Where Is Your Business Headed?

Depending on whose statistics you believe, 50-75% of all new businesses fail in the first 2 to 3 years. So, if your business is still in its infancy, and your results are lagging, then you should be concerned and prepared to take immediate action to turn things around.

If you look closely at root cause, there are three fundamental reasons for most of these new business failures:

1. Limited resources - i.e. time, people and capital. In a recent focus group we conducted the #1 concern expressed by business owners was time management; having enough time to do all of the important work that needed to be done on a daily basis.
   
2. Focus + planning. Most new businesses try to do too much in the early stages and as a result, stretch their limited resources too thin.
3. No sales and marketing system in place to grow the business. This impacts the two biggest revenue drivers - referrals from marketing and new sales.

Don't let your business become just another statistic; take the appropriate steps necessary to put your business on the right track.

Here are some recommended corrective actions to consider, if your business is struggling or at serious risk of failure:

1. Get help now. Hire a business coach or turnaround expert to help you identify the areas where improvement is needed, and develop the appropriate recovery plans.
2. Survey your customers. Find out why your customers are not buying, or not buying from you. Fix the things that are fixable to improve results.
   
3. Engage outsource partners to help balance priorities, improve execution and free up your calendar to focus on critical turnaround projects.
4. Put more emphasis and budget dollars into marketing your business. Offer new discounts, special incentives or promotional programs to help drive demand.
   
5. Focus on results vs. activities. Set aggressive short-term goals for leads, sales, new customers and revenue growth.
   

Audit the findings and results from the above efforts on a weekly basis, and make course corrections or changes to the recovery plans in real-time, so you don't lose momentum. Above all, stay focused and positive about the future of your business.

Remember, your business did not get to this point overnight. But with hard work, dedication and commitment you can turn things around. Best of luck to your future success!


COPYRIGHT © 2010 John Carroll

Dear New Business Owner: Welcome To Sales!

It's a very exciting time. As a new business owner, you have spent the past several months preparing to launch your new company. You've written your business plan, consulted with an attorney, accountant, banker, etc., obtained your LLC, had your logo, business cards and brochure designed and printed, and your web site is ready to go live.

Now it's time for the fun to begin ... it's time to announce your arrival, and go sell something. So, who is responsible for sales in your bright shining new business? Oh ... that's probably you, isn't it? With all of your hard work and preparation up to this point, how much time have you devoted to sales training to help prepare you to successfully sell your product or service?

The small business owners I speak with devote little or no time to sales training, and most do not have a sales background. They know a great deal about the inter-workings of the business and their product or service, but do not know how to translate all of that knowledge into a selling proposition that is of value to the prospect, and motivates them to buy.

The #1 reason new businesses fail within the first 2-3 years is lack of sales. Successful selling is hard work and requires preparation, planning, in-depth training and experience. Unfortunately, many new business owners find out too late that they are ill-prepared for their new role of salesperson.

So, what can you do to be better prepared to take on the sales role for your company? First, to be successful in sales, you should complete skills training in all of the following key areas; sales planning, cold calling, effective listening, presentation skills, sales negotiation, and closing skills. Check online to find the skills and training programs to fit your particular business and budget.

Next, here's my recommended readings list (in order), to help you learn more about the various aspects of successful selling from the masters:

1. The Art of War by Sun Tzu.
2. How To Win Friends and Influence People by Dale Carnegie.
3. The Greatest Salesman in the World by Og Mandino.
4. The Psychology of Selling by Brian Tracy.
5. Secrets of Closing the Sale by Zig Ziglar.
6. The Complete Idiot's Guide to Cold Calling by Keith Rosen.
7. Selling to the Very Important Top Officer by Anthony Parinello.
8. Swim With the Sharks Without Being Eaten Alive by Harvey Mackay.

Don't just read these sales classics, take copious notes to help you develop a sales "game plan" for your new business.

Third, attend a formal sales training program. Even if you have a sales background, it will help you be better prepared to sell your product or service effectively. Here is a short list of several of the top sales training programs:

• Strategic Selling by Miller Heiman
• Solution Selling by Sales Performance International
• Sandler Selling System by Sandler Sales Institute
• Power Base Selling by Holden International
• SPIN Selling by Huthwaite

Put what you learn into practice, and continue to build on the training experience in your daily prospecting and selling activities.

And finally, hire a business coach who has extensive sales and marketing expertise to help you build a comprehensive sales and marketing system for your new business. By doing so, you will be far ahead of most of your small business competitors, and better positioned to achieve success when you launch your new business venture. Good luck and good selling!


COPYRIGHT © 2010 John Carroll

Improve Results in a Recovery-Based Economy

The economic indicators during the past couple of weeks have given us eternal optimist's a glimmer of hope that the recession has finally run its course, and the worst is now behind us.

Although we should continue to proceed with caution until all signs clearly point to the north, there are some things you can do and should be doing now to improve your business results in the recovery-based economy that is ahead of us.

Take a critical look back. The past 18 months have been tough for virtually all business in every industry segment. So, try to get a clear fix on what got you to this point, and why. What could you have done different or better to improve your performance during the recessionary period? Use the data you compile as an integral part of your recovery planning, and as a vital learning tool for the future.

Have a Prosperity Plan A-Z. During the latest recession, most businesses probably had a Plan A and a Plan B at best. What recent history has taught us is that we need to go well beyond this to cover the contingencies that arise in a shortfall economy. Also, make sure you have the cash reserves to continue to invest in marketing and other key areas of the business that are critical to your evolving growth plans.

Balance short-term and long-term goals. Until your business begins to experience double-digit growth, your horizon planning needs to be fixed on the next 30-60-90 days. Don't get too far out in front of your headlights with expenditures, staff additions, or long-term investments in the early stages. Make up a daily list of your top three priorities, and complete them first before getting involved in other projects, or distractions that could derail your progress.

Reward your customers and employees. Your customers and your employees have stayed with you during the good times and the bad. Let them know how important they are to you and how important they are to the future success of the business. Visit your top customers and thank them in person with a special gift. Do the same thing for your employees. You will be building trusted relationships and friendships for life by expressing your gratitude in this manner.

Grow the "old fashioned" way. Get back to the basics and start the transformation to double-digit growth one order, and one new customer at a time. This is still the least painful and most often, the quickest path to prosperity in a recovery-based economy. Be patient, things are not going to turn around overnight, it's going to take some time. Remember the tortoise and the hare!

Stay ahead of the pack. While you're building your prosperity plans, and making the changes needed to improve your business results, don't overlook the competition. They are smart people too, and are hard at work to find creative ways to acquire new customers, add market share and "capture the flag". Don't let them win! Stay ahead of the competition by being first to market with any new ground breaking product announcements, special incentive programs, etc. This is a great time to innovate.

Finally, stay positive about the future outlook for your business. You have survived the worst recession in decades. Learn from it, and then put the past 18 months behind you. It's now time for you to capitalize on the next growth curve in the recovery-based economy ahead. Best of luck for your continued success!


COPYRIGHT © 2010 John Carroll