sales tips for entrepreneurs

Jerry R. Mitchell 1-25-2010 1

SALES SEMINAR JANUARY 25, 2010


Never before in the history of the world has the potential to do extraordinary things been this big for the smallest of teams.


The reach of the net, the low/no-cost of infrastructure, and rise of fiercely-productive environments have empowered those with passion near superhuman strength in business, by last century standards.


It's no longer necessary to be big to do big. It's optional.


World changing and big are not necessarily synonymous, it's definitely possible for a small team and even a small product to change the world. But there is still actually value to complex software.


I see an irrevocably altered economic landscape, but one that small businesses may be better suited to manage than their mega-competitors because of the very essence of what constitutes a small business.


There is usually a different mind-set at small companies. Unlike many large companies, small firms tend to have structures that encourage agility and communication. This is vital if you want to innovate and respond to new opportunities


Did you know it takes approximately eight contacts or more with a single prospect before the average sale is closed? That's because prospects normally move through the sales cycle from cold to warm, and then finally hot where they're ready to "close" and become clients or customers. clients or customers.


Q: I'm new to business. Is it a good idea to offer a lower price than the "going rate" when first starting out to attract new customers?


A: Yikes! Don't even think about using low prices to attract customers. Remember why you went into business to make money!


As a small-business owner, you just can't compete on price.

Forget it! Actually, the market is much less price-sensitivethan you think it is.


The market bears all kinds of prices.

Can you believe people pay $50,000 for a watch?

Three dollars for a bottle of water?

Hundreds of dollars for pro music tickets?

Consumers will buy just about anything if they can see the value or benefit.


So how much should you charge?

As much as it takes to get what you want from your business, regardless of what your competitors are charging.

Create a selling price that covers all your costs, plus profit, then figure out how to sell your product.


Here's a sure-fire, make-your-dreams-come-true formula for making money in your business:

First, determine how much money you want to make.

How much money will it take to make all the headaches of small-business ownership worth it?

It's up to you. Pick a number. You can make any salary you want-but you have to build it into your selling price.


Next, figure out what you're selling. What's your "widget"?

If you sell your services, knowledge and expertise, you sell time.

If it takes skilled labor hours to create your product, you're selling time.

When you sell time, you can only deliver so many" billable hours" per day, per week, per year.


Learn to market yourself and eliminate price competition forever.

The market doesn't set prices…marketers do!

What makes you special? Here's a clue: Look at what thelow-price providers may sacrifice…service, good manners, convenience, quality, a sense of humor.

Substitute "I'll do it for you" instead of "Do it yourself." Get the idea? To charge more, you must be different.


Two shoe salespeople were sent to Africa to open up new markets.

Three days after arriving, one salesperson called the office and said, "I'm returning on the next flight. Can't sell shoes here. Everybody goes barefoot."


At the same time the other salesperson sent an email to the factory, telling "The prospects are unlimited. Nobody wears shoes here!"


“What makes a “Winner?”


Do they call on twice as many prospects?

Maybe, but they probably don’t have to.

Are they better at handling stalls and objections?

Possibly, but the probably don’t get as many.

Are they better at qualifying their prospects?

Most likely.


Do they always remember to close?

Some don’t have to. Their customers buy before they get to that magical event.

Are their customers pre-sold because of a strong referral?

Could be, but it probably wouldn’t make a tremendous difference if they weren’t.

Do they make better presentations?

I doubt it.


Are they better at building rapport?

No question about it, but that’s not the reason either.

You see there is no one reason.


Like the sales call itself, there is no one thing that will make every prospect buy.

It's always different.

It’s your job to find out what it is.

The top 5% do all of those good selling things better


However, there is nothing more important than avoiding a “think it over.”


The 5% won’t take one.

The problem with most sales people is that they would rather take a “think it over" then hear the prospect say no.

To them it’s a lower risk.


It takes discipline, understanding and special skills to leave every call with a decision.

Most sales people will never get there because thereis too much risk.

Most will never invest the time and money to learn how to do this and there is a lot to learn both technically and conceptually.


The 5% will know the secret of a good night’s sleep;which comes from not having proposals on the street;wondering , will I get that order.

Hey boss I “THINK” I’ve got one coming in that should be worth $$$$$$$.


example Buick


Winning in sales comes from failure.

We all make mistakes once in awhile.


Now and then that little voice in our head whispers,“It’s o.k. this time…the prospect is being straight…he will let me know Tuesday.”


Every time we make an exception, we learn one more valuable lesson---never make an exception!

Ah, but we are all human and after three months of being" good,” we will slip up again and learn the hard way.

Why the next time we might even go four months before we slip up.


Keep in mind that knowing about not taking a“think it over” and knowing how not to take a “think it over" are as different as writing an order and not writing an order.


If you want to reach the top and take the stress out of selling, DON'T THINK IT OVER. Make a commitment to gain personal and professional growth.


If you are targeting selling software to businesses, you will have to sell to three different buying influences within each company:


Senior management – CEO’s, CFO’s, COOs, CIO’s and other vice presidents.

End users – This can be every employee within the company often represented by middle managers or administrative staff during the selection process.

IS – Information Systems professionals ranging from CIO’s, to the entire information services department.


The first two audiences consist primarily of people who are not technical but are aware of the computer and the applications being used within their corporations. These business leaders care about different things, and respond differently, than the traditional IS technology buyer.


Senior management are results-oriented, interested in the ends rather than the means, the bottom line rather than the process.

They lack interest in the details, preferring to focus on the “big picture.”

Most managers simply want to resolve problems; engineers, scientists, and programmers enjoy actually working on problems.


The result is that the senior managers are more interested in benefits, business results, and the reputation and credibility of the vendor.


The information services department. by comparison, tends to focus on technical issues including platforms, scalability, interoperability with existing systems, reliability, specifications, limitations, and ease of implementation, operation, and maintenance


Demonstrate, if it exists, the rapid return on investment.

One example is a mailing you could send that would inform the recipient that the license fee of a few dollars per user would be a small price to pay based on the cost savings your product would generate.


For high-end software representing a major corporate investment, your goal should be to get an appointment with the decision-maker. Your goal is not to sell your software at this initial meeting but rather sell your self as an expert in assisting similar companies in the implementation of your software solution.


At this meeting you should be prepared to establish an action plan starting with the decision makers commitment to allow your firm access to company employees in order for your firm to start a needs analysis.

Of course your goal is to gain the information required which will allow you to provide a quote or proposal, or a demonstration, which the client will accept.


Unfortunately, many salespeople don't know how to present focused, needs-oriented demonstrations. The most successful salespeople have refined their skills and deliver persuasive yet simple demonstrations.

A demonstration can either be a very powerful selling tool or it can add confusion, delay, and even jeopardize the close.


Many average prospects can be improved and moved to a close more quickly with a good demo, while too many good prospects are lost because of a poor one.


Selling to Big Companies

Getting in to see senior executives can be tough, but by following these guidelines you'll be welcomed with open arms:


1. Target 5-10 companies that fit your ideal customer profile. On a macro level this means things like industry, size, and geography. Other considerations may include current system in place, corporate culture, industry trends and industry position


2. Spend a minimum of 2-3 hours conducting research on each company. This includes a thorough website review, reading of annual report, goals/objectives, key initiatives, any news from past 12 months, markets, primary offerings, info on the , competitors and financial trends.


3. After reading it all, search for the alignment between your business and the targeted companies. Determine the value proposition your company can bring to the prospect. Ask yourself what business results this targeted firm will get from using your offering. Executives could care less about your products or services. All they want to know is how it

contributes to their desired business outcomes.


•4. Prepare a loose script for making an executive-level call. Be

prepared for voicemail, actually reaching a live body or talking to

the executive's administrative assistant. In your script make sure

you state that you've conducted significant research on their

company and would like to share an idea about how they can

(insert customer goal/objective). Then ask for a brief meeting to

share the concept.


5. When calling an executive - make sure you get the administrative assistant's name. After you've tried several times to reach him/her - enlist the assistant's help in setting a meeting.


6. When you meet with the "C"-level executive, be prepared to share your idea. Do NOT talk about your products or service or this whole exercise is a waste of time. Talk about how you can help their business be more profitable, get a jump on competitors, reduce costs, maximize use of existing technologies, drive sales through the channel - or whatever other business result you can deliver. Results. Outcomes. Stated in business terms and tied to their organization's needs. That's the way to capture a "C"-level executive's attention and get your foot in the door.


Example Minster Machine


But you'll never get there unless you target appropriate accounts, invest time researching them, and develop a strong value proposition. Then you need to package this into a concise and compelling message that aligns their business needs with your company's capabilities.

In truth, it's not hard to get in to see senior executives if you do your homework!


My first year at General Electric Computer Division


How does "Selling" really happen?

"‘Selling’ isn’t happening when your talking; ‘selling’ happens when your targeted prospect is talking."


Why you should Avoid Low-Hanging Fruit!

It's easy to be seduced by low-hanging fruit.


I define low-hanging fruit as companies that have decided to

make a change and are actively looking at options.

They are companies that are ripe to buy. They call you and want

to know all the details. They'll ask for a request for proposal.


So why not pursue this company and the so-called easy sale? Pursuing these companies often can be a futile effort because these prospects have made their decision and are only comparison shopping. They usually have a favorite; but need to cover their bases. In most cases, you can't go into a sales process late and expect to win.


In other cases, when companies don't have a favorite, they're just looking for the best deal. They usually aren't loyal and believe what you bring to the market is a commodity. Whether it is or isn't, they don't want to pay more for it."


This plump, ripe fruit can be hard to resist, however. So what's a salesperson to do? I recommend you get qualification up front by asking tough questions. Ask: Who are your current suppliers and why would you consider switching? Who else are you looking at? Has your company done business with any of these companies before? How are you making this decision?


If your prospects express strong dissatisfaction with a competitor, you might have an opportunity. But if they're just looking around or give you vague answers to your questions, you have to make a qualified judgment if it's worth your time.


Many salespeople jump through hoops to get the business when they should ask themselves if the company is a good fit. Ask the company to tell you about themselves and some of the challenges they are facing looking more closely.


Do you know your end-user?


Do you know your end-user? While this seems to be one of the most fundamental and obvious questions, it's surprising how many companies can't give a good answer. They either haven't addressed the question, or

their answer lacks depth.


All of us are able to describe the product or service that we are trying to sell, including its features and technologies, because we focus on that. But, who's going to buy it, and why, and how? Maybe understanding the buyer and his needs is more difficult, but it requires a similarly dedicated effort.


Recently I met with a good friend of mine, an individual who was just starting his marketing consulting business. Over the course of lunch, he described in some detail

the services he was going to provide to his future clients.


When he had finished, I asked him, "Well, who's going to buy these services? And how will they benefit, so they can justify your fees?" With a slightly embarrassed look on his face, he admitted he hadn't given those questions

much thought.


You would think that marketing consultants would know better! To this individual's credit, he set about answering them through informational interviews and a dialog with his initial clients. And through this process, he upgraded and refined his service offering.


A company should have a long list of potential buyer type questions, such as:

Who specifically is the end user?Where does he fit within the organization?How does he satisfy the need now?

What benefits will your solution provide?


What are the negatives of your solution?What's the value of those benefits?What are the costs and risks of the negatives?How does he buy (or initiate the buying process)?What's the timing and urgency?


So how does a company address these questions? How will it obtain all this information? One alternative is to learn this information as it does "business as usual". With this alternative, normally the information is obtained lowly over a long period of time, and sometimes at the

expense of small or perhaps large mistakes.


Experience is a very thorough teacher, but it should be used to refine the market understanding, and not to obtain initial market knowledge.


A better alternative is to execute a structured qualitative market research project. Structured, because the company will want to assimilate data from multiple

sources and yield actionable information.


Qualitative, because the company wants to know, as in the case of a new product, if the end-user will buy the product at all. Once the company has determined there is a base of willing end-users/buyers, then they can scale that number to estimate the size of the market.


Selling in 2010 - Put Away Your Shotgun


Back in the roaring 2000s, selling and marketing strategies counted on the law of "big numbers." Spend a lot of money, blanket the market with advertisements or direct mail, get your brand in front of a lot of prospects and you would do well. You might only convert a tiny fraction of the total...but the law of big numbers would rescue you.


In today's market, the law of big numbers works against you. First, nobody, not even any of the big boys in technology, is has a lot of money to spend on outbound

marketing.


Second, and perhaps more importantly, your prospective customer is inundated with many more demands on their time and attention, and have fewer resources to respond with. The law of big numbers suggests that thousands of offers and pitches and brands dumped on your prospect daily and you have little chance to break through the

clutter.


Or do you?

More than a few of your peers and competitors don't believe that you do. They've closed shop, gone home, gone back to B School or the corporate world, or simply stopped marketing. Blamed the economy on their results, blamed their poor luck and timing on their

failures.


A few companies, though, continue to grow. Why? They've put away their shotgun. They've stopped trying to win the battle with the law of big numbers, and instead are aiming at individual customers with well-placed shots. These companies are investing more time and

effort in understanding the following:


· Their core competencies· Their customer's pain· The identity (title, name, contact information, bio, etc) of the economic buyer at the customer level· The identity of the end user at the customer level· The decision making process at the customer level· Effective methods of getting their message through to the right decision maker


These companies then take the time to contact the economic buyer with an individualized message spelling out the benefits of partnership between the two

companies.


An effective initial message, whether it's a phone call, post card, letter, or dimensional direct mail piece, will reflect the company's prior expertise in the prospect's market, and the business benefits the prospect will receive if they adopt the company's solution.


Some will use effective negative selling stating that their solution isn't for everyone, and that they will need to qualify the prospect to make sure there's a good fit. Others will use case studies to demonstrate the benefits

that similar companies have received.


The successful companies today have turned the law of big numbers around now they're targeting very few prospects, ensuring that they have an effective and compelling value proposition, and that they pay attention to the entire selling and marketing process. They enjoy the law of big returns seeing twenty, thirty or even fifty percent rates of closure on their sales activities.


Afraid your business will suffer with fewer prospects? How are you doing now with lots of prospects that never close? If you keep doing what you're doing, you'll keep getting the results you're getting. And that's not working!


A Salesman for All Seasons


As leaders, we are asked to direct, decide, and plan every day. We're also expected to sell. No, we may not be making cold calls and driving across the state making sales calls, but we are constantly selling the current

strategy and future ideas of our company.


CEOs and presidents are selling to their boards, important customers, bankers, investors, and employees. Mindful of this perpetual selling process, it's important to understand today's sales challenges-both for the highest-level leaders and the front line

salespeople.


Some employees may think of dedicated sales people as a slippery, gregarious group that works to trick a customer into buying something they may not want. Some in the organization may view sales people as "special" employees with large expense accounts-kind of

a like rock stars cloaked in suits.


Perhaps some of these descriptions are true. Sales people, CEOs included, often do have large expense accounts and perks. But their job can be an onerous one. They are trying to convince (yes, some might use a word like "trick," accurate or not) customers that the organization's product or service is worth buying

because it solves the customer's problem.


From low-level sales associates right to the top, sellers are continually met with rejection and proceed with determination and persistence. Most sales professionals are like you and me, learning all the technical skills of their job and doing the best professional job they can-perhaps with a bigger expense count than we have, but the differences are far fewer than the similarities.


Today, more than ever, a sales presentation is the process of explaining our product or service offering. In this increasingly complex global economy, sales is much like putting together a jigsaw puzzle.


There are many pieces to that puzzle; the job of the sales individual is to figure out all the variously shaped

pieces and put them together in a coherent fashion.


He or she needs to do this in concert with the customer. The number one priority of the good, well-trained sales person is to learn the concerns of the customer-and their pain. If our product or service truly alleviates their pain,

then we have a good shot at getting the business.


Long gone are the days when a slick salesperson can rattle off a few benefits and close the deal. Today, there are more individuals involved in the buying decision and the salesperson's ultimate responsibility is to find out as much about the inner workings of the customer as

possible.


Only with that knowledge are salespeople able to put together a presentation for all seasons-one that satisfies all the constituents' needs. Arguably, the president and CEO must know the most about customer needs as they direct development and sell concepts to customers,

investors, and vendors


As we reassess the characteristics of a successful salesperson, we must recognize the most important skills such individuals should have: asking the right questions, listening to the answers, and disseminating the information and clues that the buyer is

communicating.


Sales start at the top and filter down. Remember that as leaders, you set the tone for the salespeople in your organization-the people on the front lines of your business. Model the keys to sales success by learning about your customers, educating your customer, and ensuring each sale is a win-win situation-for you and the

customer.


You would think getting the first customer for your business would be an easy task. You set up the business, someone comes in and you have your first sale. In real life it doesn't always work that way. People tend to be creatures of habit and they continue to patronize the places they know.


There’s a logical sequence to building a business, whether it’s online or offline. There are certain things that

must be done in order to see your business grow.


Step One: Get Clear On Who You’re Targeting Before you begin any marketing, you must find your target audience. Do your research and discover who your products or services can help the most. Without a clear understanding of exactly who you’re targeting, your

marketing can’t be effective.


Specializing your approach will definitely help your conversion rate. It may make you nervous to think of narrowing your options, but it’s the first step in attracting more long-term clients. Here’s one more benefit to narrowing down your focus: each time you specialize a

little more, you’re able to charge more for your services.


Step Two: Understand What They Really Want Emotionally and Logically

Once you’ve identified your best target audience, it’s time to learn what they really, really want. What do they dream of accomplishing? What keeps them awake at night?


There’s no point in marketing your products if you aren’t sure what your target market wants. Here’s a key concept: people buy what they want, not what you think they need. Get to know your market and you’ll find

making sales much easier.


Step Three: Package What You’re Offering Toward Desired End Results

Because you understand your market so well, you know the desired end result they’d like to achieve. The closer you get to that desired end result, the better you’ll do in business. Package your products toward that result, so

that you’re always meeting the needs of your clients.


When you’re really tuned into the needs of your target market, you’ll experience the rush of business running smoothly. You’ll stop having to push and shove to make sales and see how it all flows together—the needs of a group of people, and products packaged to meet those needs. What’s the takeaway? People don’t buy because they understand something, they buy because they feel understood.


Step Four: Create an Irresistible OfferWhat, exactly, are you delivering with your products, and what must the client give in return? To be effective in marketing, you need to be able to answer that question in one sentence. Here’s an example: “Give me ten minutes per day and I’ll give you the body you’ve always

wanted.”

http://www.businessknowhow.com/marketing/attractclients.htm


You want to state your offer in a compelling way that has people raising their hands to say “I want that!” Work on developing your one-sentence offer; it will form the basis

of all your other marketing.


Step Five: Go Find Your Target AudienceWhere do the people most likely to buy your products hang out? Do they congregate on online discussion forums? What publications do they read? Which organizations do they join?

If you’ve done good market research in the previous steps, you’ll already know the answers. Now, go out there and make your irresistible offer to them in ads, talks, comments on forums and whatever way you can that makes them affordably reachable.

http://www.businessknowhow.com/marketing/attractclients.htm


Step Six: Practice Great Follow-upYou’ve done your research, created great products, packaged them to meet the needs of your target audience, and made your offer where they congregate. To maximize all the hard work you’ve already done, you

must follow-up consistently.


What’s the best way to make sure that happens? By automating and systematizing as much of your follow-up as possible. Here’s the rule: Always follow up, and find

ways to make it automatic.


Step Seven: Close the SaleThis one gets stepped around so often, and that’s a shame, because it’s essential if you want to succeed. Learn how to ask for their business. For some companies, that might mean a face-to-face meeting, and for many others, the entire sales process can be automated. Unless money changes hands, you’re not

really in business.


Whichever way you chose to close, you must give your prospects enough information that they can buy with confidence. Automate that information-sharing as much as you can, with web pages, sales letters and brochures, so that you can expand your impact in less time.


Step Eight: Make Additional OffersThe bulk of your profits are going to be made from additional sales to satisfied customers. You’ve already built a relationship with them and they know you can be trusted. Create products you can offer them as you continue to listen and hear what solutions they need.

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