A story:
Many years ago two hard working guys took jobs as laborers digging ditches. The first laborer worked hard 10 hours a day but never lifted his head up and looked around. 40 years later he was still a laborer.
Whereas the other guy also worked 10 hours a day but after a year or two he asked for and received training to learn how to lay brick. After working as a mason for 5 years he figured out how to oversee other men for the owner and became a foreman. Finally, he took a big chance and started his own masonry company.
Did he really work harder than his associate who 40 years later was still digging ditches 10 hours a day?
Now more than ever you need to both work hard and work smart. Make sure you have a way to grind out the work but also be keeping your head up, looking for opportunities. They are out there waiting for you (or your competitor).
Thursday, May 21, 2009
Thursday, May 07, 2009
Build a Sales and Marketing Process
Sales and marketing is the most important system in at least 90% of the businesses we look at. It is also one of the biggest weaknesses in many companies. Many businesses are started by tradesmen and technical experts who are determined to deliver a better service or product. Yet, there business suffers because they do not learn how to build a pipeline of clients.
Many industries like construction subcontracting and engineering are very dependent upon relationships. An owner with a few good relationships can build a fairly large volume business. This is great until it is time to sell. Then prospective buyers will view the high risk of loosing major clients negatively. This reduces the value of the business.
The solution to these two problems is the same. Build a professional sales and marketing system independent of the owner.
For instance, build a system based on networking by staff, advertising, word of mouth, direct mail, location, or other technique that generates leads. The leads are given to trained salespeople who know how to close a reasonable percentage of the prospects. These systems are tracked and fine tuned to improve performance. Auto dealerships, software companies, distributors, and many other businesses use these techniques to improve their business and increase the transferability of the business.
A sales system that is independent of the owner and proven over time increases the likely survival of the firm. If there is any way possible in your industry to build an independent system do so. This will increase your business value.
Many industries like construction subcontracting and engineering are very dependent upon relationships. An owner with a few good relationships can build a fairly large volume business. This is great until it is time to sell. Then prospective buyers will view the high risk of loosing major clients negatively. This reduces the value of the business.
The solution to these two problems is the same. Build a professional sales and marketing system independent of the owner.
For instance, build a system based on networking by staff, advertising, word of mouth, direct mail, location, or other technique that generates leads. The leads are given to trained salespeople who know how to close a reasonable percentage of the prospects. These systems are tracked and fine tuned to improve performance. Auto dealerships, software companies, distributors, and many other businesses use these techniques to improve their business and increase the transferability of the business.
A sales system that is independent of the owner and proven over time increases the likely survival of the firm. If there is any way possible in your industry to build an independent system do so. This will increase your business value.
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