Thirty or so years ago the emergence of the micro processor and the disc operating system brought computing to small business and to ordinary people. I remember my first IBM-PC like it was yesterday. Computers and software applications have come a long way since then. I now have more computing power in my Blackberry than it took to send Neil Armstrong to the moon.
For three decades I made a career of selling computer systems and application software to small businesses. It was a great career.
Software is Good Business
The way I figure it, I sold well over one thousand systems in a thirty year run. The reason businesses gave me money was that I showed them how buying software from me would solve business problems for them. Buy software from me (the computer hardware came with it most of the time) and solve a business problem, gain efficiency and save money. Nice.
An Easy Sale...Every Time
In the early 80’s I sold a lot of systems because accounting software modules were integrated. It went down something like this: The scene is a business office. A handful of accountants were at their desks with columnar pads, adding machines, desk lamps, pocket protectors, pencil sharpeners and green shaded visors on their heads. Their job was doing the “books”. The process was labor intense and mistake prone (thus the pencils).
Me: “If you write checks using my software they will print on a computer printer.”
Her: “Huh…what about my typewriter? I just got a case of ribbons.”
Me: “And, the check will automatically post to the General Ledger.”
Her: “What? Get out. You are kidding. No way. Louise, come over here and see this. You won’t believe it. What will they think of next? How can we get this? When can we have it?”
And so I did my part to extinguish the use of typewriters, columnar pads, desk lamps, shaded visors, and pocket protectors and made a great living while doing so.
No Looking Back
Software revolutionized the accounting profession and a lot of others. There was some thought in 1999 that we would have to go back to the old manual systems because of the millennium and two digit dates, but we made it through that scare and haven't looked back since. Those of you that know me will remember that I stocked up on food, water, wood and ammo. I just wasn’t sure. I didn’t want to take the chance that the power grid or other essential systems would fail. Anyway, except for the ammo, everything got consumed eventually. It’s really hard to use up bullets and shells.
What Did We Miss?
You would think that after all of these years and all of the applications that were developed that the software revolution would slow down. After all, every possible software application has been created and deployed. There is nothing left to automate. Not true. Not even close to being true.
And Then Came the Clouds
A while ago we added the Internet to the mix (thanks Al) and a whole new world of software applications from way up there in the clouds arrived to keep solving problems for us and to continue to make us happier.
Buy Software - Save Money
For instance, I have a friend who has software that can monitor your UPS and Federal Express bill to find out when and how you were overcharged. He saves his customers about 5% on their bill every week. There is some real tangible value in that code.
Buy Software - Save Time (Which is Also Money)
Another associate provides software as a service that scans the Internet for information on topics of great interest to you, packages it up in concise e-mail format and delivers it to you at pre-determined intervals. This software does a better job of searching for relevant content than you can and, of course, then you don’t have to spend your time searching endlessly for haystack needles of information in the big old world wide web. That software delivers value.
Problem Fixer
What business problem is bothering you? Is there some process that just isn’t working right at your place? If so, I can say with certainty that there is some software out there that will solve your problem(s).
Software is Good For You
I know that we’re in a recession. I know that you aren’t in a spending mood, but consider my proposition. A strategic software purchase can make things better, shrink processes and deliver efficiencies. Now as much as ever, software can make your organization stronger and better equipped to beat back the effects of the current economic climate. Think it over.
Software is the Answer.
Monday, July 12, 2010
Monday, June 21, 2010
Closing The Revenue Gap
Consultants, particularly independent ones, face the same issues a start-up Entrepreneur has to deal with. They get work, they bill their client and at some point the engagement ends. They then have to hustle up another job. Sometimes it takes a while to get billable again. The gap in revenue is a scary and dangerous place to be.
Apply Pressure
I am against start-ups hiring salespeople too soon for a bunch of reasons already noted. The answer to keeping the revenue gap closed is for small business owners and consultants to continue prospecting for business at all times, including, and most importantly, during the billable periods.
Get Control
It takes discipline, great time management skills and a priority system to juggle your week, wear numerous hats and keep a sales pipeline full.
Be Faithful
My suggestion is to reserve some time to hunt for new business each week. Do it without fail and you will keep your income wheel turning. Specifically, make a commitment to do a number of business development activities each week, without fail.
Try Everything
Try writing a newsletter, writing a blog, sending out some mail, making some phone calls, attend relevant networking events, work a trade show, host a lunch and learn or even host a weekly Webinar. And, always speak to groups whenever possible.
Gap Closed
Once you get this system tuned up, you can make adjustments, depending on what is working for you. The most important thing is to spend some time each week on business development. If you faithfully continue prospecting, the next job will start when the last one ends.
Good Hunting!
Apply Pressure
I am against start-ups hiring salespeople too soon for a bunch of reasons already noted. The answer to keeping the revenue gap closed is for small business owners and consultants to continue prospecting for business at all times, including, and most importantly, during the billable periods.
Get Control
It takes discipline, great time management skills and a priority system to juggle your week, wear numerous hats and keep a sales pipeline full.
Be Faithful
My suggestion is to reserve some time to hunt for new business each week. Do it without fail and you will keep your income wheel turning. Specifically, make a commitment to do a number of business development activities each week, without fail.
Try Everything
Try writing a newsletter, writing a blog, sending out some mail, making some phone calls, attend relevant networking events, work a trade show, host a lunch and learn or even host a weekly Webinar. And, always speak to groups whenever possible.
Gap Closed
Once you get this system tuned up, you can make adjustments, depending on what is working for you. The most important thing is to spend some time each week on business development. If you faithfully continue prospecting, the next job will start when the last one ends.
Good Hunting!
Friday, June 4, 2010
Start-Ups: Don't Hire Salespeople
Salespeople are the heart and soul of business. No sales calls = no sales. It’s hard to imagine a business growing and thriving without a competent sales force. More salespeople, making more sales calls, landing more orders is a formula for success. That is unless you are an Entrepreneur getting a start-up business off the ground.
Wait
My advice is to wait until your company is off the ground and running before entertaining the idea of building a sales force. There are a handful of reasons to be careful beefing up your sales department.
They Don’t Understand
First of all, most businesses are founded on a great idea. The great business idea is typically a byproduct of the founder’s subject matter expertise. Most start-ups know something that others don’t. They solve problems and are then paid to deliver their products or services. Over the last few years, I have worked with dozens and dozens of new businesses and most of the founders, owners, entrepreneurs do not understand the ins and outs of employing salespeople. They shouldn’t hire salespeople because they don’t know what they are getting into.
Risk
The risk facing a company when hiring salespeople early in the life of the enterprise is great. First of all, like other employees, they want to be paid. Unlike other employees, there is no guarantee that a salesperson will deliver a return on investment. An investment in recruiting, hiring, and training, equipping and managing a salesperson is a one that can backfire on a start-up company. The setback in money, time and lost opportunity could be fatal.
Disruption
When a salesperson is hired the first thing an entrepreneur will find out (the hard way) is that salespeople are needy. They will make work for their bosses. That’s just how it is. So, instead of relieving some of the workload burden they become extra burden on their time and checkbook. Again, not only will the entrepreneur be answering questions, asking questions, helping with proposals and running sales meeting with their new salesperson, i.e. doing it all themselves anyway, but there is still no guarantee that he or she will sell their products or services anytime soon, if at all.
Message
Unless a salesperson is schooled in the subject matter being sold, it is unlikely that they will be able to correctly tell the story or the value proposition. They won’t likely be able to answer questions and could probable get some facts distorted. Again a start-up business doesn’t need problems like this.
Later Than Sooner
Make some sales, get some traction, get off the ground and then hire salespeople.
Wait
My advice is to wait until your company is off the ground and running before entertaining the idea of building a sales force. There are a handful of reasons to be careful beefing up your sales department.
They Don’t Understand
First of all, most businesses are founded on a great idea. The great business idea is typically a byproduct of the founder’s subject matter expertise. Most start-ups know something that others don’t. They solve problems and are then paid to deliver their products or services. Over the last few years, I have worked with dozens and dozens of new businesses and most of the founders, owners, entrepreneurs do not understand the ins and outs of employing salespeople. They shouldn’t hire salespeople because they don’t know what they are getting into.
Risk
The risk facing a company when hiring salespeople early in the life of the enterprise is great. First of all, like other employees, they want to be paid. Unlike other employees, there is no guarantee that a salesperson will deliver a return on investment. An investment in recruiting, hiring, and training, equipping and managing a salesperson is a one that can backfire on a start-up company. The setback in money, time and lost opportunity could be fatal.
Disruption
When a salesperson is hired the first thing an entrepreneur will find out (the hard way) is that salespeople are needy. They will make work for their bosses. That’s just how it is. So, instead of relieving some of the workload burden they become extra burden on their time and checkbook. Again, not only will the entrepreneur be answering questions, asking questions, helping with proposals and running sales meeting with their new salesperson, i.e. doing it all themselves anyway, but there is still no guarantee that he or she will sell their products or services anytime soon, if at all.
Message
Unless a salesperson is schooled in the subject matter being sold, it is unlikely that they will be able to correctly tell the story or the value proposition. They won’t likely be able to answer questions and could probable get some facts distorted. Again a start-up business doesn’t need problems like this.
Later Than Sooner
Make some sales, get some traction, get off the ground and then hire salespeople.
Wednesday, May 26, 2010
Home Grown Tomatoes
I took Friday off and planted my vegetable and flower garden.
Gardening Joy
There is something very special about taking a handful of seeds and watching them grow to become a robust crop of vegetable goodness that everyone enjoys and remembers. Guy Clark’s song “Homegrown Tomatoes” says it well. There is nothing as good as homegrown tomatoes. “There are only two things that money can’t buy…true love and homegrown tomatoes”. Yes, there is magic in a vegetable and flower garden.
Tradition
I am very grateful that my dad taught me how to grow a garden. I’m carrying on the tradition, but I am also passing it on to my children and grandchildren so that they can enjoy the experience and yummy fresh vegetable harvest. I’m hoping that they will continue the garden tradition with their children and grandchildren.
It's a Process
So, let’s see. You start with seeds, cultivate the ground, plant, fertilize, water, weed and watch the seeds grow into a plentiful harvest. If you do the right things at the right time your garden will be a success.
Just Like Sales
This story could easily be about selling. If you take a step back, you will see a lot of similarities between growing a garden and building a sales pipeline. If you follow a process, work hard and stay focused, you will be rewarded with a harvest of business.
Gardening Joy
There is something very special about taking a handful of seeds and watching them grow to become a robust crop of vegetable goodness that everyone enjoys and remembers. Guy Clark’s song “Homegrown Tomatoes” says it well. There is nothing as good as homegrown tomatoes. “There are only two things that money can’t buy…true love and homegrown tomatoes”. Yes, there is magic in a vegetable and flower garden.
Tradition
I am very grateful that my dad taught me how to grow a garden. I’m carrying on the tradition, but I am also passing it on to my children and grandchildren so that they can enjoy the experience and yummy fresh vegetable harvest. I’m hoping that they will continue the garden tradition with their children and grandchildren.
It's a Process
So, let’s see. You start with seeds, cultivate the ground, plant, fertilize, water, weed and watch the seeds grow into a plentiful harvest. If you do the right things at the right time your garden will be a success.
Just Like Sales
This story could easily be about selling. If you take a step back, you will see a lot of similarities between growing a garden and building a sales pipeline. If you follow a process, work hard and stay focused, you will be rewarded with a harvest of business.
Tuesday, May 11, 2010
Any Road
“If you don’t know where you’re going, any road will take you there” George Harrison.
I’ve gotten real tired of talk radio lately. I am even tried of music on the radio. It seems like they say or play the same old stuff over and over again. Garrison Keiller, where are you when I need you?
For my sanity, I started to dig out old CD’s from my cabinet. I have a stack of music that I haven’t heard in a while. Since I purchased this music, every CD represents something or someone I enjoyed hearing. I am delighted to have a cabinet full of happiness to help me on my way from stop to stop, now day-to-day.
Last week, I traveled with George Harrison’s “Brainwashed” in my car's CD player. The title of the first song was “Any Road”.
The message hit a nerve. The reason is simple. I continue to meet business people who really don’t have a handle on where they are going or how they are going to get there. The importance of a simple question that I ask, “When you arrive at your destination, where will you be?” was bolstered by George’s clever lyrics.
What bothers me is that too many people that I speak with don’t really have a workable game plan or even clear thoughts about what they really need to do, how they are going to do it and what the destination looks like. It’s sad.
If you really don’t know where you are going, please stop everything and get that question answered. When you do, you can get on a road that will take you there.
I’ve gotten real tired of talk radio lately. I am even tried of music on the radio. It seems like they say or play the same old stuff over and over again. Garrison Keiller, where are you when I need you?
For my sanity, I started to dig out old CD’s from my cabinet. I have a stack of music that I haven’t heard in a while. Since I purchased this music, every CD represents something or someone I enjoyed hearing. I am delighted to have a cabinet full of happiness to help me on my way from stop to stop, now day-to-day.
Last week, I traveled with George Harrison’s “Brainwashed” in my car's CD player. The title of the first song was “Any Road”.
The message hit a nerve. The reason is simple. I continue to meet business people who really don’t have a handle on where they are going or how they are going to get there. The importance of a simple question that I ask, “When you arrive at your destination, where will you be?” was bolstered by George’s clever lyrics.
What bothers me is that too many people that I speak with don’t really have a workable game plan or even clear thoughts about what they really need to do, how they are going to do it and what the destination looks like. It’s sad.
If you really don’t know where you are going, please stop everything and get that question answered. When you do, you can get on a road that will take you there.
Saturday, April 17, 2010
Your e-Mail Address
The Equalizer
Everyone that has a website has a home page. They have one home page, just one. General Motors has one home page, I have one home page, and every website has one homepage, just one. That fact creates a default level playing field. Now, what we do with the rest of our websites can tilt the scales one way or another, but we all start out equal with one home page each.
I like the dynamics. I can be working at a table at my favorite Internet cafe sipping coffee, gazing out the window wearing shorts, a sweatshirt and tennis shoes and still be in the game with anyone because of my website and Home Page. That is cool.
An Active Community
I work with a lot of Entrepreneurs. I also work with many well established operations looking to scale up sales. I speak at public meetings, and have had the pleasure of speaking at Ann Arbor Spark, TechTown SmartStart and Kauffman FastTrac classes. I get around. I meet a lot of great people with great ideas and the energy and means to reach their business goals. It’s a great place to be.
The Problem
This is a real business image killer. More often than not, when I gather business cards at meetings, the Entrepreneurs have e-mail accounts at gmail.com, yahoo.com, Comcast.net and other public services. When I see e-mail addresses other than those from their business websites, I think “small time”. If you are working on your corporate image but still receive e-mail at a public e-mail service, you are working against yourself.
Change it Immediately
If you have a website and home page, I guarantee that your vendor can set up e-mail using your website address. If you have a website, get an e-mail address up and operational as soon as possible. If you don’t have a URL and website, you can get one up and running in minutes for as little as $10 a month.
Don’t Give Back
Please, your website creates and even playing field, don’t give it back by using a public e-mail service for your business.
Everyone that has a website has a home page. They have one home page, just one. General Motors has one home page, I have one home page, and every website has one homepage, just one. That fact creates a default level playing field. Now, what we do with the rest of our websites can tilt the scales one way or another, but we all start out equal with one home page each.
I like the dynamics. I can be working at a table at my favorite Internet cafe sipping coffee, gazing out the window wearing shorts, a sweatshirt and tennis shoes and still be in the game with anyone because of my website and Home Page. That is cool.
An Active Community
I work with a lot of Entrepreneurs. I also work with many well established operations looking to scale up sales. I speak at public meetings, and have had the pleasure of speaking at Ann Arbor Spark, TechTown SmartStart and Kauffman FastTrac classes. I get around. I meet a lot of great people with great ideas and the energy and means to reach their business goals. It’s a great place to be.
The Problem
This is a real business image killer. More often than not, when I gather business cards at meetings, the Entrepreneurs have e-mail accounts at gmail.com, yahoo.com, Comcast.net and other public services. When I see e-mail addresses other than those from their business websites, I think “small time”. If you are working on your corporate image but still receive e-mail at a public e-mail service, you are working against yourself.
Change it Immediately
If you have a website and home page, I guarantee that your vendor can set up e-mail using your website address. If you have a website, get an e-mail address up and operational as soon as possible. If you don’t have a URL and website, you can get one up and running in minutes for as little as $10 a month.
Don’t Give Back
Please, your website creates and even playing field, don’t give it back by using a public e-mail service for your business.
Saturday, April 10, 2010
Sales Burgers
Somewhere in the mid-1980’s I was enlightened to learn about the consultative sales process. Someone gave me a Brian Tracy cassette tape and the message opened my eyes to something better. The beauty of consultative selling is that your prospect does the talking. You lead them along with probing questions and they will tell you what, why and when they are going to buy. This style is brilliant. I became a consultative salesperson at that moment and have never looked back.
The Way it Used to Be
I formally learned to sell based on an old fashion method of product demonstration, value building and a subsequent close. I learned this method in 1970 at a series of Dale Carnegie Sales Training classes. This method worked well when done right. The key to the success of the product demonstration system is to build a number of small cases for your product or service during your presentation to get your prospect saying yes. After a few yeses, you get to ask for the order. If they say no, overcome their objection(s) and start again. We refer to the key tool of this sales method as “Sales Burgers”.
Sales Burgers?
OK, a burger has three parts. A burger is two parts bread and one part meat. When making a sales presentation the three parts of the Sales Burger represent 1.) Feature 2.) Benefit 3.) Trial Close.
Here’s how it Works
Let’s assume you have cornered some innocent, unsuspecting victim who has no idea of what you are about to do to him (or her). For the sake of this posting let’s do a man-to-man event.
“Bob, I’m Dave from Acme Sales.”
Bob: “What? Who? Why?”
“If you have a moment I would like to talk to you about our new security device, a personal money protector, or PMP.”
Bob: “What?”
Get Ready, Get Set, Sell
Sales Burger # 1:
Feature: “Bob, have you ever carried a large sum of money on your body and worried that your pocket might be picked or you would lose your wallet and your money?”
Benefit: “That type of theft or loss can easily be stopped.”
Trial Close: “Wouldn’t that be a great relief?”
Bob: “Yes” (If he says, no, ask “why not” and bring out news articles and statistics to scare him)
Sales Burger # 2:
Feature:”Crooks are everywhere Bob.”
Benefit:”They can pick your wallet clean and you would never know until it was too late.”
Trial Close:”If I could show you and easy, inexpensive way to protect yourself from that kind of loss would you be interested in learning more?”
Bob: “Yes” (If he says no, you answer with “Why not” and let him defend his position. He’ll talk himself back into yes eventually)
Sales Burger # 3:
Feature:”Bob, our product is a money belt that you wear on your pants just like an ordinary belt. It has a zippered pocket on the inside that you put your valuables in.”
Benefit:”It would be next to impossible for a crook to know where your valuables are and even if they did, they would not be able to steal them.”
Trial Close:”Would a product like that put your mind at rest and give you peace of mind and security?”
Bob: “Yes”
The “For Real” Close
“OK Bob, what size waist do you have?”
Bob: “40 inches.”
“Would you prefer black, brown or one of each?”
Bob: “I would like one of each.”
“Will you pay with cash or credit?”
Bob “I’ll pay with cash.”
“Great I’ll write it up and from this moment forward your money and valuables will be a lot safer. You’ve made a great decision. Thanks. By the way, could I have the names of a few of your friends and associates that might be interested in speaking to me? Thanks again.”
My Challenge
Those sure were simpler times. The beauty of the “Sale Burger” process is that it really worked and still works. Have some fun, give it a try and find out for yourself how sales were made in the old days.
No Tricks Allowed
By the way, there is still no tricking or lying to people allowed in sales. The money belt or whatever your prospect buys from you represents real, tangible value and when they do buy they are better off. Remember, real salespeople solve problems and help others.
The Way it Used to Be
I formally learned to sell based on an old fashion method of product demonstration, value building and a subsequent close. I learned this method in 1970 at a series of Dale Carnegie Sales Training classes. This method worked well when done right. The key to the success of the product demonstration system is to build a number of small cases for your product or service during your presentation to get your prospect saying yes. After a few yeses, you get to ask for the order. If they say no, overcome their objection(s) and start again. We refer to the key tool of this sales method as “Sales Burgers”.
Sales Burgers?
OK, a burger has three parts. A burger is two parts bread and one part meat. When making a sales presentation the three parts of the Sales Burger represent 1.) Feature 2.) Benefit 3.) Trial Close.
Here’s how it Works
Let’s assume you have cornered some innocent, unsuspecting victim who has no idea of what you are about to do to him (or her). For the sake of this posting let’s do a man-to-man event.
“Bob, I’m Dave from Acme Sales.”
Bob: “What? Who? Why?”
“If you have a moment I would like to talk to you about our new security device, a personal money protector, or PMP.”
Bob: “What?”
Get Ready, Get Set, Sell
Sales Burger # 1:
Feature: “Bob, have you ever carried a large sum of money on your body and worried that your pocket might be picked or you would lose your wallet and your money?”
Benefit: “That type of theft or loss can easily be stopped.”
Trial Close: “Wouldn’t that be a great relief?”
Bob: “Yes” (If he says, no, ask “why not” and bring out news articles and statistics to scare him)
Sales Burger # 2:
Feature:”Crooks are everywhere Bob.”
Benefit:”They can pick your wallet clean and you would never know until it was too late.”
Trial Close:”If I could show you and easy, inexpensive way to protect yourself from that kind of loss would you be interested in learning more?”
Bob: “Yes” (If he says no, you answer with “Why not” and let him defend his position. He’ll talk himself back into yes eventually)
Sales Burger # 3:
Feature:”Bob, our product is a money belt that you wear on your pants just like an ordinary belt. It has a zippered pocket on the inside that you put your valuables in.”
Benefit:”It would be next to impossible for a crook to know where your valuables are and even if they did, they would not be able to steal them.”
Trial Close:”Would a product like that put your mind at rest and give you peace of mind and security?”
Bob: “Yes”
The “For Real” Close
“OK Bob, what size waist do you have?”
Bob: “40 inches.”
“Would you prefer black, brown or one of each?”
Bob: “I would like one of each.”
“Will you pay with cash or credit?”
Bob “I’ll pay with cash.”
“Great I’ll write it up and from this moment forward your money and valuables will be a lot safer. You’ve made a great decision. Thanks. By the way, could I have the names of a few of your friends and associates that might be interested in speaking to me? Thanks again.”
My Challenge
Those sure were simpler times. The beauty of the “Sale Burger” process is that it really worked and still works. Have some fun, give it a try and find out for yourself how sales were made in the old days.
No Tricks Allowed
By the way, there is still no tricking or lying to people allowed in sales. The money belt or whatever your prospect buys from you represents real, tangible value and when they do buy they are better off. Remember, real salespeople solve problems and help others.
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