Is This The End of an Era?
In the early 1980's, a number of energetic, young entrepreneurs found a way to make a living selling, implementing, and supporting accounting software for small businesses. The invention of the personal computer and the development of new software published by companies like State of the Art and Great Plains allowed these entrepreneurial pioneers to create a new industry. I was lucky enough to be a part of this new business. As Value Added Resellers (VARs), we built computers, put together the first networks, and found inventive ways to make inadequate software serve the needs of our clients. Along the way, we became business process experts, we helped software publishers transition their products to business management or ERP software, and our customers became more efficient and profitable.
This week, one of the old timers in the business, Hightower, Inc. from Chicago IL, unexpectedly shut their doors. To many in the VAR community, it felt like the "Shot Heard Around the World." How could a company that had been in business over 25 years fail? After all, if they could survive multiple recessions and Y2K, they should have been able to weather the most recent storm, right?
The demise of Hightower set off alarms in VAR organizations across the country. Is the old VAR era is coming to an end? Publishers are reducing margins on new sales and eliminating the recurring revenue stream associated with Maintenance and Subscriptions. Customers expect more from their software, even though the technology is outdated and cannot easily be moved to the new era of Cloud Computing. New competition from the SAAS publishing community is eroding traditional On Premise software sales. You can't say that we didn't have any warning that things were changing.
So, if the current business model for a VAR practice is dying, does that mean that VARs will disappear? Absolutely not! Businesses still need the focused expertise that VARs have to offer. SAAS software publishers have realized that even though they can deliver software to a customer via the web in seconds, that software is useless without the business expertise that an experienced VAR can provide. Most small businesses don't have the experience or time to build business processes around the capabilities of the software in order to maximize its usefulness to the business. VARs are still important links in the chain of success for business management software, but the model for success is evolving.
Is it the end of an era? For resellers like Hightower, it is certainly the end. But for me, it feels like a new beginning and it's a chance to relive those heady days in the 80's when my friends and I were inventing a new industry. I can't wait to get started -- just so long as I don't have to put in 18 hour days working out of a damp, unfinished basement and eating Ramen Noodles for weeks on end. Did that in the 80's!
I Love Starbucks
I love Starbucks. Love it. I hate coffee and I think it's ridiculous to pay $4 for a cup of tea, nevertheless, I always find time to drop in to a local Starbucks at least several times a week. No drive in for me; I get my overpriced Chai at the coffee bar inside and find an out of the way seat in the store so I can people watch. It turns out that Starbucks is the perfect place for all types of social interactions - and I want to observe them all. Business meetings are held around the low coffee tables - the meeting attendees hunched over computers, looking at PowerPoint presentations. Friends chat outside on the patio or on the couches in the corners. Blind dates sit in the big comfortable chairs that are close enough to talk - but not too close.
I find the customers and their interactions intriguing, but I rarely ever speak with anyone. I'm the guy sitting off to one side, trying to look busy reading the paper, or working on my computer. In reality I'm studying my fellow patrons- and I'm having a great time!
My favorite Starbucks is located on the corner of Belleview and Ulster in the Tech Center area of Denver. It's just down the street from our Colorado office and when I'm in town, I spend 3/4 of my daily per diem on tea and a muffin so that I can catch up with the regulars. As I mentioned, I'm a lurker. I don't interact with these people, but over time I've come to know them.
The Banker sits at the table nearest the front door and holds court. I don't know what time he gets there or when he leaves, but I can tell you that I've been to that store at 6:00 AM and I've been there at 11:00 and he's always there, at his same table every day. He's a snappy dresser with a colorful silk scarf neatly folded and inserted just so in the jacket pocket of his blazer. His jacket is perfectly tailored to showcase the diamond cufflinks on his heavily starched shirt. He drinks his coffee black - but he never buys it. His guests come through the door, bow a hello to him and head for the counter to buy him a fresh cup before sitting and discussing their business. I've never actually been privy to the conversations, but I imagine that they are plotting ways to bilk the public out of more of that Bailout Money.
The Housewife comes in around 7:45 every day. As usual, she's smartly dressed in her designer workout clothes, fully accessorized with tennis bracelet and rings so large I'm amazed she can put her fingers around her latte. Her kids safely deposited at school, she just has time to pick up a Skinny Vanilla Latte before rushing off to her Yoga class and a little "me" time. I'm fairly certain the latte is likely to be the only calories she will take in before she prepares a perfect dinner at her perfect house for her perfect husband and 2.5 children. She's marvelous.
The Mid-Level Microsoft Exec calls his meeting to order at 8:00 sharp out on the patio. 3 or 4 of his subordinates are working over time in hopes that they'll think of something to say that will impress him, but it really doesn't matter, because he is much more interested in listening to what he has to say. Sometimes, when I'm feeling dangerous, I'll sit at the table next to them and try to listen in on their conversation, always hopeful that they'll slip and reveal some important information that I can use to my advantage.
The hipsters come and go and frankly, I can't tell them apart on most days. They take turns trying to out order each other with complex versions of milk, sugar, and a little bit of that bitter black stuff Starbucks likes to call coffee. Whatever, dude.
I love Starbucks - or more specifically, I love the people that love Starbucks. As I write this article, I'm sitting at the brand new Starbucks down the street from my office in San Antonio. It's exciting, but I have a lot of work to do if I'm going to unravel the mysterious lives of the regulars at this new store. I guess I'll have to come a few more times before I can figure everyone out. Oh hell, does that make me one of the regulars?
5 Ways to Save Time, Money, AND the Environment
In 2012, the average business will produce almost a pound of printed documents per employee, per day. You may be shocked to learn that more than 90% of that printed material ends up in the trash can within hours of being printed! The money and resources wasted daily by American business on printing unnecessarily is shameful and the cost to the environment is unreconcilable. Document management is a great way for businesses to start implementing green initiatives while improving efficiency and saving money. Document management software is a computer based storage and retrieval system that is used to index and store electronic documents and scanned paper documents. These systems can often be very convenient for file exchange among employees and reduce the weight paper puts on a business. Below are the 5 ways that a document management solution can help your business save time, money, and the environment:
1. Fax or Email invoices and Statements to customers
2. Get rid of file cabinets
3. Eliminate filing errors
As documents are added to the Document Management system, they are automatically indexed in multiple ways. For example, it is possible for you to find a customer invoice by the customer number, customer PO number, contract number, sales order number, or invoice number. This process effectively eliminates the possibility of filing a document in the wrong place.
4. Find documents faster
If you have spent time in a hot, dusty warehouse looking for a document, you understand how frustrating it can be access your paper document storage system. With a document management system those documents are accessible from your computer desktop.
5. Provide access to documents from anywhere
If your office is the front seat of your car and you have access to the internet from your "office," (wi-fi or wireless) you can still access all of the documents stored in your document management system. Some document management systems are completely web based (ASG Cypress, for example), but even if your document management software requires a direct connection to the company's network server, there are still tools that will allow you to access the documents remotely (Microsoft Terminal Services, etc.).
Conclusion
As business owners and managers, we have a responsibility to provide excellent customer service while maximizing profits for our companies. A computer based document management system can provide quick, efficient access to company documents and customer information, providing a higher level of service at a much lower cost - without having to cut down a forest. This added efficiency will also give you a competitive advantage in your market. Want more information? Click Here to access White Papers and additional literature.
Section 179 is a GREAT deal in 2011!
2011 is a banner year for Section 179. That is because legislation passed during the later half of 2010 expanded and enhanced Section 179 and Bonus Depreciation to new, unseen limits.
The total deduction was doubled to $500,000 and the total limit of equipment purchased was raised to $2,000,000. These are HUGE increases, and essentially is the government's "go-ahead" to businesses in regards to purchasing new equipment and software. And it is welcome news, because after several years of holding back, many businesses need new equipment!
This means if you were waiting to purchase new equipment and/or software, 2011 is the year you've been waiting for! In plain terms, the tax savings are substantial. Here is an example:
Let's say you spend $75,000 on new hardware, software, and services.
| Section 179 Deduction | $75,000 |
| Cash Savings on your Equipment Purchase: (assuming a 35% Tax Bracket) |
$26,250 |
| Lowered Cost of Equipment After Tax Savings | $48,750 |
As with any business issues that pertain to tax strategies, you should consult with your accountant, however, if you have a need to purchase equipment and you are likely to have taxable business income in 2011, why not let the U. S. Government pay for a portion of your purchase!
Is it Time to Start Using QR Codes in Your Business?
Scan this Example QR Code - It's worth it!
You may have noticed those strange looking, square bar codes that are starting to show up on magazine ads, newspaper ads, and even in emails. What the heck are they and what purpose could they possibly serve? In this article, I'll explain the concept of QR Codes, how you can get value from them, and even how you might be able to adjust your marketing to take advantage of the capabilities of the QR code.
QR Codes 101
A Quick Response Code (QR Code) is a specific matrix barcode (two-dimensional code) that is readable by dedicated QR readers, smartphones, tablet devices, and computers with webcams. The code consists of black modules arranged in a square pattern on a white background. The information encoded may be text, URL (web page links), Personal Contact information, or other data. Bar codes are linear one-dimensional codes and can only hold up to 20 numerical digits, whereas QR Codes are 2-dimensional and can hold thousands of alphanumeric characters of information. Their ability to hold more information and their ease of use makes them practical for small businesses.
When you scan or read a QR Code with your iPhone, Android, or other camera-enabled device, you can link to digital content on the web; activate a number of phone functions including email, IM, and SMS; and connect the mobile device to a web browser. Any of these desired functions are easily achieved by properly creating your QR Code. It's a simple process of entering the appropriate data into the QR Code generator, described below, and it all takes just a few minutes. The ability of QR Codes to connect people with each other and to multimedia digital content is very useful for businesses and consumers alike.
How QR Codes Work
QR Code Generators - There are a number of websites available for generating QR Codes and most are free. An internet search for QR Code Generator will offer many choices. I've played around with a number of them and they all seem to be pretty simple to use. My favorite is ZXing because their generator has a form that allows you to use a number of different data types, including URL, text message, email address, contact information, geo location, calendar event, and more. Once the code has been generated, you can save it as an image that can then be imbedded in an HTML document, or included in print copy. The QR Code above, for example, will take you to a special landing page on the BCS ProSoft web page which includes a special offer.
The most common method for scanning QR Codes is via a smartphone. There are a number of programs that can be installed on an iPhone, Android, or almost any other device that incudes a camera. I have a program called QR Master installed on my iPhone that I highly recommend, though a quick search on iTunes turns up more than 100 programs available for reading QR Codes and many are free.
Does this ever happen to you? You're reading through a magazine and you see something that interests you, but you don't have time to review it at that moment, so you think, "I need to remember to go back and look at that," but 15 minutes later you've forgotten about it. If the advertiser or magazine editor provided a QR Code that linked back to that information, you could scan the code on your smartphone. The scan software would save the link and/or information included in the QR Code so that you can go back to it when you have the time. Brilliant!
How Can You Integrate QR Codes into your Business Strategy?
In some respects, QR Codes are perceived as a fun way to use iPhones, however, the tide is turning and more companies are beginning to integrate QR Codes into their business strategies in interesting ways. Here are several great examples of ways you can successfully use QR Codes:
- Print Media - A QR Code included on a brochure or advertisement can provide a quick link to additional information on your web site related to the message of the marketing piece.
- Business Cards - Put a QR Code on your business card that includes your contact information. When read by a smartphone, the information would create a contact record with your information. In addition, you could include a link to a landing page on your website which provides additional details about your skills, products that you represent, etc.
It's not just a marketing gimmick
You may be thinking, "This is another cute gimmick like Social Media, etc., that only the Computer Geeks will find useful." On the contrary, QR Codes can be integrated into the operations of most businesses. Here are a couple of examples of how QR codes are streamlining operations and increasing revenue for businesses today:
- Job Site - Many job sites are required to make safety and other regulatory information immediately available to government representatives during site inspections. A conspicuously located "Job Tag" could include a QR Code which would link to a document management system that includes all of the information relative to that Job.
- Museums - A QR Code located next to a piece of art can provide a link to detailed information about the art, the artist, etc.
- Wine Bottles (and other consumer products) - How many times have you had a particularly good bottle of wine at a restaurant and wanted to buy a bottle (at non-restaurant prices) or wanted more information about the wine? A QR Code on the label can link a customer to all kinds of information about the specific wine, the winery, and even allow the consumer to order a bottle (or case?) on the spot.
- Invoices, Packing Lists, Sales Orders, Contracts, etc. - A QR code included on business documents could link the customer directly to additional information related to the specific products or services included on the document.
- Invoices and Statements - A QR Code could link a customer directly to a site that would allow them to pay the invoice(s).
Technology such as QR Codes allows us to add more value for our customers and partners while keeping overhead low, but like any new technology, you should put some thought into its use to insure that you are, in fact, adding value. On the other hand, there is an unique opportunity for early adapters to gain a significant advantage over the competition. Don't be afraid to think outside of the box!
I would love to hear what your ideas are for using QR Codes in your business. Leave me a comment below with your thoughts
I’ll take the early flight
My company has an office in Denver; I live in San Antonio. As a result, I spend a fair amount of time flying back and forth. I don't really mind the travel. I just don't like traveling. It's the people, noise, and chaos that make me crazy. If I were rich, I'd have a private jet, but I'm poor, so I fly with the rest of the losers!
Over the years, I have developed a strategy for reducing travel stress:
1) Allow plenty of time. I used to be one of those guys that thrived on the adrenaline rush associated with running down to the gate and trying to talk my way on to the plane - after they'd pulled the jet bridge back! I've given all that up an now I restrict my adrenaline fixes to the stress of owning and running a business!
2) The iPod is ESSENTIAL. I prefer to be left alone when I'm flying. There is nothing more annoying than getting stuck on a long flight, next to a Chatty Cathy or a crying baby. I've learned that If you turn up the music on your ipod and close your eyes, even the most obnoxious seat mate can't penetrate the veil of white noise.
3) Travel early. If at all possibly, I like to fly before 7AM because there are generally less people in the airport - and on the plane. Plus, once the plane is in the air, most people sleep. Don't make the mistake of assuming the red eye flights will be quiet also - those flights are often filled with frustrated businessmen that have spent the last couple of hours in the airport bar - they're drunk and fidgety.
As I am writing this note, I am on the 6:20 AM flight from San Antonio to Denver and the Flight Attendants and I are the only people awake. I have a row to myself and all I can hear is the whoosh of the air going by outside my window. I'm in heaven! I'll take the early flight over the extra sleep every time!
Plan to Keep Your New Year’s Resolutions
The other day, a friend of mine told me that he wasn't going to make any New Year's Resolutions because he had never been able to keep them in past years -- so why bother this year? My response? "Really? You're going to give up on achieving anything next year, because you've failed in the past to keep your Resolutions?"
There's an old Proverb that goes something like this, "He who fails to plan, plans to fail." In other words, the difference between success and failure is planning. Now is the time to make your personal plan for success in 2011. Here are several tips to creating your success in 2011:
- Write down your goals. This is an important first step towards success. Writing goals down helps you clarify what is really important to you. Most people making new year's resolutions actually do write down their goals, but they are missing an important step.
- Make a plan. It is not enough to simply right down your goals. You need to come up with a plan for the successful achievement of your goal(s). The goal is the END of your plan, so you're really starting at the end and working backward. I like to make a quick outline and then fill in the details as I figure out how to perform each step of my plan.
- Declare your goals. When you declare to your friends, family, and co-workers that you're going to achieve something, it becomes more real. If you keep your goals to yourself, it is far too easy to make excuses when you get stuck.
- Ask for help. It is helpful to have someone act as your coach and/or cheerleader, but make sure you find someone that will hold you accountable for keeping on track. My wife and business partner are both great coaches for me because they are ruthless when it comes to making sure that I do what I say I'm going to do.
- Review your Personal Plan often. You need to make sure you are completing each step of your plan. I like to create a Check List so that as I complete a step, I can mark it off the list. This simple trick helps to keep me motivated and on track.
- Be Realistic. Try to set goals that are challenging, but achievable. If you find that you are following short -- and there is nothing you can do about it, give yourself permission to fail, but take the time to understand what happened and be prepared to make adjustments if necessary to set a more realistic goal. For example, if your goal was to lose 100 pounds, and you only lose 50 pounds, did you fail or was your original goal unrealistic? 50 pounds is huge for most people!
Now that you're armed with a plan to create a plan, what are you waiting for? Here's an idea - make a plan to put together your 2011 Personal Plan. Do it NOW!
One more thing: So that you don't think that I don't practice what I preach,
let me share one of the items on my personal plan with you:
Those that know me will attest that I HATE to run. Hate, may be too tame. Loath, detest, avoid...I really don't like to run, but I want a physical challenge that I can really get serious about in 2011, so setting good sense aside, I've decided that 2011, will be the year that I run a Marathon! If I'm going to do this, I want to make the goal worth while to work towards, so I'm planning to run the Maui Marathon on September 18. Anyone care to join me?
September 18, 2011
Do you have any ideas on how you can keep your New Year's Resolutions? Want to make a crazy declaration like my plan to run the Maui Marathon? Use the comment section below to give us your feedback -- and seriously, I can use training support for the Marathon. If you're interested, reach out to me!
Top 10 Technology Mistakes Made By Small Businesses
Too often, we get the PANIC call from companies AFTER they have made a technology mistake that put them in a serious bind. What business owners and managers fail to realize is that technology, by its nature is a moving target and finding and implementing the best possible IT solution requires quite a lot of work and planning. It is tempting to go "cheap" when purchasing or hiring in the area of IT, but it is important to remember that a single mistake could lead to a catastrophic loss of company data.
I have been helping companies navigate the complex and confusing world of technology since 1985 and during that time, I have seen many great things come from the proper use of technology. Likewise, I have witnessed some horrible mistakes made by customers and prospects. I could provide numerous examples where technology has allowed a company to grow beyond the owner's wildest dreams -- and I have horror stories of companies that were literally put out of business due to poor technology planning and mistakes. Here is my list of the Top 10 Technology Mistakes Made by Small Businesses:
Mistake #1: No Reliable Backup
At least once each year, we get a call from a panicked customer because they needed to restore data from their backup system only to find that the backup did not include the proper data (or any data at all). NEVER (are you listening?) NEVER assume that your backup system is working properly. At least once each month you should backup a test directory, erase it, and then do a test restore. This will insure that your backup device is working, but you also need to make sure that the proper data is being backed up. Here's a tip that could save your bacon some day: In addition to whatever backup system you have in place, go down to Best Buy and purchase one of the External USB drives (I recently saw a Terabyte drive available for under $100!) and use it to make a copy of your entire accounting/business management system. Take the drive home and make an appointment with yourself to bring it in and refresh your copy every month.
Mistake #2: Buying Cheap Equipment
You must first understand that all hardware is not created equal. The $49 router that you can pick up at Walmart simply will not perform as reliably as a business class router. Many small business owners cut corners on hardware to reduce cost and don't realize that the cost of installing improper equipment is much higher when you consider repair costs, shorter lifespan, data corruption, and downtime. Purchase business class hardware for all mission critical applications.
Mistake #3: Overextending the technology life cycle
That five year old PC your receptionist is using probably won't hurt business when it dies, but if the 10 year old server you are running dies it could cripple your business. All technology has a set life cycle. Manufacturers refer to the MTBF (mean time between failures) of equipment. Servers and PC's have a life cycle of 3-5 years. The actual usable life of your equipment depends on how much the equipment is used and the operating conditions, so if you have mission critical hardware that is greater than 3-5 years old, start planning now to replace it. Don't wait for the equipment to fail!
Mistake #4: "Set it and Forget it"
Perhaps the most common error made by small business owners is using the "Set it and Forget it" strategy for IT infrastructure. IT hardware and software requires routine and regular maintenance and adjustment. Like your automobile, you should have a regular maintenance routine for your IT System that is performed at specific intervals. Servers and software need continual care so they can perform at optimal levels. Insuring the health of your backup system (as described in Item #1 above) is but a single example of the regular maintenance required to maintain system integrity.
Mistake #5: Buying new software while skipping hardware upgrades
Software publishers are notorious for offering releases that require a significant hardware upgrade in order to run the new version. Too many small business owners purchase the newest version of the software they use without giving any consideration to new hardware requirements. The result is a failed upgrade and often that failure brings the business to a screeching halt until the old version can be reinstalled or until new hardware can be put in place. Check with software publishers to get minimum system requirements prior to installing an upgrade and make sure your existing system meets those standards. If new hardware has to be purchased, please don't purchase to meet the "minimum" requirements - buy equipment that exceeds the minimum requirements by at least 1 or 2 levels. This will insure proper operation at the new level and will likely increase the replacement time frame.
Mistake #6: Forgoing User Training
This is a problem that's less about equipment and more about human nature. Training is an absolute must for small businesses. Without proper training on your business systems, well-intentioned purchases will be rendered useless and you will not see the return on investment that you hoped for. You may find it helpful and cost effective to take a "train the trainer" approach with your software provider. By having one person or a small contingent of your staff trained on all facets of the software you rely on, you will have someone on staff that can provide the rest of the staff with the training required to successfully use the software.
Mistake #7: Skimping on security
Many small businesses find it inconceivable that someone would target their business or try to steal their valuable data. I wish I could say that this is not the case. Security has become the number one issue for IT environments in the past few years, thanks to online scams, vulnerability in software and networks using improper architecture. As an IT expert, I've come across small business systems that are so vulnerable, their accounting data is readily available on the Internet. Other systems have no anti-virus software or no malware protection, but plenty of insidious spy ware working overtime, capturing everything from login names to passwords. At some small businesses, I've seen criminals use open ports to hack into security camera footage--just to plan a robbery. Spam, malware and viruses pave the way for a devastating security breach. Don't let it happen to you.
Mistake #8: Using under qualified people for IT support
I know, it's tempting to hire your nephew or neighbor to support your IT infrastructure -- they're cheap and you want to help them out, but it is foolish to assume they are capable of such responsibility just because they can download and install software. An under-qualified person can never give you good IT advice. Because they've fallen into this trap, many small businesses actually end up spending more money just to correct the mistakes of an under-qualified IT person. If you need outside support for your IT environment, ask for certification, credentials, and references. A good IT person is always trained and certified to work within the complexities of an IT environment.
Mistake #9: Going Cheap, regardless of the consequences
Let's face it -- Technology is expensive. And I'm not just talking about the initial purchase price. When you consider the purchase price, plus the implementation and training costs, and couple that with the annual maintenance and support costs, technology is one of the most expensive investments you will make in your business. But spending money often isn't a bad thing, as long as you spend wisely. Numerous times I have worked with prospective customers to develop a technology solution that met their initial and long term needs, only to lose the deal to a less expensive solution that met the customers immediate needs, but couldn't scale to meet the customer's near term growth plans. When questioned, the customer invariably says they need to save money today and will upgrade when they really need it. The problem with this strategy is that converting from one system to another is quite expensive and is also disruptive to the business. Cheaper is NOT always better.
Mistake #10: Using pirated software
Software licensing rules can seem quite unfair. Many small business owners wonder why they should purchase more copies of software when they can simply use one for all their machines. With older software, you could probably get away with this, however with today's ultra-sophisticated software, it's simply a losing bet. Some software companies are cracking down so hard that when you download updates, it alerts them when the software has been used more than once. A company can disable your software completely at just the click of a mouse. Even worse, you could end up facing fines of upwards of $100,000 from the Business Software Alliance. Keep your software licenses up to date and you'll never find yourself in this situation.
That's my "Top Ten Technology Mistakes," but I've seen dozens (hundreds?) of other mistakes made over and over again by my clients and prospects. Many small business owners are technology challenged and have no idea how to address these issues. If this is the case for you, I'd recommend that you find a good IT Consulting firm that can help you determine your current technology status and help you plan for the future. The investment you make now could save you thousands in the future.
If you've got a technology "goof" that you'd like to share, leave me a comment.
How to be a Successful Entrepreneur in 5 Easy Steps
If you are an entrepreneur there are a few critical tasks that you need make part of your daily routine if you want to be a success. Entrepreneurs have to wear many hats when a business is just starting. Of course, many things need to be delegated to others in order for the business to run smoothly, but there are a few things that you must do yourself. If you can create a habit of performing these 5 things every day, some for just a few minutes, you will see your business grow right alongside your dreams:- Plan for the future a few minutes each day. Regardless of the current state of your business, you must make some time every day to think about the future. What if the market changes? What if there is a technology shift that renders your product useless? What new products or services can you bring into the mix in order to insure the continued health of the firm? Think outside the box -- and take notes. You don't want to forget any of those great ideas! You don't necessarily have to take action on these items, but you need to think about them daily in order to come up with "The Next Big Thing!"
- Work on your marketing in some aspect every day. If your prospective customers don't know about you they won't buy from you. Work on getting your message out every day even if it is just for a few minutes.
- Work on closing a sale every single day. Whether you are doing this on-line, on the phone, through the mail, or face-to-face you need to be selling every day. Without the close of a sale there is no business. This is not something that you can delegate all the way. Even if you have a sales force, you need to be out there looking for deals.
- Develop or strengthen your business network. You need to join, or create, a business network where you can help others and they can help you back. This is a great place to get new customers through referrals.
- Take care of your current customers. Presumably, they already like what you do for them and the cost of maintaining a customer is much lower than acquiring a new customer. Make a plan to contact at least two customers every day, but take the time to find some good reason to call them -- "just checking in" is not a good enough reason to call. Search for interesting articles or whitepapers that would be useful to them and never miss an opportunity to congratulate a customer for any positive press they receive.
So there you have it! Clark's 5 Easy Steps to Entrepreneurial Success. Did I miss anything? Let me know what you think by leaving me a comment below.
10 Things You Can Do to Build Customer Loyalty
As a senior partner in a regional business software firm, I spend a lot of my time trying to make sure we are providing high quality and good value services to our customers. Software quality and efficient and accurate consulting services will go a long way to increasing customer loyalty, but loyalty starts with the sales team. Below are 10 things I preach to our pre and post sales teams every chance I get:
1. PICK UP THE PHONE!
I’ll just say it: Sales people are chickens! I am amazed how many people opt to send email over picking up the phone to engage the customer. Email is a wonderful tool for delivering requested information or providing follow up details, occasionally I see salespeople using email to try and develop a relationship with their customers or prospects. News Flash: It Doesn’t Work! The best way to engage a customer is to have direct, two way, live conversation. In person is best, but the phone works too.
2. LISTEN TO WHAT YOUR CUSTOMER IS SAYING
Too often a salesperson is more interested in getting through their presentation than listening and responding to what the customer is saying (or would like to say if the salesman would shut up!). In my role as a Sales Manager, I have sat through hundreds of presentations and software demonstrations. Most were incredibly painful, not because the salesperson wasn’t prepared, but rather because the salesperson didn’t stop to consider that the information being presented wasn’t what the customer wanted to talk about. Before attempting to solve a customer’s problems, it would be very helpful to understand what the problems are, don’t you think?
- Listen for pain points.
- Repeat what you heard to gain clarification.
- Make sure you address those critical issues in the sales presentation. (BTW, that may be all you have to show in a demonstration!).
3. TELL THE TRUTH
As the old joke goes, “How do you know when a salesperson is lying? — Check to see if his lips are moving!” In reality, most salespeople aren’t crooks – they’re just afraid they’ll lose the sale if they are completely honest. One of my best sales resulted from my telling a prospect that I couldn’t sell him an ERP solution because their requirements didn’t match my company’s capabilities. He was so shocked to hear a salesman say “NO” that he rethought the requirements and begged me to take him on as customer. Charles Green, author of the book Trust Based Selling points out that more often than not, people will buy from those they trust – even if the price is higher. Further, you will never create customer loyalty when the relationship is based on lies.
4. GIVE YOUR CUSTOMERS YOUR BEST WORK
If you’ve ever hired a tradesman to do some work at your house, you understand what I’m talking about. You would never hire a person to re-tile your bathroom, for example, and be satisfied with shoddy workmanship. You expect the tiles to be installed straight and in the correct color pattern. You expect and deserve that your tile man bring his “A” game to work with him every day. Your customers deserve to get the same courtesy from you. Coming to a meeting unprepared is inexcusable. That doesn’t mean that you will have all the answers, but you should do the research in order to be as prepared as possible (when you don’t know the answer to a question, refer to Item 3, above).
5. PROVIDE VALUE
Never have a conversation with a customer without providing information that is valuable to them. I hate it when a salesman calls me and says, “Hi Mr. Haley, I’m just calling to see if you’re doing ok?” My answer? “I’m Fine” (followed by the click of the phone hanging up!). Before you call a customer, review the account notes, look at their past sales orders, and use the internet to scan for news about their business. When you pick up the phone to call, have a plan ready to discuss things that will be of interest and value to your customer. “I saw this article on a company that was similar to yours and I thought you might enjoy…” or “The last time we talked, you said you wished you could get XX and I wanted to point out that the latest release of our software does that.”
6. DON’T FORGET TO SAY “PLEASE AND “THANK YOU”
Customers want (and deserve) to be treated with respect. Always be professional and don’t ever forget to be polite. But don’t get icky about it either. I hate to take calls from salespeople that take polite beyond the level of normal conversation. Nobody likes an Eddie Haskell. Just be respectful and follow the Golden Rule. Your customers will respond positively.
7. PROVIDE YOUR CUSTOMERS A WAY TO REACH YOU QUICKLY WHEN NEEDED
You don’t have to be on call 24 hours a day, but at the very least, your voice mail message should offer alternatives to leaving a voice mail. I have found that I can create a lot of good will by saying, “I normally don’t give out my cell number, but your issues are important, so I want you to write down my cell phone number and use it to call me if you need immediate attention…”
8. BE PROACTIVE
If you know or suspect there is something going on with a customer that will require your attention in the near term, don’t wait for the customer to call you. Pick up the phone and call them first. It is ALWAYS better to make the first call.
9. SEND A HAND WRITTEN MESSAGE
If you really want to stand out from the crowd, send a hand written note to your customer after a conversation or to request a meeting. It is amazing how quickly our society has abandoned the hand written letter. It is so unusual in business today that you are sure to stand out.
10. BE PROMPT
Never be late! It shows a lack of respect. I had a girlfriend in college that taught me to be on time. If I was 1 minute late for a date, she would leave without me. Today, I arrive early for meetings and wait in the car or lobby, timing my arrival at the front desk at or before the meeting time. Some of you are saying, “but what about traffic?” Traffic is RARELY an acceptable excuse. You know what traffic is like in your city — allow plenty of time for it! If you do find yourself in a position where you’re going to run late, don’t wait until 5 minutes after the meeting time to call. Call 15-20 minutes in advance of the meeting so your customer can adjust schedules, if needed.
That’s it! My top 10 things you can do to improve customer loyalty. What did I leave out? Leave a comment below to give share your customer loyalty experience.