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By Brad Sugars All too often the cry is heard you cant get good people or why cant I get my people to do as I tell them. Well heres a few ideas that may make life a lot easier. Consider for a moment, the business owner who has 10 people working in the business, yet theyre the ones doing all the work. Whats the point!? Firstly, lets get back to basics. Most people in business will understand how important systems are. Systems are usually responsible for having a business that runs smoothly (and profitably). With systems in place, its simply a matter of employing people to run those systems. Michael Gerbers fantastic book, The E-Myth, really highlights how important systems are for businesses to be successful. A real life example of course is McDonalds. With a food product that at best, could only be described as average, it is simply a matter of systems that keep it a hugely successful entity. The point is, get the systems built in your business. If you feel like youre banging your head up against a brick wall, take a look at the systems in your business. Look at the most basic things from answering the phone all the way through to how you produce your product. If your systems arent clearly defined and easy to understand, how can anyone understand what you want. Preferably write them down and turn them into checklists. This is the basic foundation of business and in turn getting your people to work as a team, something that equals more than the sum of its parts. So, the systems have been built and are clearly defined, and now its a matter of recruiting the right people to run those systems. The DISC working personality profile can really help in selecting the right people for the job. With this knowledge, you can then recruit the right people for the job. However, the real challenge lies ahead. Its not just a matter of having people who come in, follow the system and get the job done. What you are looking for now is SYNERGY! Synergy comes from having people who are committed to a common goal. If people are involved in setting the common goal, they are generally more likely to commit. If you , as the business owner are dictating to your team this is the goal, dont expect much commitment. If your team has ownership, they are much more likely to achieve. Ownership is also very useful when designing and building your systems, let alone setting goals. Keep asking the team this questionIm looking for [certain outcome], how do you think we should go about achieving that? The successful business owner has team members that say I think we should do like this. An unsuccessful business owner has team members that say I dont know, youre the boss. Finally, be aware of what you are teaching your team. By this I mean, if a baby cries and it's mother comes running. What will the baby lean to do after a while? Exactly, let out a cry and in rushes Mum. All I ask is for you to be very aware of what you are teaching your team. If youre saying to yourself no-one can do it like me and you jump in and do it, your team is learning from that.
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5 Ways
By Brad Sugars At ActionCOACH our goal is to help business owners achieve true business success through analysis and systems implementation. What that means is that we help the self-employed build a profitable commercial enterprise that works without them. After all, systems should run a business, not the owner. The first thing we do is to access the business by working with the business owners to determine where they are, where they would like to be, and then helping them implement systems and strategies based on what we find to be the most appropriate for that particular businesss needs (increase profitability, systems, employee training, controls, etc.). We will be assessing the business in the five key profit generating areas: Lead Generation, Conversion Rate, Average Dollar Sale, Average Number of Transactions, and Profit Margins. Those areas are highlighted in the following equation: Lead Generation x Conversion Rate = # Customers #Customers x Avg. Dollar Sale x Avg. # Transactions = Revenues Revenues x Profit Margins = $ Profits So basically, we are looking at the equation for profitability for any business, in any market, in any industry sector. Throughout all of these sectors of business, the equation for profitability stays the same. We have developed 367 different systems and strategies under these five variables. For example, Lead Generation has 73 systems that can be implemented to help business owners increase their lead flow. In addition, we have 86 systems that may be used to increase your Conversion Rate, and so on down the line. Once we have established where the business is, we are able to go back and look through our systems and determine which of those would be the most appropriate to implement in increasing the profitability of that particular business type. We use the information we have gathered on the business to put together a detailed Alignment Report that will serve as our road map to success for the next 12 months of Business Coaching. Once we have established that the business can be profitable, we move on to our secondary goal, which takes place during the Coaching process. That goal is to teach the business owner the difference between working on their business and working in their business. Small business owners can spend 60 hours or more per week just trying to keep their business alive. Most often, what we find is that they are working on the wrong aspects and end up spinning in a relentless circle until the business finally folds in on top of them. Our goal is to help them in working on
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growing their business instead of concentrating on the technical issues, which are usually counterproductive to growth. Throughout the process of Coaching we will spend about an hour each week with the business owner (depending on their needs) helping them stay focused on their goals, testing and measuring results, assisting them with potential obstacles for growth, systems implementation, etc. We hold our clients accountable for reaching the goals that we set together, and work diligently to help them achieve great results! So basically, we teach the self-employed how to become successful business owners. We teach them how to make more money for less effort, and we have been very successful at that.
Professor Albert Mehrabian of UCLA broke communication down into three Vs as follows:
Verbal: The message itself; i.e. the words you use. Vocal: The sound of your voice, intonation, projection, pitch and speed of your voice. Visual: The posture and gestures, facial expression and eye movement that people see.
The Thomas Gordon Institute added another dimension to this research and came up with:
Both institutions measured the effectiveness of each component of communication and its contribution to believability. Here are the results of their respective research: UCLA Thomas Gordon Verbal 7% Words 7% Vocal 38% Voice 23% Visual 55% Face 35% Body 35% TOTAL:100% 100% So, the first step in delivering Great Customer Service to Create Great Sales is: Approach and greet your suspect/prospect with open, friendly body language coupled with soothing, gentle voice modulation. Our total focus in this step is to get past the Gatekeeper so that we develop and build rapport and open the prospects message receptors. The words themselves are not that important, a simple Hi, how are you today, is a good ice breaker.
Despite their obvious value, our experience with goals have shown that some are good at setting goals and sticking to them, achieving great results and others cant keep a New Years resolution to stop smoking for two days in a row. Failure to set goals can be seen as a fear of failure. That is, the blow to our integrity when we dont reach our goals. When we make and keep commitments, such as setting and achieving goals, it reflects the amount of trust we have in ourselves. We increase our confidence in ourselves to make and keep commitments to others and ourselves. However, when we dont achieve our goals we lose confidence in our ability to make and keep commitments and to trust ourselves. There are many reasons why we dont achieve our goals. Sometimes the goals we set are unrealistic. New Years resolutions are typical examples. Suddenly, we expect to change the way we eat, or the way we exercise just because the calendar changes. Its like expecting a child thats never ridden a bike to suddenly jump on and go, or to run a marathon without months of training. These goals are based on illusion with little regard to natural growth. You must be able to crawl before you walk. So, how do we set and achieve goals? Stephen R. Covey says it best in his book 7 Habits of Highly Effective People. To begin with the end in mind means to start with a clear understanding of your destination. It means to know where youre going so that you better understand where you are now and so that the steps you take are always in the right direction. An example of a S.M.A.R.T. goal might look something like the following: WHAT My goal is to maintain a healthy body. WHY So that: I can be fit to do the things I enjoy. I can be an example to my children in health management. I can build my personal character strength. HOW Good Nutrition. I will increase my intake of fresh fruits and vegetables and decrease my intake of sugar, fats, salt and red meat. Physical. I will exercise aerobically 3 times a week for 30-minute periods.
Focus. I will be aware of my body and look out for any health problems. Focusing on the smaller, short-term goals and achieving success will give you the confidence to set other goals. So, remember, set your goals based on the S.M.A.R.T. principle to have the best chance of achieving your goals.
Ensure Good Returns on Your Investment: Follow the Saying, If it Doesnt Add Up, Dont Do It
By Brad Sugars Business is all about making a profit, so if your business strategies arent adding up to business profits, dont do it, or do it differently. To be a business that is, a commercial, profitable enterprise that works without you --your business must give a good return on investment plus a full wage for every hour you spend working in your business. You can then pay someone to do your job and the business profits are not affected. The quote if it doesnt add up, dont do it can be applied in all areas of your business. Advertising is a prime example. If an ad is run and does not get an immediate response, there is no point in keeping that ad running. It is wasting precious time and money. Change the ad or where it is running. Increasing your team must also add up in dollars. Perhaps a business should consider setting training and operating systems in place so juniors can be hired to follow the systems, rather than hiring seniors who have the head knowledge of how it should be done. Alternately perhaps the business should look at new machinery or technology instead of more team members. If you want to buy a business the figures also must add up or have the potential to do so. Make a list of the criteria the business must fill and make sure this list is filled before you commit yourself. Many people buy into something believing it would fulfill their needs, to discover the figures were inaccurate or did not add up. If you are not sure, get help. Two heads are better than one, and prevention is better than cure. A great idea when looking at a business is to check the industry average and see how your business compares. Given that four out of five businesses go broke in the first five years, you may want to be better than average. Finally the bottom line where your figures must add up is in net profit margin. To get this figure a business must add all expenses, including an appropriate wage for all the hours put in the business, plus interest on the capital you put into the business. This will give your real margins. If it doesnt add up, dont do it must be applied regularly. Dont wait until the end of the financial year to find if you have made a profit. Business is work, but it should also be fun.
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This example was based on a kettle, a relatively small dollar item. How does this apply to your business? This process works equally well on cars, houses, furniture, service based businesses and any other product I can think of, including funeral homes. You just need to work out what your customers are actually looking for when they ask for the price, and whats most important to them in their buying decision! ActionCOACH is a business coaching and training company that works with small to medium sized business educating the business owner how to improve the sales and marketing in their business.
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Every business person needs to understand the Pareto Principle as it applies to the areas of customers, team and leadership. In the area of customers, it is vital to identify the 20 percent who account for 80 percent of your business. These are your raving fans and strategies must be put in place to care for them appropriately. For your team, you must identify the top 20 percent producers. Spend 80 percent of your people time with these people to develop them to their full potential. In leadership, take an honest look at the question What do I have to do that no one else can do? Remember a leader can give up everything except final responsibility. You can decide whether you will be reactive or proactive when it comes to the use of your time. The question is not, Will I be busy? but How will I invest my time? Its not Will my calendar be full?, but Who will fill my calendar?, Its not Will I see people?, but Who will I see? Do this and watch your productivity and personal satisfaction rise to new heights!
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Qualifying is the factor, which has the greatest impact on the management of your time. You have to become skilled in sorting prospects. The greatest stress in your career will come from working with unqualified prospects, be it someone who refuses to buy at a fantastic price or someone who is not ready, willing and able to buy at all. The Sales Process The key to a successful sale is the ability to build rapport and trust with each customer. Meet, greet and build rapport, settle them on a model, garment or product to demonstrate. All the time check by asking trial closing questions, then ask for their business. Remember to sell the benefits of your product speaking in their own linguistic modality. For example, talking to an auditory person about a car engine you would say: Listen to that engine, doesnt it sound great? or to a visual person your could say, You see how smooth that engine is Follow up This is the first step to the next sale to your customer or to obtaining referrals from them First a thank you letter, then a 7 day follow up call followed by a call at least every 9 days. This will ensure a steady stream of referrals All you have to do is ask. Remember Do what you most fear to do, and you will have the results you most want to have
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A sales script is a documented, methodical, learnable, effective system of selling your goods and services. It is a written process on paper designed to give the salesperson control of the call (while the customer feels in control) and create a desired result the sale! It is written by your number one salesperson, in answer to the question Exactly what do you say to a prospect to get them to buy your product? You may even choose to reward your top salesperson for doing this by offering them a great incentive such as a percentage of extra sales. Let us briefly outline key parts of the ActionCOACH sales script. Obviously, there are differences between sales scripts used on incoming and outgoing calls; however, I will just detail some of the universally used key ActionCOACH selling lines taken directly from our sales scripts! The opening: Could I just outline the reason for my call? Permission: Would if be okay if we go through the call that way? Rapport Building : Whats your biggest challenge right now in that area? Below Waterline: What's most important to you in Paraphrase: Based on what you just told me, it sounds like Temperature Check: How does that fit with what you had in mind? Secure the Sale: Would it be okay if I give you the steps in getting that process under way? Conclude the Encounter: Congratulations and bye for now. A script can be read, learned and must be practiced, used, measured and improved (if needed) to increase conversion rate of prospects to customers of all the team. Imagine taking the guess-work out of selling once and for all by using a system which makes your sales results less people dependant and more system dependant! ActionCOACH is a business coaching and training company that works with small to medium sized business educating the business owner how to improve the sales and marketing in their business.
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Target Market be very clear who youre trying to reach. Process some of the more expensive products and services may require several steps before a sale is made. Urgency you must give people a reason to act now. You Focus your script needs to be focused towards the customer.
Greeting Get this right as it will set the tone for what follows. Outline the reason for your call/visit and get permission to continue e.g. Would it be OK if I outlined the reason for my call today? This step applies when youre the one making the first contact. Ask open-ended questions you must ask questions that cant be answered by yes or no.
d) Get agreement - you need to get feedback from the customer. Ask rhetorical questions that will get them to say yes - e.g. So it sounds like youd benefit from A, B and C, thats pretty good, isnt it? e) Deal with objections this is part of the process! Get the customer to elaborate, acknowledge that what theyre saying is true for them at the time and then come up with your standard replies to known objections. f) Close and take the next step Would you like to pay by check or credit card? g) Use transition phrases/temperature checking phrases like, How does this fit with what you had in mind?, So from what I understand, you want A, B and C. Is there anything else?
You will end up with a script that is really effective as a sales tool. More importantly, your entire team will have a framework to follow, which means your customers will be treated in a like-minded fashion regardless of who speaks to them. This, in turn, enhances the perception of excellent customer service. An added bonus, if you needed another one, is that any new team member will be productive much more quickly. Go make it happen! 14
Increase your profits, measure your results I hate accounting but I Love tracking and measuring the responses to my ads. When a friend saw my tracking system, he claimed I was a frustrated accountant. (Since he was an accountant, I took it as a compliment.) The only difference today is that theyre kept by computer rather than by hand and theyre more detailed. To tell whether your ad made a profit, you have to compare the profit on your sales from the ad (gross revenue, less the cost of the product and marginal costs like credit card commissions, postage, and so forth) to the cost of running the ad (including an allocation of the costs of creating and laying out the ad). (You may also want to include the cost of the product or service, as I have done in these examples. Ill discuss this under Rule #3.) The other important feature of the %B/E column is that it allows instant, bottom line comparison between different ads and offers. It summarizes your return on investment and takes out all the differences, like different media costs. Consider the two sets of results I have show you here. Both ads were for the same product, a special Report I wrote called How to get a second Passport. They both ran in the same publication, The South China Morning Post (so the records are kept in Hong Kong dollars HK$1 = US$7.8 if you want to make any conversions). However, they ran a year apart, but the second ad results on page 7 did better (372% of break-even compared to 286%) even though the second insertion cost more that the first; and despite the second offer in the first ad for a one-year subscription to my investment newsletter, World Money Analyst. And since Id run this ad many times in that year, you would expect a fall-off in response you would expect the second ad to do worse. One reason is the position of the ad the first as was run of paper which meant the ad manager could put it anywhere he liked. The second ad was on the first page of the Business News section of the Post. A far better position (see rule #5). But without a premium or loading for that position (rule #7). When you can have an unlimited ad budget When you are over 100% of break-even, what happens to your advertising budget? It becomes unlimited (with that offer in that medium, of course).
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When your ad is aimed to generate enquiries, you need to calculate two key indicators:
The cost per enquiry (number of enquirers divided by the cost of the ad); and, The conversion rate (the percentage of enquiries that buy) plus, of course, the ultimate profit.
Once you know your conversion rate, you can project the profitability of your ad simply from the number of enquiries you have received. For example, lets say your profit per sale is $25. If your cost-per-enquiry is $5, your conversion rate must be 20% to break even. But if your average conversion rate is only 10%, you will know that this ad, in this publication isnt going to work. But if your new ad produces a cost-per-enquiry of only $1, the ultimate profit-per-enquiry (with the same 10% conversion rate) will be $2.50, and you will know you will want to run this ad again. If this is new to you, you will be wondering how to trace a specific sale to a specific ad. The answer is: Rule #2
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