Integrity is: Doing the right thing because it is the right thing to do.
Integrity is NOT: simply standing by your own ideals just to be rigid.
The dictionary defines integrity as: Adherence to a strict moral or ethical code.
Adherence to strict moral and ethical reasoning is different than sticking by something you just believe in solidly or choose for you desires. Moral and ethical codes have within them a sense that these ideal transcend individualized agendas and instead are codes which apply to a wider group than just yourself.
Why do I bring up integrity? Because all too often we get so focused on our own agenda, our own goals that we forget to take time to verify if we are doing "what is right" for the client.
Becoming wealthy can be quite a noble venture-- especially when the one becoming wealthy plans on using that wealth to assist others. But, gaining wealth my dishonesty, or any other means of compromising ones character, does not justify the end result.
An example of living on target for integrity's sake is : Andrew Carnegie. Andrew Carnegie became America's richest immigrated citizen after years and years of hard work. At age 65 he sold his company and devoted his remaining years to giving away his wealth. He funded the building of over 2,000 libraries within the English speaking world. Carnegie gave away somewhere close to $350 million total to those needing various forms of assistance.
One reason I like Andrew Carnegie: he was honest about hard work. He was once interviewed and asked if he had ever had a clue his life would turn out the way that it had. His response was something to the effect that had he known all that lay before him -- he might never have been able to get up on any given day. BUT you see-- he did get up. And he did what was before him each and everyday, for the right reasons and to the best of his ability.
Again, integrity means doing the right thing simply because it is the right thing to do.
Monday, November 23, 2009
Tuesday, October 20, 2009
Great Article from Bob Rhyme
Six secrets to small-biz financial security
How to draw the line between personal and professional
By Bob Rhyme
For a small business owner, it can be hard to draw the line between what’s professional and what’s personal. After all, you’ve used countless hours and resources of your own to build your business. But when the lines between your business and personal finances blur, there can be problems and confusion.
To avoid potential headaches, consider these important points when evaluating your financial position.
Be realistic about all of your finances. As with any financial matter, planning is of the utmost importance. Consider where you want to go in both your professional and personal lives and how you will get there.
You need a plan to grow your business, so set concrete goals for growth through the years. You’ll also need a plan for retirement to ensure that you’ll have the resources to live your desired lifestyle once you finish working. By employing a team of experts who are well versed in both the personal and business side -accountants, attorneys, bankers, financial planners-you will be more likely to realize your goals and maximize value.
Try not to overdo personal expenses at the expense of your business. Many business owners run personal costs through the company as business expenses to reduce taxes on their individual return.
Running the cost of cars, vacation homes or non-business travel expenses through the business can reduce the value of the business by showing less profitability. Remember, businesses are generally valued at a multiple of the company’s net-profit.
Avoid using your business as your personal piggy bank. Just as you should curb the impulse to run personal costs through your company, don’t use the company as a mine for your personal finances. Keep your overall compensation reasonable to make sure your business remains well-capitalized. This will help you grow the business over time and facilitate any future sale.
Think about diversifying your assets. For many business owners, the business is their biggest asset-possibly up to 80-90 percent of their net worth. But it’s important to diversify your assets.
Over time, try to build a portfolio with a good mix of assets by making the most effective use of qualified and non-qualified retirement plans as well as potential use of business real-estate. This will provide more security to your portfolio by reducing the likelihood that all of your proverbial eggs are in one basket.
Share your growth of profits with key people most responsible for that growth. Consider implementing a plan that retains and rewards the key management team for their role in growing your company.
Make sure the benefits in the plan vest at the same time you are prepared to exit the company. Benefits offered to key people can be informally financed with a variety of financial tools including Corporate Owned Life Insurance (COLI).
Use legitimate tax strategies within the business to help your personal finances. You can use a number of options within the business structure to provide for your personal finance needs and those of your employees, which in turn can help attract the best people and grow the company.
In addition to offering a qualified retirement plan, consider adding a non-qualified plan, for your top level people to attract, retain and motivate. Consider using benefits like long term care and life insurance as well. Long term care benefits for yourself, your spouse and key management may offer significant tax advantages due to recent legislation.
If you want to provide key employees life insurance, consider using specifically designed life insurance policies that contain both base premium and additional premiums as a method of accumulating tax-deferred savings for use in retirement.
If you take good care of your business, it can take care of you by providing a sense of freedom and accomplishment, as well as income and a strong asset on your balance sheet. And while your business is tied to your private life, maintaining a balance can be the best way to maximize not only your finances, but your happiness.
This article was prepared by Northwestern Mutual with the cooperation of Bob Rhyme, CLU, ChFC, AEP. Rhyme is a Wealth Management Advisor with Northwestern Mutual-Denver, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee Wisconsin.
How to draw the line between personal and professional
By Bob Rhyme
For a small business owner, it can be hard to draw the line between what’s professional and what’s personal. After all, you’ve used countless hours and resources of your own to build your business. But when the lines between your business and personal finances blur, there can be problems and confusion.
To avoid potential headaches, consider these important points when evaluating your financial position.
Be realistic about all of your finances. As with any financial matter, planning is of the utmost importance. Consider where you want to go in both your professional and personal lives and how you will get there.
You need a plan to grow your business, so set concrete goals for growth through the years. You’ll also need a plan for retirement to ensure that you’ll have the resources to live your desired lifestyle once you finish working. By employing a team of experts who are well versed in both the personal and business side -accountants, attorneys, bankers, financial planners-you will be more likely to realize your goals and maximize value.
Try not to overdo personal expenses at the expense of your business. Many business owners run personal costs through the company as business expenses to reduce taxes on their individual return.
Running the cost of cars, vacation homes or non-business travel expenses through the business can reduce the value of the business by showing less profitability. Remember, businesses are generally valued at a multiple of the company’s net-profit.
Avoid using your business as your personal piggy bank. Just as you should curb the impulse to run personal costs through your company, don’t use the company as a mine for your personal finances. Keep your overall compensation reasonable to make sure your business remains well-capitalized. This will help you grow the business over time and facilitate any future sale.
Think about diversifying your assets. For many business owners, the business is their biggest asset-possibly up to 80-90 percent of their net worth. But it’s important to diversify your assets.
Over time, try to build a portfolio with a good mix of assets by making the most effective use of qualified and non-qualified retirement plans as well as potential use of business real-estate. This will provide more security to your portfolio by reducing the likelihood that all of your proverbial eggs are in one basket.
Share your growth of profits with key people most responsible for that growth. Consider implementing a plan that retains and rewards the key management team for their role in growing your company.
Make sure the benefits in the plan vest at the same time you are prepared to exit the company. Benefits offered to key people can be informally financed with a variety of financial tools including Corporate Owned Life Insurance (COLI).
Use legitimate tax strategies within the business to help your personal finances. You can use a number of options within the business structure to provide for your personal finance needs and those of your employees, which in turn can help attract the best people and grow the company.
In addition to offering a qualified retirement plan, consider adding a non-qualified plan, for your top level people to attract, retain and motivate. Consider using benefits like long term care and life insurance as well. Long term care benefits for yourself, your spouse and key management may offer significant tax advantages due to recent legislation.
If you want to provide key employees life insurance, consider using specifically designed life insurance policies that contain both base premium and additional premiums as a method of accumulating tax-deferred savings for use in retirement.
If you take good care of your business, it can take care of you by providing a sense of freedom and accomplishment, as well as income and a strong asset on your balance sheet. And while your business is tied to your private life, maintaining a balance can be the best way to maximize not only your finances, but your happiness.
This article was prepared by Northwestern Mutual with the cooperation of Bob Rhyme, CLU, ChFC, AEP. Rhyme is a Wealth Management Advisor with Northwestern Mutual-Denver, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee Wisconsin.
Monday, October 5, 2009
Defining Your Prospecting System
Step 1: ____________________
This is usually your first opportunity to introduce what you do and schedule time to learn more about your prospective client. This will likely be a brief meeting where you present a basic introduction to your services and request an opportunity to learn about your prospect’s needs.
Step 1a: ___________________
Many people choose to add an intermediary step here. This is not quite “fact finding,” but more of a get to know you session, arriving at some acknowledgement of PAIN. More simply, the prospect indicates that there is indeed a problem and they are interested in allowing you to explore further via a more detailed discovery meeting.
Step 2: ____________________
The “All About Your Prospect” meeting. This meeting is often referred to as “Discovery” or “Fact Finding.” The purpose of this meeting is to determine whether you, your company and your services are right for the prospective client. You determine whether the prospective client is right for you and your business. If right for each other, the only remaining question is what if any services you might provide.
Step 3: ____________________
Once you have gathered sufficient data to determine the right product or service to present, your next step is often to prepare and present the solution you believe will achieve your prospect’s desired goals. This meeting is about getting a decision.
Step 4: ____________________
The prospect has acknowledged the problem. You have presented a solution and they agree that it is the right solution. You are engaged. Now you must deliver. This step is often called implementation. It is the step that is necessary if you are going to get paid.
This is usually your first opportunity to introduce what you do and schedule time to learn more about your prospective client. This will likely be a brief meeting where you present a basic introduction to your services and request an opportunity to learn about your prospect’s needs.
Step 1a: ___________________
Many people choose to add an intermediary step here. This is not quite “fact finding,” but more of a get to know you session, arriving at some acknowledgement of PAIN. More simply, the prospect indicates that there is indeed a problem and they are interested in allowing you to explore further via a more detailed discovery meeting.
Step 2: ____________________
The “All About Your Prospect” meeting. This meeting is often referred to as “Discovery” or “Fact Finding.” The purpose of this meeting is to determine whether you, your company and your services are right for the prospective client. You determine whether the prospective client is right for you and your business. If right for each other, the only remaining question is what if any services you might provide.
Step 3: ____________________
Once you have gathered sufficient data to determine the right product or service to present, your next step is often to prepare and present the solution you believe will achieve your prospect’s desired goals. This meeting is about getting a decision.
Step 4: ____________________
The prospect has acknowledged the problem. You have presented a solution and they agree that it is the right solution. You are engaged. Now you must deliver. This step is often called implementation. It is the step that is necessary if you are going to get paid.
Thursday, October 1, 2009
You Can Predict Your Sales Success!
The most difficult thing about our business is predicting the future. How much money will I make this week, this month or this year? How many prospects do I need in my “pipeline” to ensure that I achieve my financial goals? Where am I in the process with each prospect? Creating and managing a pipeline is integral to your continued success.
For those of you that use a CRM (contact management software), you probably have access to a pipeline management tool that will keep you on track. The downside of many CRM’s is that they make this process far more complicated than necessary. Let’s take a moment and talk about the important elements of an effective pipeline:
1. An effective pipeline allows you to define your sales process. Every business has a unique sales process:
a. Initial call
b. Fact finding
c. Sales presentation
d. Follow up
e. Close
Your process might look like this or have some variation. Take a moment and review your successful sales from start to finish. Identify the steps that got the business closed most quickly. Put them on paper.
2. Assign percentages to each step based on the likelihood you will close the business. An initial call might only provide you with a 10% likelihood that you will close the business. While I recognize that this might only be a guess on your part, it is a starting place.
3. Ensure that your pipeline includes at least three variables. Because a pipeline is initially an estimate of your likely sales success, it is important that you have variables that will provide a reality check. These variables should include things like estimated sale, estimated time to close and estimated percent likely hood of close. When you provide these kinds of estimates, you are making your pipeline more “real” or conservative. Conservative is good! It allows you to believe your numbers. Believing your numbers is a big step toward meeting your sales goals.
4. Your pipeline should provide you with data that you can use. There should be a calculation that allows you to see the total real value of your pipeline. This allows you to see the possibilities. Your pipeline should include a metric that allows you to see what your pipeline means to your business each week. In other words, my pipeline is worth $x.xx this week. In other words this is a strong estimate of how much money you will make on average each week over the next few months. Your pipeline should also provide a calculation that allows you to predict your sales over the next year based on the prospects currently in your pipeline.
5. It must be easy to move closed sales out of your pipeline and add new business to it. This information can also be very valuable. Understanding how long it takes to close business, what percentage of your pipeline does not close, and understanding how accurate your estimates of the total sale will allow you to finesse the percentages assigned to each sales step. The end result is an even more accurate estimate of your success week in and week out.
One word of caution, be conservative! If you lie to yourself about the business that is real in your pipeline, it will serve no purpose other than making busy work for you. As questions like:
1. Does this prospect belong in my email?
2. Is this estimate of the total sale too aggressive?
3. Do they really belong in this step of my sales cycle or am I dreaming?
4. Do I think it will really close in this amount of time?
Be tough on yourself and the result will be a very predictable business. I you would like us to customize a pipeline for your business, give me a call.
For those of you that use a CRM (contact management software), you probably have access to a pipeline management tool that will keep you on track. The downside of many CRM’s is that they make this process far more complicated than necessary. Let’s take a moment and talk about the important elements of an effective pipeline:
1. An effective pipeline allows you to define your sales process. Every business has a unique sales process:
a. Initial call
b. Fact finding
c. Sales presentation
d. Follow up
e. Close
Your process might look like this or have some variation. Take a moment and review your successful sales from start to finish. Identify the steps that got the business closed most quickly. Put them on paper.
2. Assign percentages to each step based on the likelihood you will close the business. An initial call might only provide you with a 10% likelihood that you will close the business. While I recognize that this might only be a guess on your part, it is a starting place.
3. Ensure that your pipeline includes at least three variables. Because a pipeline is initially an estimate of your likely sales success, it is important that you have variables that will provide a reality check. These variables should include things like estimated sale, estimated time to close and estimated percent likely hood of close. When you provide these kinds of estimates, you are making your pipeline more “real” or conservative. Conservative is good! It allows you to believe your numbers. Believing your numbers is a big step toward meeting your sales goals.
4. Your pipeline should provide you with data that you can use. There should be a calculation that allows you to see the total real value of your pipeline. This allows you to see the possibilities. Your pipeline should include a metric that allows you to see what your pipeline means to your business each week. In other words, my pipeline is worth $x.xx this week. In other words this is a strong estimate of how much money you will make on average each week over the next few months. Your pipeline should also provide a calculation that allows you to predict your sales over the next year based on the prospects currently in your pipeline.
5. It must be easy to move closed sales out of your pipeline and add new business to it. This information can also be very valuable. Understanding how long it takes to close business, what percentage of your pipeline does not close, and understanding how accurate your estimates of the total sale will allow you to finesse the percentages assigned to each sales step. The end result is an even more accurate estimate of your success week in and week out.
One word of caution, be conservative! If you lie to yourself about the business that is real in your pipeline, it will serve no purpose other than making busy work for you. As questions like:
1. Does this prospect belong in my email?
2. Is this estimate of the total sale too aggressive?
3. Do they really belong in this step of my sales cycle or am I dreaming?
4. Do I think it will really close in this amount of time?
Be tough on yourself and the result will be a very predictable business. I you would like us to customize a pipeline for your business, give me a call.
Wednesday, September 30, 2009
Four Steps To Business Success
Great article on the importance of planning:
Four steps to business success
You know you need a plan -- so where is it?
By Theresa M. Szczurek
A legendary study of graduates from Harvard University showed the importance of goal setting and planning.
People (and organizations) with a plan outperformed those without one. The three percent of those with a written plan greatly outperformed all the others, who only had a mental plan. Having a written plan is a key factor in effectively pursuing any passionate purpose. You know that, right? So where’s your plan?
Strategic plan
Gazelles, companies growing more than 20 percent per year for more than four years, know what is important: A clear strategic plan which is implemented with best business practices.
Process. Use this 4-stage ‘pursuit of passionate purpose’ process to build your plan:
• Access progress – look at your current situation and determine ‘who are we now?’
• Find your passion by clarifying core values and competencies – determine ‘what is our passion?’
• Align that passion with a purpose and vision – Define a Big Hairy Audacious Goal or BHAG® on ‘where you want to get to?’
• Pursue purpose — Identify and implement strategic initiatives on ‘how do we get there?’
It is iterative and ongoing—over time, go back to “Access progress” phase and revise your plan.
One-page Plan. Organize outputs of this process into a 1-page strategic plan. Verne Harnish, author of Mastering the Rockefeller Habits, says, “A vision is a dream with a plan.” This communications tool aligns everyone in your company with the passion, purpose, and priorities to pursue your vision. It works. The fastest growing companies have a good plan and a well-developed habit of continually using it to evaluate progress. Keep the plan alive – monitor, assess, revise, and continue to pursue.
Example. Consider the International Center for Appropriate and Sustainable Technology (www.icastusa.org). TMS helped them create the iCAST strategic plan, implement a system for executing the plan, and better manage its exponential growth. “We found great value in establishing a clear direction and roadmap for iCAST’s future,” said Ravi Malhotra, iCAST executive director and founder.
Business Plan
More detailed than the strategic plan, the business plan explains the model for turning an idea into a viable venture. A solid business plan explains:
• Company passion, purpose, and vision (or core idealogy), background, and strategic business model to achieve its mission
• Market need and why current competitive alternatives are not satisfying them.
• Company’s solution, the product and services, offered to solve the unmet need with a sustainable competitive advantage
• Sales and marketing approach to bring the solution to market including pricing, distribution, partnership, and promotions strategies
•Realistic projections of forecasted sales and resulting revenues
• Proforma financial statements showing how the firm makes money, becomes profitable, and makes a full triple bottom-line impact
• Management and human resources available to create and execute the plans
• Explanation of what other resources, financial, human, and otherwise, are needed to succeed
The plan guides the firm’s efforts, ensures there is a solid business to be built, and helps attract resources. At AT&T International as line of business manager, the plans I created convinced the Board of Director to internally fund the effort. At my entrepreneurial venture Radish Communications Systems and with my consulting clients, the business plans are used to attract outside investors. The plan must be professional and comprehensive; otherwise you set the company up for failure.
Critical Mistakes. It is not easy to create a good business plan. Nearly 250 venture capital companies across the US, were asked, “What is the worst mistake an entrepreneur can make when completing their company’s business plan?” Eight critical mistakes were reported at http://www.capital-connection.com/survey-worst.html: not clear in explaining the opportunity, unrealistic projections, simplistic assumptions, weak analysis of competition, failure to describe a sustainable competitive advantage, mistakes, errors, and misleading information, overstated management strengths, and incompleteness such as insufficient financial data.
Example. Phil Lyman, founder and CTO of Boundless Corporation (www.boundlesscorporation.com), a Colorado corporation focused on innovative energy storage for high performance systems, wanted to expand into new markets. He made a smart decision-to build a business plan and to get help from TMS to more efficiently do so. He used this plan to attract funding and guide the firm’s operations.
Lyman explains, “One of Boundless’ keys to success has been to narrow our focus onto emerging target markets with urgent need for advanced technology. Strategic planning is paramount for establishing adequate focus.” Boundless was a finalist for an Innovation Quotient (IQ) award from Boulder County Business Report. With the right product and plan to bring it successfully to market, the firm augmented government sales with commercial sales of large-format lithium-ion batteries and packs.
Implementing the Plan – Pursue Your Purpose
Establish a strategic plan. Then expand to a business plan. Use them as tools to guide the company and its people. It takes relentless pursuit using a ‘divide and conquer’ strategy, ongoing assessment of progress, consistent team communications, and mid-course corrections.
How to Build a Good Plan?
Combine your vision of what you want with relentless effort to get it. Follow the 4-stage process. Get help from the right players. Then pursue your passionate purpose! Real rewards will follow.
Theresa M. Szczurek, Ph.D., is CEO of Technology and Management Solutions, a management consulting firm that helps organizations, teams, and individuals grow to new heights in profit, productivity, sustainability, and passion. Szczurek is an award-winning consultant, Gazelles® business coach, speaker, author, and entrepreneur whose Colorado-based technology firm, Radish Communications Systems, sold for over $40 million. She is also author of the business performance blog, Radish Sprouts, and the Amazon-bestseller, Pursuit of Passionate Purpose, which provides her proven, step-by-step formula for success. Call 800-555-8674, visit www.TMSworld.com and www.PursuitofPassionatePurpose.com, and follow Theresa on Twitter @TheresaSzczurek.
Four steps to business success
You know you need a plan -- so where is it?
By Theresa M. Szczurek
A legendary study of graduates from Harvard University showed the importance of goal setting and planning.
People (and organizations) with a plan outperformed those without one. The three percent of those with a written plan greatly outperformed all the others, who only had a mental plan. Having a written plan is a key factor in effectively pursuing any passionate purpose. You know that, right? So where’s your plan?
Strategic plan
Gazelles, companies growing more than 20 percent per year for more than four years, know what is important: A clear strategic plan which is implemented with best business practices.
Process. Use this 4-stage ‘pursuit of passionate purpose’ process to build your plan:
• Access progress – look at your current situation and determine ‘who are we now?’
• Find your passion by clarifying core values and competencies – determine ‘what is our passion?’
• Align that passion with a purpose and vision – Define a Big Hairy Audacious Goal or BHAG® on ‘where you want to get to?’
• Pursue purpose — Identify and implement strategic initiatives on ‘how do we get there?’
It is iterative and ongoing—over time, go back to “Access progress” phase and revise your plan.
One-page Plan. Organize outputs of this process into a 1-page strategic plan. Verne Harnish, author of Mastering the Rockefeller Habits, says, “A vision is a dream with a plan.” This communications tool aligns everyone in your company with the passion, purpose, and priorities to pursue your vision. It works. The fastest growing companies have a good plan and a well-developed habit of continually using it to evaluate progress. Keep the plan alive – monitor, assess, revise, and continue to pursue.
Example. Consider the International Center for Appropriate and Sustainable Technology (www.icastusa.org). TMS helped them create the iCAST strategic plan, implement a system for executing the plan, and better manage its exponential growth. “We found great value in establishing a clear direction and roadmap for iCAST’s future,” said Ravi Malhotra, iCAST executive director and founder.
Business Plan
More detailed than the strategic plan, the business plan explains the model for turning an idea into a viable venture. A solid business plan explains:
• Company passion, purpose, and vision (or core idealogy), background, and strategic business model to achieve its mission
• Market need and why current competitive alternatives are not satisfying them.
• Company’s solution, the product and services, offered to solve the unmet need with a sustainable competitive advantage
• Sales and marketing approach to bring the solution to market including pricing, distribution, partnership, and promotions strategies
•Realistic projections of forecasted sales and resulting revenues
• Proforma financial statements showing how the firm makes money, becomes profitable, and makes a full triple bottom-line impact
• Management and human resources available to create and execute the plans
• Explanation of what other resources, financial, human, and otherwise, are needed to succeed
The plan guides the firm’s efforts, ensures there is a solid business to be built, and helps attract resources. At AT&T International as line of business manager, the plans I created convinced the Board of Director to internally fund the effort. At my entrepreneurial venture Radish Communications Systems and with my consulting clients, the business plans are used to attract outside investors. The plan must be professional and comprehensive; otherwise you set the company up for failure.
Critical Mistakes. It is not easy to create a good business plan. Nearly 250 venture capital companies across the US, were asked, “What is the worst mistake an entrepreneur can make when completing their company’s business plan?” Eight critical mistakes were reported at http://www.capital-connection.com/survey-worst.html: not clear in explaining the opportunity, unrealistic projections, simplistic assumptions, weak analysis of competition, failure to describe a sustainable competitive advantage, mistakes, errors, and misleading information, overstated management strengths, and incompleteness such as insufficient financial data.
Example. Phil Lyman, founder and CTO of Boundless Corporation (www.boundlesscorporation.com), a Colorado corporation focused on innovative energy storage for high performance systems, wanted to expand into new markets. He made a smart decision-to build a business plan and to get help from TMS to more efficiently do so. He used this plan to attract funding and guide the firm’s operations.
Lyman explains, “One of Boundless’ keys to success has been to narrow our focus onto emerging target markets with urgent need for advanced technology. Strategic planning is paramount for establishing adequate focus.” Boundless was a finalist for an Innovation Quotient (IQ) award from Boulder County Business Report. With the right product and plan to bring it successfully to market, the firm augmented government sales with commercial sales of large-format lithium-ion batteries and packs.
Implementing the Plan – Pursue Your Purpose
Establish a strategic plan. Then expand to a business plan. Use them as tools to guide the company and its people. It takes relentless pursuit using a ‘divide and conquer’ strategy, ongoing assessment of progress, consistent team communications, and mid-course corrections.
How to Build a Good Plan?
Combine your vision of what you want with relentless effort to get it. Follow the 4-stage process. Get help from the right players. Then pursue your passionate purpose! Real rewards will follow.
Theresa M. Szczurek, Ph.D., is CEO of Technology and Management Solutions, a management consulting firm that helps organizations, teams, and individuals grow to new heights in profit, productivity, sustainability, and passion. Szczurek is an award-winning consultant, Gazelles® business coach, speaker, author, and entrepreneur whose Colorado-based technology firm, Radish Communications Systems, sold for over $40 million. She is also author of the business performance blog, Radish Sprouts, and the Amazon-bestseller, Pursuit of Passionate Purpose, which provides her proven, step-by-step formula for success. Call 800-555-8674, visit www.TMSworld.com and www.PursuitofPassionatePurpose.com, and follow Theresa on Twitter @TheresaSzczurek.
Monday, September 21, 2009
Strategic Alliance Relationships
Working with CPA’s and Attorneys can be either very frustrating or rewarding. I have spoken with many advisors who see incredible opportunities in building referral relationships with other professionals, but far too often they perceive these relationships as extraordinarily one-sided. They meet with the other advisor, share with each other their skill sets and agree to send clients over when the situation is appropriate. Unfortunately, these alliances turn into one way referral opportunities. The financial advisor sends referrals and rarely if ever receive referrals in return.
The key to building a successful strategic alliance relationship is to set clear expectation right from the start. Call the other advisor and begin the conversation something like this:
Frequently I have a need to refer a client to a CPA (or attorney) for work related to business planning (or estate planning, or tax planning, or . . . ) I was hoping that we cold find some time together where I might share the kind of work we do with clients and, if it makes sense, do this kind of work together in the coming year.
CPA’s and attorneys are generally poor marketers and the idea of meeting with a financial advisor who might bring them work that they can do together is very attractive. Please note here that I did not say “show them the kind of work we do so they can refer us clients.”
Once you meet, you explain your practice and they explain theirs. Then it is important for you to make take control of the relationship and demonstrate your strength. It is at this point that you let them know that you follow three rules in working with other advisors:
1. You only work with advisors who trust will do excellent work. You both must enjoy working with each other.
2. This is a reciprocal relationship. While you will send business to them, you expect business in return.
3. You want to work with advisors with whom you can learn. You believe that advancing both of your “knowledge bases” is a critical part of the relationship.
Don’t be afraid to set these parameters. They make you a stronger advisor and ensure that you are not wasting time. If they can’t live with these, then move on to other professionals who can.
The key to building a successful strategic alliance relationship is to set clear expectation right from the start. Call the other advisor and begin the conversation something like this:
Frequently I have a need to refer a client to a CPA (or attorney) for work related to business planning (or estate planning, or tax planning, or . . . ) I was hoping that we cold find some time together where I might share the kind of work we do with clients and, if it makes sense, do this kind of work together in the coming year.
CPA’s and attorneys are generally poor marketers and the idea of meeting with a financial advisor who might bring them work that they can do together is very attractive. Please note here that I did not say “show them the kind of work we do so they can refer us clients.”
Once you meet, you explain your practice and they explain theirs. Then it is important for you to make take control of the relationship and demonstrate your strength. It is at this point that you let them know that you follow three rules in working with other advisors:
1. You only work with advisors who trust will do excellent work. You both must enjoy working with each other.
2. This is a reciprocal relationship. While you will send business to them, you expect business in return.
3. You want to work with advisors with whom you can learn. You believe that advancing both of your “knowledge bases” is a critical part of the relationship.
Don’t be afraid to set these parameters. They make you a stronger advisor and ensure that you are not wasting time. If they can’t live with these, then move on to other professionals who can.
Thursday, September 17, 2009
Use Surveys To Get Close To Your Customers
I think this is both a great client retention tool and a strong prospecting tool.
Rick
_________________________________________________________
Written by John Wechsler
We all know that it costs less to keep a current customer than it does to acquire a new one. As budgets continue to be pinched and resources diminish, businesses would do well to stop looking at past and future customers, and focus some love and attention on the customers they already have.
Increasingly, an enterprise's long-term viability will hinge on the strength of its customer relationships. But just as we don't wake up one day with abs of steel, a strong customer relationship requires dedication and commitment.
Traditionally, one of the biggest challenges of getting close to your customers has been purely logistical. But online tools now make it easy to gather insight into what makes your customers tick; how you can better meet their needs; and, hopefully, what other products and services you can provide for them.
Often a simple online survey is an effective way to do just that. When you've made the decision to start getting closer to your customers by using online surveys, it's important to remember a few rules of the road.
KISS (Keep It Super-Simple)
One of the biggest mistakes people make when designing an online survey is making it too long or too complicated.
To create a successful survey, you want to keep it simple. Questions should be very clear, and the answer choices should be easy to understand. Make sure you spend some time thinking about the survey's flow. Ask yourself the following: Do the questions progress in a logical and thoughtful manner? Is there a central theme to the survey, or does it cover too many issues?
Once you think you've nailed it, take the survey yourself. Chances are you'll probably see a few things you can improve.
Make your survey fun
An online survey is a great way to show your company's personality. You can enliven your survey with a theme (sports, holidays, etc.) and use related language and themed artwork to grab your customers' attention. Even the smallest touches can leave your customer with a smile and, more important, remembering your company well after completing the survey.
For example, instead of having consumers complete the survey by clicking on a Submit button, why not name that button something else? A race car-themed survey—"let's move ahead into the future"—might end with the Submit button renamed Step on the Gas!
Make the survey easy for your customers to use
Make the exchange of information simple. Try to keep required fields to a minimum so it's easy for people to participate. Be careful not to use an unnecessary CAPTCHA, a type of challenge-response test used online to ensure that a computer does not generate the response.
Remember, the easier it is for participants to submit their information, the more you will learn and the better your customers will feel about interacting with you.
Allow customers to skip questions that don't apply to them
Have you ever been filling out a paper form and come to a section or question that says, "If this question does not pertain to you, please skip ahead to the next question"? Online surveys allow you to show and hide questions based on how customers respond to other questions on the survey. This is a great way to keep surveys short and usable while ensuring that you capture the information you need and your users don't abandon the survey before they complete it.
Use your data
When creating your online survey, it is just as important for you to determine what you will do with the data collected. Creating a survey and not acting on that data is a waste of your time and that of your customers.
So, how can you act on the data? To start, know why you are creating the survey and what you will do with the answers once you receive them. Make sure you tell your customers in clear and concise language at the beginning of the survey what you plan to do with the data.
Also, once customers submit their responses, send them a confirmation email to let them know that everything was submitted properly. Some form providers even allow you to customize email responses with information that was submitted. That provides your customers with a record of what they submitted and shows them that you are focused on listening to them.
Finally, if your survey draws negative responses to certain questions, route them to people who can act on them quickly so your customers know you are responsive to them. Plan for negative responses, and act promptly on all responses that need your immediate attention.
* * *
In summary, online surveys are a great way to stay in touch with your customers and build strong, long-term relationships. It's best to take the initiative now to ask your customers what they think than to wait for your competitors to do it.
With this knowledge, you will be well on your way to creating an environment that helps you achieve the maximum lifetime value from your customers.
Rick
_________________________________________________________
Written by John Wechsler
We all know that it costs less to keep a current customer than it does to acquire a new one. As budgets continue to be pinched and resources diminish, businesses would do well to stop looking at past and future customers, and focus some love and attention on the customers they already have.
Increasingly, an enterprise's long-term viability will hinge on the strength of its customer relationships. But just as we don't wake up one day with abs of steel, a strong customer relationship requires dedication and commitment.
Traditionally, one of the biggest challenges of getting close to your customers has been purely logistical. But online tools now make it easy to gather insight into what makes your customers tick; how you can better meet their needs; and, hopefully, what other products and services you can provide for them.
Often a simple online survey is an effective way to do just that. When you've made the decision to start getting closer to your customers by using online surveys, it's important to remember a few rules of the road.
KISS (Keep It Super-Simple)
One of the biggest mistakes people make when designing an online survey is making it too long or too complicated.
To create a successful survey, you want to keep it simple. Questions should be very clear, and the answer choices should be easy to understand. Make sure you spend some time thinking about the survey's flow. Ask yourself the following: Do the questions progress in a logical and thoughtful manner? Is there a central theme to the survey, or does it cover too many issues?
Once you think you've nailed it, take the survey yourself. Chances are you'll probably see a few things you can improve.
Make your survey fun
An online survey is a great way to show your company's personality. You can enliven your survey with a theme (sports, holidays, etc.) and use related language and themed artwork to grab your customers' attention. Even the smallest touches can leave your customer with a smile and, more important, remembering your company well after completing the survey.
For example, instead of having consumers complete the survey by clicking on a Submit button, why not name that button something else? A race car-themed survey—"let's move ahead into the future"—might end with the Submit button renamed Step on the Gas!
Make the survey easy for your customers to use
Make the exchange of information simple. Try to keep required fields to a minimum so it's easy for people to participate. Be careful not to use an unnecessary CAPTCHA, a type of challenge-response test used online to ensure that a computer does not generate the response.
Remember, the easier it is for participants to submit their information, the more you will learn and the better your customers will feel about interacting with you.
Allow customers to skip questions that don't apply to them
Have you ever been filling out a paper form and come to a section or question that says, "If this question does not pertain to you, please skip ahead to the next question"? Online surveys allow you to show and hide questions based on how customers respond to other questions on the survey. This is a great way to keep surveys short and usable while ensuring that you capture the information you need and your users don't abandon the survey before they complete it.
Use your data
When creating your online survey, it is just as important for you to determine what you will do with the data collected. Creating a survey and not acting on that data is a waste of your time and that of your customers.
So, how can you act on the data? To start, know why you are creating the survey and what you will do with the answers once you receive them. Make sure you tell your customers in clear and concise language at the beginning of the survey what you plan to do with the data.
Also, once customers submit their responses, send them a confirmation email to let them know that everything was submitted properly. Some form providers even allow you to customize email responses with information that was submitted. That provides your customers with a record of what they submitted and shows them that you are focused on listening to them.
Finally, if your survey draws negative responses to certain questions, route them to people who can act on them quickly so your customers know you are responsive to them. Plan for negative responses, and act promptly on all responses that need your immediate attention.
* * *
In summary, online surveys are a great way to stay in touch with your customers and build strong, long-term relationships. It's best to take the initiative now to ask your customers what they think than to wait for your competitors to do it.
With this knowledge, you will be well on your way to creating an environment that helps you achieve the maximum lifetime value from your customers.
Wednesday, September 16, 2009
Without Passion There Is No Success
There is only one way to ensure success as an advisor to business owners. You must be passionate about your work and its benefit to clients. Additionally, and most importantly, you must be able to convey your message with the kind of passion that makes your prospective client stand back and say I need to hear more. If you don’t believe passionately in the value of your work, you will find it difficult to convince others that they should hire you.
I have known many successful entrepreneurs over the years and there is one common characteristic I have observed in all of them. Put simply, they can’t imagine why anyone wouldn’t buy their product or service. They firmly believe that those who don’t buy are really missing out! This is passion as it applies to success in business.
The next question we must answer is how we define our product or service’s unique feature or ability that inspires our passion. What separates us from everyone others who offer similar work? Be careful here. Saying that you have a unique process isn’t going to get it done. What makes your process unique . . . and be specific. Our client’s receive “high touch” service is not a message that inspires passion.
Our clients complete a rigorous initial needs analysis resulting in a crystal clear understanding of their personal objectives. Once needs and objectives are defined we work diligently to define the plan, followed by detailed implementation and then twice-yearly status reviews. There is no room for error when the objectives are yours!
What makes this message passionate?
- Rigorous initial needs analysis
- Crystal clear understanding
- Diligently defined plan
- Detailed implementation
- Status reviews
Once you have defined your unique offering, you must then prepare your passionate presentation.
Understanding a business owner’s financial needs does not happen with a ten question fact finder. Our rigorous review ensures that we begin with a clear picture of the issues that keep you awake at 2 o’clock in the morning and then dig deep into the financial picture that is causing these sleepless nights. We don’t offer “canned solutions” and implementation means the client is involved. Finally, we are not advisors that implement a solution and disappear. The client must be willing to meet with us annually to ensure that their solutions remain current.
Finally, passion means you truly believe your message. I think there are times when advisors give “lip service” to their belief that they offer unique value. Believe me, the prospective client can tell when your belief is half-hearted. Practice, practice, practice. Tell anyone that will listen.
The final test of your passion is when the alarm goes off in the morning. Do your feet hit the floor and you can’t wait to start conveying your message?
Tuesday, September 15, 2009
Tuesday, August 18, 2009
Does he have a job . . . or does he have a business?
I think that the best way to begin this blog is with a story. This is the story of a business owner who builds a very successful distribution business over about 20 years. The company, which we will call Warehouse Supply, buys and resells warehouse materials. This includes both new and used racking, conveyors, computer systems, etc. It is an extremely profitable business and continues to be so in this down economy. I was introduced into the company by the CFO who is a friend of mine. The owner of the business, now 56 years old, has started to give some thought to transitioning the business to his son.
My initial conversation with the owner of the business revealed that very little planning has been done throughout the entire existence of the business. The obvious issues included:
- No succession plan and the owner’s family was very dependent on the income from the business.
- No exit strategy.
- The business owner’s 22 year old son had very few business or management skills.
- Very, very few systems in place in the business.
- While the business had a sizeable sales team, there was no sales system in place including no centralized contact management system.
- There is no marketing or business growth strategy in place.
- No retirement plan in place for the business owner.
- Nothing in place to retain two employees identified as critical to the continued success of the business.
Some basic facts:
- Business has been in existence since 1992.
- Business sales for 2008 were $8 million.
- Business is tracking flat for 2009 (Owner considers this a win in this economy)
- 17 total employees (7 sales, 3 accounting, 4 warehouse, receptionist, owner, son)
- Sole owner
- S Corp
As you can see here, this business would not exist if the owner was not there each and every day. In otheer words, the business owner has a great job, but not a business.
The challenge here is where to begin. In the coming weeks, we will determine priorities and begin to outline a plan.
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