Posts Tagged competitive edge
However, cashflow must always remain a prominent consideration and should influence the degree to which you are prepared to provide work without charge.
Businesses need to consider each client on an individual basis to establish whether you should do some work for free or not.
When you’re making a presentation to a client you need to factor in the cost burden within the presentation and make your expectations clear.
It’s all about business respect and if the potential client respects you they will expect to be charged for something or at the very least for third party costs.
Only spend a limited amount of time on work that you’re not being paid for and don’t get too involved in giving too much away.
Say you will create an invoice, but if you are successful at winning the piece of work you can credit the initial work as a gesture of goodwill.
Remember always in business: Turnover is vanity, profit is sanity but cash is reality.
Sales staff are a necessary component to all businesses and can influence whether your
business succeeds or fails.
If you’re considering taking on additional sales staff to help push your products or
services, there are important factors to bear in mind to ensure they bring value to your business.
When looking for sales staff, it’s important not to recruit in your own image. This
basically means employ people who use a different way of doing things and a different approach, so that they can complement your business offering.
It’s a good idea to use a professional recruiter to find sales staff because they can sift
through the good, bad and mediocre candidates more skilfully and effectively than you can and bring quality people to the table.
Many business owners simply think to themselves ‘this person’s in sales, I’ll try them out’ which can be an expensive process if it repeatedly fails. We should never take on people just because they have come to us with a sales background, it’s worth spending time and money on getting the right people in the first place and maximising your chance of success.
In any sales department, there needs to be a strong reporting infrastructure so the managing director fully understands what the sales staff are doing on a daily basis.
Sales should be about going and getting sales and maximising the opportunity, once you have got past the gatekeeper.
Owners of businesses should ask themselves when they last spent a day with their sales
force making calls. It’s impossible to set sales targets if you don’t understand the issues they are up against.
Overall you need to be more hands on and create realistic targets which people can achieve – so they are motivated.
Last month’s Business Exposure Group meetings around the region were excellent and again generated some quality suggestions.
With 9 groups now operating across Manchester and Yorkshire, the main issues across several discussion groups included: –
– Is there a need for a business plan, particularly during a recession?
– Is social media a scary problem or a great business opportunity
– Whether to rely on freelancers or employ full time staff
– Techniques to control sales staff and make them accountable
– Methods used to get your business message out to a new market
– The value of purchasing a competitor in distress, purely to use it’s strong brand
– How to let go and have the confidence to allow your business to flourish
The high value of the group advice was commented on by the majority of the members.
Are you a Business owner or Director around Manchester?
Please let us know by return if you would like us to reserve a place for you around the table at our next meeting in Manchester city centre on the afternoon of Monday 4th July 2011.
The numbers are limited to 15 and this groups is getting full.
Outside the Manchester area, there are groups in Leeds, Bradford, Wetherby and Sheffield. Please let us know if you would like to attend any of these events during July.
Please email firstname.lastname@example.org for more information.
Businesses always encounter periods in which they need to draw upon the expertise of someone else to carry out a function that will improve their business or to cut costs where staffing is concerned. But the question we’re left with is if the economic climate wasn’t so challenging would they still be so keen?
New businesses usually tend to take on every aspect of their operation themselves but as they start to grow, the idea of outsourcing
becomes very appealing and many see it as a way of cutting costs and buying expertise without the hassle of employment issues. Like a wave effect, eventually that same business will bring everything back in-house again to re-establish control when they become even bigger.
There are a number of benefits of course to outsourcing, most notably the fact it allows you to concentrate on what you’re good at. It provides the perfect opportunity of acquiring the skills of external experts who can help give you a competitive edge and can reduce staffing costs.
However, there are as many pitfalls as there are advantages. You don’t have direct control, service delivery can be hit and miss and you can occasionally encounter problems with confidentiality.
There’s also the issue of training. If you’re outsourcing call centre work, they have to be able to deal with every eventuality facing them and how long is this training going to take and cost?
Obviously if you’re outsourcing overseas there are also big cultural differences. And when people already have staff and say they’re going to outsource does that create issues with the current workforce?
It is for these reasons why 50% of outsourcing fails.
But lessons have been learnt and there are factors which give outsourcing a better chance of working.
If you want to outsource, use it for secondary functions only such as IT, Lead generation, HR, and PR & Marketing.
There’s also a greater chance of success if time is spent building a relationship with the outsourcing agent and the expectation needs to be very realistic. Business people need to research the provider’s track record, take bank references, check out how stable they are and create a ‘ways of working’ document between the two parties.