into the habit of actively looking for sales opportunities in everything you see and

hear. Then grab every opportunity that you spot. What are we talking about? Here are

some real life examples.

The localBasingstokenewspapercarried thestory thatChas. A. Blatchfordand Sons,

manufacturer of traditional prosthetic limbs, had just bought a competitor and was

moving into the competitors areaof strength, modern beachwearprosthetics. The

woodwork

ingand

meta

l working

shops woul

dbep

hase

dou

tover

the

nex

tsix mo

nths

as thecompany invested inplasticandelectronics. Anoutplacementconsultancysaw

thenews item and contacted Blatchfordspersonnel managerand wona contract to

supportthecraftsmen who were beingmaderedundant.

A salesman was travelling in the train home one evening but hadntpicked up the

eveningpaper. Oppositehim wasagent reading the London Evening Standard. The

lead story on the frontpage was all abouta large overseas defence contract being

awardedtoa UKcompanyandthe beneficialeffectthis wouldhaveprotecting jobs. On

thegents lapel wasapin bearing the logoof the lucky UKdefence manufacturer, the

salesman offered his congratulations and the two struck up a conversation, the

salesmanofferedhis businesscardand wasgivenone in return. Hecalled thenext

day, metthefollowingweekandgotasupplycontractaboutthree monthslater.


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By staying active within the Business Information world you can be aware of the likely

and planned evolutions in the marketplace and by judicious use of this information, you

can leverage this to your advantage. Alert Research actively seeks out sector specific

intelligence for you to tap into and use to generate more and better sales productivity.

Ray Murphy of Alert Data can be contacted on [email protected] or visit

their website at www.alertdata.co.uk

F Finances and the unpaid invoice

Top Tips

y Check that your clients are solvent before, during and after you sign a deal

y A poor payment structure can render a deal worthless; negotiate as fast paymentas possible

y Contracts are great ifyou can afford to enforce them; money in the bank is safer

Financial information; company reports and accounts and credit ratings may seem less

important to you than to the accounts department but claw-back on commission

payments or missed bonuses after all the work will hurt you more than the accountant!

Four ways of using financial information to protect your income are;

1. Looking at clients payment history.

2. Looking into a prospects credit rating.

3. Ascertaining who reallycontrols the budget and payment sign off and

4. Ascertaining the size of the budget.

1. Take a look at the payment history of your clients; obviously different sectors have

different norms~ retail is generally payment on delivery/collection, whereas many

service businesses dont invoice until the end of the calendar month and then get paid

in 30 or 60 days. Even assuming a good payment history this can leave the supplier

with a minimum 90-day deficit to fund. Challenge the norms in a creative way. Ask for

payment or partial payment upfront in return for a small discount; this is especially

effective with clients who usually pay late.


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2. Keep a constant check on clients credit ratings; there have been many examples

of suppliers delivering to a client for 80 or 90 days when the clients have already shown

themselves to be non-creditworthy. Soldiering on in hope that things will improve is a

fine way to commit commercial suicide.

3. With new clients (or existing clients going through re-organizations) ensure that

you keep a close eye on the authority element of the MAN mnemonic; there is little point

in delivering half the service for Manager X only to be told that Manager Y is actually the

authorized signatory. You may be able to force the client to pay eventually but by that

time the relationship will be too strained and your costs too high to make the current or

future work worthwhile.

4. Make sure that both you and the client are in accord over the size of the budget for

your goods or services. This may sound too obvious but so often everyone

concentrates on the unit price rather than the overall cost; consultancy at XXX per day

rather than how many days at XXX equals the total project cost being YYYYY. There

are examples of this issue cutting both ways; think of all those big Government

contracts where the project is costing the taxpayer 10 times the estimated cost due to

overrun (to the benefit of the supplier) or the cases where the supplier agrees a low unit

price on the assumption of high volume but then actually gets only 15% of the

anticipated volume and therefore loses out.

Forecasting and Firming what is in the pipeline is another important way to improve your

sales productivity. A genuine forecast (rather than a wistful hope) of the time that

pieces of business in the pipeline will reach maturity will help you to identify the most

productive use of your time and effort. Where you have a piece of business in the

pipeline but it is moving slowly towards being contracted look for ways of speeding it up

(lets face it lots of stuff that is in the pipeline disappears due to circumstances outside

your control, so if you can chivvy it along this will stop it from evaporating). You can

chivvy by actually asking for the contract to be signed up, by creatingadeadline for the

quoted price, by offeringa guaranteed delivery date or time in return for a firm booking

or possibly by offeringa small discount in return for a firm booking.


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Foxing the opposition may sound like an odd way to improve your sales productivity but

it can be a valuable strategic tool. As a supplier you may be convinced that you have

no hope of breaking into your competitors biggest account, but if you consistently try,

you keep the competitor busy fighting you, this takes them time and energy that they

may otherwise use to attack your key accounts. You never know, you might even be

successful and actually win business with the prospect!






their website at www.salesresearcher.com

Establish a communication plan.

Top Tips

y Search for ways to reduce your admin time. You need every available minute to

think, plan and sell.

y If you havent yet got a communication plan, in writing, write one within a week.

y When was the last time you actively sought out a new prospect? If it was over a

week ago, do it today.

Establish a communicationplan. Thereisanadage; Doyouplantofailorfailtoplan?

Thisis justastrueinsalesasitisinhouse buildingorwar. Youprobablyhaveasales

planalready;something that laysout the targetrevenuegeneratedper month butyou

also need a communication plan that will help you to generate and sustain thosefigures. Ifyouhaveacommunicationplanyouknow whatyoushouldbedoing,youcan

measure theeffect ithasandyoucan learn from whathappens. Ifyouhavenoplan

thencertainthingsorcertainclients justgetforgotten,youhavenoidea whatis working

orwhyandyoufindthattherestofyourlifegetsovertaken byevents.


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A sales communicationplandoesnthave to takeages toproduceand you certainly

dontneed to write it by the kilo;assuming that youhavea contact list it can beas

simpleasaonehourandonesheetofA4 job.

EverydaydosomethingEffectiveisagoodstrategyforyoursalescommunicationplan.

y You mayplan to communicate with all your customers every day; I know one

salesman who does just this with a twitter campaign; he tweets about 8 times

every day and reports that it generates between 10 and 12% of hisprofitable

sales.

y Alternatively you mayplan to communicate withagiven setof customerseach

day, workingyourwaythroughyourcontactlistoveragivenperiod.

y

Youcouldalternateactivities;on Mondays, WednesdaysandFridays Illsendoutan update, working through 10 contacts per day, whilst on Tuesdays and

Thursdays Illsearchforandaddthreenewprospectstothecontactlist.

y You may choose to segment your contact list so that you send different

communications to different contacts; the segmentation may be on grounds of

relationship (eg contacts who are currently buying get a different message to

thosethatare dormant )oritcouldbeongroundsofclientcharacteristics (egnot-

for-profitcontactsgetadifferentmessagetocommercialcontacts)

Whilstyouplan todosomethingeffectiveeverydayyoualsoneed to factor insome

rollingactionsforweeklyormonthlyinclusion.

y Regular topping-upofthecontactlist;activelyseekingoutnewprospectssothat

yourcontactlistisntslowlycontracting

y Regularcleaningof thecontact list (athomedoyoustillgetmarketingandsales

lettersaddressed to thepeopleyou bought thehouse from 5 yearsago? What

imagedoesthatgiveyouoftheorganizationthatsenttheletter?)

y Regulargeneralupdate messagesoranewsletter

Regular and planned activity doesnt stop you from reacting to sales signals, it helps

you to manage those reactions; you can still respond to a walk in prospect and seize

that opportunity but you will also find that having and working a communication plan


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keeps you on the boil rather than hitting the feast and famine cycle that can come

when you reach the end of a customer project and realise that you have let the pipeline

run dry.

Emailis it worth the paper it isnt printed on? Within your communication plan alsoconsider the media that will be most effective. 80% of email is reckoned to be spam

and spam filters are notoriously fickle; even a valued client who hangs on your every

word can discover that their spam filter is cutting out your communications. Use email

but also consider the other options;

y Snail mail

y SMS

y

Tweetsy Phone calls

y Website updates

Entice the contact is a good way of thinking about the actual content of your individual

communications; you need to have a message to get across to the contact and it has to

be a bit more interesting than either Can I have an order or Im still alive. A snippet

of information that is relevant to the contact is always going to be interesting enough for

them to read; an update about their marketplace or clients, a bit of intelligence abouttheir competitors, a quote from an influential person in their sphere of interest, an

opinion of their organisation from a respected pundit.






their website at www.alertdata.co.uk

New Sales Researcher site launched today!

Hi Everyone,


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The new Sales Researcher site is now full operational. Visit us at

http://www.salesresearcher.com/

More Blog posts to come soon along with letter E in our A-Z series.

Top tips: DDevelopElevator Pitches

1. If you havent got an elevator pitch already, produce one today.

2. If you already have an elevator pitch check it today and ensure it is no longer than 50

seconds

3. Make sure your elevator pitch doesnt sound like a sales pitch

4. Have different pitches ready for different situations

Develop Elevator Pitches. You know what an elevator pitch is even if, being in Britain,

the word elevator looks a bit out of place. You need not only to develop a standard

elevator pitch for the traditional face-to-face meeting, but also to develop the concept of

the elevator pitch to take advantage of the communications opportunities available to

you in the 21st Century.

The traditional elevator pitch, which has been around since the mid 1980s, is a 20

second to 2 minute sell that aims to convince a prospect that they want to know more.

As such it has to be unique to you (or your product/service).

A saleswoman,introducedtoaprospectata businessseminar,answeredthequestion

Andwhatdoyoudo?withasmooth,preparedandcomprehensiveelevatorpitch. The

prospectfixedherwithalookandsaid, Iveheardprettymuchthesamestoryfrom four

peoplealreadythis morning, whatmakesyoudifferent?

The saleswoman was floored, the moment gone, theprospect unconverted and any

chanceofasalelost.

You also have to hit the right note between grabbing their attention and telling them so

much that you talk yourself out of the sale. It is fair to say that in the 2010s two minutes

is just too long. Go for something nearer 45 seconds.


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There are three things a successful elevator pitch needs;

y Hook-something that makes the listener want to listen to the next 40 seconds!

y Story-the content that you want to get across to the listener; this could be about

you, if you are the product, it could be about the team; if the team is the USP ofyour proposition or it could be about the unique benefits offered by your product or

service. You must deliver this with passion; if you arent able to enthuse about

your subject, why the heck should you expect your prospect to?

y Request- you have to finish on a strong note; go for a request, be it a business

card, a follow up meeting request or even a request for an order.

You also need to work on your modern versions of the hookof the elevator pitch: the

Tweet, the Linked In update, the voicemail message and the subject line of an email.Remember that the purpose of the hook is to makethelistenerwanttolistenfortherest

ofyourpitch. Here are two more Ds to help you improve your hook:

Dont be sound like a salesperson.A sure fire way to fail in this purpose is to sound

like a stereotypical salesperson. You need to be hooking the listener with something to

theirbenefit, notyours, about theirneeds, not about youroffering.

Differentiate with Information. One way to differentiate your elevator pitch is to use

information that is notabout your product or service but is about the prospect and theirbusiness. For example; if you are talking to a potential buyer from say, Harley-

Davidson, and you can tell them that their competitor, Ducati, just improved their

performanceby using your service or product, this will undoubtedly be of interest.

Another way to differentiate withinformation is to simply share industry information that

will be of direct interest to the prospect by virtue of being relevant. For example, if you

are contacting a prospect in Birmingham City Council and you can give the person an

update on the legal challenge between Bristol City Council and UNISON over pensions,the prospect will almost certainly want to read/listen to your message.

Different situations call for different pitches. If you meet someone at an industry

exhibition and they are wearing a badge with their name title and company on it, you

probably wouldnt use the same pitch as you would if you met someone at the golf club.


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Think about how you can adapt the basic formula of hook, story, request to suit different

situations. If you dont, youll either say the wrong thing or say nothing at all!

CConnectivity

Top tips

y Use all available and appropriate media; do something today, write, email, fax,

phone, SMS, tweet or link in.

y Make a connection plan that covers all your contacts at least once a month

y Set aside a scheduled time each day or week just for connecting

Connectivity increases conversions. There is a quotation that If you invent a better

mousetrap the world will beat a path to your door. Its rubbish. How will the world

know that you have built a better mousetrap? How will they knowhow to find you?

How will they know what your mousetrap costs? Why would people with no mouse

problem want a mousetrap?

If you want to successfully sell you have to connect with prospective buyers, and

connecting is a two way process. There is an acronym used in marketing which is

AIDA. The A stands for Awareness (the IDA will be covered in later releases of thisseries). You have to make the customer Aware of your existence and of the existence

of your products or services. You have to then keep them aware; in the 21st Century

people are exposed to more information in a single Sunday paper than a 17th Century

landowner would be likely to read in his entire adult life. Large amounts of the

information we see and hear each day simply dont stick; they are forgotten within a

short period. Consequently you have to keep drip-feeding people with messages in

order to remain close to the surface of their conscious memory. Why do you want to be

close to the surface of conscious memory? Because again, in the 21st Century the pace

of life is fast; when a manager discovers a need he or she wants to fulfil that need

quickly. When a manager need a trainer, if the first words that pop into his or her mind

are Rus Slater of coach and-courses.com the manager doesnt need to google or


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look in their business card index for a potential supplier. The supplier who comes to

mind first is probably the one theyll call.

So how do you connect with prospects and customers? The options range from the

traditional to the cutting edge and from the glaringly obvious to the subtle.y You can invite them to Corporate hospitality such as the races or the rugby.

y You can entertain them on a One to One basis for a meal or a drink or golf.

y You can Network with them at the meetings of any trade associations or bodies

that are relevant to both of you.

y You can regularly send them relevant News cuttings that are of value to them.

y You can deliberately meet them at Exhibitions and Expos where you or they are

running a stand.

y You can call them to Catch up with what is happening in their life (Noteherethat

you wanttofindaboutthem NOTtellthem aboutyou;iftheydeclareaninfestation

of mice then obviously you can tell them about your invention, but avoid just

callingonthepretextoftellingthem yournews.)

y You can Tweet, Face-book, Link In

If you want to continue to sell to customers you have to stay connected to them, so you

will probably need to use a variety of these approaches over the course of the year with

a variety of customers and prospects. This connectivity increases the Awareness of

you and your organisation, the next stage in AIDA is the I which stands for Interest and

in this instance it is a double ended Interest;

1. You need to takeaninterest in them and their current situation in order to find out

whether there is any value in trying.

2. tocreateaninterest in your product or service

Always remember to do Number 1 first; otherwise you are telling someone something

they have no interest in and that is boring!


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can leverage this to your advantage.

Buyers andBusinessesEvolve

1. Top tips

y Find out about the individual buyer at your client; not just their name and job title

but what makes them tick.

y Cultivate other contacts within the client; they are a source of valuable information

for you; this will allow you to beat the competition when an opportunity arises.

y Stay abreast of industry sector developments; this allows you to anticipate rather

than react.

is for Buyers and Businesses Evolve. No, the nice people at Sales Researcher havent

lost their marbles and arent suggesting that people are developing gills or webbed feet.

But both buyers and business evolve nothing stays the same for long in the world of

commerce and industry and business information can help you to stay ahead.

Buyers evolve in several ways; the organizations changes the person who buys from

you, or the buyer changes his or her wants and desires for your type of product or

service. You need to keep abreast of personnel changes at the client or prospective

client. If an organization announces a change of personnel there is a sales opportunity;

new people may have no loyalty to past suppliers so they may be open to change, or

they may actively want to change. By you being aware of this opportunity you can tap

directly into this opportunity with a welcome message and an offer. Incumbent buyers

also evolve in their wants and desires from the products or services they buy. This can

be as straightforward as we are having a cost cutting review and need less expensive

products to we have won a big contract and will need to increase our intake through to

I personally have changed my attitude in life and now want more ethical or

environmental products


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Or even

I had been courting a buyer in a potentially large and lucrative account for over a year to

no avail; it seemed that he just didnt like me. I started to research and send him

clippings from the movers and shakers columns, announcements that told of people inhis field moving to new jobs and new employers, the market at the time was buoyant

and there was so much migration going on I was able to send him a couple each week.

After about four months I read an article that he himself had just moved. Like a flash I

got in touch with his replacement and won a small pilot contract. I also sent him a

Congratulations card..to which I received for the first time ever an invitation to bid!

Buyers also have access to an increasing wealth of information online and are taking a

much more flexible view of the ways and timescales in which they want to buy. Doing a

solid sales pitch to one person is no longer enough to secure new or existing business.

Interspersing your infrequent sales pitches with real help for a customer buying team

can work brilliantly though. You need to understand what are your buyers critical

priorities, and what else do they feel they need to know when making buying decisions.

What knock-on issues are they and their team considering? You also need to establish

connections across the team.everyone in the team counts, even the person who

seems to be low down the pecking order. By including these people in your Business

Information strategy you can influence the people who can influence the buying the

decision.

People dont want just to be sold to any more, they want to make right buying decisions.

Giving them valuable information that shows you understand their challenges and that

you have expertise that can help is vitally important.

Businesses evolve too, P&O Ferries ply the English Channel and there is nothing pacific

or oriental about that stretch of water. British Gas supplies electricity, Norwich Union is

no longer a Union and isnt confined to Norwich (Yes, they changed their name to Aviva,

and think how many sales people in design agencies, printers, advertising firms and

sign writers hit their targets on the back of that evolution [even Paul Whitehouses

agent!)


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Ray Murphy of Sales Researcher can be contacted at [email protected]

or visit their website at www.salesresearcher.com

A Account Research

Top Tips to help you to maximize sales profitability on an existing account

y Keep your name uppermost in their mind; makecontactatleastoncea month,not

alwaysabouttheproductbutotherareasofinterest

y Ask your contacts about referrals to other departments and sister companies.

Draw up a map of the relationships. Act on them.

y Foresee changes in their industry find one good website about the sector and

sign up for an industry newsletter speed read them.

Improving Your Sales Productivity

Is for Account research. There was a time when life was simpler and if you had a

customer, you had a customer for a long time; you might speak to the buyer once a

quarter and you might actually meet face to face once a year, but otherwise you could

just pick up the order every now and then and everything was fine.

Sadly things aint what they used to be! In to the 2010s the environment is ever

changing; your customers customers are making new demands, the government is

adding new legislation, your customers industries are developing daily and your

business is under constant threat from your competitors. You have to ensure that you

dont suffer from Red Queen Syndrome; if you stand still your customers will be moving

away and your competitors will move ahead. You have to keep moving and in the sales

business, knowledge is power.

Even if you are on a Preferred Supplier List, it is worth being aware that you are only

preferred and probably only one on the list; the other organizations on the list are not


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only your competitors but they are your most dangerous competitors; they, like you, are

already close to the client, dont let them get closer still! There are lots of examples of

companies investing many thousands of pounds to get through the tender process to

get on a PSL only to get virtually no actual sales from that list once they are on it.

In order to maximize your sales opportunities with clients and prospects alike you need

to keep talking to them so that your name is never slipping to the back of (or out of) their

mind. You probably cant justify (and neither can they) spending two days a week

wining and dining them at corporate hospitality events so in order to keep talking to

them you need to have something to say other than just Hi, hows it going? By really

keeping your finger on the business information pulse you will always have a useful

snippet of information to use as a hook on which to hang a reason for contacting

someone, even if the information you are providing isnt directly relevant to the product

or service you are selling.

There is a range of business information that you need to keep on top of to give you the

competitive edge;

People information; who does what, who is moving to where, whose star is on the rise

and whose is on the wane, who is getting media exposure

Technical information; which company has invented or launched a new product orprocess, what problems are rearing their ugly heads in an industry, what challenges

are being identified or overcome

Financial information; who is winning or losing big contracts, who is offering big

contracts, whose report and accounts are coming out and what are the predictions.

Legislative and legal information; what legislation is due for consideration or enactment

that will affect the sector, what legal judgments are being made that will effect activities

Networking information; what industry seminars or expos are happening, who is

speaking at them, what are they saying and how is that perceived in the market.

Competitor information; you need to keep an eye on the people who are out to steal

your bread and butter, so you need to keep an eye on which of your competitors are

Documents

Companies Can Live and Die by the Quality of Their Sales Force