THE REPORT BLOG

The Easiest Way to Indentify Your Best Prospects

When I opened up a business checking account with my bank, they gave me free checks. When we ran out, we ordered more to the tune of about $100 or so. Why am I telling you this? Because I can't figure something out.

How many times have you seen promotions for "new customers only"? I get the idea - offer a discount to get the business, and hopefully you will have a repeat customer. But did you ever hear the expression "treat your customers as your best prospects"? It is a great expression that unfortunately, many businesses don't think about. Unlike a regular prospect, your customer knows you and presumably likes doing business with you. Just as important, you don't have to spend all the time and money to convince the customer to do business with you as you do with a regular prospect. But that doesn't mean that you shouldn't invest in them. Why? Because your competitor will offer them "free checks" and other things to get them to come over. If you are willing to give "free checks" to someone new, why not do the same for your existing clients?

Now I am not going to switch banks over $100, but writing that check did remind me that my competitors will bend over backwards to steal clients - so I better put the same effort into reselling them as I do with prospects.

Important Step When Choosing a CRM/Contact Management System

By now you have probably heard of the benefits of using a customer relationship management (CRM) or contact management system. Once you realize you are ready for implementing a system or an upgrade to a more comprehensive system, you then need to pick a software package like Salesforce.com, ACT, or one of over a dozen choices.

But the decision process does not stop there. The most important step in the process is making sure that the system is set up correctly and your team is properly trained. And in most cases, that means using a reseller (VAR) or consultant. In the past I have tried to implement a contact management system to a 50 person salesforce via my IT director. The project failed within 1 week. Why? Because CRM or contact management is not just about software, it is about a system or a series of processes. It starts by making sure the data is clean (think "garbage in, garbage out"). Then, the system needs to be customized for your company's needs. Of course, there is training.

CRM and contact management are incredible uses of technology to help you increase your sales. When making the investment in one of these technologies, get professional help to ensure you do it right.

China - The Other Opportunity

Much has been written and said about the amount of outsourcing going to China. I do believe that many small businesses will be affected by this trend as their competitors who are outsourcing to China are able to pass on cost savings to customers. But there is another opportunity as well - the opportunity to sell your products and services to the huge Chinese population that is becoming more affluent.

While the opportunity is huge, so is the possibility of losing your shirt. China is a unique place with unique ways of doing business. So if you think there is opportunity for your business - do a lot of research. Believe it or not, the government can help (see www.export.gov). In addition, many industry associations and chambers of commerce have initiatives to help small businesses do business in China.

Getting Things Done

Like almost all other small business owners/managers, I just don't have enough time to get things done. As the list of things to do piles up, your stress level increases because you worry about things not getting done and even worry about forgetting things. Over the past 2 years I have developed a pretty good system to keep things from falling through the cracks. Without going into all the details, this involved putting everything in my TaskPad in Microsoft Outlook.

However, I am now learning that I need to take things a step further. I picked up a copy of David Allen's "Getting Things Done: The Art of Stress-Free Productivity" and am really blown away by it. While I am only on Chapter 2, I already have learned a crucial step in organization. According to Allen, rather than listing projects on your to-do list, you need to list the action steps to complete the project. Once you read this, it becomes an obvious "duh" moment. When you list a project on your to-do list, you can spend hours figuring out what to do - and it becomes overwhelming. Instead, when the project is conceived and is fresh in your mind, jot down the first few action steps - not as overwhelming and something that can actually get done.

Interest Rates and Your Business

Most economists predict rising interest rates this year. Typically when this happens, getting credit becomes a little harder - particularly with banks lending to small businesses. While many banks are currently touting 1-2 page applications for lines of credit up to $150,000 and more, term loans will be getting tougher. In fact, one of our readers told us that the terms in a loan offered to him were pretty draconian.

What should you do? Well you should always have credit available to you for good times (when you need to hire more people or purchase more inventory) and bad times (when you need to cover your payroll in a slow month). So call several banks and apply for a line of credit now before the requirements tighten up. Most likely the interest rate will be variable and increase this year, but having the credit available when you need it is priceless.

Happy = No Sale?

It is in our nature to want to feel good (at least most of us) and to make other people feel good. This especially applies to sales; we want to feel good at the end of a sales call. But this may not always be a good thing. In order to have a really productive sales call, you need to have got some "pain" from the prospect. Without understanding the prospect's pain, you do not have a great chance of filling a dire need, and accordingly, do not have a great chance of making the sale. To get the pain from a prospect, you and the prospect need to get out of your comfort zone - and that is likely to not make you feel good.

Does this sound strange to you? If it does, think about this: how many times how you left a sales call thinking "I got that one" only to have the prospect not return your follow up calls or to say "I need to think this over". Usually the reason this happens is because of our tendencies to want to keep the conversation update and friendly. And asking tough questions about the prospect's pain can be an unpleasant thing to do. But it definitely increases the chance of making a sale.

Make Your Trade Show Successful

Trade show/event marketing is great because unlike some other forms of marketing, you can walk away with leads. But the quality of the leads has a lot to do with the data you capture at the show. Today many of the larger shows let you scan the attendee badges. That may be good for just getting contact information, but it doesn't give you knowledge that will help you follow up.

Here are a couple of things that will help you generate quality leads from a show:

- When speaking to the prospect, make it about them. Not what you do, not your benefits, and definitely not about your brochure.

- As you get the answers from questions that you ask such as "how's business", "what are the challenges you are facing write now", etc., write the answers down as soon as practically possible - preferably on the attendees business card.

- Ask if it makes sense for you to call them in a day or two. If "yes", ask what day and time is best.

- Put all that information into your contact management system. You now can pick up where you left off instead of starting your follow up with "we scanned your badge at the show..."

Biggest Mistake in Setting Goals

When an entrepreneur starts a business, she is full of ideas on how she will change the industry/customer experience - and sometimes the world. A couple of years in the business, however, she gets wrapped up in the day-to-day. When you get wrapped up in the day-to-day, it gets harder to think big.

This happened to me. And as I was setting my 2006 goals and doing my plan, I found myself setting goals around the resources that I currently had - particularly human resources. So I figured that if my current team didn't have a particular expertise or competency required for a project, I just figured that I couldn't do the project.

Fortunately, I "woke up" and realized that I don't have to limit the growth. I have choices. I could replace those people who can't get the necessary tasks done, or more likely, I could bring on new people (including consultants/freelancers) that had the ability to accomplish goals that I set for the business.

So the point here is, when planning and goal setting, don't start with what you have, start with where you want to be. As a friend of mine, Dan Schaefer says, start with where you want to be 15 years from now and work backward.

Buying PC's for Your Business

These days you can get PCs with plenty of features and functions for as little as $400 with a monitor. If you do not use your computer for much more than email and light application work such as word processing and spreadsheets, and you are not using a network, you can probably get away with those low end models.

But if you are a multi-tasker (and who isn't) or otherwise a heavy computer user, you have to invest a little more to make sure you don't waste time and money. Here are just a few things to look out for:

- RAM memory - Computers come with a lot of software these days and of course, you will put additional software on the machine (e.g., Microsoft office). The more software you are using (and much of it runs in the background - even if you have not opened an application), the more memory you need to prevent slowdowns. Most pros recommend at least 512MB and I would strongly suggest 1G. Additional cost - usually less than $200 to get up to 1G.

- Windows Professional - Get Windows Pro if you will be networking with other computers. There are other benefits as well.

- Processor speed - The processor speed found in most computers today should be adequate unless you have some programs, such as large databases, in which case you should go for something near the top of the line.

- Hard drive - most computers today come with at least 60G drives. Unless you are storing a lot of media (e.g., pictures, music, etc.), that should do. But if you are storing media, get the biggest drive you can.

Hey, I am not a tech expert - I am speaking from experience. You can find good guides for small business technology all over the web (here is a good one). My point here is that while you always want to watch every penny, you need to consider productivity, not just price, when buying technology for your business.

Wait! Don't Write That Email Yet.

By now we all know that email has its pros and cons (see this post for some of the negatives). But one of the benefits is the ability to write (or reply to) an email at any time. However this could lead to another problem - sending an email before its time.

For example, I check my email at around 6:30AM everyday from my home. I don't know about you, but I am still a little foggy at 6:30 in the morning. Today I received an email from a potential partner on a project who asked me a question about the benefits of working together. I started to type a response - struggling for the right answer. I then realized that it would be OK if this waited until I got in the office a few hours later. In fact, I could actually think about what I was going to say and how I wanted to say it.

Bottom line - you don't have to respond to an email as soon as you see it. If it is something that requires some thought, write it when you are ready.

Don't Chuck It, Shred It.

By now you must have read about subjects like identity theft, corporate espionage, etc. Small businesses are not immune. There are hundreds of articles on the web (click here for one of ours) that address computer/online security. But despite predictions to the contrary, we still use paper. One of the easiest things you can do to prevent written information getting in the wrong hands is to get a shredder. We shred anything with propriatary information (e.g., budgets, plans, social security numbers, credit card numbers) immediately. While you can find shredders for as little as $20, I reccomend spending a little more to get the following features:

- the ability to shred more than 10-20 pages a time
- the ability to shred CDs
- micro shredding (you don't want anyone who really wants your info to piece shredded documents together).

Of course, tell your staff to use the shredder.

Tip When Ordering From Dell

I have always been impressed by Dell with their ability to produce PCs on demand and the easy-to-use website for ordering (but see below). This is one of the few companies that really understands how to market to small businesses.

Yesterday I ordered a PC from Dell. I started by selecting the computer and features on the website. But some of the special offers that showed up on the website (e.g., free shipping and a flat panel upgrade) were not being applied to my order. In addition, I had some questions regarding leasing. So I called. Very quickly the sales rep gave me free shipping and an even better upgrade to my flat panel. All in all, I saved an additional $150 on an $1100 machine. From what I understand, Dell's prices and special offers change often and perhaps that is why the rep offered me the extra deals. Regardless, I will now always call when placing my order and will ask for "any additional offers".

Looking Back on Holiday Cards

I must have received about 100 holiday cards from "business associates" this past December. I have mixed feelings towards some of them. I am not talking about ones from people with whom we have some sort of relationship. I am talking about the ones from people and businesses we really don't know. Does it make sense for someone to send a card saying "best wishes to you and your family..." if they really don't know you?

From one perspective I guess it keeps their name in front of me - just like any other direct mail piece. And I am a fan of constantly keeping your name in front of prospective clients and partners. But I think sending out a holiday card where there is no relationship is just insincere. Better off waiting until January and sending a postcard with "3 tips to _____________" (fill in the blank with some useful information related to what your business does).

To everyone else who sent me a card, Happy Holidays!