Monthly Archives: April 2024

Business Strategy , , , , Leave a comment

Your Business: Get the View From 30,000 Feet

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If you operate a business, you know all too well that your work is never done. There is always a problem to solve, reports to run and statistics to analyze, emails to send, a customer to speak with (remember to take a break every now and again!). Along with the hands-on, task oriented items on your to-do list, there is another responsibility that business owners have, one that’s seldom discussed but is nevertheless a must-do—to think about the business entity and figure out how to make it grow and thrive.

Thinking about your company—where it is now, where it was a year go and where you’d like it to be in 12-24 months—demonstrates the difference between being a leader, who embodies the vision of the entity and a manager, who implements goals that enable the vision to be realized. Freelance solopreneurs must wear both hats—the manager, who prioritizes efficiency and gets things done and the forward-thinking leader, who engages in big picture thinking to contemplate the state of the business and looks to connect the dots between problems and their impact, recognize potential opportunities and plan for the future.

Ulyses Osuna, founder of the sizzling hot PR and personal branding firm Influencer Press https://influencerpress.com/ and protégé of marketing rock star Neil Patel, founder of both Kissmetrics and Crazy Egg https://www.crazyegg.com/ , recommends that business owners/leaders regularly examine your organization to assess what’s happening now and what might happen in the future. To effectively steward your business entity, it is critical that business leaders regularly devote time to think about your organization and observe how it functions in real time. Factors you may examine to supply relevant insights may include:

  • marketplace conditions, including the competitive landscape
  • how the company delivers its products and services
  • perceptions of the customer experience, including customer service, that the company presents
  • top-line and bottom-line sales revenues
  • the inbound marketing conversion rate
  • plans for growth and expansion

For companies large and small, including Freelance Consultants, Osuna feels that devoting an hour or two each week to studying the organization is needed to see and interpret the big picture view from 30,000 feet. Business leaders must do more than grind it out just to stay on top of (admittedly important) day-to-day responsibilities and keep things in motion. Remember what inspired you to create your entity; you want it to be all it can be. To maximize your organization’s potential, first get a warts-and-all understanding of where it is now, so you can recognize growth and expansion opportunities and decide how to prepare the company to pursue those opportunities. Neglect your business leader due diligence and fail to conduct frequent check-ins with the organization you created and you’ll eventually find yourself at the helm of a rudderless ship, tangled in the weeds, as you work hard but remain stuck and unable to achieve worthy goals that were once attainable.

Osuna says he gives his clients thought-provoking, sometimes edgy, questions to answer and you (and your team, if applicable) can do the same. It’s OK to address just a question or two in your brainstorming sessions, so long as you take a deep dive and keep it real. Osuna urges you to move forward and execute quickly when you have an ah-ha moment and discover something that might move the needle—do research thoroughly and plan carefully—because good ideas deserve immediate follow-up.

BTW, Freelance solopreneurs who doubt the wisdom of asking themselves questions and then answering themselves can refer to Consulting Drucker: Principles and Lessons from the World’s Leading Consultant, written by William Cohen, PhD (September 2018), to confirm that Osuna’s brainstorming method can produce useful results. Cohen’s book examines the influence that business consultant, educator and author Peter Drucker (1909-2005), who is known as the father of modern business management, has had on business practices. Cohen and his research team found that asking yourself questions and responding to them as if you are a separate entity, can produce credible answers. Your brain will supply answers, or attempt to, making the practice beneficial for a single individual to contemplate questions that require objective and big picture thinking.

Cohen at al. theorize that the primary reason for this phenomenon is that oftentimes, the facts needed to answer questions and resolve problems are already stored in your memory, even if some information cannot be easily accessed. Asking yourself questions, treating your brain as a separate entity and allowing it to find potentially useful answers, can eliminate many of the biases that may otherwise block you from identifying effective solutions. There is a limit to the phenomenon, however— if you are under a great deal of stress, or the problem is either too big or the situation is too demanding, the brain may not function well enough to identify a workable solution to the question or problem, even when you frame the query as if addressing someone other than yourself.

The list of questions below are written to help you successfully launch weekly or monthly business brainstorming sessions for your entity by focusing on three business functions that Drucker identified as vital: attraction of prospects, customer conversation rate and delivery of products or services. You can choose other questions to ponder, depending on your circumstances, and address them at your own pace. You may take on only two or three per week/month but devote an hour or two in each session to think about your business entity, it’s challenges and potential.

  1. Which systems improvements will make doing business easier, more efficient and/or less expensive?
  2. Which media outlets would best showcase the company and brand and has the company/or I been featured in one or more in the past 12 months?
  3. If I was able to hire one (or more) employees whose salary would be paid by a grant and cost me nothing, in what capacity would it make sense for the person(s) to work and would s/he work?
  4. Do my products/ services optimally fulfill the needs and aspirations of my customers? Should I add an upgrade or a simplified version or should I develop a new service or offer a new product?
  5. If I was given a no-strings gift of $300,000 to exclusively spend on the business, what would I spend it on?
  6. What do customers value most about the company? Where do customers feel the company falls short?
  7. Does the content produced for the company showcase me as a thought leader? In what categories have I (or can I) establish authority? This could involve guest articles, interviews, or speaking engagements.
  8. What do you want the company to look like in one year, two years, or five years?
  9. How do I provide solutions that solve client problems or achieve client goals?
  10. If I could do it over again, would I create this business in the way I have done—what, if anything, might change?
  11. What are the most common objection that prospects give to your sales pitch and what might be the best response?
  12. What is the biggest priority that the company faces now?

Thanks for reading,

Kim

Image: The Thinker created in 1904 by Auguste Rodin (1840-1917) on display at the Peabody Essex Museum, Salem, MA 2016 exhibit, “Rodin: Transforming Sculpture.” 

Survival Strategies , , , , Leave a comment

Give Me A Break!

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Ambitious people work hard. Their to-do list is too long—and they wouldn’t have it any other way. They are achievers and they have mountains to climb. They are always flat-out crazy busy and cannot afford to waste a single moment. Working hard, working smart (hopefully) and working nonstop defines being productive, as they see it. Productivity is the engine of ambition. To the hard-working ambitious, this is a no-brainer, right?

It seems that many, if not most, ambitious people buy into this mind-set. To show the world (and themselves) that they are not slackers, they may brag about sleeping just four or five hours at night, because they have so much work to do. Others brag about waking up at 5:00 AM, so that they can wring as much productivity as possible from the day. Working 10 or 12-hour days and maybe skipping lunch, too, is standard behavior for members of the Hard Working Club; even vacations can include a Dropbox file filled with documents to review and a list of emails destined to populate their send file.

If the above scenario describes you, please know that I admire your ambition, work ethic and determination to succeed. To keep you on your path, I respectfully offer an observation—in order to sustain your ability to work hard and smart and maximize your productivity so that you can take aim at the ambitious goals you want to achieve, you must effectively manage your energy, concentration (i.e., focus) and endurance, mental and physical. Proper management of energy has nearly as much impact on productivity as the time spent working on your task.

Recall an instance when you finally had time to work on a task that was hanging over your head, but you put it off because you were too unmotivated or exhausted to do it. What your brain and body were telling you was that every once in a while, it is beneficial to stop working and rest. Rest periods—breaks—during your working day are more powerful than you might realize. In fact, rest breaks can improve productivity because they allow you to replenish your physical and mental energy.

A period of at least 10 minutes, during which you stop working and engage in a restorative activity (or inactivity) helps your body and mind to relax and refresh. Fatigue undermines concentration, creativity and endurance. Ignore that reality and you can find yourself unable to focus or perform well. Habitually pushing yourself to work through fatigue is not a sign of discipline or determination. Ignoring your human needs is counterproductive and can lead to burnout, a condition associated with unfortunate physical and psychological consequences.

By contrast, taking short breaks throughout the workday will restore your energy and help you maintain the physical and mental endurance needed to maximize your productivity. Taking breaks also supports the healthy self-regulation of your emotional state and behavior—that is, your mood—to promote positive interactions with others. When over-tired, we are vulnerable to responding to others in ways that are reactive—brusque or irritable—and we’re prone to taking frustrations out on others.

So, to stay at the top of your game, take a few micro-breaks throughout the day. Those respites can be as brief as 10 minutes in duration, but they matter. Just as micro-stresses might accumulate at work, micro-breaks can help you counter the negative effects. Below are examples of how and when you can incorporate restorative, productivity-enhancing breaks into your crazy busy workday.

1. Give yourself permission to take breaks.

Challenge the assumption that you’re too busy to take a break—you can’t afford to not take a break! Instead of leaving it to chance that you’ll find a few random minutes to squeeze in the rest you need, be as intentional about restoring your energy as you are about working hard and being productive. When you get into your car to begin a journey, you must have fuel in the tank. Taking a break during your workday is like going to a filling station to get the fuel needed to reach your destination.

2. Schedule breaks and set reminders.

Schedule blocks of time during the day when you’ll step away from work-related activity and do something that allows your mind and body to relax, so that you can replenish your physical and cognitive energy. You can let your biorhythms guide your break time and schedule a rest period when science predicts that your energy is at its lowest — in mid-to-late afternoon.  Research shows that our energy is typically lowest at around 3:00 P.M. You might try giving yourself 15-minute breaks at mid-morning and mid-afternoon, plus a 30-60 minute lunch break. Adjust the timing as you see fit.

If you’re inclined to get lost in your work and ignore the physical or cognitive hints that signal it’s time to rest a few minutes, install a pop-up alert on your desktop or phone to encourage you to stop working for a few minutes. Having a visual cue on your workspace screen, maybe a coffee mug, or an image of someone walking a dog or in a yoga pose, is a practical and entertaining reminder that break time has arrived. There are several apps designed to do this and some are free.

3. Build on bio breaks.

The breaks we must all take are the bathroom breaks. You can build an add-on to one or more of your bio breaks by “stacking,” that is, developing a new habit by attaching it to an existing habit or behavior. So, after your bio break, add your preferred relaxation or exercise activity. In this way, you pair something you want to do (or should do), with something you must do, such as visiting the bathroom. After your bio break, it will feel easier to transition to a 10–15-minute break that you devote to practicing deep breathing, meditating, climbing a stairwell or, for a longer break, taking a walk or run.

4. Batch email and other communications.

It can be tempting to use a few spare minutes when you have them to quickly respond to email or Slack messages, to make what could be an avalanche of mail more manageable. Yet, blocking out specific times in your workday for responding to emails is not only an efficient use of time, the practice also makes it easier to develop the habit of scheduling time exclusively devoted to breaks that do not include some form of work. It is in your interest to enable yourself to periodically relax and refresh, to sustain your energy and work at peak productivity.

5. Maintain meeting boundaries.

If possible, do not allow yourself to be trapped in meetings that exceed their allotted time frame (admittedly, this is easier to enforce when you preside at the meeting). If you are not the convener or meeting leader, be proactive about defending your boundaries by communicating in advance that you have another commitment that follows the meeting and therefore, you must observe the adjournment time indicated on the agenda and make your exit. Setting the expectation from the start that you will leave a meeting on time subtly encourages other attendees to be sensitive to the need to adjourn promptly.

It’s imperative to exert control over your time. When meetings exceed their projected adjournment time it can cause you to join your next meeting late, which is disrespectful and possibly disruptive to those attendees. Moreover, being late adds stress to your day. Most people will appreciate your stated intention to leave the meeting when the expected conclusion time arrives because respecting time often benefits them as well. In the event that you arrive late to your next meeting, spending just 15 seconds to take three deep breaths can help you focus, feel more prepared and be fully present.

6. Your go-to routine for unexpected breaks.

When possible, take advantage of unexpected breaks that occur when a meeting adjourns early or, conversely, starts late. Whether you listen to music, stretch your neck and roll your shoulders, or engage in a breathing exercise, creating in advance an easy to do and remember relaxation routine will allow you to use unanticipated breaks to your advantage. When it happens, embrace the serendipitous gift of time and use it to reduce stress and replenish your energy.

Thanks for reading,

Kim

Image: © Bettmann Archive, Lunch Atop a Skyscraper photographer unknown, September 1932. Iron workers take a lunch break 800 feet above West 49th Street during the construction of NBC Studios at 30 Rockefeller Plaza.

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Make Sure the Price is Right

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If your goal is to build a thriving and sustainable business entity (and I know that it is), it’s imperative that you determine the right price point for the goods and services you sell. Establishing the most advantageous price range is an element of your marketing strategy. That means your pricing strategy must align with both the brand identity and market position occupied by your products and services and also be acceptable to target customers. Understand where your company is—and where you want it to be—in terms of perceived brand value. Do you consider your company to be a discount option, middle-road, or a luxury option?

Pricing is integral to business profitability and a cornerstone of business success. Experienced business owners and leaders agree that a pricing strategy can make or break a company—set prices higher than what customers care to spend and sales are lost; set prices too low and revenue potential is not achieved.

Surely, you’ve noticed that pricing has been a sensitive topic over the past few years, as inflation that (allegedly) topped out in 2022 caused the prices of numerous goods and services to rise as business owners sought to protect their profit margins from increases their organizations faced for the raw materials, acquisition costs, transportation and other expenses associated with bringing goods and services to market.

Unfortunately, readers of this post—mostly, Freelance consultants and SMB owners—often lack the financial cushion to withstand all but the briefest periods of economic adversity. Enterprise companies and other well-capitalized entities are better equipped to absorb both the rising costs of product production or acquisition and customer push-back associated with higher retail prices. Instead, the “little fish” are squeezed between inflated business costs and customer reluctance to accept price increases. Their reluctance may stem from budget cuts that inhibit B2B sales and in the B2C sector, the problem can stem from wages that may not have kept pace with inflation. Both scenarios can lead to prospects who second guess their need to spend and result in shrinking sales revenue.

As was discussed in last week’s post, being in business is all about solving problems, is it not? In order to survive, companies large and small must at least generate enough revenue to cover operating costs. Increasing the price of your goods and services might make you nervous; it may appear that you’ll lose a customer or two and that is worrisome. Keep in mind that customers are aware of inflation. They also understand that you are in business to make a profit. Optimizing your pricing strategy is the best defense. Offering a simplified version of your products or services can perhaps be an attractive option that may allow you to retain price-sensitive customers.

Calculate production/ acquisition costs

Let’s start with the math: (Price – cost) x quantity = profit. Before pricing your products or services, you must calculate the time and money you spend to obtain or create them. Tally the costs of each item purchased and each hour spent to produce, acquire, or create each product or service that you sell. So, if you purchase at wholesale products that you resell, calculate the costs of buying and shipping those items. If you manufacture the products yourself, or outsource the production/manufacturing, calculate the costs of the materials, manufacturing expenses, employee wages and the time you devote to production tasks.

Likewise, if your business is based in the knowledge economy—maybe you customize business strategies, or you create sales training workshops that you present in video classes—to the best of your ability, calculate the number of hours spent designing your intellectual property and assign an hourly rate to yourself so that you can determine the wholesale cost of your work (keep in mind that you’ll bill your clients at retail).

Once you’ve confirmed the amount spent on obtaining or creating your products or services, you will have discovered a vital piece of financial info—the break-even point, which represents the minimum selling price required to cover the costs you’ve invested to obtain your products and services. For info on pricing tools that might be useful for your business entity, click: https://www.symson.com/blog/best-competitive-pricing-tools

Benchmark against key competitors

Both industry statistics and the pricing habits of key competitors can provide guidance when evaluating potential pricing strategies. Within each industry, there are typical standard mark-ups and profit margins that are recognized as normal ranges. This info can help Freelancers and SMB owners to first, understand if their product/ service acquisition or development costs are too high or low relative to the typical selling price range and also where, or if, their selling prices fall within the typical price range for that product or service.

Further confirmation can be gained by investigating the pricing of two or three direct competitors, to discover an upper and lower price tolerance for your customers and identify a pricing sweet spot. In other words, for products similar to what you offer, if you discover that the most expensive competitive price in your market is $300 and the lowest is $100, that’s a convincing indication of the price range your customers accept and you can therefore confidently price your offerings somewhere between those values, guided by your production or acquisition costs and your company’s brand identity.

Emphasize value, not price

Benchmarking the pricing of certain competitors can be instructive but you should avoid copying what your competitors do. Competitive pricing intel is best utilized as guardrails that help you discover a price range that your customers can be expected to accept. Believe that your products and services can stand on their own merits—that is, the value your brand delivers. Your company and its products and/or services are more than just a price tag, more than a commodity.

Too many Freelancers and SMB owners attempt to win customers by being the cheapest game in town. This mindset nearly always leads to underpricing—undervaluing— your products and services and your company as well. When you choose to primarily compete on price, it is unlikely you’ll ever preside over a thriving entity. It’s much more likely that you’ll be trapped in a race to the bottom as you compete with those who are willing to undercut your price whenever necessary. According to spellbrand.com, “by being the cheapest or lower priced, you attract the wrong customers. You attract customers who make decisions based on price and not value.” Leave the price wars to Walmart and focus instead on how much customers might be willing to pay once they understand the value associated with your organization.

When you compete on value, you will attract and interact with prospects who respect you, your professionalism and abilities, and your company. The moment you decide to emphasize the value, you will attract those ready to invest at the level of service or product you can deliver. 

On that note, along with a thrifty vision of your product or service to attract price-sensitive prospects, develop also a VIP up-sell category in each product or service that you provide because there are always customers willing to invest in the very best you offer. Including a premium option of your products and services is a quick way to add even more revenue to your business income streams. When you are playing the long-term game as an entrepreneur, you want the best.

Thanks for reading,

Kim

Image: LazingBee

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On Considering a Business Partnership

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It’s often said that two heads are better than one. If you’d like to achieve an important goal or solve a problem that’s disturbing your life, help may materialize as a friend who suggests a solution that overcomes the obstacle. Now if the advice you need concerns a business venture, your answer could be found in the person of a business partner who’s willing to join you in the venture and bring resources that help jumpstart the success you envision.

Freelance professionals and other business owners may reap significant benefits from a partnership; a wisely chosen business partner will bring resources to your company that, depending on the products and/or services sold, can position the entity to take on big budget, high profile projects, introduce more clients, expand the products or services the company provides and/or improve access to capital that enables the business to scale and expand.

Partnership planning

Forrester, a global market research company with headquarters in London, UK and Cambridge, MA, in 2019 conducted a study that revealed companies worldwide use business partnerships to “drive competitive advantage.” Results indicated that 77% of companies view partnerships as “central to their business strategies and initiatives.” Those encouraging results could apply to your company, too, if you set things up right.

Because a partnership is a long-term, game-changing strategy, it’s essential that you discuss the idea with your accountant and business attorney before making any moves. There are different types of partnerships you can create, any of which might benefit your company. If the possibility of a partnership comes to mind, consider your vision for the business. Where is it now, in terms of profitability, number of clients and shrewd competitors? What do you want the business to look like in five years and what are you willing to do and spend to make it happen?

The insights and recommendations of your advisers, who are familiar with company finances and other important factors, will help you decide the type of partnership that has the greatest potential to fulfill your business goals. Involve whoever appears to be a strong candidate to join you in meetings with your advisers to talk specifics. It will make sense to ask your business attorney to draft a written partnership agreement for the new entity, whether or not your state requires that such a document must be filed with your Secretary of State or Attorney General.

Below are two standard partnership formats; the specifics of your choice will be included in the agreement, as will the ownership percentage of each partner. Keep in mind that partner contributions to the business may take various forms. Capital contributions can be made as cash, property, equipment, or intellectual property. The value of each partner’s contribution will impact the percentage of his/her ownership stake.

  • General partnership: where two or more individuals own and manage the business. GPs share equal responsibility and decision-making rights for the business, will receive the agreed-upon share of profits generated and will incur the agreed-upon liability for losses and debts. The liabilities, contributions and responsibilities of partners are typically equal unless stated otherwise. Profits and losses are shared equally, unless stated otherwise.
  • Limited partnership: limits the amount of financial liability for partners who join the entity as an investment opportunity. While there must be at least one general partner, there may be several limited partners, whose function is to bring additional operating capital to the entity. LPs receive profits and are also responsible for debts or losses, in accordance with the size of their contribution. They are not involved in the day-to-day management of the business, nor do they have decision-making power. LPs, often called “silent partners,” serve solely as investors in the business, with the funds they contribute being the extent of their liability.

The partner dance: who zigs, who zags

The person(s) you invite into your business is/are determined by the role the partnership will play in the company. Do you want a co-worker to help you operate the business and also add money and/or other resources? Or do you want more money to invest in the entity while you remain at the helm, developing and executing goals and strategies designed to advance business goals? As noted, you’ll begin by discussing your vision with advisers.

Once it’s decided whether a GP or LP arrangement is applicable, you’ll consider appropriate candidates to approach. In their 2015 book Rocket Fuel, authors Gino Wickman and Mark Winters stress the importance of having both a visionary and integrator — two different people — in order to successfully scale companies. The authors say, “When these two people share their natural talents and innate skill sets, they have the power to reach new heights for virtually any company or organization.”

Restaurants, in particular, typically follow an alternative partnership model, known as “front of the house” and “back of the house.” The front of the house partner is the extrovert who takes on customer-facing responsibilities—greeting customers, acting as the public face of the operation and talking to restaurant viewers and media representatives and, based on those functions, oversees marketing and brand management, for example. The back of the house partner oversees kitchen prep and clean-up, inventory management, accounting/finance and operations functions. Note that the format recommended by Wickman and Winters, as well as the restaurant model, are actually operating agreements and are used by GPs and not LPs.

Your partnership operating agreement should be committed to writing, so that the responsibilities of each partner, accompanied by job descriptions that clearly assign the related tasks, are spelled out. Below are questions that will help aspiring partners get to know one another better and perhaps anticipate how the new team will function, for example, when developing goals, implementing strategies and making decisions.

  • What motivates an aspiring partner?
    It’s only natural to begin the conversation by explaining your reasons for seeking a partner. However, you may learn more by listening to the candidate discuss his/her preferences, expectations, perceived strengths and weaknesses and needs—you want to avoid making assumptions about others’ goals and intentions. Furthermore, make sure you’re on the same page about issues like work ethic, business growth or expansion, willingness to take on risk (see below) and spending money.
  • How will you handle risk?
    Risk is present in all business ventures and we all have our way of approaching risk in its various guises. Partnerships will have a greater chance to succeed if those involved share a similar attitude toward risk. It may be possible to limit the possibility of taking on excessive risk in the partnership agreement, but it’s best to know if one partner is primarily risk-averse or a gambler and consider those characteristics when choosing the partner(s).
  • Agree on performance evaluations (KPIs)
    Unfortunately, many entrepreneurs create or join partnerships that don’t deliver. Quantifying expectations that will define success upfront gives partners the ability to objectively assess and track business performance. If the needle isn’t moving, partners can then decide on a course correction. It may be useful to include in the partnership agreement required performance assessments that make renewal of the partnership contingent upon achieving certain KPI milestones.

Characteristics of the right partner

Partnerships, like all relationships, are primarily built on trust. With that in mind, below are practical considerations to help you recognize a potential partner. Obviously, you want to partner with someone who is honest, committed, works hard and smart and is easy to get along with. Characteristics and conditions that you may want to look for as you consider a potential partner include:

  1. Trustworthy

As noted, trust is the foundation of the partnership. If you can’t trust your partner, nothing else will matter. The challenge lies in trying to assess trustworthiness when you don’t have a pre-existing relationship. Evaluating trustworthiness often comes down to the feeling you get when interviewing a prospective partner and examining his/her business track record. You’ll need to have several conversations with any potential partner — discussing experiences, beliefs, vision, background and other situational factors.

You may as well want to have conversations with people who know the candidate personally and professionally. Be sensitive to the way other people talk about your prospective partner—do they seem to feel positive and enthusiastic, or do they seem guarded or even indifferent?

A candidate’s business track record will also tell a story. Scrutinize candidate resumes and evaluate the financial performance of businesses they’ve owned or worked for in the previously. Were these companies and/or departments better off when the candidate left? Were there any questionable decisions that act as red flags?

2. Compatible

You’ll spend a lot of time with your business partner. You don’t have to be best friends, but you’ll need to forge a good working relationship, enabled to identify and prioritize goals and get things done. There must be a healthy dynamic that allows you to function as a team for the betterment of the business. Evaluating potential compatibility often comes down to a gut feeling.

3. Complementary skills

While compatibility is important, you don’t want to bring on a business partner who has an identical skill set. This won’t move the needle much for your business. Ideally, you find someone who has complementary skills. For example, if you’re good at innovation and product development, you might want a founder who has more experience with sales and marketing. Think back of the house, front of the house and also visionary and integrator.

4. The right network

Networking is a huge part of launching and growing a business. A venture in its early stages especially is highly dependent on a robust network of relationships to get the word out about the new venture. Even as the business grows, a healthy network will open doors for new opportunities.

Many will say that the network should be large, but I recommend quality over quantity. Having relationships with a select number of influential professional and/or personal contacts who will advocate for you and recommend or refer you to potentially good opportunities, as I see it, is much more effective than an extensive network that’s filled with people who cannot or will not make a phone call on your behalf or anything else to further your cause.

Apply this principle to your search for a partner. On your qualifications list should be the quality, or if you prefer the quantity, of his/her network. A partnership should give you/the business instant access to new, beneficial relationships . Between your network and theirs, you should notice an instant increase in revenue potential.

5. Problem-solving skills

As you know, running a business is all about recognizing, solving and, ideally, avoiding problems. That points to the need to find a resourceful and responsible person who has enough business operating experience to have become a skilled problem-solver. As you interview candidates, ask each one to describe a couple of business problems that s/he has faced and how (or if!) the issue was resolved.

It is very instructive to grasp how a partner is likely to respond when there’s a problem to confront. Did your candidate ignore the problem, hoping that over time the issue would resolve on its own, or did s/he quickly jump in to fix things, perhaps before understanding the root cause and whether an effective response could be made by your team, or if it would be wiser to rally the support of fellow business owners?

Depending on the situation, either response could be appropriate. Getting a sense of the Emotional Intelligence, judgment and strategic thinking style of a prospective partner will give you a strong indication of that person’s suitability to become a good partner for you.

Thanks for reading,

Kim

Image: Diane Arbus, ©The Estate of Diane Arbus LLC. Cathleen and Colleen Wade at age seven (Roselle, NJ 1967)

Sales , , , , Leave a comment

Lemons into Lemonade: When the Prospect Says No

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Unless you’re selling iPhones and iPads or another hot product, you know that sales is a tough business (I speak from lived experience). It’s a fact that prospects usually decline to buy. According to 2024 data compiled by researchers at Hubspot, the inbound marketing company based in Cambridge, MA, the average B2B sale has a success rate of 29%. https://blog.hubspot.com/sales/sales-statistics

Selling is a complex and intimate form of communication, a skill that’s impacted by luck (good or bad), timing, money, relationships, serendipitous trends and the needs or wants of prospective customers. Is it possible to crack the 29% close rate? Maybe if you’re an especially gifted talker and luck is on your side. For the rest of us, though, a lost sale means trying to get past disappointment as you pick up the pieces and move on.

When you think about it, you may agree that the best outcome of a sales presentation is to get an honest answer from your prospect. The worse possible outcome is when the prospect ghosts you, gives you the silent treatment. According to research by Matt Dixon and Ted McKenna, co-founders of DCM Insights, a B2B sales training company, and co-authors of The Jolt Effect: How High Performers Overcome Customer Indecision (2022), 40% – 60% of B2B sales are lost to no decision—ghosting by another name. Yes is always the favorite answer but even no feels better than being ghosted.

If selling is integral to your business, you’ll do well to focus on just getting an answer from your prospect, even if it’s not the one you hope for. In the competitive terrain of B2B sales, the pressure to extract yes from prospects can lead to frustration and stress. But those whose livelihood depends on successful sales—Freelancers, business owners and sales reps working for a company they don’t own—cannot continually chase down prospects, especially when it’s obvious they’ve slipped away. That’s a losing strategy, both time-wasting and corrosive to self-esteem.

There is a sliver of bright side, however, because when the prospect says no, it doesn’t always mean that you leave the scene empty-handed. The less experienced or confident salesperson will automatically assume that no means never. That could be true, but those who’ve been around the block a couple of times know that a prospect who declines to buy today might mean, “let’s talk at another time.” Those who sell should be aware that a third option can exist beyond the yes/ no paradigm.

The often neglected third option can lead prospects to revisit, reassess and sometimes redo a rejected sales decision. If you enable the process, you and your prospect together can access the third option and expand the meaning of a successful sale. It’s good sales strategy and respects the power you’ve earned as a professional who creates value.

So, when preparing for the next sales meeting, why not adjust expectations of potential outcomes and re-frame your definition of a “lost” sale? Like describing whether your glass is half-empty or half-full, allow yourself to reclassify no and redefine it as another type of opportunity—kind of like turning lemons into lemonade. Many prospective customers are not completely forthcoming when discussing a potential sale. As noted by Dixon and McKenna (above), roughly half of B2B sales are lost because no decision is made.

That all-too-common lapse should be the biggest motivation for those who sell for a living to ask probing questions when meeting with prospects. You need to tease out any unspoken agenda items and get the cards on the table. You set the stage for a candid discussion during sales meetings by showing that you care: listen well, take notes and repeat key phrases to confirm what needs to be resolved, achieved and/or avoided. Do that and you’ll earn trust and make it comfortable for the prospect to tell you what’s up, instead of ghosting you because s/he can’t figure out how to talk about things.

Yes, no, next steps

To encourage yes (and discourage a future no), make sure you and the prospect establish and agree on whatever next steps will continue the positive momentum of your conversation and facilitate ongoing engagement. In other words, do what you can to keep the prospect talking and keep alive the possibility of a sale, even if the timing will be later rather than sooner. Make the lemonade.

For best results, propose a specific time-frame for follow-up actions that lead to the next conversation. The follow-up will be an action plan that functions to promote the chances of converting the prospect into a yes in the future. Still, remember that your reassessment of a win should mean that you focus on getting a well-considered answer. If the answer is based on a thorough evaluation of your proposal by the prospect’s decision team, then call it a win, whether s/he says yes or no. Ghosting is what you want to avoid. Here are rewards you’ll get when you re-frame the meaning of successful selling:

  • Yes: Always the favorite answer. Your talking points and proposal convinced the prospect.
  • No: An unequivocal no does not always represent failure, as it tells you to move forward and pursue potentially more promising leads. The earlier in the sales process that no arrives the better it is for you. Then, you can redirect your time and energy on opportunities that may get you to yes.
  • Next steps: This option is based on specific follow-up actions and a scheduled time to meet with your prospect. Next steps is a win because it confirms potential interest and outlines a roadmap to a possible “yes.” The key to next steps is a specific follow-up time-frame.

Thanks for reading,

Kim

Image: © Getty images. Children Selling Lemonade, 1945