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

Keys to Building High-Performing Sales Teams

Globalization, mergers, acquisitions, downsizing and bankruptcies have collectively turned our economy and traditional business models upside down. However, despite the churn, despite all of the complexities and changes that we have seen to our business ecosystem, there still exists one simple, basic business truth; "nothing happens until somebody sells something".

The sales organization is the most important resource for any business, and your sales people are still the vital life-line to the customer. For any company that wants to achieve accelerated business growth and profits, building a high-performing sales team is absolutely crucial to that success.

In my opinion, there are several keys to building high-performing teams, whether in sales or any other functional area of the business.

• Develop a clear, concise mission statement for the sales organization, and evangelize it.
• Raise the bar on expectations, but make sure the goals are realistic, specific and measurable.
• Empower your team and drive accountability closer to the customer; focus on outcomes and results versus activities and tasks.
• Follow the "golden rule" principles when dealing with people and performance; the carrot works better than the stick.
• Remain open to new ideas; foster a culture that encourages innovation, risk-taking, trust, and respect.
• Link compensation, recognition and rewards programs directly to the business goals; celebrate wins, both large and small.
  
• Communicate (more is better) and stay engaged with the customer and your team; don't be a "drive by" manager.
  
• Stay focused, and keep your sales people focused by minimizing "white noise" and other distractions.

"If you don't know where you are going, any road will get you there", and this is particularly true in a sales environment. So, be clear about the organization's mission, your expectations and keep your sales people involved in all aspects of the sales and business planning to ensure clarity and "buy-in" at all levels.

If your goal is to become a leader within your industry, and in the eyes of your customers, then recognize that it is about more than just making the numbers. It's also about building the competencies and skills of your sales people so they can consistently deliver value to the customer. Make sure your sales people understand this, too, and reinforce the commitment to their professional growth through coaching, mentoring and development.

Finally, "Don't Sweat the Small Stuff". Get comfortable with the 10% that does not go as well as planned. It will make the 90% that does go well that much more enjoyable for everyone.


COPYRIGHT © 2010 John Carroll

Growing Your Business With Partners

Building strong alliances and partnerships with both industry and local partners should be a high priority for any business that wants to rapidly expand its customer base, its products and services portfolio, and dramatically improve sales and profits. There are numerous benefits to selling with and through partners. Here are some of the more significant benefits:

• Receive generous commissions on products and services sales
• Gain access to leading products, services and business building tools
• Receive training and support from branded products and services companies
• Obtain free sales and marketing tools to help you identify new revenue sources
• Strengthen your brand through business relationships with high profile partners
• Expand your market reach without major investments in advertising and marketing
• Extend your value proposition by offering a broader array of products and services

For small business owners, identifying potential partners and cultivating those key relationships should be an integral part of your ongoing networking and business development activities. Formalize these discussions through one-on-one meetings with local business owners who have similar goals, and are open to partnering.

Another great way to start to identify potential partners that are a good match for your particular business situation is to evaluate your current customer-supplier relationships. Who are you doing business with today, and who is doing business with you? See if any synergy exists, and if so, start a dialogue.

Strategic partnerships, if properly developed, represent an indirect sales channel for your business, and provide you with access to potentially lucrative new markets, emerging products and services, and future profits. Listed below are some of the most common partnership designations to help you determine the "best fit" for your business.

• Affiliate. Most common form of partnership within the online business community (i.e. click through sales). The majority of affiliate partnerships require a formal agreement, and pay generous commissions up to 40%+.
  
• Referral. Many referral partnerships are informal or local "hand shake" agreements. One-time cash bonuses or commissions are paid on new sales at a lower rate that an affiliate partnership, and sales tend to be sporadic or event driven.
  
• Reseller. A reseller or VAR relationship is typical within the technology, software and services areas. Reseller agreements can be multi-tiered and offer commission rates up to 45%+ depending on the revenue commitment level.
  
• Joint Venture. JVs are generally complex "one-off" business relationships that enable two or more parties to share markets, intellectual property, assets, domain knowledge and profits, depending on the terms of the agreement.
• Affinity. Affinity partnerships are typically informal, local business relationships tied to a specific program or event. Potential affinity partners can include the local Chamber of Commerce, business or trade associations, clubs, networking groups, etc.
  

The goal of partnering should be to forge "win-win" business relationships that benefit both parties equally as a result of the agreement. For any small business, particularly one just starting up, it's important to strike a balance between the diverse partnership opportunities available to you, and your direct selling activities. Effective partnerships will enable you to profitably grow your business, while offering more options and value to customers.


COPYRIGHT © 2010 John Carroll

Make Marketing Your Business a Top Priority

Where does improving the results from your advertising, sales and marketing rank on your company's "bucket list"? If it is not one of your top priorities for 2009 and beyond, then you are putting the business at risk!

The first words I hear from business owners these days are "I don't have any money to invest in marketing the business right now". And my standard response has become ... well, should we start talking about an exit strategy then? The bottom-line is this, if you are not investing in advertising, sales and marketing to grow your business, the business will not be successful.

If you are one of those business owners who is peering out the window hoping Jack will come sliding down the bean stalk with those magic beans to turn everything around for you, well guess what ... it's over. Just turn out the lights, lock the door and put the For Sale sign in the window, because Jack's not coming! Or, you could try another approach, and chart a new direction for the business that could lead to future success and profits.

In Sales 101 you learn to "change the ground rules" when you are in a loss position. The same holds true for the business as a whole. Jack Welch was a master at changing things up when he was Chairman and CEO of General Electric. Mr. Welch and his leadership team constantly sought out ways to improve the operational performance of GE's varied business units. Often times making major organizational changes when GE's performance was at a high point, in order to continue to produce record sales and profits each year.

Eric Lipar, president of LGI Homes in Houston is another great example of how to successfully market your business. LGI Homes is one of the few home builders in the U.S. that has grown its sales and revenues every year since 2002, despite the economy's fluctuations. When the home building industry started taking a nose dive in 2007, Mr. Lipar and his team charted a new course for the company, and doubled their marketing budget in order to stay ahead of the competition. The result ... record home sales the past two years, despite the worst economy in decades!

If your business is struggling to make a 2nd half turnaround in this economy, here are some ideas you should consider to help get things headed in the right direction:

• Host a brainstorming session. Get your team together with some outside experts to come up with creative ideas and an action plan to "jump start" the business.
• Revisit your books. Take a look back at your past successes and failures. Find a way to build on what has worked in the past, and try to limit the missteps.
• Toss out those activities, ad campaigns, promotions, etc. that are broken or have exceeded their "shelf life". Focus your time, energy and resources on the new and improved.
• Experiment on all fronts - change up your headlines, ads and marketing messages to see what sticks and what doesn't with your customers.
• Make marketing the business your top (and only) priority for the next 90 days, and see what changes occur.
• Measure and track the results and shift resources and budget dollars into the areas that deliver the greatest return to the business.
  

The next time you consider cutting your advertising, sales and marketing budget when things get tough, stop yourself, and do the opposite. Put more emphasis (and dollars) into marketing the business, and make it your top priority. It will help reinvigorate your team, and keep the business on the fast track to future growth and success.


COPYRIGHT © 2010 John Carroll

Become a Leader in Your Market Niche - Part 2

In "Become a Leader in Your Market Niche - Part 1", I covered some of the basics of how to get started in positioning your company as a leader in your industry. Now it's time to fill in the blanks. At this point, you have completed a competitive analysis, a customer assessment, compiled your list of JVs and partners, and received expert advice on how to integrate social media marketing into your overall business plans. So, what's next?

Identify your leadership target(s). What do you want to be known for, or a leader in? And what are your recognized strengths that can be leveraged as a competitive advantage? Are you perceived as an innovator or technology leader? Do you offer superior products or services? Is your company recognized for quality or operational excellence - i.e. Six Sigma, ISO 9002? Do customers rank your company's service and support ahead of the competition? Does your company receive high praise from its employees as a great place to work, or from the community at-large for its charitable donations and volunteer work? Select your leadership target(s) carefully, and make sure they are in alignment with how the market perceives your business today. Note: you can be a leader in more than one area, but make sure you don't spread your resources too thin trying to get there.

Rewrite your USP. Now it's time to start to put some "meat on the bones". After you have determined your leadership target, your Unique Selling Proposition(USP) needs to be rewritten to reflect the changes. Your new USP should communicate the competitive advantages that distinguish your business from the competition and helps your company to stand out in a crowded marketplace as a category leader. Make sure to test and retest your new USP with employees, customers, partners, and trusted advisers so you get it right. Over time, your revised USP should become part of the DNA of your business, and be reflected in your entire PR, advertising, marketing and selling efforts. It's all about packaging why your business is different, unique to the outside world in a manner that will motivate customers to buy from you as the perceived leader in your market niche.

Update your marketing. Once your revised USP is in place, it's time to update your web site, brochures, and all other marketing collateral to reflect the company's new focus and marketing messages. All components of your company's marketing including web site, advertising, press releases, brochures, presentations, training materials, etc. should highlight those key messages you want to build upon that distinguish your business as an industry leader. Get lots of help in this area from a branding and creative services expert to ensure that the updated "look and feel" and message content is consistent throughout, and gets effectively communicated to the outside world through the various media you determine are appropriate for your business. Your ability to market your business differently than the competition is one of the keys to elevating your brand and raising the profile of your business as a market leader.

Network and be visible. Network, network, network. Don't just show up at networking events, but take an active role in the group leadership, committees and community outreach programs. I recommend that small business owners become active members in 2 or 3 networking groups, in addition to their local Chamber of Commerce. Seek out opportunities to chair key committees, attend ribbon cutting ceremonies, present at trade shows and affinity group functions - i.e. Rotary Club, Lion's Club or host Lunch & Learn and After Hours events to further increase your company's visibility as a leader in the local business community. Being recognized as an industry spokesperson or "thought leader" is another great way to build your personal brand, and enhance the perception of your company as a market leader.

Volunteer and be charitable. Be generous with your time, talents and resources. Find ways to help others in your community and around the world that are less fortunate than you, and are in need of your help. Don't ask for anything in return, just do it, and get everybody involved. Giving of yourself is reward in itself, and a true reflection of your character and leadership qualities.

Being good at something is within every company's reach, but being a market leader requires extra effort, dedication, resilience and commitment. It also requires the help and guidance of others, because none of us can do it alone. So, if you have made a commitment to become a leader in your market niche, seek out those "success-driven" employees, customers, partners and trusted advisers who can help you get there, and enlist their support. You'll be able to reach your goals faster, and enjoy the journey more.


COPYRIGHT © 2010 John Carroll