How much does it cost?

My wife sells golf outings for a 36-hole public golf facility. She has many satisfied customers and needs to find new customers to be successful.

It's not uncommon for her to receive a phone call from a prospect who says: "How much does an outing cost?" This is often the moment where the sales process can get derailed.

We are trained to answer questions when asked. There are times when it is better to start asking questions.

When you develop a sales process for your business you have to believe you are in control when you are speaking with a prospect. If you develop a process and are disciplined to follow it you will begin to see dramatic changes.

Let's go back to the "outing cost." Instead of giving an amount, the prospect was asked questions and this information was gathered:

• The prospect has never hosted a golf outing, thus had no perspective of value.
• The person making the call was calling on behalf of their boss (the decision maker) and knew few details of what the boss wanted.  
• The person making the call said that they were instructed to call five golf courses and get the cost.

Substitute the business you are in and you probably recognize the drill. I'm not sure what the odds are of closing this sale when it starts this way, but there's a good chance you will not hear from them again.

Step one in building a sales system: Believe that you can be in control of process. Don't give away cost information without determining if this is a legitimate prospect. Sales is never easy. Handing control to the prospect makes it much harder.

Why does the sales process break down?

If you look for a simple answer to this question you won't find one. Every business is different, and every potential sale is different. Here's a checklist to review each time a prospective sale slips away:

• Who spoke the most during your time with the prospect...you or the prospect?
• Did you establish credibility by asking questions first and gathering information? 
• Were you speaking with the person who can make the decision? 
• Did your prospect have sufficient funds to support the investment in your business? 
• Did your prospect specifically state the reason(s) why they need to have your service now?  

You may not be able to answer these questions because you don't know the answers. You may have answered "no" to some of the questions. "No's" and "I don't knows" serve as a starting point to resurrect your sales process to close more business.

During the past few decades we have seen a major shift in the sales process. The old days were filled with product peddlers, some coming to your front door or calling during dinner. The shift has occurred to a more consultative approach. The company with the best sales process uses a disciplined approach not used by the product peddler. The new approach focuses on qualifying the prospect, and offering solutions only when true "pain" has been uncovered.

The sales process

Where your marketing ends...your sales process begins.

The best definition of marketing that I have heard is "the manner in which you touch prospects prior to purchasing your product or service." Sales process begins when you get face to face with your prospect, or when they go to your website with the intent to purchase.

Let's discuss the face to face scenario. Sitting in front of a prospect does not mean that you have a new customer. Many things need to come together in order for this relationship to progress. What will you do to establish credibility with the prospect?

You can ask questions. You can listen. You can probe for information to make certain that the prospect is qualified to make an investment in you. This first phase has you asking questions, not stating product features and why they should buy. If you sell the brand new 7-series BMW and the person you are speaking with has a credit score of 300 you are wasting your time. You will waste your time when you are tempted to talk too much.

The first step in the sales process is establishing credibility with the buyer. Asking questions and qualifying the prospect addresses your credibility and whether you should dedicate the time. Here's an easier way to put it. Ask them, "why are we talking?" You take control of the discussion while letting them speak. Soon your prospect will let you know if this discussion should go further.

We need more customers!

This mantra is heard from business owners everywhere. Before offering solutions, how about getting answers to these questions...

• How many do you need?
• Why do your current customers buy from you?
• Do you have a "perfect customer" profile?
• Are your current customers a perfect fit for you?
• How would you describe the way you find/attract customers?

Whether it is written on a cocktail napkin or a slab of stone you need to have a sales process. Wing-it is an option, but not a good one. During the next few weeks we will cover the steps that will help you set up a sales process.

Working "on" your business

The focus group example illustrates the value of working "on" your business, not just in it.

If your business expertise is stringing tennis rackets you will eventually get sick of doing that 24/7, especially if your original business plan had you inventing a new synthetic string or targeting China as a viable market. It is easy to get consumed with the day-to-day needs of your customers and forget about the big picture aspirations.

Find an expert or experts. You may need a business coach, marketing expert, CPA or lawyer.

You may not be able to do it alone. Whatever you choose, find time on a consistent basis to step back and take the pulse of your business.

Track your results

There is great excitement in your business when you begin chipping away at the actionable item list that you created from your focus group notes. The actionable item list included ideas that could be implemented immediately and had the potential to have a great impact on your business.

You must track your results.

Let's go back to the restaurant serving breakfast that opened at 8A. Their focus group pointed out that they were losing business with everyone who likes to eat breakfast between 6A and 8A. The restaurant changes hours and now opens at 6A. This increases payroll and utility costs. They must begin tracking their sales during this new two hour window to determine if this was a smart business move. Are they seeing new customers? Does the average sale increase with people that come in earlier? Tracking results is overlooked more often than you would expect.

In my radio sales career I would cold call prospective accounts and often hear the objection "advertising doesn't work." How's that for a profound statement? With further probing I would often find that they did not have any process in place to measure the effectiveness of the advertising they invested in.

Tracking results is necessary in planning your future. It takes discipline, but it is worthwhile. Don't ever get to the point where you say..."I'm not sure if this change we made to our business is working or not." No one will be able to help you when you are in that frame of mind.

Information Overload?

This should not be your reaction after conducting a focus group. Celebrate the fact that you have a quantity of ideas to sort into categories.

The first category should be Actionable Items. The reason you conducted this session was to learn something about your business and take action. When a focus group tells you that you have lost customers because your restaurant that serves breakfast opens at 8A and those questioned want to eat earlier you can adjust the hours to gain more customers. Actionable items tend to jump off the page when you review your focus group notes. Set priorities and get the needed help to implement them.

The next category should be Great Idea...But. This category is for the ideas that make sense, but need one more element to make them actionable. One element could be budget. It may be personnel, or possibly technology. Whatever the element, it means that you will need to address this step before the idea can be used. A personal injury law firm identifies the need to brand themselves with local motorcycle clubs. In order to do so they will need to budget for memberships and event sponsorships in order to maximize the promotional potential.

The last category is for items deemed as Outrageous. This category should not be called Throw Away. Today's outrageous idea may plant a seed for an improvement to your business tomorrow. Keep all ideas on file.

Recording the Results

The objective of a focus group is to record the answers by the participants. One person writes the answers on an easel. Another can use a laptop as a backup to make certain nothing was missed.

One reply out of 300 or so that were recorded in the focus group can be a game changer for the business owner. Thus, attention to detail is critical.

I have seen some of the best answers occur when one participant takes information shared by another and is able to build on it. Once the momentum gets going you enter into the "free wheeling phase". Recording the information at this stage becomes a challenge. Participants are given pads to write on when they have a great idea and wait for their time to be heard and recorded.

Once the results are recorded, the fun begins.

Focus Groups

The entrepreneur must be disciplined to take time on a consistent basis to work "on" their business, not just "in" it. Michael Gerber discusses this at length in his book, The E-Myth Revisited.

An example of working "on" your business is to conduct a focus group. Focus groups can involve speaking to customers, prospective customers or business peers regarding the performance of your business. A focus group allows you to step back and look at the business from a perspective you don't see when you are in the trenches day to day.

Ask a business owner what their problems are and you will usually get a list. The most effective business owners rely on focus groups to help uncover information they could not gain on their own.

A focus group can consist of 6-12 people who are asked questions pertaining to specific problems identified by the business owner. The goal is to obtain a quantity of ideas that can be recorded and reviewed afterward. Focus groups must be facilitated by a professional who will stay on task with the session agenda and complete the session in a timely manner.

Remarkable Person: Don Beveridge

Does that name ring a bell? Probably not.

Don Beveridge is considered America's Most Outstanding Business Speaker. I had the pleasure of seeing his presentation years ago. He is memorable because he dropped this nugget on all who were in the audience:

"Your business cannot maintain a long term advantage on price and product alone."

He followed that up by asking us if we had ever eaten Fillet Mignon when a Big Mac was available at a lower price. That started the wheels turning in my head. His point was starting to make sense.

In your business is it important to have the lowest price? If you are trying to make a profit it can be destructive to your business. What does the lowest price typically equate to? Poor service, not delivering on time, screwing up the order. You get what you pay for.

Don Beveridge completed his presentation emphasizing that you must offer the customer a unique experience that can't be found elsewhere. One that is not price or product sensitive. Once price is the sole buying criteria, you have gone into the commodity market whether you meant to or not.

Bring on the value...and you won't need to lower the price.

Core Values

We've all heard the stories about Enron and its fall from grace. Failure of core values brought them and others like it down. Having a set of positive values that are honored daily will lead your business to success.

The most common core values that I found when doing some research were the following:

1. Safety
2. Quality
3. Integrity
4. Diversity
5. Innovation
6. Sustainability

All are great words and imply something that sounds positive. I'm willing to bet that my definition of integrity is different than yours. What are the values you want to project in your business?

When you settle in on your core values find ways to tell a story about why they should be appreciated by your employees, customers and vendors. Without stated core values that are re-enforced by the way your business operates you will be at the mercy of others defining them for you.

Is your marketing plan a living breathing document?

How important is following a marketing plan in your business? If you have one are you reviewing it on a periodic basis to see if you are on course...or drifting away from your strategic plan?

A marketing plan should be perceived as your friend. It is your map, or should I say GPS. When you run a small business there may be a long list of things you think of everyday that are more important than your marketing plan. Capital, technology, innovation, competition, labor to name a few.

Schedule time to review your marketing plan. Most business owners I know find that their business struggles when they don't have a formal marketing plan, or haven't thought about it for an extended period of time. A marketing plan is a living breathing document, which means you have the right to make adjustments and tweak strategies. Your perfect customer 3 months ago may be different today.

When careful thought is put into your marketing plan, and it is reviewed quarterly or semi-annually you have the greatest chance of seeing growth in your business.

July 14th Connecticut Re-Employment Group Meeting

Please be prepared to share your 3-5 minute story at this meeting.

I want to thank Mary Anne O’Neill for asking me to share my job search story in this meeting. I will share my story and hand out a document reiterating everything that I tell you. This document will include information about ways you can help me in my search.

Use the format that will be most effective for you when you speak.

Telling stories is not what a job seeker is typically asked to do, especially in a re-employment group setting. Telling stories means having to look inward and search for meaningful words that will impact your audience. Telling stories initially takes you into the “uncomfortable” zone. I encourage all to overcome this discomfort.

CREG is not trying to win the award for most people in attendance at a re-employment group meeting. Our criterion is different.

- CREG wants participants who get up in the morning and want to make a difference in someone else’s day.
- CREG participants truly believe they are unique and have highly marketable skills.
- CREG wants participants who understand that telling stories in front of a group is akin to answering questions and being prepared in an interview.
- CREG wants participants who are willing to make the commitment to spend time one on one with other participants to build relationships.

Please answer this rhetorical question: What are you doing today to be remarkable? CREG promotes a spirit of attracting remarkable people. The first step in being remarkable is believing that you are remarkable. Your stories will take you there.

Thank you for your support. As this format thrives you will be amazed at how enjoyable and productive the meetings will be.

Brevity and Urgency

I was listening to Colin Cowherd this morning on ESPN Radio and he made an observation that should resonate with storytellers.

Wednesday's US Women's Soccer game versus Sweden played at 2:45P had a larger TV audience than Wednesday evening's game between the Yankees and Indians. The most important team in baseball with Hall of Famer Derek Jeter chasing 3,000 hits had fewer viewers than a women's daytime soccer game.

Cowherd made the point that brevity and urgency has much more appeal now than ever. The soccer game was played in one hour and forty five minutes versus the three hour plus drag that is Major League Baseball. Reminder, daytime TV audience is dramatically smaller than primetime.

For those telling stories, brevity and urgency will help you engage with your audience. Just ask the US Soccer team!

The Risk/Reward of Initiative

Would you volunteer to speak in front of an audience to tell them who you are?

Would you post a discussion in a LinkedIn group even if you weren’t asked to do so?

Would you offer to run a meeting if the leader of the group was unavailable?

Would you volunteer to participate in raising money or forming teams for your favorite charity?

You will answer these questions by first assessing the risk and reward of the situation. Does focusing on the risk win out a majority of the time? Whether we call it leading, initiating or volunteering there is great opportunity when willing to take the risk.

Risk involves the potential for failure. Risk also offers the potential to learn something about you that you never knew. Saying yes to taking initiative allows you to give something to someone else. That is the most overlooked aspect of assessing risk and reward. Give and get, or givers gain are two popular beliefs that the initiator understands.

Business Excellence: Ethics and Culture

This a request for participants to join the newly formed Business Excellence: Ethics and Culture group that can be found on LinkedIn.

The group has multiple objectives, all that can benefit you. LinkedIn groups are a place to connect with people who have a shared interest. The Business Excellence group has an interest in discussing issues that will positively impact the workplace (preferably yours) in order to make your job more rewarding.

Would you like to network with business owners, human resources professionals, career counselors and other leaders in the business community? Would you like to share ideas that will raise the ethical "bar"? Do you have a suggestion on how to improve the culture and productivity in your business?

We all have a story about ethics and work culture issues we have lived through. Take the initiative to be identified as someone who wants to make a difference in this important area.

Telling Great Stories

Every two weeks job seekers take turns telling stories at the Connecticut Re-Employment Group. They pick the topic of their choice...everything from their volunteer trip to a remote village in India to install computers, to where they envision their career going in the future.

Overcoming their fear of speaking in front of others is the first challenge. Telling a compelling story is the next task.

The best way to tell a compelling story is to prepare. The rule of three should be applied to be effective, thus what 3 things are most important to get across in the story? Write the three things down on a 3X5 card and practice in front of friends, family or a mirror if you don't have a built in audience.

After some repetition this becomes easier and easier. The skillset of learning how to be a public speaker will pay dividends when you interview for your next job.

Dear 2011 Job Seeker: Act Like a Salesperson

23 years of selling everything from radio advertising to golf clubs taught me that you need to stand out and be unique if you want someone to seriously consider buying your products or services. Today's job climate demands the same thing from job seekers.

Can you answer this simple question: What is it that makes you unique?

I have posed this question to hundreds of people in the Connecticut Re-Employment Group. People typically don't think about their unique attributes and how they can bring value to a potential employer. It's time to start telling your unique story.

A great way to start is to reconnect with former bosses and co-workers. Ask them point blank what you did that made a difference. Their feedback will help you start the process of telling great stories about what it is that makes you special.