Business Owner Newsletter - Page 35

Quote: "The entrepreneur always searches for change, responds to it, and exploits it as an opportunity."  - Peter Drucker   

 

Question: When thinking of building the value of your business, what opportunity for change do you see and how will you respond?

We have talked about the harsh reality of having a business of value and discussed what markets and buyers look for in a business of value. The next logical step is to discover what needs to be in place so your business, as it continues to mature, achieves steady growth, healthy cash flow, and the systemization that creates a business of real value. You could do an internet search and find any number of websites or individuals that can tell you how to create value in a business. The truth is, there is no one way to get it done but there are certain factors in a business of value that are consistent. This week we focus on three factors: Professional Advisors, Coaching, and Action.

Last week we talked about how many business owners bury their heads in the sand when it comes to placing a value on their business. This week we focus on where the 'sweat equity' can make a positive difference in the valuation of your business.The markets and buyers of the world are as diverse as the businesses. This leaves each market and buyer with its own set of criteria and perspective of what value look like. Taking into account those diverse perspectives, this week we look at three core attributes that nearly all buyers are interested in paying top dollar to obtain: Growth, Cash Flow, and Systemization.

You've built your business with a great deal of hard work, dedication, money, sacrifice, and plain old pig-headed determination. You are really good at what you do, and your business is known for the quality it provides. You have dozens, hundreds, maybe thousands of loyal customers who sing your praises and continue to buy your goods or use your services. You have loyal employees who have been with you for many, many years; and the business has given you and your family a decent living, in spite of some "ups and downs" over the years. You are now getting closer to the "reality of your mortality", the fact that eventually a transition is going to happen, voluntary or involuntary. But as Michael Gerber, best-selling author of the E-Myth books says, "The only sane reason to own a business is to sell it."

We have been exploring the sale process the last few weeks.  This past week-end one of our coaches, while visiting Coca-Cola Days 2014, found this Sales Training Program from Coca-Cola that was produced in 1940. 

WOW is it amazing in its simplicity as the steps for being successful in a sales role are presented!  Using both text and pictures this guide provides the Coca-Cola sales force with the information needed to be a success...and 74 years later it remains chillingly accurate in detailing what is needed to provide both Coca-Cola's customer, the vendor,  and the end user, the ultimate Coca-Cola experience.

As you are aware, everyone in your business is responsible for sales. Some are more directly involved than others, but everyone plays their role. We’ve looked at the foundation for the sales team; but what needs to be in place for the remaining staff members who are only indirectly involved...

Especially in sales, we see too many people wanting the magic pill. When your business falls behind on its sales goals it hurts. Profits are down, but then again so is cash flow and often times morale.   It's easy to see why everyone looks for that 7 foot bar to jump over, but your best bet is to take a moment and look for that 1 foot bar.  To get started make sure you read "Behind the Sales Curtain" and "Your Sales Process".

Last week we looked behind the curtain at pieces of the sales process that should be in place to help your business be more effective and flexible in its sales process. Now, we look to focus on pieces of the Sales Process that are external and the pieces that the client sees, hears, and touches. In the most effective sales processes, these external pieces connect seamlessly, giving the prospect or client the impression that purchasing the product or service is the natural and logical conclusion of the interaction. Pieces of the Sales Process puzzle we are going to focus on this week are scripts, agendas, and sales materials.

Over the last few months, we have looked at a number of different business areas; Recruiting, Lead Generation, and Customer Domination. This month we wanted to go back to a subject near and dear to all of our hearts, Sales. Without sales, businesses wither and die. We also know that creating sales isn't as easy as it may seem. There are steps the business has to take in order to sell its product or service efficiently and with confidence. In the coming weeks, we will look behind the curtain to see the prep work that goes into a solid sales process.

 

The sales process does not begin with a product or service. It begins with developing the 'behind the curtain' pieces of the process that create a foundation for success. A strong foundation creates opportunities to move forward with clarity, develop and hold accountable employees, and collect business intelligence that will allow for more focused efforts. While there can be many pieces to a strong foundation, here are three that require emphasis.

When you're recruiting, especially in a Hiring Drought, there is a need to sell the position and your company. Just like in marketing, if you want leads for an open position you have to know how to attract them. However, there's a danger in over-selling the position. You can chase away good candidate or even worse end up with the wrong candidate if you get too caught up in selling the position. Here are a few tips to help you reach the right balance of selling the position.