Archive for category business discussion

Converting Prospects – Does your Business spend enough time on this?

How do you provide your buyers with a complete understanding of what you do, what you sell and why your products or services are better than the competition? 

Too many businesses are already generating all the leads and prospects they need but are unwittingly losing up to 90% of opportunities to convert them into sales.

As an aide memoire it is important to consider the following:-

  • The buyer is more intererested in themselves than you.
  • Map your sales process. A step by step process to convert enquiries and leads into sales. Build trust/understand the buyers goals/create certainty that your product meets their needs/ overcome fear of making the wrong decision/officially confirm the sale.
  • There is value in trying to convert old and cold prospects. It may be time to approach another prospect in the target company.
  • Qualify leads so you don’t waste time. If a prospect isn’t ready to buy don’t give them to the sales team. Provide useful mailshots and wait your time.
  • Spend enough time researching the buyer’s needs, then offer the solution to win the sale. It is important to listen and find the solution for the prospect.
  • Offer content and information that educates, regular newsletters are the beginning of the process.
  • Fish where the big fish are, don’t waste time trying to convince people to buy when they are clearly not interested or ready to commit.
  • Establish a no communication deadline to remove redundant prospects from your pipeline.
  • Follow up your initial call a few days later asking questions, eg, have you had a chance to go over the information and make a decision? 80% of all significant sales occur only after a minimum of 5 follow ups. Following up will apply pressure and open up dialogue to discover questions and concerns that the prospect may have.
  • Have a list of scripted answers readily available for every possible objection/query.
  • Remind them that you have a solution that is going to make them more money.
  • Don’t adopt a one size fits all approach, target and segment, focus on the best prospects first.

It’s all very obvious but there is tremendous value in reflecting on the above and evaluating your conversion process.

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What is included in the ideal monthly Management Pack?

This was the topic discussed by our members at a recent meeting of the Business Exposure Group.

As a business you need to know how you are performing.  Should the management pack consist of a one page summary, or should it be more extensive, and what should be included in it?

Most businesses include KPI’s/ Action plan and corrective action/ Profit and Loss showing period against the budget/ Aged Debtors/ Staff headcount/ Cash at bank/ Capital expenditure / Cash Flow forecast.

These are all essential pieces of information needed to enable you to get an overall picture of what is happening in your business at this particular moment.

The figures should be monitored on a regular monthly basis, say 5 days from the month end, with time set aside in the diary to study them and ask questions.  This is the best way to monitor your working capital and decide whether you need to invest more time in chasing payments.  Armed with the information you can get the business to perform better – control costs/ improve margins/ boost cashflow/ reduce risk through better management.

Management accounts are used to help plan and control activities of the business and to assist in decision making.  Information should be shared with staff members, as it will help them understand where to focus their energy and avoid big surprises at the end of the year.  Often visual graphs make the figures easier to understand, and can highlight both positive and negative trends.

Information can be obtained to identify seasonal differences, plan dividend payments and other remuneration.

One of our members felt that his management accounts produced figures that were too focussed on the present, but it’s up to you to interpret them and spot trends.  Consider burn rate, ie how long can you last if no more sales were achieved beyond those already known, therefore unnecessary costs must be dumped.

Looking at management accounts should not be seen as an additional administrative burden.  All this information is there to help you decide about – adjustment of stock levels, hiring of extra staff to meet demand, investment in marketing, discounting or discontinuing certain product lines or services.  Nowadays with the common use of Xero accounting software there is no longer a need to wait a full month before knowing the financial position of your business.  The use of accounting software allows companies to produce information on demand.

Our Business Exposure Group members were all aware of the value of regularly reviewing their management accounts and agreed that they were important for the business to progress, but some felt they did not give sufficient attention to the definitive information available.

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The biggest challenges Businesses face today

What are the biggest challenges businesses face today, was the question posed to members of the Business Exposure Group at a recent meeting, and below are the 10 most pressing concerns.

According to the CBI change is the new normal.

Growing revenue is the top challenge for businesses employing 5-30 employees.  Hiring employees is the biggest challenge for businesses with 30-50 employees and government regulations becomes the biggest issue for business with 50 or more employees.

What are the 10 big challenges for SME’s.

  • Uncertainty about customer trends – does this lead to short term focus, and does it make you feel vulnerable?
  • Financial Management – cash flow. Larger customers are imposing long payment terms, so how are you addressing this?
  • Monitoring performance – are KPI’s as good as they sound even though they compare historical information or are there better ways.
  • Recruiting the right talent – employee working flexibility is important to retain good staff, but increasingly stress in the workplace is a real challenge in small businesses when staff have to be able to multi-task.
  • Technology – it should be outsourced to reduce demand on administrators, but is investment in technology an asset or a handicap. Distinguishing which technology will attain the highest return in terms of time and investment is a problem.  The big issue is, is the IT fit for purpose.
  • Information overload. There are now big digital challenges for meeting the expectations of customers, together with finding and keeping people who can digitally transform a company that delivers a bespoke customer experience.
  • Customer Service – what is the right level, are customers’ expectations too high? Managing the relationship is key
  • Maintaining reputation – there is genuine concern about reputation management with easy access to social media and particular concern about cyber security disrupting the day to day functionality of the business.
  • Knowing when to embrace change is a worry and knowing how to balance quality with growth. Businesses are stocking less and relying on a lean supply chains, but is this clever or does it open up crippling disruptions.
  • Regulations and compliance are becoming more and more demanding of staff time

Everyone was in agreement that running a business is getting harder and is forever challenging, but all were motivated about the challenges and were ready to face them head on.

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Taking your Business to the next level

In today’s confusing economy many business owners are in need of a jolt – something that will help their company grow.  But what are the ways to find an edge in a crowded market, to find new ways to sell your product or services?

This was the question posed to members of the Business Exposure Group at a recent meeting and they came up with the following points.

  • Is the business truly scaleable? Is the demand for your products enough to sustain growth by focusing on either one product at a time, one new customer at a time,   one new sector at a time?  But often the key to scaling up is scaling down and become more efficient.
  • Make sure you do your market research before scaling your business.
  • Re-organise your company to serve customers better. Look at your inefficiencies and review where improvements can be made.
  • Operate with integrity; don’t let money or greed get in the way. Strive for excellence and be different.  The owner is the main sales ambassador, so get out and visit your customers.  Focus on good customer service.  Stay up to date with technology and up your marketing activities.
  • Many small businesses run too lean for too long, putting all their investment into selling, but certain inefficiencies maybe things you can get away with in the early stages, but if you are serious about growing these ‘holding you back’ issues need ironing out.
  • Don’t think just about tomorrow, at the expense of the long term.
  • For some it is easier to carry on as you are, rather than developing skills to manage and grow your business. A leader’s job is to set the vision and a manager’s job is to set tasks and look after the operation.  It is vital to position yourself correctly in the business.

Your business can either grow or stagnate, it’s your decision, but let me leave you with three interesting thoughts –

  1. Don’t become obsessed over ‘cool features’ as this will drain resources and will not increase your bottom line.
  2. Don’t over innovate because this will drive your customers away because your products and services become too complicated.
  3. Don’t wait until a product is perfect before you launch because you will have launched too late.

Remember growth is about having processes, being organised and delegating trust to others working in your business.

 

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To what extent do you review your business?

Strategic business reviews are useful if you are

  • uncertain about how well your business is performing
  • if you want to know how to get the most out of your business or marketing opportunities
  • if your business is moving in a different direction to the one you planned
  • if the business is becoming difficult or unresponsive to market demands

But what are the questions we should be asking ourselves?

Members of the Business Exposure Group discussed these questions and came up with the following.

  1. If things are running well should you let it run or is it actually time now to plan again? Most thought that it should be a constant agenda item.
  2. A simple planning cycle can greatly enhance your ability to make changes in your business routine.
  3. It is vital to review the progress of your business, but how are you measuring success and is your annual business strategy fit for purpose? Most thought that a review should take place every time a game changing event happens.
  4. What are your markets now and in the future and how do you gain market advantage? There is no point in going head to head with the competition, try to find a niche.
  5. Which of your products/services are succeeding and which are not performing as planned? Spend more time on the latter.
  6. How effectively are you marketing your goods/services to your customer’s needs? Have you reduced the risk of them placing an order with you?
  7. Conduct competitor analysis. Find out what they offer.  How they price their products/services.  What is their competitive advantage.  What was their reaction to your entry into the market.  Who are their biggest customers.  With this information your business can be more robust and targeted.
  8. How often do you review your financial position? Have your requirements changed recently?  How frequently do you review costs and new ways of doing things?  These questions are crucial.
  9. How often do you review and update your website? Don’t let it sit there reflecting the old times.

There is a benefit to have an outsider question your thought processes periodically.  They will ask questions that you never even thought of.  There will be many external factors which may affect your business’s ability to compete and it was generally felt amongst our members that is was vital to review your business periodically, especially if legislation changes, new technology is introduced, a significant customer is lost or a new competitor enters the market.  It has to be a disciplined ongoing process.

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Being small in business – does it make your business bigger?

Most business owners dream of growing their company.  Greater revenues are a measure of accomplishment.  Larger companies are trusted more and getting bigger makes it easier to get even bigger!

But, being big creates problems – the business becomes less flexible, less customer centric and all the aspects of being small are jettisoned: agile, frugal and responsive.  So, can you stay small but continue to grow?  This was a question posed at a recent Business Exposure Group meeting.  It’s important as the business grows to keep thinking like a small company.  So, consider:-

  • Does adopting the formal trappings of a large company in order to appear more credible actually reduce performance?
  • Employees function better when the rules and procedures are short and simple.
  • Adding more staff often creates more problems, and it increases staff turnover.
  • Working with fewer people creates conscientiousness and keeps everyone more involved.
  • Employees wherever possible should be rotated between tasks, so everyone can multi-task.
  • Decisions take longer to make in a large company. There are too many managers who create bottlenecks.
  • Do we need constant regular meetings? There is often a mis-alignment between when meetings are scheduled and when a conversation is needed. So, be more flexible.  Big businesses have too much reporting, too many meetings, too much training.  Create a culture of action and hire people who get things done!
  • Customers are happier when there are fewer layers of management and procedures. Several layers of management depersonalises the customer experience.
  • Eliminate useless work practices, don’t issue a companywide rule that only applies to a few – eg everyone must write a report, but it’s only relevant to one employee who doesn’t communicate well.
  • As the business grows the agenda will change, make sure everyone is working to the same project. Don’t let people continue on old projects when the needs of the business have changed.  There is nothing quite so useless as doing with great efficiency something that should not be done at all

 

These points were raised at the Business Exposure Group meeting.  It was felt that keeping teams small and agile with little bureaucracy, a flat organisation and smart employees was the appropriate model for a contemporary business.

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Is there relevance for having an E-Commerce website for businesses other than those in retail?

E-Commerce is the name for any kind of commercial transaction that takes place through the internet.  It gives customers the ability to buy from you without having any limitations imposed by time or distance. Its not restricted to a B2C business using a “shopping cart” and credit card.

The question is – are B2B customers ready for this?

This was the topic discussed by members of the Business Exposure Group at a recent meeting and some interesting observations were put forward by members, many of whom had implemented E-Commerce functionality into their businesses.

B2B suppliers know far more about their customers than B2C, so there is no excuse not to deliver relevant experiences to your customer.- a website should no longer be general but nowadays it needs to be specific to the customer browsing your site.

41% of manufacturers are now selling directly to your business customers, so your business needs to be prepared to sell against the same companies you consider as valuable supply chain partners.

Entering into the world of E-Commerce is a major decision and setting up your website is challenging.  Consider the following points raised by our members during the meeting:

  1. Website needs to be user friendly with as few clicks as necessary to enable your customer to order as easily as possible. It should load within 5 seconds.
  2. Do you require multiple “shop fronts”, different languages, to only provide relevant products and services to the specific visitor?
  3. Does your website need a reminder email facility to remind your customer to re-order?
  4. Does your website need an email facility to notify your customer about new products or when products are back in stock?
  5. When logged into the website, does it recognise your customer and automatically bring up their previous order history? – It is important to segment customers and give them a different experience based on their industry requirements.
  6. If you have a complex catalogue, direct customers to the relevant products in as few clicks as possible?
  7. Should you put all your goods or services for sale on the website or leave the high end items for your sales team to sell?
  8. FAQ’s section is extremely important as it reduces the need to have an extensive customer relations team.
  9. With one click specific industry users can fill their ‘carts’ with everything they need for their particular requirements.
  10. It engenders customer loyalties. An order can be authenticated with a click of a button, instead of the process taking several days to be confirmed.
  11. It streamlines your ordering system. It reduces the bottle necks of tedious work.

Consider who is your real competition, your competitors or your customer expectations?

The buying experience is now more important than ever.

It was felt by the Group that B2B E-Commerce was certainly another route forward for most businesses and a great way to find a new customer base.

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