Posts Tagged ‘Small Business’

Five Reasons to Pick up the Phone

Friday, December 23rd, 2011

by Dr. Wesley Carter

Ask any professional and they will tell you that email is indispensable. Email serves a vital role in the operation process. Unlike live conversations, email enables individuals to rehearse messages before actually communicating to the recipient(s). In addition, email functions as a tool for communication, documentation, archiving, dissemination, invitations, tracking, and organizing.

However, the overreliance on text and email may be negatively influencing interpersonal relationships between professionals. Email simply does not have the potential to replace all communication mediums. There are at least five situations where email is not a very communication medium; debates, emotionally charged messages, private conversations, negotiations, and media richness needs.

The Rule of Six. If more than six emails are exchanged about the same topic between two people, within the same day, it is time to make a phone call. When numerous emails are exchanged within a relatively short period of time, email has outlived its usefulness and a voice-to-voice conversation is a more effective communication tool.

Context-sensitive messages. When the context of an email can be negatively misinterpreted, it is wise to make a phone call. Disagreements and misunderstandings can escalate quickly when emails are perceived negatively or too rigidly. In fact, emotionally charged communications may be exacerbated by email. A phone call provides both parties with the opportunity to clarify points and resolve issues in real-time.

Privacy Needs: One should never assume an email message is private. Electronic communications are never truly private. Most employers have the legal right to access any and all communication that occurs through company property. Truly private messages should never be relegated to email. If an email could be negatively perceived by organizational leadership or law enforcement, it should not be created.

Negotiations. Email is not effective tool for facilitating negotiations. However, after the terms have been negotiated, email is an excellent documentation tool. In a successful negotiation, each party feels fairly heard, represented, and compensated. Unfortunately, the lack of social cues inherent in email communication may not provide each party with enough information to perceive the negotiation positively.

Media richness requirements. Face-to-face communication is considered rich media, whereas text communication, such as email, is considered lean media. The classification of communication modes based on richness and leanness refers to the capacity for accessing social cues via a communication medium. It is easier to share social cues through face-to-face communication than email. Ideally, individuals should meet face-to-face when starting a new working relationship to negotiate the rules of engagement. However, face-to-face meetings are often impractical. In those instances where face-to-face communication is not possible, voice-to-voice conversation is the next best alternative. Email should only be utilized to kick-off new relationship if face-to-face and voice-to-voice are unavailable.

Before typing the next email, individuals should pause and evaluate whether email is the most effective medium to communicate the intended message. Taking a few seconds on the front end could save time, money, and relationships. It is an investment well worth the consideration.

Dr. Wesley Carter authors a weekly business column in The Charlotte Post newspaper. Carter holds a Doctor of Management (DM) degree from the University of Phoenix with an emphasis in Organizational Leadership, an MBA from the Babcock Graduate School of Management at Wake Forest University, and a B.A in Management from the University of North Carolina at Charlotte. This information may not be copied or shared without permission from Dr. Wesley Carter. If you have a question, email wesley@krsconsult.com or call (704) 992-1211. This article originally appeared in the Charlotte Post.

Closing the Deal

Wednesday, July 6th, 2011

By Dr. Wesley Carter

Closing the deal is the most important stage in the sale cycle. Ask any salesperson and you will get the same response, closing the deal is paramount to sustainability. Whether you are selling through relationships or cash and carry, closing the deal is still the most important phase of the sales cycle. Every successful sale is a product of the close.  

Becoming a better closer requires four very specific skills; relationship skills, listening, courage, and emotional literacy. While the depth may vary depending on the complexity of the sale, developing a relationship with the client is pivotal. We have all heard the old adage a million times – - people buy from people they like. If a substitute is available, customers will often go out of their way to avoid buying from a sales person they do not like or trust. The higher the price of the service or product, the stronger the relationship required to close the sale. The foundation of any strong sales relationships is partnership. The challenge is to persuade the client to view the salesperson as a trusted advisor. The difference between being perceived as a trusted advisor as opposed to a salesperson is huge. Customers are more likely to share their buying criteria with a trusted advisor to reap the benefits of the seller’s knowledge.  Developing a sustainable relationship with customers requires a salesperson willing to delay instant gratification to provide an optimal solution at the risk if sacrificing revenue in the short-term.   

Actively listening refers to the process of interpreting customer responses with respect, kindness, and honor. A talented closer listens without preconceived notions and seeks points of commonality to build personal connections with customers. Gestures such as nodding, smiling, and other expressions of empathy communicate sincerity. The body language of the listener should demonstrating positive regard toward their clients. Most importantly, closers listen intently to discern the customer’s frame of reference. This information will be critical to identifying an appropriate closing strategy.

Closers overcome obstacles to sales with bravery and fortitude. It takes great bravery to satisfy customer demands and respond to objections. Closing a complex deal can take months to consummate. Yet, many salespeople lose the deal because of the awkwardness for asking for the business. After the hard work of identifying the decision maker and resolving doubts and unspoken reticence, closers enact resolute endurance and take action in the face of uncertainty to seal the deal.

Emotional literacy in sales refers to the degree of self-awareness, self-control, intuition, and empathy possessed by the salesperson. Sales engagements can be quite complex and therefore, resistant to simple rules. From a sales perspective, there are three primary components of emotional literacy; controlling and channeling one’s emotions, recognizing the emotions of the customer and influencing those emotions to consummate the deal.

The effectiveness of every closer is a product of the degree to which they take responsibility for guiding the sales process and bringing it to a successful close.  Closers grasp the larger sales experience and anticipate future objections and unforeseen hurdles to position their products and services advantageously.

While there are numerous closing techniques, there are a few strategies that consistently net great reward. Close on the minor terms first and focus on quality instead of price. Leverage repetition to drive the value of the benefits home. On large ticket items, break the price down into daily increments to reduce sticker shock. Point out the opportunity costs associated with forgoing the purchase. Attempt a trial close to gauge the customer’s amenability to closing. Remember, the deal is not closed until either money has exchanged hands or the paperwork has been signed. Now, go sell something!

WESLEY CARTER DM, authors an advice column that leverages leadership and management strategies to solve common business problems. Carter holds a Doctor of Management (DM) degree with an emphasis in Organizational Leadership, an MBA, and a B.A.  in Management.  Carter is a partner at KRS Consulting, LLC in Charlotte, NC. If you have a question, email wesley@krsconsult.com . All submissions become the property of Wesley Carter. Call (704) 992-1211 or email to book an engagement. This article orginally appeaed the Charlotte Post.

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Want to Grow? Create a Growth Strategy

Wednesday, October 20th, 2010

Renae Sanders

Businesses viewed has ongoing concerns must be run to drive revenue in to perpetuity. The renowned Peter Drucker revealed the purpose of “business exists to supply goods and services to customers” not to supply jobs to workers and managers, or even to pay dividends to stockholders; benefits to communities and investors are great, but not a business requirement.

However, business owners have a very important need and that is to earn a profit. Profits, of course, allow business to continuously meet the needs of its customers. Businesses that successfully meet customer needs must determine how to sustain its ability to do so through economic, operational, and competitive challenges. The concepts involved in growing a business are quite simple – find new clients, offer new products or services, expand the business geographically, merge with another business, or acquisition.

How and when to grow require planning. A growth strategy defines your growth goals, long- and short-term objectives designed to ensure the goals of the business are met with the least amount of risk. The power of a growth strategy lies not only in its creation but also in closing the gap between knowing and doing – planning and execution. From weight loss to marathon training, to retirement planning, defining and measuring goals provide a documented plan for how the business will grow.

According to research, less than 2% of small businesses ever grow to earn $250,000 or more in sales. SCORE reports in its website, seven in 10 new employer businesses last two years, and 50% last five years. With these statistics, leaders cannot leave company growth to chance. Regardless of size, companies should seriously approach the development of a sustainable growth strategy, with executable objectives and tasks.

Components of the Growth Strategy

The growth strategy is created following a continuum of Least Risk and Reward to Most Risk and Reward.

Market Penetration represents the least risk/reward growth strategy of selling more products and serivces to existing clients. Incremental growth can also solidify clients and make it more challenging for deeply penetrated customers to leave.

Market Development is selling existing products into new markets or regions. This growth strategy broadens the market size or opportunity.

Alternative channels means find diverse distribution channels to distribute your product or services. It may invlue using the Internet, hiring an external or internal sales team, licensing to other providers, renting shelf space from retailers. Understanding how consumers search for and purchase the product is a necessary aspect of this strategy.

New Product New Customers is a more aggressive growth strategy where defining and developing new products to meet the need of a new type of customer can bring about significant growth, but at more risk to the company.

Merger relies on finding a complimentary organization with which to merge and expand operations, often in the same space. The cost and challenge are higher and more complex as organization leaders are taxed to find the best ways to integrate and reorganize to capture the value.

Acquisition the most risky growth option if acquiring a business to extend the business each throught improved technology, human capital, or physcial location. There are three primary forms of acquisition lateral or horizontal, forward and backward. A lateral acquisition can extend the growth and reduce competition by purchasing a competing business. A backward acquistion may mean purchasing a supplier; while a forward acquisition may be acquiring a distribution network for your product. Both backward and forward growth strategy offer a way to exert more control of the supply chain ffor your business.

While all potential growth strategies require careful consideration and planning, the merger and acquisition options certainly require intensive planning and due diligence in the areas of leadership, operational risk, tax implications, capital requirements, technology, and human capital requirements.

As in all things, we get what we plan for and measure. A growth strategy is a first step toward driving organization growth. Besides it is always easier to get to new destinations with a well defined map. Want to grow? Create a growth strategy.

Renae Sanders is the Managing Director at KRS Consulting LLC a management consulting firm specializing organizational relationships and productivity. Contact Renae at info@krsconsult.com or call 704-947-2098. To read other articles by Renae Sanders go to www.krsconsult.com/blog.