Monthly Archives: September 2012

Business Strategy , , , Leave a comment

The Strategy for Your Strategy

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“Become Your Own Boss: Effective Business Plan Writing” will be presented at Boston Center for Adult Education on Wednesday evenings October 10, 17 & 24 5:30 PM – 7:30 PM.  Do you wonder what you’ll do after you retire?  Evaluate and prepare to launch the business idea that you’ve been thinking about for the past few years.  Register at  http://bit.ly/RnyIBP

We’re at the threshold of the fourth quarter and it’s time to set yourself up for not only a strong and profitable ending for this year,  but also an auspicious beginning for 2013.  To make that happen,  you may choose to tweak your business strategy or perhaps make more substantive changes to roll out.  Change makes us nervous,  because we  enter uncharted waters.  Business plans look good on paper,  but what will reality bring? The impact can be unpredictable.  Freelance consultants can test a strategy relatively quickly,  but mistakes cost time and time is money.  Yet,  there are ways to improve the odds of achieving success.

Competitive advantage is derived from recognizing and responding to developments in your marketplace faster and more accurately than your competitors.  Strategy experts in Fortune 500 companies know that the strategy setting process must reflect the conditions of the marketplace in which one operates,  as well as your company’s influence within.  In other words,  minnows have different options than sharks or whales and the minnow’s strategies must reflect that reality.

Claire Love,  Martin Reeves and Philipp Tillmanns of Boston Consulting Group say that to effectively plan to succeed,  the business needs a strategy for making a strategy.  The trio have identified four categories of strategy setting:  Classical,  Adaptive,  Shaping and Visionary.  Small businesses and Freelancers would use one of the first two.  Think of Sony and IBM as two companies that had Visionary ideas that Shaped the global marketplace and influenced the habits of a billion consumers.

Classical is the strategy setting style recommended when operating in an industry and business environment that while predictable,  is nevertheless beyond the businesses’ ability to control or significantly influence.  Strategy planners analyze the current business situation and use that information to set reasonable business goals and identify the most favorable competitive market position that can be expected by leveraging available resources and advantages:  client list,  experience,  expertise,  relationships,  reputation,  etc.,  plus identify and assess barriers to entry.

The strategy planners then refine and strengthen competitive positioning through standard strategy planning techniques such as the SWOT  (strengths,  weaknesses,  opportunities and threats)  matrix and project the likely results elicited by the new strategy forward into successive quarters.   Goals and the strategies developed to achieve them might be followed for maximum three years,  or until changes in the business environment or within the business itself encourage the planners to set new goals and strategies.

Next week,  we take a look at the Adaptive strategy setting style.

Thanks for reading,

Kim

Sales , Leave a comment

Customize Your Selling Style

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I will present my workshop  “Become Your Own Boss:Effective Business Plan Writing”  on Wednesday evenings October 10, 17 & 24  5:30 PM-7:30 PM at Boston Center for Adult Education.  If you’ve been percolating a business idea that you’d like to launch, or would like to position for success the business you’re already operating,  please register at http://bit.ly/RnyIBP .

It should come as no surprise that  professional services clients approach buying,  in this case hiring a Freelance consultant, with their own agenda.  They are no different than you and me when we shop for a product or service.  Sometimes we know exactly what we want and other times we need guidance.  Some of us shop for designer labels that give us prestige when we flash the logo  (Prada, Jaguar).  Others like to get to know the owner and counter help at our favorite coffee shop and that relationship keeps us going back.

Jeff Tanner,  professor of sales and marketing at the Hankamer School of Business at Baylor University in Waco, TX,  recommends that you tailor your selling style to dovetail with the buying style of your prospect.  “We all  have our preferred selling style…..(but)  I don’t  always see  entrepreneurs trying to understand the need from the buyer’s perspective”.

Here are three more ways to successfully win a sale by tuning in to what motivates your prospect:

IV.   Tout your A-list clients

As William Shakespeare noted in “Othello”,  reputation matters.  Your reputation with other clients can make or break some deals.  If and when you get the chance to work with a prestige client,  be sure to get a testimonial.  That will be your springboard to the next prestige client.

Many,  if not most,  large companies will not hire a Freelancer who has only worked with small organizations.  They fear that the person does not have the capacity to adequately fulfill the job requirements.   No client wants to have egg on their face for hiring the wrong consultant.  Do what you can to leapfrog up the ladder by starting with small prestige clients and use those names as entree to the bigger fish.

V.     When service matters

For some clients,  it’s all about the quality of service.  What happens after project completion may be a concern.  Depending on your specialty,  it could be good business to devise some post-sale service packages that give clients some support as they implement or utilize what has been developed  (like a new website).

Project deadlines can also be an issue and producing a fast turn-around time may be especially important in winning an assignment.   Speedy response to post-sale questions may be at top of mind for certain clients.  To reassure those clients,  the guarantee of completing a project within a specified time frame,  or the guarantee of a response time,  may be written into the project contract or retainer agreement.

VI.    Close the deal now

Pay attention to your prospect’s body language to gauge whether he/she wants fast action.  If the prospect seems anxious to move forward,  by all means get on with it and cut to the chase.   Wrap up final details by confirming your duties,  the client’s expectations and any deadlines and get a verbal commitment to proceed that includes the project fee or hourly rate and start date.   Ask your newest client to send the contract ASAP and you may even offer to sign one immediately,  as soon as the mutually agreed-upon particulars have been added.

Thanks for reading,

Kim

Sales , , Leave a comment

How They Want to Be Sold

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When we figure out what makes a client want to become a client,  we can then make that person a client.  Does that sound too obvious?  It is and it’s true.  Before the meeting,  we must first realize that each prospect is an unique individual and so a cookie-cutter sales spiel will not work and second,  when we do get a chance to sit down with him/her,   we must learn what his/her priorities are and then sell to those priorities.  What will give a prospective client the confidence to offer you a contract?

Learning that involves listening skills and that means it’s wise to let the prospective client do most of the talking during your meeting.  All we have to do is listen and respond in kind.  George W. Dudley,  Chairman of the Behavioral Sciences Research Press in Dallas, TX,  recommends that to seal the deal,  it’s imperative to structure your sales pitch to cater to the trigger that will give you the green light.  Here are three common agendas that clients will have in mind as they evaluate whether or not they’d like to do business with you:

I.      Just the facts

If your prospect is detail oriented,  then tightly focus on what your product or service will do for him/her.  Think features and benefits plus credible third party support.  This type does not enjoy small talk or being asked a series of questions,  unless they serve to refine the needs and objectives of the project.  He/she has a very good grasp of the project scope and the expertise required for successful execution.  He/she has a high regard for quantifiable data and has probably researched not only you,  but also your competitors.  This person doesn’t want to be your buddy,  he/she just wants to get the job done by whomever can demonstrate a solid track record of results.

II.    Be an adviser

At the opposite end of the spectrum,  there are those prospects who don’t quite know what they’re looking for.  In that case,  you have the opportunity to educate.  Ask lots of questions about the scope of the project and show the client how you can apply your expertise to ensure that objectives are achieved.  As you help this prospect to make a decision, you may be able to up-sell.

III.  Make it personal

Some clients prefer to establish a relationship with their Freelancers.  Here is where you lay the groundwork for repeat business,  which is a beautiful thing.  Solid interpersonal skills are required and it may take some time to build trust and get your foot in the door.  It will be necessary to demonstrate that you care about the organization and that you’re willing to spend time on customer service,  answering questions,  training staff,  etc.  You must be attentive and not just in it for a quick sale.

More next week and thanks for reading,

Kim

Professional Development , Leave a comment

You Like Me. You Really Like Me!

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Everyone likes to do business with people they like and when given a choice,  we avoid doing business with people we don’t like.   Marketing expert Rohit Bhargava claims that in some instances,  likeability can trump professional  expertise in business situations.   In his 2012 book,  “Likeonomics: The Unexpected Truth Behind Earning Trust,  Influencing Behavior and Inspiring Action”,   he explains how we all can become more likeable ourselves.

In “Likeonomics”  Bhargava,  who led a marketing team at the global ad agency Ogilvy,  where he worked with clients such as Intel and Pepsi and who now teaches global marketing strategy at Georgetown University in Washington, D.C.,   discusses why some companies  and people are more believable than others and why likeability is integral to being trusted,  obtaining and retaining customers and making money.   He reveals five characteristics that make businesses and individuals more likeable to clients and customers:  Truth,  Relevance,  Unselfishness,  Simplicity and Timing,  neatly embodied in the acronym TRUST.

 Likeability  differs from niceness.  Those two adjectives have similarities,  but if you think about it,   you’ll realize that they are not exactly interchangeable.  For example,  nice people don’t like to upset anyone or contradict the prevailing opinion.   To avoid rocking the boat,   nice people  may not always tell the truth.  They like to go with the flow.

Nice people prefer to gloss over the uncomfortable truth because they loathe confrontation and don’t want to hurt anyone’s feelings .   Nice people want to liked.   Don’t get me wrong,  I like nice people.  I like people who don’t want to hurt my feelings.  The problem is,  nice people are often shallow people.  In my experience,  nice people do not have a backbone,  they definitely don’t have your back and in fact,  nice people are not ashamed to stand by and watch your enemies stab you in yours.

On the other hand,  likeable  people usually value the truth.   In fact,  likeable people can sometimes be rather blunt as they point out the truth of a situation.   Likeable people tend to be transparent and for that reason  they earn trust.  According to Bhargava,  trust and believability are at the foundation of being liked.  They are the basis of our most successful relationships.

Bhargava goes on to say that likeability is not the exclusive domain of extroverts and neither is it a personality contest.  Likeability is about being warm and approachable,  not about being chatty and outgoing.  When one is warm and approachable,  it is not necessary to engage in nonstop small talk in an effort to win someone over.

To be likeable,  all you have to do is be receptive to whom you meet and open to the conversation you’re having.  Be interested in the person you’re speaking with.  Listen and respond accordingly.   Believe it or not,  an excellent way to convince others that you are a great conversationalist is to listen and let the other person talk.

Bhargava further recommends that you keep your marketing message and sales pitch simple because that’s what people will respond to best.   Simple is easy to understand and navigate and evaluate and that is very important to busy people  (like you and me!).   When speaking,  limit  technical jargon and  fifty dollar words.  Don’t try to impress clients and prospects with your stunning vocabulary and encyclopedic knowledge.  Instead,  use clear and simple language,  to ensure that your message is understood and no one feels confused or intimidated  (this is not to be confused with dumbing things down).

Finally,  be honest and transparent about the services and products that you offer and your ability to meet the client’s needs.   As badly as you may need a contract in order to pay your bills,   it is far better for your professional reputation to turn down a contract if you know you cannot do the job.   Honesty demonstrates integrity,  creates respect and goodwill and will persuade that client to bring you in at another time to discuss a project for which you are qualified.

“Likeability is a skill—it is something we all universally can work on get better at”,  notes Bhargava.   Like the saying goes:  People do business with people they know and like.  They do more business with people they trust and respect.

Thanks for reading,

Kim