Make Room For More Customers

October 1, 2013 / / 12,721 comments

Are you looking for new customers, but they just aren’t coming in the door… try using what we call in the business coaching world “The Law of a Vacuum!!”, and see what happens.

The Law of a Vacuum: Have you ever moved into a bigger house with a bigger garage, bigger basement, more cupboard space, more storage space… what happens? Those new spaces that you didn’t have enough ‘stuff’ to fill when you first moved in somehow fill up.

Have you ever cleaned out your closet only to find 6 months later that your closet is full again?

Those empty spaces you created with the new house, or cleaned out spaces are a Vacuum. In nature, everything grows to fill the available space.

Do you want new customers?

If you want new customers, what do you think you should do? Ask yourself this, “Do I have room in my business for new customers?” If the answer is, “No” …

Make room for new customers…

  • Go out today and buy new files and a new filing cabinet.
  • Create more files & folders in your computer systems to accommodate new customers.
  • Block out portions of time in your calendar for your new customers’ appointments.
  • Get rid of some customers you no longer want.
  • Make room for new customers wherever possible.

What if you wanted to expand your team…

  • New desk(s), phone(s), etc.
  • New computer(s), office supplies
  • New company uniform(s), company t-shirts, nametags, etc.

So, create the Vacuum in your business, and watch nature fill it.

 

 

 

Category: Business Coaching, Business Management / Tags: , , , , ,

Creating A Direct Mail Campaign that Gets Results

September 3, 2013 / / No comments

Reaching your audience can be accomplished in many different ways. Large corporations invest small fortunes on television ads and national branding strategies. These approaches to marketing are designed to reach a large audience and create brand awareness. For small business with significantly smaller budgets and resources, one of the most efficient and cost effective methods of getting the word out is Direct Mail.

Now, before you go sticking postage stamps on a stack of envelopes and dropping them off at the Post Office, there are some things that need to be done. Many companies simply send out Direct Mail pieces such as flyers or pamphlets, with general distribution and no offer or call to action and wonder why it doesn’t work.  Direct response marketing can be an important tool, but it needs to be done effectively. Here’s how…

Identify Your Target Market (Create Mailing List)

Be very specific about who your audience is and then develop a mailing list around those parameters. To ensure your Direct Mail piece gets to your intended reader, be sure to include a contact name.

Speak to Your Audience

Create a message that speaks to your target audience and contains a compelling offer. If your target market is business owners with 5 or more employees, annual revenues of $1M – $5M, and a mindset for learning and growth, tailor your message to speak to them in their language. If your target market is mothers of pre-school children ages 2 – 5 years, who work from home, ensure the content of your message clearly speaks to that audience. Make your message clear, and remember to include a ‘call to action’ component to ensure a higher response rate. Including an expiry date will also result in a better response.

Create a Direct Mail Process

This is a very important step that can sometimes make or break a Direct Mail campaign. For companies with limited operational resources, consider leveraging your time by outsourcing the printing and mailing labour to a local print company that offers this service. This can also be more cost effective than going it alone, as print companies may offer discounts on postage for mailings over a certain quantity. Next, decide how you are going to follow up with your audience. Here are two approaches that will make your Direct Mail campaign more effective…

Sequential Direct Marketing Approach # 1: (Collection agencies follow this model)

  • 1 notice
  • 15 days later they send a second letter with a bit stronger tone
  • 15 days later they send another with a stronger tone than the previous letters plus the original invoice

Sequential Direct Marketing Approach # 2: (The personal touch)

Phone Mail Phone / Phone Fax Phone / or just Mail Phone

Call to tell them it’s coming

Allows you to deal with a misplaced letter

Allows you to deal with procrastinators who have maybe set the letter aside ‘to deal with it later’

Don’t lie

What it boils down to is, Marketing is an investment that should garner a return. Following these simple steps will help you achieve better results from your Direct Mail campaigns to see the returns you are looking for.

 

 

 

Category: Business Coaching, Marketing, Systems / Tags: , , , , , , ,

Controlling Cashflow Outflows

August 6, 2013 / / 8,910 comments

I have mentioned before that, in business, Cash is King!

To survive in business, you must have a handle on your cashflow and disciplined processes to control it. Not only do you need to improve your cashflow for Inflows, you need to also control the cashflow in regards to ‘Outflows’. Maintaining control on where and how the cash goes out in business is just as important as where and how much cash comes into your business. If you don’t have a handle on your cash Outflows, it won’t matter how much revenue the business brings in… you can potentially cripple a business by spending without discipline.

Expense Classification

The first step is to classify your expenses – Fixed and Variable.

Fixed expenses are those that do not vary with Sales e.g. rent, utilities (office), loan payments, municipal taxes, accounting fees, car expenses, etc. Variable expenses are those that very with sales e.g. cost of materials in manufacturing, direct labour costs, commission payments, variable utilities (manufacturing), sales taxes, etc.

Establish Budgets

It is critical that you establish a budget for your expenses. Without this you cannot Test and Measure your progress (or lack thereof) of cost control.

Cost Control

Fixed expenses need to be negotiated up front and monitored vs. budgeted. Key areas to watch include phone costs and office supplies. Utilities costs can also bleed profits – turn off the lights and computers at night! Know your Breakeven $Sales. (Fixed Costs/Gross Margin %)

Variable expense control includes negotiating better deals for raw materials, strict control of overtime wages and constant improvement in waste elimination and efficiency – ask your employees for help here!

Trade Accounts Payable

This is a standard form of business financing. Suppliers who grant you 30 day terms effectively loan you money to buy their products at 0% interest rate. Prudent use of credit cards can get you up to 55 days of 0% financing – but make sure you pay on time.(Many cards will also give you reward points toward that vacation you’re going to take! However, please check with your accountant and government policies on reward point usage with your company.) You can generally stretch payments a few days however be careful – your credit rating is important, so don’t abuse this process.

Having firm control of your company’s finances, including Inflows and Outflows is critical to the success and growth of any business. Take the time to know your numbers, and track them regularly.

 

 

Category: Business Coaching, Business Finance, Profits / Tags: , , , , , ,

Improve Your Company’s Cashflow

July 9, 2013 / / No comments

In business, cash is king, so having predictable cashflow is essential. I have heard of people working all night to deliver a product or service to a customer. But I have never heard of an organization staying up all night to deliver an invoice to a client.

To improve a business’s cashflow, typically one of the first questions I ask as a Business Coach is, “What is your invoicing process?”

Here are some key questions to ask yourself…

  • Is the invoice delivered with the goods or service?
  • How many times do I say, “I’ll send you the bill.”

Many companies, particularly bigger ones have cut off days for monthly payments. So if you miss delivering the invoice for the current months cut off date by one day, it may be 48 or 60 days before you get paid.

  • Do I leave invoicing to the end of the month?

Typically what happens here is that your customers will take 30, 40, 60 days to pay. Why let money sit in other people’s bank account.

  • What does it say on the bottom of our invoice or statement?

If you give people 30 days to pay they will take 40. What impact would it have if your invoices said “Due on receipt.”

To improve your cashflow, make collecting the money from your customers as important as meeting and delivering their needs. It’s important to your business.

 

 

Category: Business Coaching, Business Finance, Profits, Systems / Tags: , , , , , , , ,

Sticky Notes… An Effective Business Tool

June 4, 2013 / / No comments

In any business, it is critical that tasks are performed in a consistent and timely manor. To accomplish this, work processes should be put in place to be followed for each area of your business.

A work process is made up of a series of steps/tasks/activities and has a beginning and an end. In business, everything is a process – hiring process, order taking process, product/service delivery process, etc. They start with input (materials or information), and by a series of steps/tasks, you produce a product or service.

As your business evolves, it is necessary to update and improve processes to meet the growing demands of your current situation.

First understand, before you change

If you want to improve your processes, it is best to get a complete understanding of what you are currently doing. Start by documenting or mapping your processes. Bring together the people who know exactly what the steps of each process are, and document them in detail. One effective way to do this is to use sticky notes on the wall or a board. On each sticky note, write out each individual task required for each process. Place the sticky notes on the wall or board and move them around until you are satisfied that you have documented each of the current steps. The advantage of using sticky notes is that you can move them around until you are satisfied that you have the correct steps in the correct order. Then draw it up… type out the process into a document, create a process chart in PowerPoint… you could even go so far as to use software programs like Visio.

Improving the Process

Now that you have a complete understanding of the “As Is,” you can work on the “Should Be.” Brainstorm with your group. This is where you want to utilize the experience of your team to determine what can be changed and improved. Remember to document who will be responsible for executing each step of the process and the time frame each step is to be completed in. This is a great opportunity for you, as the business owner, to look at each task and determine if it is something you still need to perform or if some (or all) tasks could be delegated to others. Once you have agreed on the best changes and improvements, record them and be sure to communicate the new processes to everyone on your team.

With your new streamlined processes, the improved productivity will show up in your bottom line.

 

 

Category: Business Coaching, Business Management, Systems / Tags: , , , , , ,

Slow Moving Receivables: Can Help You Get Better

April 17, 2013 / / No comments

Every challenge in business is a chance to examine and get better. If you have customers that are not paying invoices on time, your first reaction is to get on the phone and chase down the slow payers. In fact, many organizations have people and departments dedicated to credit collections. But… what if you took the opportunity this challenge affords, and dig a little deeper… Now, I am not saying you shouldn’t take action to obtain payment for overdue accounts; however, putting a little time into some analysis can reveal vital information about your business. Often slow or none payment of accounts has a lot to do with the service you have delivered to the customer. To find the root cause of any problem, the exercise of asking “Why” is a great place to start digging. Keep on asking “Why,” and then “Why” again until you get to the root issue(s).

You may find many issues including…

  • A flawed sales process – you did not capture what the customer needed
  • A flawed order taking process  – you may have sent the wrong quantity
  • There may have been a misunderstanding of price
  • The delivery may have been too late for the customer
  • A failure in the production process indicated by product quality issues
  • A flawed packaging process – the product arrived broken
  • A flawed shipping process – you packed the wrong product
  • Decide if you really want to do business with this customer… are they costing time and money? Fire them. You choose who you do business with.

Examining your slow paying accounts can provide a wealth of information to be used to find weakness in your business. It may have little to do with the finances of your customers, or you may have chosen to do business with weak customers.

Your customer maybe using your problems as an excuse, get better and do not give them any excuse.

 

 

Category: Business Coaching, Business Finance, Business Management, Systems / Tags: , , , , , ,

Test & Measure to Make Informed Business Decisions

March 20, 2013 / / 76 comments

It’s a basic business principle that the more you know, the easier it is to make decisions about what’s working and what’s not. If you are not Testing & Measuring the critical areas of your company’s performance, it is likely you are allowing money to escape from your company and therefore your wallet.

For example, lead generation is a key driver in every company, but few businesses know how many leads they get each week. Even fewer know where those leads came from. Information such as lead source, dollars spent, revenue generated, etc. is invaluable when making decisions regarding marketing and advertising.

The most effective method of tracking lead generation strategies is to develop a database that includes details such as lead source (networking event, Strategic Alliance, referral, marketing campaign(s), etc.), first contact date and last communication details, sales stage, revenue generated, and next steps. These details, and more, are vital in making informed decisions regarding marketing campaigns. Through this Test & Measure system, if you see more revenue generating leads coming in from a particular marketing campaign, you know you will want to continue with it. If a marketing campaign isn’t generating leads, you need to rethink your campaign. The point is, you’ll never know unless you are continuously measuring the number and source of the leads you get. So…Keep meticulous records of where all leads are coming from and how much they spend once you’ve converted them to customers.

Testing & Measuring doesn’t stop with lead generation. There are many other areas within every business where well tracked and documented data is invaluable, even critical, for making good, sound, profitable business decisions.

The areas we should be Testing & Measuring:

  • Conversion Rates – converting leads to customers
  • Quality Control – delivery of service or product
  • Customer Satisfaction
  • Referrals
  • Communication within the company
  • Adherence to the Rules of the Game (company culture)
  • Collection Process
  • On-time delivery/shipping
  • Invoicing accuracy
  • Etc…

Identify the key drivers in your company and ensure that you take the time and effort to put Test & Measure systems in place for the long-term. The information you gather will be vital to making good business decisions and growing both your business and especially your profits.

 

 

Category: Business Coaching, Business Management, Leadership, Systems / Tags: , , , , , ,

7 Keys to Effective Networking

February 27, 2013 / / No comments

Effective Networking is an essential part of any business. Lead generation, relationship building, client retention… these are all critical aspects of business that can be enhanced through networking.

Networking Works!!  If done well, it can be an incredibly powerful and economical arrow in your marketing quiver.  If done poorly, it can amount to a painful experience of frighteningly unidentifiable food. So, here are a few tips to make it more rewarding:

1.  Know your event

Choose events where there will be people you can do business with (please note that this does not mean only those to whom you can sell.), or those who share an interest or passion you have. For effective networking, common interest is often the start of a great conversation.

2.  Know your objectives

If you go with the goal of selling at the event, you may as well stay home. Networking is more often about relationship building. Approaching a networking event with the intent to “sell” to everyone you meet will turn people off. Remember, these events are about meeting new people. It may take several conversations before the subject of business even comes up.

Go with the goal of meeting 5 new people, and see where it goes…

3.  Take business cards…

“Enough said?”  Maybe not… This is a personal pet peeve … If you want to project a professional appearance, having business cards on hand is a MUST!!! If you want to be able to develop conversations with others who could potentially become leads, having business cards on hand is a MUST!!! There’s nothing worse than losing contact with a potential lead because they don’t know how to get in touch with you following an event. To network effectively, have business cards available, and give them out often and courteously.

4.  Listen and ask questions

It’s like dating: no one is interested in those who only talk about themselves. Show interest in the people you meet and what is important to them. This is where attending events where you have a common interest is beneficial.

5.  Give referrals whenever possible

A good networker receives by giving. This couples with ‘Listen and ask questions’ where you show interest in others before bringing attention to yourself. The law of reciprocity is at work here, and when people see you are willing to give, most will give back.

6.  If you make a promise, keep it!

Think relationship.  People are more likely to do business with those they know and trust than with someone who thrust a business card into their hands. If you commit to sending an email, send it… if you commit to making a phone call, make it… if you say you’ll do something, do it. You will show yourself to be someone they can trust.

7.  Have Fun!!

While effective networking is work, it can also be a very enjoyable way to learn, to share and to profitably grow your business.

 

Effective networking isn’t about ‘making the sale’, it’s about getting out there and meeting people, learning about them, and making connections. So get out there and see what happens.

 

 

 

Category: Business Coaching, Marketing, Networking / Tags: , , , , , ,

Why Customers/Clients Leave

February 6, 2013 / / 9 comments

Do you have clients/customers that can buy from you more than once?

How many don’t? They buy one time, that’s it.

Have you ever lost a customer?

Do you know a business that has lost a customer?

Why do customers leave?

When it is estimated to cost six times more to get a new customer than it costs to keep an existing customer, these are important questions to ask when looking at building customer loyalty in your business.

Here are some figures to consider;

People leave because…                    How much control do you have?

  • 1%           Death                                        none
  • 3%           Move / Location change            none
  • 5%           Buy from a Friend                      little
  • 9%           Sold by a Competitor                 some
  • 14%         Product/Price                             some
  • 68%         Perceived Indifference               total – 100%

That last figure, Perceived Indifference, is what I want to put a spotlight on today.

Customers leave because they think… You just don’t Care…

That’s probably not true is it? You do care about your customers don’t you? And with 100% control over the perception your business projects to its customers, this is a key area that must be a daily focus for every member of your team.

What might you be doing or not be doing that would indicate to your customers – indifference?

What are you doing or could be doing that shows them you do care? Is it enough? (A note of caution before you look at answering this question: This is where you want to inject some perspective before swinging the pendulum too far the other way and begin incurring unnecessary costs to your business… It’s not always the big things, it’s often the little things that really make the difference in the eye of the customer.)

Survey your customers/clients, and find out why they are leaving. If they are leaving because of perceived indifference, you can change that perception, and turn them into Raving Fans who would be happy to tell others about you.

Category: Business Coaching, Customer Service, Sales / Tags: , , , , , ,

Asking The Tough Questions

January 14, 2013 / / No comments

One of the more difficult aspects of sales is letting go of our natural need for approval and asking the tough questions that lead prospects to make a decision. The conflict between our “need to be liked” and our “need to get the sale” is often at the core of our resistance to asking the tough questions. You can’t always have both, and that’s why it’s hard. But letting your need to be liked get in the way of productive sales conversations will cost you time and money.

How can you overcome this natural conflict?

First, separate your role as a sales person from your identity as a person. Don’t take the resistance you encounter or the discomfort generated by asking tough questions personally.

Second, understand that asking tough questions – questions that challenge your prospect to look at something they do not want to consider, questions that move them out of their comfort zone, questions that force them to look at their business and their current situation from a new vantage point – will create urgency and compel them to make a decision.

Third, remember that a “fast no” is better than a “long maybe.” We work so hard to get an appointment and earn the opportunity to make our pitch. It’s natural to want to keep the conversation going, even if we’re getting strung along with a long maybe (“…this looks interesting, let me think about it.”). You’ll save yourself and your prospective client a lot of time by asking a few pointed questions that compel them to make a decision – even if that decision is a NO for now.

How much more productive will your sales process be if you ask questions that create “decision urgency” and enable you to focus your valuable time on prospects where you quickly discover a compelling reason to move forward? What are the tough questions you can ask for your solution and what do you need to do to ask them earlier in the conversation? Do your questions hit the key business issues that business owners worry about (increasing revenue, decreasing costs, improving efficiency, etc.)? Can you personalize these questions with a simple follow up such as “What is it costing your company to NOT address this issue? What does this mean to you personally?”

Develop your arsenal of questions and use them. You will be a more effective sales person, and you will see your sales cycle shorten because you will be helping those prospects who just can’t say “No,” to make that decision quicker. This, in turn, will allow you to spend time with prospective clients who are truly interested in what you have to offer.

Category: Business Coaching, Sales / Tags: , , , , , , , , ,
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