To help you reach your sales goals
Archive for March, 2010
8 Tools and Materials for a Successful Sales Kit: Can You Name Them?
Mar 27th
8 Tools and Materials for a Successful Sales Kit: Can You Name Them?
By Mike Krause
If you were building your dream house would you start construction without a vision of the completed house? Would you hire a contractor who preferred to build on whim and felt a blueprint was unnecessary? What if he lacked the necessary tools for fulfilling the blueprint or worse, used inferior materials?
Would you expect any less for your business?
Begin with the End in Mind
Business owners are contractors. It doesn’t matter if you have one employee, fifteen, or five hundred. It makes no difference if you opened your doors yesterday, last year, or twenty years ago. Business owners are responsible for constructing an enterprise and that requires a vision, a plan and high quality tools and materials to make it reality.
Fortune 500 companies know this…it’s why they’re part of the Fortune 500.
But you’re thinking, “I don’t care about becoming a Fortune 500! I just want to be successful in my own niche!” Please take a deep breath because it’s time for the adult conversation. The fundamental tools and materials are all the same! Let’s take a look at your vision of success along with the basic checklist of tools and materials you need to get it.
What Success Isn’t
People go into business with a vision of success. This vision is different for every business owner (cue the music):
I want to be in charge of my own schedule.
I want my work to be my passion.
I want to make enough to lead a comfortable life.
I want to be big and powerful with piles of cash in the bank.
Guess what? According to the Small Business Administration 62 percent of businesses fail within five years (cue the record scratching sound). While business owners may have different visions for success all will agree that failure is definitely not part of it. No one starts a business thinking I want to be a statistic.
Tools and Materials
If you were building a house there are basic tools and materials you must have. I.e., a level, hammer, and string along with some nails and wood. You could certainly start with a subset of this list but at some point you will need all of them or construction halts. Moreover, if you skimp and invest in second-rate tools and materials you end up with a second-rate structure.
Whatever vision you have for your business you need successful sales to achieve it. Period. Successful, sustainable sales require a certain set tools and materials. Here is a successful sales kit:
1. A Unique selling proposition. What do you do that’s different? What is your true value in the eyes of your customer?
2. Know your goals. Are you setting realistic goals? Do you have a plan to reach them? Are they balanced with other aspects of your business?
3. Target market. Is your target market clearly defined? Can you explain why this is your target market? Does your target market define your value the same way you do? How are you communicating to your target market?
4. Approach letters. Do you have an approach letter (if not, why on earth not)? Are your letters resonating with the reader?
5. Messaging content and timing. What do you say in your voice-mail, website, marketing collateral, and emails? Do you know how to get prospects to return your call? Do you know the optimal times to call?
6. Sales process. Do you and your staff know all the steps in your process? Do you have a sales process (again, if not…why not)?
7. Appointment setting. It should take you seven days or less. Anything longer indicates a broken system. How long does it take to set yours?
8. Flow Chart. Can you draw a chart of your processes? Hint: It’s the only way you can be certain everyone (including you) can be consistent about it.
From a one-person consultant to a Fortune 500 company, every successful business has this sales kit. It’s not esoteric, extensive, or complicated. It is, however, absolutely necessary. So fulfill yours and please, we have enough junk out there so fill your kit with quality. Your success depends on it.
If you want more information on any of these tools or materials Sales Sense Solutions can answer your questions. Call 585-704-6453 for more information.
Mike Krause is the Chief Sales Architect and owner of Sales Sense Solutions where he helps you stay four steps ahead of the competition with stellar sales and high performance sales assessments, strategies and practical advice.
Score Success with a Balanced Business: Here’s Your Tool
Mar 22nd
Score Success with a Balanced Business: Here’s Your Tool
By Mike Krause
Have you ever made an adjustment to something that has resulted in causing new stress in unexpected places? This often happens in your body. If you hurt your knee you will compensate with other muscles for the duties the knee used to perform. Cars are another example. You get a tune-up and now the car runs smoother, more efficiently and a little faster. Except the tune-up means one of the belts has to work harder, can’t quite take the stress and eventually needs attention.
There is another environment where this phenomenon occurs regularly. Your business.
Let’s assume you’ve made a strategic plan based on strengths, weaknesses, threats and opportunities (if you haven’t, stop what you’re doing right now and read article on SWOT). As you execute your strategic plan you will have to recalibrate your internal systems.
Chances are your plan included a focus on sales. As a result your sales have been steadily growing. Congratulations! But now that you’re selling at a higher level what does that do to inventory? Do you have adequate staffing for customer service to maintain your reputation? Can your shipping and receiving absorb the extra work? Do you have a hiring system in place to minimize disruptions while you bring on much-needed staff? Do you need new technology to handle the larger volume?
Focusing on one aspect of your business and then stepping back to assess your system is called achieving a balanced score card. As a business owner it’s up to you to keep everything calibrated in order to support your vision and strategy. The Balanced Scorecard Institute developed a tool to help:
1. Take four pieces of paper and label them: customer, financial, internal business systems/processes, and learning and growth.
2. Under each title write this key question.
Customer–To achieve our vision how should we appear to our customers?
Financial–To succeed financially how should we appear to our stakeholders and investors?
Internal Systems/Processes–To satisfy our customers and shareholders what businesses processes must we excel at?
Learning and Growth–To achieve our vision how will we sustain our ability to change and improve?
3. Under the question write a list of these four words: objectives, measures, targets, and initiatives.
4. Fill out your plans, activities, goals, etc. under the appropriate category.
A healthy, balanced business should have a balanced scorecard. Categories and actions should be identified, articulated, and complementary throughout the scorecards. Gaps on paper signify gaps in your business and need attention.
Sounds like a lot of work, doesn’t it? It is, but the effort invested here will streamline your efforts in other areas and make your business run collectively more efficiently and successfully. If you want to grow, it’s a necessity. You have three options:
1. Do it yourself. Create the scorecard tool then schedule time to think and update it on a regular basis. Once/month, bi-monthly, twice/year: whatever works for you. Just make sure you do it. Having trouble managing your time or staying on task?
2. Create a Board of Directors. Acquire a small group of peers and mentors who you admire and make yourself accountable to their feedback. Or,
3. Hire a consultant. Consultants are hired for nearly everything these days–virtual CFO’s, administrative assistants, writing, etc. Consultants have a point of view you will never find inside your business–the external perspective. They are more affordable than a full-time employee because they are fee-only and part-time. You only pay them when you need them which makes their rate an extremely high ROI. A good one will ask you difficult questions and provide guidance to keep you on track. It’s not their job to make you feel good about your decisions. It’s their job to make sure you are being accountable to your vision and strategy in the capacity of the project you hired them to manage.
Good luck.
Mike Krause is the Chief Sales Architect and owner of Sales Sense Solutions where he helps business owners stay four steps ahead of the competition with stellar sales and high performance sales assessments, strategies and practical advice.
How to Handle a Referral: A Step-by-Step Guideline
Mar 12th
How to Handle a Referral: A Step-by-Step Guideline
According to a Rain Today survey of over 200 businesses that hire service providers, referrals from trusted sources were the most important factor in a hiring decision. Ironically, handling referrals correctly is an often overlooked portion of business etiquette.
Always Remember This
A referral is a vote of confidence. You have impressed someone (e.g. friend, colleague, client) enough with your services to the point where they feel compelled to recommend you to someone else. They are giving up their time to pass your name along in order to help you. This is an act of kindness and should always be thanked. Furthermore, the way you handle the referral will reflect on their reputation and yours.
Here is the 3-step process on how to handle referral communications and results:
1. Thank the person calling with the referral and ask, “How would you like to be involved in this process?”
2. Maintain open communications throughout the process.
3. Operate in the moment. This may sound a bit Zen-like but it simply means don’t wait too long to follow through with your actions.
A Referral Scenario: Act I
Your phone rings and it’s a familiar client.
Client: Hi, this is Jane from XYZ Company, how are you?
You: I’m great and you?
Client: Doing well. I have a referral for you. You’ve been a tremendous help so I was telling a colleague about you and they wanted me to give you their contact information.
You: Thank you Jane. I enjoyed working with your company and the highest compliment any client can give is a referral. I’ve also been passing your name around in the community. (Obviously, only say this if it’s true.) What’s their contact information?
Client: It’s Jim Great at 123 Main St., 123-4567. Here’s their email and you should know they’re in the medical industry.
You: Thank you. How did you leave it with Jim on how I would contact him?
Client: I said you’d call or email.
You: Perfect! I’ll call him right now. Let me ask you, how would you like to be involved in this process?
Client: Just send me an email and let me know how it works out.
You: You got it! Anything else I should know?
Client: Yes. He has 3 school age kids and is hard to reach after 3 p.m.
You: Thanks again, I’ll act on it (insert when you know you’ll follow through).
A Referral Scenario: Act II
Hang up and call or email Jim.
You: Hello, Jim Great? This is (your name) from (your business) and I was referred from Jane to speak with you regarding (your services).
Jim: Yes, I spoke with Jane and your name came up.
You: Yes, Jane is an excellent client and we had a great relationship. What do you need help with? But let me ask you, do you have a few free minutes to talk?
Jim: Well, we are having problems with (listen carefully)!
You: Would you like to set up a time to discuss your needs in more detail? I find it best to meet you at your location and learn about your business. How is next Tuesday at 2:00 p.m.?
Jim: Great. See you then.
Act III: The Grand Finale
So far so good? You’re not done yet. After hanging up with Jim you need to do the following:
• Send Jim an email confirming the face-to-face or phone meeting.
• Immediately call Jane back and update her. Thank her again, and ask her one more time how she’d like to be involved.
• Send Jane a thank you card. If it’s a big client consider including a small gift certificate for coffee or to a restaurant.
Follow this basic format for all your referrals and feel confident that your business and referral etiquette is as good as…gold? No. It’s as good as your improved bottom line and reputation which is even better.
Mike Krause is the Chief Sales Architect and owner of Sales Sense Solutions where he helps business owners stay four steps ahead of the competition with stellar sales and high performance sales assessments, strategies and practical advice.
Cash is King: 7 Ways to Play Your Hand
Mar 6th
Cash is King: 7 Ways to Play Your Hand
by Mike Krause
In his book Small Business Management, author Michael Ames points out that insufficient capital or cash flow is one of the top reasons for failure. But like all things in business, there is strategy to managing your cash. For a small to mid-sized business a smart cash strategy will often mean the difference between growth or collapse.
Poorly managed cash flow is an internal weakness. Here are seven things you can do to acknowledge that weakness, improve your cash flow, and ultimately put the king in your hand:
• Ask for money before you need the money. Let’s say you just made a $20,000 deposit. This is the time to be proactive about applying for a loan or credit. You can keep the funds as a cash reserve for the moment when you really need it and will need it now.
• Manage your payments. Ask your suppliers if there are discounts for early payments. If yes, take advantage of them. Conversely, make sure you are avoiding costly late payment fees. Organize your payment schedule around these discounts and penalties.
• Manage your inventory more responsibly so you can convert your products into cash.
• Ask your suppliers for longer payment options. If you’re a regular client of a supplier they may be willing to extend your payment terms. Ask for this option, and then continue to pay on time. The longer term will give you a cushion should you ever need it.
• Bill your clients regularly. Businesses can be so focused on securing new clients that they become negligent on billing the ones they have.
• Reward timely customers. Offer a small discount for early bird payments from your clients.
• Accept credit card payments. Yes, you will have to pay a small fee for the service but by offering payment through credit you simultaneously make it easier for your client to pay and you pass the burden of collections to the credit card company.
The Takeaway
Don’t neglect the necessity of cash flow and capital in your strategic growth plan. Simple monitoring and key changes will keep you prepared for the inevitable rough spots.
Mike Krause is the Chief Sales Architect and owner of Sales Sense Solutions where he helps you stay four steps ahead of the competition with stellar sales and high performance sales assessments and strategies.
