I hope you are enjoying my articles to help improve your business development endeavors. New topics and will be added over the course of the new year.
I have a proposition for readers and subscribers. Tell me what kind of topics you want to learn more about. Suggestions are always welcome.
This blog is for you, the reader, so please add your comments and make suggestions for future articles.
Happy New Year.
Tuesday, December 29, 2009
Sales & Marketing Procrastination
Sales and Marketing are key corner stones of a successful business. However, this has been proven repeatedly as one of the most overlooked and misunderstood strategic elements of small business plans.
Many times, owners of small companies do not properly implement effective marketing strategies because they truly get caught in other daily activities of running their business, e.g. budgeting, management, managing inventory, and perfecting products, and other administrative duties. These routine daily business activities can be problematic and need be prompt attention. Nevertheless, in most instances, they are a part of your business that should be managed simultaneously with your sales efforts. Over the years I have seen multiple owners who share the “my product is not quite ready” or the “I am too busy with other things” mentality. The point being, many business owners place less emphasis on sales processes, for one reason or another, because sales and marketing are challenges that many business owners do not fully comprehend.
Sales can be exhausting, frustrating, time consuming, and sometimes just overwhelming. But as much as one may hate selling & marketing their products, it is the life-force of their company. Just as a human would die without oxygen and water, a business cannot survive the market place without proper sales and marketing; it’s just that simple. So, do not stand stagnant waiting for orders to flow into your business, become proactive and not reactive.
To combat your daily battle with performing sales and marketing tasks, delegate time in your day and week where you can focus solely on your marketing efforts, through this strategy you can have no excuse. Marketing tasks must be integrated within your overall business model as a key operation. Do not continue to tell yourself that your product is not quite ready to go to market – Constant product refinement and revision are common procrastination excuses that will only drive you into lost time and money. Create a marketing strategy and use it, do not stray away from it due to minor business activities that can be acknowledged at another time.
I wish to acknowledge Josha Appel for his contributions on this topic.
Many times, owners of small companies do not properly implement effective marketing strategies because they truly get caught in other daily activities of running their business, e.g. budgeting, management, managing inventory, and perfecting products, and other administrative duties. These routine daily business activities can be problematic and need be prompt attention. Nevertheless, in most instances, they are a part of your business that should be managed simultaneously with your sales efforts. Over the years I have seen multiple owners who share the “my product is not quite ready” or the “I am too busy with other things” mentality. The point being, many business owners place less emphasis on sales processes, for one reason or another, because sales and marketing are challenges that many business owners do not fully comprehend.
Sales can be exhausting, frustrating, time consuming, and sometimes just overwhelming. But as much as one may hate selling & marketing their products, it is the life-force of their company. Just as a human would die without oxygen and water, a business cannot survive the market place without proper sales and marketing; it’s just that simple. So, do not stand stagnant waiting for orders to flow into your business, become proactive and not reactive.
To combat your daily battle with performing sales and marketing tasks, delegate time in your day and week where you can focus solely on your marketing efforts, through this strategy you can have no excuse. Marketing tasks must be integrated within your overall business model as a key operation. Do not continue to tell yourself that your product is not quite ready to go to market – Constant product refinement and revision are common procrastination excuses that will only drive you into lost time and money. Create a marketing strategy and use it, do not stray away from it due to minor business activities that can be acknowledged at another time.
I wish to acknowledge Josha Appel for his contributions on this topic.
Follow-Up, Follow-Up, Follow-Up
Follow-up is one of the most powerful skills in business, yet many people fail at this simple task. A person can argue their schedule is so busy that they don’t have time. This excuse does not warrant any merit. If you feel that your busy schedule is hindering your follow-ups, then you need serious evaluation of your organizational skills and time management abilities.
Never leave a communication channel open-ended. You must communicate to your contacts and prospects in timely fashion. Even a simple message acknowledging your status, but pending further decision is better than no message at all. Once you open the lines of communication, it is your responsibility to maintain a status update with other people. All communication requires closure at some point.
Imagine yourself on the opposite end of the communication spectrum. You have a great idea to share with a contact and draft a proposal. Now, you get in touch with the other person and discuss your proposition. The prospect needs some time to evaluate what you propose and promises to connect with you next week. A week goes by and there is no word from your contact. You leave a voice mail message and even sent an email reminder -- Still no response. Now what? Everything is in limbo. Feedback at this point is critical. There is no way of knowing that your contact has interest or alternate views to negotiate further.
Poor communication and lack of timely follow up gets in the way of progress. Even if the news is bad, communication to that fact is still required. Lack of follow up and poor communication skills are signs of disrespect and lack of consideration for everyone’s time -- It also demonstrates poor management skills.
Follow up does several things. Among them are: adds credibility, shows you are earnest and professional, helps other people make good decisions, shows you are proactive and decisive, validates your organizational ability, and demonstrates your capacity to get things done in timely a manner. There are more positive attributes than listed here, but you get the idea.
Never leave an issue open-ended. You will never progress unless you improve your follow-up ability.
Never leave a communication channel open-ended. You must communicate to your contacts and prospects in timely fashion. Even a simple message acknowledging your status, but pending further decision is better than no message at all. Once you open the lines of communication, it is your responsibility to maintain a status update with other people. All communication requires closure at some point.
Imagine yourself on the opposite end of the communication spectrum. You have a great idea to share with a contact and draft a proposal. Now, you get in touch with the other person and discuss your proposition. The prospect needs some time to evaluate what you propose and promises to connect with you next week. A week goes by and there is no word from your contact. You leave a voice mail message and even sent an email reminder -- Still no response. Now what? Everything is in limbo. Feedback at this point is critical. There is no way of knowing that your contact has interest or alternate views to negotiate further.
Poor communication and lack of timely follow up gets in the way of progress. Even if the news is bad, communication to that fact is still required. Lack of follow up and poor communication skills are signs of disrespect and lack of consideration for everyone’s time -- It also demonstrates poor management skills.
Follow up does several things. Among them are: adds credibility, shows you are earnest and professional, helps other people make good decisions, shows you are proactive and decisive, validates your organizational ability, and demonstrates your capacity to get things done in timely a manner. There are more positive attributes than listed here, but you get the idea.
Never leave an issue open-ended. You will never progress unless you improve your follow-up ability.
Wednesday, December 23, 2009
Messaging your relationships during the holidays
Much of your business success comes from and depends on building relationships. Your business is dependent on the people you connect with because people make many buying decisions based on relationships. Credibility and trust are central to establishing business relations with customers and your network. If you are not showing enough interest in your relationships, someone else will. A simple and brief email or phone call can set you apart from the crowd.
The holiday seasons are an opportunity to exhibit a personal touch with your connections. Even a mere phone call or email message will demonstrate the importance you place on a relationship. Remembering your contacts with a simple message will add to your credibility and sustain your brand loyalty in the minds of contacts.
Many people wait for the winter holiday season to reach out to their network and customers. Why wait to show your thanks just once per year? There are many holidays, birthdays, and other significant events allowing you opportunity to strengthen your relationships throughout the year. For example, you can send congratulations to someone for achieving a certain milestone in their career or thank them for their referral. Whatever method and time of year you choose, keep your message short and central to the event. Last, always thank people for their relationship with you.
Here are a few tips to keep in mind when messaging your relationships:
• Avoid sending e-cards. I am not fond of using electronic greeting cards. The Internet is full of scams and spam is abundant. Everyone is concerned about downloading attachments because of computer viruses. You can argue that the recipient knows the email is safe because they can see it is from your email address. Spammers are very good at stealing email identities and disguising email to look like it is safe. E-cards are viewed with suspicion.
• Send email with a personal touch. This is a much better option than an e-card. The personal touch shows you care about the relationship. Your message need not be filled with fancy graphics. The body of the message is more important. Avoid sending frivolous attachments. Compose your message directly in the body of the email rather than relying on attachments and speculative links.
• Keep email messages succinct. A few kind words of appreciation go a lot further than writing a book. Make the message meaningful and related to the holiday or event. You can always follow up with a phone call or meeting at a later date.
• Pick up the phone. Sometimes an email is just not enough. Take a few moments and call your relationships. Actually, you should be making verbal contact with all your significant relationships on a regular basis. Don’t wait until a holiday or event occurs.
• Mark your calendar to schedule routine contact. Make note of any special event coming due like a birthday. Set reminders in advance on your calendar so you do not miss the event.
Maintaining contact with your customers and network should be part of your regular marketing activities. It is much harder replace a contact than find a new one.
The holiday seasons are an opportunity to exhibit a personal touch with your connections. Even a mere phone call or email message will demonstrate the importance you place on a relationship. Remembering your contacts with a simple message will add to your credibility and sustain your brand loyalty in the minds of contacts.
Many people wait for the winter holiday season to reach out to their network and customers. Why wait to show your thanks just once per year? There are many holidays, birthdays, and other significant events allowing you opportunity to strengthen your relationships throughout the year. For example, you can send congratulations to someone for achieving a certain milestone in their career or thank them for their referral. Whatever method and time of year you choose, keep your message short and central to the event. Last, always thank people for their relationship with you.
Here are a few tips to keep in mind when messaging your relationships:
• Avoid sending e-cards. I am not fond of using electronic greeting cards. The Internet is full of scams and spam is abundant. Everyone is concerned about downloading attachments because of computer viruses. You can argue that the recipient knows the email is safe because they can see it is from your email address. Spammers are very good at stealing email identities and disguising email to look like it is safe. E-cards are viewed with suspicion.
• Send email with a personal touch. This is a much better option than an e-card. The personal touch shows you care about the relationship. Your message need not be filled with fancy graphics. The body of the message is more important. Avoid sending frivolous attachments. Compose your message directly in the body of the email rather than relying on attachments and speculative links.
• Keep email messages succinct. A few kind words of appreciation go a lot further than writing a book. Make the message meaningful and related to the holiday or event. You can always follow up with a phone call or meeting at a later date.
• Pick up the phone. Sometimes an email is just not enough. Take a few moments and call your relationships. Actually, you should be making verbal contact with all your significant relationships on a regular basis. Don’t wait until a holiday or event occurs.
• Mark your calendar to schedule routine contact. Make note of any special event coming due like a birthday. Set reminders in advance on your calendar so you do not miss the event.
Maintaining contact with your customers and network should be part of your regular marketing activities. It is much harder replace a contact than find a new one.
Tuesday, December 15, 2009
Market Positioning
Market Positioning is a module of the Marketing Matrix used to influence demand. Positioning can also create brand loyalty for repeat purchases. Briefly, the marketing matrix is comprised of product, pricing, promotion, placement, and persuasion. A product cannot be all things to all people -- universal appeal is a myth. Tastes are varied and preferences are diverse making it impossible to satisfy everyone with the same product. Therefore, identification of a target niche is critical.
A niche market is one that research establishes a base demand for a product. Creation of brand awareness is essential once a niche is identified. The intent of branding is to promote and imprint the product into the minds of a niche market. Differentiation tactics and concepts need to be developed if there are similar competing products in the market. Demonstrating the differences in product and the company offering it is a comparison between them and us. It should show impactful benefit that distinguishes a product from alternate choices. Prospective buyers should be able to readily recognize unique benefits, enabling purchasers to make better assessments between products.
A niche market is one that research establishes a base demand for a product. Creation of brand awareness is essential once a niche is identified. The intent of branding is to promote and imprint the product into the minds of a niche market. Differentiation tactics and concepts need to be developed if there are similar competing products in the market. Demonstrating the differences in product and the company offering it is a comparison between them and us. It should show impactful benefit that distinguishes a product from alternate choices. Prospective buyers should be able to readily recognize unique benefits, enabling purchasers to make better assessments between products.
The Marketing Concept
Marketing is a management tool designed to facilitate sales. As a management tool, marketing is part of the overall business process operation involving effective planning, project organizing, staffing concerns, direction, and control systems. Selling cannot be productive without good marketing. Both marketing and sales are dependent upon each other even though they are different disciplines.
Think of marketing as a way of managing business processes so decisions are made with the awareness of what the impact will be on the customer. For example, in sales, a product is created with the intent of offering it to potential buyers resulting in revenue. The sales staff is told to find prospects and turn them into buying customers. Sales practices are influenced by the marketing plan. Under the sales approach, a customer exists for the business. Under the marketing concept, the business exists to serve the customer.
Think of marketing as a way of managing business processes so decisions are made with the awareness of what the impact will be on the customer. For example, in sales, a product is created with the intent of offering it to potential buyers resulting in revenue. The sales staff is told to find prospects and turn them into buying customers. Sales practices are influenced by the marketing plan. Under the sales approach, a customer exists for the business. Under the marketing concept, the business exists to serve the customer.
Marketing Plan Introduction
Marketing – It is an essential component of every business enterprise for attracting new customers, as well as retention of existing ones. There is no single marketing solution to fit all situations. A marketing plan is unique to each enterprise even if the same product (service) type is sold by competing companies in the same marketplace. The plan must also be dynamic because the market demands are in a constant state of change.
Plan review must be regular. Market analysis is also a constant. Strategies require revision to meet the expectations of targeted verticals. Knowing the difference between perceived buyer needs and buyer wants will directly influence demand.
I will expand more on this process in future blogs and articles. Once you start a plan, keep reviewing and refining it for success.
Plan review must be regular. Market analysis is also a constant. Strategies require revision to meet the expectations of targeted verticals. Knowing the difference between perceived buyer needs and buyer wants will directly influence demand.
I will expand more on this process in future blogs and articles. Once you start a plan, keep reviewing and refining it for success.
Wednesday, December 9, 2009
How To Videos in Plain English
They say a picture is worth a thousand words. Well, I came across this new service that seems to have taken this saying to a new level. It's called Common Craft (www.commoncraft.com) - an educational service using video. Common Craft is owned and created by Lee and Sachi LeFever based out of Seattle, Washington.
The videos are short, simple, and very entertaining. Best of all, their how to video instruction takes all the clutter out of learning. Common Craft videos teach in "plain English", as they say it. Different language options are available, too.
If you are not technically savvy and want to know how to build a blog or create a Twitter account, there are videos to show you. They even have videos about investing money. Even if you can't find the video you are looking for, they have the ability to create a custom one for you.
To me, it's kind of like a video how to for dummies. I confess to learning a certain subject from one of their videos, but I am not telling which one (LOL). Seriously, I think Common Craft is pure genius and wish I thought of first. Kudos to them. I highly recommend you viewing their site to learn more.
The videos are short, simple, and very entertaining. Best of all, their how to video instruction takes all the clutter out of learning. Common Craft videos teach in "plain English", as they say it. Different language options are available, too.
If you are not technically savvy and want to know how to build a blog or create a Twitter account, there are videos to show you. They even have videos about investing money. Even if you can't find the video you are looking for, they have the ability to create a custom one for you.
To me, it's kind of like a video how to for dummies. I confess to learning a certain subject from one of their videos, but I am not telling which one (LOL). Seriously, I think Common Craft is pure genius and wish I thought of first. Kudos to them. I highly recommend you viewing their site to learn more.
$ Effective B2B Marketing Tactics
There are actually only four effective B2B marketing tactics for acquiring new clients. They are 1) Direct Contact 2) Networking 3) Promotion 4) Advertising and Publicity. However, it is not effective to use all four simultaneously. Direct Contact is by far the best method for gaining new business in the least amount of time. You still must know what methods to use for direct contact and most definitely you must Follow Up - Follow Up - Follow Up.
Direct Contact is your proactive outreach activity. It let's your prospects know you exist rather than waiting for them to discover you themselves. You are able to engage with prospects, share information, immediately respond to questions, and so forth. This is where you establish rapport. People will buy more readily from people they learn to trust.
Networking also proactively let's the world know you're alive. Your network contacts are your source for referrals and building credibility. They care your viral marketing arm.
Promotion is about spreading the word either by yourself or having others do it. You can attend trade shows or perform public speaking engagements. The goal is to create visibility, but it does not always motivate others to contact you. You still need to follow up (direct contact).
Advertising and Publicity are dependent upon each other. Like promotion, it creates visibility. These activities are passive. This means that you place ads or press releases out in the world hoping to brand yourself and create awareness. However, these activities alone do not drive business to your door.
The best advice is to use only two of the four strategies at any given time - and use them with purpose. When I state "purpose", I mean you need to have plan in advance with set goals. You can always add additional tactics along the way. Mix and match tactics depending on your environment. Just make sure Direct Contact is always in the mix.
Direct Contact is your proactive outreach activity. It let's your prospects know you exist rather than waiting for them to discover you themselves. You are able to engage with prospects, share information, immediately respond to questions, and so forth. This is where you establish rapport. People will buy more readily from people they learn to trust.
Networking also proactively let's the world know you're alive. Your network contacts are your source for referrals and building credibility. They care your viral marketing arm.
Promotion is about spreading the word either by yourself or having others do it. You can attend trade shows or perform public speaking engagements. The goal is to create visibility, but it does not always motivate others to contact you. You still need to follow up (direct contact).
Advertising and Publicity are dependent upon each other. Like promotion, it creates visibility. These activities are passive. This means that you place ads or press releases out in the world hoping to brand yourself and create awareness. However, these activities alone do not drive business to your door.
The best advice is to use only two of the four strategies at any given time - and use them with purpose. When I state "purpose", I mean you need to have plan in advance with set goals. You can always add additional tactics along the way. Mix and match tactics depending on your environment. Just make sure Direct Contact is always in the mix.
Monday, December 7, 2009
Ripped Off and Sounding Out
I've written and published my own original articles on many web sites including this blog. Recently, I joined a new publishing site to gain a little more public exposure for networking and building opportunities. I submitted a few of my previously published articles to get acquainted with the new site before publishing new content. Submitting previously published work is an acceptable practice on this new publisher web site, as it is with many others.
Here is the issue. A couple of my article submissions were denied by the new publisher. The two main reasons for denial are copyright infringement and no matching byline. Wow! My own creations were being unjustly accused of plagiarism. This really ticks me off because all my written work is original from my own experience and mind.
I checked the web sources cited by the AC editor who declined my articles. The first web link was to an expired domain and it contained a portion of an article I wrote and published long ago. The other web link shows my exact full and previously published article, but does not cite me as the author.
Obviously, my written work has been ripped-off and published by some scoundrels. I can verify, without question, these articles are my own creation. In fact, I can show the published date of one of my articles precedes the date on one the links found by the publishing editor.
So, what is the moral? Once you write on the internet, you never know where your words will be found -- or stolen.
Here is the issue. A couple of my article submissions were denied by the new publisher. The two main reasons for denial are copyright infringement and no matching byline. Wow! My own creations were being unjustly accused of plagiarism. This really ticks me off because all my written work is original from my own experience and mind.
I checked the web sources cited by the AC editor who declined my articles. The first web link was to an expired domain and it contained a portion of an article I wrote and published long ago. The other web link shows my exact full and previously published article, but does not cite me as the author.
Obviously, my written work has been ripped-off and published by some scoundrels. I can verify, without question, these articles are my own creation. In fact, I can show the published date of one of my articles precedes the date on one the links found by the publishing editor.
So, what is the moral? Once you write on the internet, you never know where your words will be found -- or stolen.
When a Client or Customer is Wrong
Never tell a client or customer, "I told you so". You provide advice or offer a solution to your client, but sometimes they still go their own way. On occasion, their decision fails even though you warned them about the outcome. This is not an occasion to point out their mistake. Rather, it is an opportunity to shine and establish more credibility. Nobody likes to be told his or her decision-making is faulty. Ask questions about what they think should have been done differently. Offer to help by providing alternate solutions. Guide your clients to find the correct answers to their issues. Be prepared to validate your solutions with supporting facts. Remember not to remind them that they should have listened to you in the first place. Your client will recognize you as valuable resource and will be more receptive to future advice.
Tuesday, December 1, 2009
True Cost of Staff Compensation
Staffing is probably the most challenging task and time-consuming tasks faced by any organization. It can also be the most expensive part of operating a business. Without good people, all enterprises cannot effectively pursue their goals and achieve objectives.
How do you find qualified job candidates? How long does it take to recruit, hire, and train new people? How will you evaluate them to ensure they can deliver upon your objectives? How does staffing fit within your overall business plan? Once you have connected with others, you still need to engage, recruit, qualify, orient, and control. This is the management side of building an effective staffing infrastructure. Even if you find the right people, they may not consider your offer. Compensation is another element that will determine the quality of the candidate. As the old saying goes…“You Get What You Pay For”.
Real staffing costs of a company are more than salary considerations. Whatever you decide to pay an employee must be multiplied 125 to 135 percent. Why use a multiple? Because overhead costs add to overall payroll expenses and ultimately affects your profits. Additional soft costs of staffing include benefits, time off, taxes, supplies, office use incidentals, and more. For example, a $50,000 annual salary will likely cost more than $63,000 in payroll expense and may have detrimental results to a budget if soft costs are not pre-planned. Many entrepreneurs and mangers do not realize the soft costs until after they occur.
An effective solution is to outsource some or all of your staffing - at least in the beginning. Working with a professional business process outsourcing (BPO) firm can take much of the initial load off your back and still allow you to have full control. A BPO firm will provide expert management functions at a significantly reduced cost compared to hiring direct employees. You can set up and initiate faster using a BPO. While the BPO is performing assigned duties, you can work on recruiting a permanent staff to eventually transition away from the BPO. In fact, the BPO can assist you in the recruiting of their replacement.
How do you find qualified job candidates? How long does it take to recruit, hire, and train new people? How will you evaluate them to ensure they can deliver upon your objectives? How does staffing fit within your overall business plan? Once you have connected with others, you still need to engage, recruit, qualify, orient, and control. This is the management side of building an effective staffing infrastructure. Even if you find the right people, they may not consider your offer. Compensation is another element that will determine the quality of the candidate. As the old saying goes…“You Get What You Pay For”.
Real staffing costs of a company are more than salary considerations. Whatever you decide to pay an employee must be multiplied 125 to 135 percent. Why use a multiple? Because overhead costs add to overall payroll expenses and ultimately affects your profits. Additional soft costs of staffing include benefits, time off, taxes, supplies, office use incidentals, and more. For example, a $50,000 annual salary will likely cost more than $63,000 in payroll expense and may have detrimental results to a budget if soft costs are not pre-planned. Many entrepreneurs and mangers do not realize the soft costs until after they occur.
An effective solution is to outsource some or all of your staffing - at least in the beginning. Working with a professional business process outsourcing (BPO) firm can take much of the initial load off your back and still allow you to have full control. A BPO firm will provide expert management functions at a significantly reduced cost compared to hiring direct employees. You can set up and initiate faster using a BPO. While the BPO is performing assigned duties, you can work on recruiting a permanent staff to eventually transition away from the BPO. In fact, the BPO can assist you in the recruiting of their replacement.
Tuesday, November 24, 2009
Character, Capacity, Capital, Conditions, and Collateral
Character – This relates to the motivation of the borrower to repay a debt obligation. It is unlike any other financial performance indicator found in the financial statements. Determining character is a judgment call derived from careful interviewing of the applicant and study of the applicants’ historical credit reputation. Background checks and interviews with others having business relations with the applicant are useful to make a fair appraisal.
Capacity – “Cash is King”. Loans are repaid from cash generated by the business’ operating cycle. Can the borrower manage their cash efficiently enough not only to repay the loan, but all other debts simultaneously? Historical financial performance is evaluated to determine how the borrower handles their debts and expenses. Sources to review include the Income Statement, Statement of Cash Flows, and partially the Balance Sheet. A new or very young business is difficult to judge because they have not yet accumulated enough historical data to review.
Capital – It is the funds available to operate a business. The two primary conditions in this area involve the amount of owner’s equity (OE) and efficient uses of the capital to operate the business. It is not good when borrowed capital (credit) is greater than OE. Careful scrutiny of the Balance Sheet is required in this area. The purpose of capital is to maintain operations. Borrowing funds to augment operations is normal. However, too much borrowed capital is a sign that something is wrong.
Conditions – These are external factors relative to the industry of the business. The current state of the economy is a good example. Industry events and situations (current and predicted) are taken into consideration as to how it affects the business. For example, if a key supplier of the business experiences a labor strike, further investigation is needed to consider the affect on the business. Interviews with key officers and the business owner can shed light on what is happening. Additional resources like trade journals, industry news reports and the like are useful tools.
Collateral – Lenders want repayment from cash, not property. The last thing a lender wants to do in a default is take the property pledged backing up a loan. Property pledged is only a means to offset weaknesses in the other Cs. It is a safety net of last resort should a loan default a secondary source of repayment. A collateral pledge is completely irrelevant if the loan request contains too many negative signs in the foregoing credit assessment areas.
Capacity – “Cash is King”. Loans are repaid from cash generated by the business’ operating cycle. Can the borrower manage their cash efficiently enough not only to repay the loan, but all other debts simultaneously? Historical financial performance is evaluated to determine how the borrower handles their debts and expenses. Sources to review include the Income Statement, Statement of Cash Flows, and partially the Balance Sheet. A new or very young business is difficult to judge because they have not yet accumulated enough historical data to review.
Capital – It is the funds available to operate a business. The two primary conditions in this area involve the amount of owner’s equity (OE) and efficient uses of the capital to operate the business. It is not good when borrowed capital (credit) is greater than OE. Careful scrutiny of the Balance Sheet is required in this area. The purpose of capital is to maintain operations. Borrowing funds to augment operations is normal. However, too much borrowed capital is a sign that something is wrong.
Conditions – These are external factors relative to the industry of the business. The current state of the economy is a good example. Industry events and situations (current and predicted) are taken into consideration as to how it affects the business. For example, if a key supplier of the business experiences a labor strike, further investigation is needed to consider the affect on the business. Interviews with key officers and the business owner can shed light on what is happening. Additional resources like trade journals, industry news reports and the like are useful tools.
Collateral – Lenders want repayment from cash, not property. The last thing a lender wants to do in a default is take the property pledged backing up a loan. Property pledged is only a means to offset weaknesses in the other Cs. It is a safety net of last resort should a loan default a secondary source of repayment. A collateral pledge is completely irrelevant if the loan request contains too many negative signs in the foregoing credit assessment areas.
Tuesday, November 17, 2009
Tips for creating an effective cold call pitch
Effective messaging is critical in delivering your sales pitch to grab attention. Poor messaging and inadequate prospect targeting will stifle your effectiveness.
Plan your calling effort in advance. Do some homework about your prospect - Know something about your prospect or the industry in advance. Make sure you are talking to a decision maker prospect when you call. Know why you are calling and have a purpose with a goal in mind.
Tips:
1) Keep sentences short and fewer than 10 words. The tone should be aligned with a natural speaking voice.
2) Do Not use Buzzwords. Everyone hears buzzwords and people tend to view them as annoying.
3) Ask for feedback about your messaging from peers in your organization. Would your message get their attention?
4) Get a second opinion. Read your pitch allowed to a third party in your same industry. Do they understand your offer and does it sound natural? Does it get them thinking how you can offer an effective solution?
Decision makers will shut you down if they don’t like what they hear. Be direct and concise with impact statements to grab attention. Put you best foot forward on the first cal as this will lay the groundwork for developing a cold call into a relationship. Get in the habit of periodically critiquing your pitch and make necessary revisions as your experience grows. Last, never promise something you can’t backup.
Plan your calling effort in advance. Do some homework about your prospect - Know something about your prospect or the industry in advance. Make sure you are talking to a decision maker prospect when you call. Know why you are calling and have a purpose with a goal in mind.
Tips:
1) Keep sentences short and fewer than 10 words. The tone should be aligned with a natural speaking voice.
2) Do Not use Buzzwords. Everyone hears buzzwords and people tend to view them as annoying.
3) Ask for feedback about your messaging from peers in your organization. Would your message get their attention?
4) Get a second opinion. Read your pitch allowed to a third party in your same industry. Do they understand your offer and does it sound natural? Does it get them thinking how you can offer an effective solution?
Decision makers will shut you down if they don’t like what they hear. Be direct and concise with impact statements to grab attention. Put you best foot forward on the first cal as this will lay the groundwork for developing a cold call into a relationship. Get in the habit of periodically critiquing your pitch and make necessary revisions as your experience grows. Last, never promise something you can’t backup.
Wednesday, November 11, 2009
Website Marketing – A Tool, Not A Strategy
Think twice the next time you want to market your enterprise with a website. There is a lot of distorted information in the business world about Web Marketing. Many IT or Web Design consultants profess themselves as marketing experts. They tell you that creating effective web content or using the right key words will get you more customers. They tell you that higher ranking in search engines will draw more attention to your site. While having a website is important to gain exposure on the internet, and it adds credibility, a website alone is not marketing. Your website is only one tool used in marketing strategy. If you rely solely on your website to do all the work, you will soon find out that you are missing out on opportunity. Even some of the best E-commerce sites still need to apply a marketing strategy to draw people to their site.
Web designers and Search Engine Optimization (SEO) experts do offer valuable services for building an effective web presence, but their services must be aligned with the marketing goals and strategy. Take note here - these IT professionals are schooled and trained mainly for information technology and not marketing. Marketing is a discipline of business administration. Only true marketing professionals know how to strategically position your products and services in the marketplace. The marketing matrix involves Product, Pricing, Promotion, Placement, and Distribution. Research and analysis are required to make sure you are targeting the right market segments to promote your product effectively. Marketing professionals will carefully analyze your business situation, your budget, your market demographics and behaviors, your product(s) appeal, and all (internal and external) resources available to attract more customers. A marketing professional will identify how to use your website as a tool, not just the only resource.
Buyers are not looking only for your product or website - the market is filled with competition. You must reach out to your prospects with proactive and strategically sound methods. Your messaging must address Value, Differentiation, and Singularity. Your enterprise (and products) requires development of Branding and Recognition. Once you create awareness, your goal is to use various selling methods to convince people your brand is what they want to buy.
You worked hard at developing your website and you should feel proud about it. However, you must know how to use your site to attract business. Even if people find your site easily, what is your strategy to convert visitors into buyers? How do you know the right target audience is finding you? There is much more involved in marketing your product than creating a great looking website or using key words to attract visitors. Your marketing plan must be developed around your operations, your product(s), and your vertical targets.
The next time you seek help in marketing your enterprise, talk to a marketing professional first. Let your marketing strategy work with and control what your website does. Knowing the difference between Marketing and Website Promotion will set realistic expectations and help you grow your enterprise far more effectively. Remember, your website is only one tool in your strategy.
By, G-Michael Homa
© 2009
Web designers and Search Engine Optimization (SEO) experts do offer valuable services for building an effective web presence, but their services must be aligned with the marketing goals and strategy. Take note here - these IT professionals are schooled and trained mainly for information technology and not marketing. Marketing is a discipline of business administration. Only true marketing professionals know how to strategically position your products and services in the marketplace. The marketing matrix involves Product, Pricing, Promotion, Placement, and Distribution. Research and analysis are required to make sure you are targeting the right market segments to promote your product effectively. Marketing professionals will carefully analyze your business situation, your budget, your market demographics and behaviors, your product(s) appeal, and all (internal and external) resources available to attract more customers. A marketing professional will identify how to use your website as a tool, not just the only resource.
Buyers are not looking only for your product or website - the market is filled with competition. You must reach out to your prospects with proactive and strategically sound methods. Your messaging must address Value, Differentiation, and Singularity. Your enterprise (and products) requires development of Branding and Recognition. Once you create awareness, your goal is to use various selling methods to convince people your brand is what they want to buy.
You worked hard at developing your website and you should feel proud about it. However, you must know how to use your site to attract business. Even if people find your site easily, what is your strategy to convert visitors into buyers? How do you know the right target audience is finding you? There is much more involved in marketing your product than creating a great looking website or using key words to attract visitors. Your marketing plan must be developed around your operations, your product(s), and your vertical targets.
The next time you seek help in marketing your enterprise, talk to a marketing professional first. Let your marketing strategy work with and control what your website does. Knowing the difference between Marketing and Website Promotion will set realistic expectations and help you grow your enterprise far more effectively. Remember, your website is only one tool in your strategy.
By, G-Michael Homa
© 2009
Tuesday, November 3, 2009
Identify Real Opportunity
You worked hard doing market research, developing a good prospect list, prepared a good value proposition, and crafted a snappy sales script. Now you begin contacting prospects and making appointments. Is your prospect truly in a position to buy? Only qualified prospects are worth your effort – otherwise you have wasted valuable time and resources.
What can you do that will increase chances of success for closing more deals? How do you know if a prospect is a real opportunity? Following is a guideline of vitals steps required for every business proposition.
Identify the Decision Maker - The first step in qualifying a prospect is to identify all the decision makers. Sometimes it is a single person and other times it could be a committee. You also need to identify their decision-making procedures; learn how they make their decisions. Identification is the number one rule before proceeding further. Do Not skip this step. If you do, you will set yourself up for disappointment. Know if you are speaking with a decision maker – if not, you need to find out who is the right person. Learn if anyone else is involved. Ask about their decision process so you know how to proceed and set expectations.
Pain-Points and Motivation - What will make your prospect buy from you? What you perceive what the prospect needs is not always what they want. Your value proposition should offer a solution that satisfies something the prospect desires. What are the prospect’s pain-points and how does your product solve it? Probe with open-ended question relative to a perceived need for your product, but focus on the prospect’s pain-point. Open-end questions engage the prospect revealing clues how to address a solution with your product. The prospect needs to believe your product is their solution.
A Sense of Urgency - You have identified the decision maker and your product provides a solution they want. Now, find out when they are in a position to buy. What is their sense of urgency to make the purchase? Knowing when a prospect makes their decisions will help you plan a better strategy. Uncover the length of time it will take for making a buying decision. How soon is the prospect making a final decision to buy? Does the prospect perceive a current need for your product? If they are not ready to buy now, ask when they will be in a position to decide. Does your product fit in their short-term or long-term planning? How often do they make similar purchases? What happens next?
Competition - The competition is calling your prospect, too. Prospects are always receiving offerings and contemplating choices. You cannot always know if your offer is under serious consideration unless you know what you are facing. It is likely your prospect is also someone else’s customer or may soon be. Unless your product is truly unique, chances are your prospect is already buying it or considering an offer from a competitor. You must position yourself against the competition. A good value proposition demonstrates solutions to motivate buying decisions. When facing the competition roadblock, go back to your open-ended questioning to understand your prospect’s choices.
Why Not? - Objections and rejections do not always mean no. How you handle the objection may save the deal. An objection may simply mean the prospect was not convinced your offer was the right solution wanted. It may also mean that you have not provided enough information for the prospect to make a sound decision. This is your opportunity to understand the buying motive and use other tactics to turn the objection into a yes. Acknowledge the objection, restate it, and present an alternate solution based on what the prospect is telling you. Even if you cannot turn every rejection into a sale, you will gain valuable feedback that will prepare you better for future presentations.
Once you have a prospect’s attention, it is imperative that you make sure they are qualified. Qualifying techniques are used immediately after gaining an audience and delivered during your presentation. These techniques can be used equally as well for many business proposals, not just sales presentations. The foregoing qualifying points are to be used as a guide to reveal opportunities and facilitate closing more deals. Do not try to avoid any one of the steps presented here because all are equally important to close the deal.
© 2009 gmh
What can you do that will increase chances of success for closing more deals? How do you know if a prospect is a real opportunity? Following is a guideline of vitals steps required for every business proposition.
Identify the Decision Maker - The first step in qualifying a prospect is to identify all the decision makers. Sometimes it is a single person and other times it could be a committee. You also need to identify their decision-making procedures; learn how they make their decisions. Identification is the number one rule before proceeding further. Do Not skip this step. If you do, you will set yourself up for disappointment. Know if you are speaking with a decision maker – if not, you need to find out who is the right person. Learn if anyone else is involved. Ask about their decision process so you know how to proceed and set expectations.
Pain-Points and Motivation - What will make your prospect buy from you? What you perceive what the prospect needs is not always what they want. Your value proposition should offer a solution that satisfies something the prospect desires. What are the prospect’s pain-points and how does your product solve it? Probe with open-ended question relative to a perceived need for your product, but focus on the prospect’s pain-point. Open-end questions engage the prospect revealing clues how to address a solution with your product. The prospect needs to believe your product is their solution.
A Sense of Urgency - You have identified the decision maker and your product provides a solution they want. Now, find out when they are in a position to buy. What is their sense of urgency to make the purchase? Knowing when a prospect makes their decisions will help you plan a better strategy. Uncover the length of time it will take for making a buying decision. How soon is the prospect making a final decision to buy? Does the prospect perceive a current need for your product? If they are not ready to buy now, ask when they will be in a position to decide. Does your product fit in their short-term or long-term planning? How often do they make similar purchases? What happens next?
Competition - The competition is calling your prospect, too. Prospects are always receiving offerings and contemplating choices. You cannot always know if your offer is under serious consideration unless you know what you are facing. It is likely your prospect is also someone else’s customer or may soon be. Unless your product is truly unique, chances are your prospect is already buying it or considering an offer from a competitor. You must position yourself against the competition. A good value proposition demonstrates solutions to motivate buying decisions. When facing the competition roadblock, go back to your open-ended questioning to understand your prospect’s choices.
Why Not? - Objections and rejections do not always mean no. How you handle the objection may save the deal. An objection may simply mean the prospect was not convinced your offer was the right solution wanted. It may also mean that you have not provided enough information for the prospect to make a sound decision. This is your opportunity to understand the buying motive and use other tactics to turn the objection into a yes. Acknowledge the objection, restate it, and present an alternate solution based on what the prospect is telling you. Even if you cannot turn every rejection into a sale, you will gain valuable feedback that will prepare you better for future presentations.
Once you have a prospect’s attention, it is imperative that you make sure they are qualified. Qualifying techniques are used immediately after gaining an audience and delivered during your presentation. These techniques can be used equally as well for many business proposals, not just sales presentations. The foregoing qualifying points are to be used as a guide to reveal opportunities and facilitate closing more deals. Do not try to avoid any one of the steps presented here because all are equally important to close the deal.
© 2009 gmh
Market Research Primer for Beginners
A well-defined Marketing Strategy is dictated by your Marketing Plan and influenced by your research. This can be complex, but some basics are worth noting. I cannot hope to encompass all aspects of Marketing Research elements in this article. My intent is to give you an idea where to start and get you thinking in the right direction.
A marketing strategy should boil down to identifying customer bases that your service or product can be perceived as an alternative over target competitors. Your approach and product offering should be tailored to meet the demand of market segments. It is key to understand the difference between what customers need and what they want. Customers recognize value in your offering. Value positioning is another topic of discussion and will not be discussed in this article.
You need to know what your Target Market is about and segment it. There are two basic methods used to segment a market: Geographic Segmentation and Customer Segmentation. Are you trying to serve the needs of customers in a geographical area? Alternatively, are you trying to identify people most likely to buy your product?
The Market Research Process Involves:
1. Define Marketing Problems and Opportunities.
2. Set Objectives, Budget and Timetables.
3. Select Research Types, Methods and Techniques.
4. Design Research Instruments, e.g. a questionnaire.
5. Collect Data - Organize and Analyze it.
6. Present and Implement from Research Findings.
Do some Competition Analysis:
1. Identify a few of your nearest "direct" and "indirect" competitors.
2. What is the status of their business? Growth - Static - Decline.
3. Learn from their advertising and operational deployment.
4. SWOT analyze competitors.
5. What are the major differences between you and them?
Market research and planning can get very involved. Many resources and books cover each element of this research. My intent is only to create an awareness of what is involved before you go to market with a product. I hope that you can use my overview to help you understand where to start.
Best Regards and Good Luck
© 2009 gmh
A marketing strategy should boil down to identifying customer bases that your service or product can be perceived as an alternative over target competitors. Your approach and product offering should be tailored to meet the demand of market segments. It is key to understand the difference between what customers need and what they want. Customers recognize value in your offering. Value positioning is another topic of discussion and will not be discussed in this article.
You need to know what your Target Market is about and segment it. There are two basic methods used to segment a market: Geographic Segmentation and Customer Segmentation. Are you trying to serve the needs of customers in a geographical area? Alternatively, are you trying to identify people most likely to buy your product?
The Market Research Process Involves:
1. Define Marketing Problems and Opportunities.
2. Set Objectives, Budget and Timetables.
3. Select Research Types, Methods and Techniques.
4. Design Research Instruments, e.g. a questionnaire.
5. Collect Data - Organize and Analyze it.
6. Present and Implement from Research Findings.
Do some Competition Analysis:
1. Identify a few of your nearest "direct" and "indirect" competitors.
2. What is the status of their business? Growth - Static - Decline.
3. Learn from their advertising and operational deployment.
4. SWOT analyze competitors.
5. What are the major differences between you and them?
Market research and planning can get very involved. Many resources and books cover each element of this research. My intent is only to create an awareness of what is involved before you go to market with a product. I hope that you can use my overview to help you understand where to start.
Best Regards and Good Luck
© 2009 gmh
Monday, November 2, 2009
Chief reasons behind business failures
Approximately two-thirds of all business failures stem from improper marketing and poor management. Improper marketing can and usually is a result of not understanding what your buyers really want. Poor management is not about brain power - it's about not understanding how to manage the resources available. Planning properly and actually using the plan will help get ahead of the game. More on this topic will come in future blogs.
Business Planning Takes A Road Trip
By G. Michael Homa ©2009
Spectrum Business Consultants
Here is a simple overview of a planning hierarchy: The business plan is the master document that directs all aspects of an enterprise. Yet, many executives fail to fully understand its importance for achieving goals. Too often, the plan is written then filed away and never used as a key tool in managing a business. A good plan is not necessarily about how well it is written - more important is how well it is implemented. Someone once said, “A partial plan implemented well is better than a well written plan never placed into action”. It is very important to use the plan as your guide, but it must also be dynamic under constant revision because the marketplace is not static. Without a plan, how do you know where you are going and how you will reach your destination?
A business plan addresses functions related to product, marketing, operations, administration, finance, legal, and budgeting. Yes, you can argue that more goes into the plan – remember this is just a simple summary. Planning is like preparing for a road trip. You know where you are and know where you want to go, but how do you get there?
Let’s say your trip is several hundred miles long. Studying your map, you ask yourself questions about time and resources needed before you start the journey. You want to get to your destination as quickly and efficiently as possible, but at the lowest cost without sacrificing essentials or your comfort.
Factors to consider for your trip include mode of transportation, cost, length of trip, and best route in a realistic amount of time. What happens during the trip, if you encounter road construction, traffic jams, or even detours? What if your car breaks down along the way? You tried to plan properly in advance, but now you’re faced with unexpected choices. What resources do have at your disposal? How do you tap resources you don’t have now? What are the opportunity-cost to consider? Which options make most sense to keep you moving on?
Planning your road trip, you consider all the route options. Route A is the shortest, but research shows the route is full of road construction. Taking this route will make your journey longer because of delays and it may cost more in gas money because poor mileage efficiency caused by many stop and go driving. Route B is significantly longer meaning it takes more time to reach your destination. However, there are no detours or construction to deal with. You can zip all the way with minimal stops and find the improved mileage efficiency means less gas station stops resulting in cost savings.
These are the kind of factors requiring consideration when starting a plan. After you decide on the route to take, you must now consider your available resources and their capacity to fulfill your goal. In our road trip example, your next considerations will be influenced by a systems check of your automobile – is it road worthy for a long trip? Must you invest in new tires? Is your battery reliable? You get the idea. How much money do you have allocated for gas, food, and the unexpected? Are you doing all the driving and navigation yourself? When do you start your trip after considering your options?
Being realistic with your goals and anticipating roadblocks will assist you in starting your plan. Don’t waste time constantly refining your plan at the start or you will never reach your destination. Just start with the basic elements using research and a little common sense. Risk is part of the game, but you can significantly reduce future risk if you plan, learn, evaluate, and adjust. Adjustments are always necessary because the market is dynamic - so should be the application of your plan. You cannot anticipate every obstacle, but you will be better prepared to resolve issues if you have a plan and evaluate it on a regular basis.
Spectrum Business Consultants
Here is a simple overview of a planning hierarchy: The business plan is the master document that directs all aspects of an enterprise. Yet, many executives fail to fully understand its importance for achieving goals. Too often, the plan is written then filed away and never used as a key tool in managing a business. A good plan is not necessarily about how well it is written - more important is how well it is implemented. Someone once said, “A partial plan implemented well is better than a well written plan never placed into action”. It is very important to use the plan as your guide, but it must also be dynamic under constant revision because the marketplace is not static. Without a plan, how do you know where you are going and how you will reach your destination?
A business plan addresses functions related to product, marketing, operations, administration, finance, legal, and budgeting. Yes, you can argue that more goes into the plan – remember this is just a simple summary. Planning is like preparing for a road trip. You know where you are and know where you want to go, but how do you get there?
Let’s say your trip is several hundred miles long. Studying your map, you ask yourself questions about time and resources needed before you start the journey. You want to get to your destination as quickly and efficiently as possible, but at the lowest cost without sacrificing essentials or your comfort.
Factors to consider for your trip include mode of transportation, cost, length of trip, and best route in a realistic amount of time. What happens during the trip, if you encounter road construction, traffic jams, or even detours? What if your car breaks down along the way? You tried to plan properly in advance, but now you’re faced with unexpected choices. What resources do have at your disposal? How do you tap resources you don’t have now? What are the opportunity-cost to consider? Which options make most sense to keep you moving on?
Planning your road trip, you consider all the route options. Route A is the shortest, but research shows the route is full of road construction. Taking this route will make your journey longer because of delays and it may cost more in gas money because poor mileage efficiency caused by many stop and go driving. Route B is significantly longer meaning it takes more time to reach your destination. However, there are no detours or construction to deal with. You can zip all the way with minimal stops and find the improved mileage efficiency means less gas station stops resulting in cost savings.
These are the kind of factors requiring consideration when starting a plan. After you decide on the route to take, you must now consider your available resources and their capacity to fulfill your goal. In our road trip example, your next considerations will be influenced by a systems check of your automobile – is it road worthy for a long trip? Must you invest in new tires? Is your battery reliable? You get the idea. How much money do you have allocated for gas, food, and the unexpected? Are you doing all the driving and navigation yourself? When do you start your trip after considering your options?
Being realistic with your goals and anticipating roadblocks will assist you in starting your plan. Don’t waste time constantly refining your plan at the start or you will never reach your destination. Just start with the basic elements using research and a little common sense. Risk is part of the game, but you can significantly reduce future risk if you plan, learn, evaluate, and adjust. Adjustments are always necessary because the market is dynamic - so should be the application of your plan. You cannot anticipate every obstacle, but you will be better prepared to resolve issues if you have a plan and evaluate it on a regular basis.
What is Business Development?
By G. Michael Homa ©2009
Spectrum Business Consultants
Too often, I have encountered business managers hiring Sales people and classifying them as Business Developers. The same holds true when managers call their Sales people Marketing Professionals. Main reasons behind this misclassification are twofold: First, many people DO NOT understand what the differences are between sales, marketing, and business development. Second, organizations do not accurately recognize which of these functional areas need help to drive revenue and how they compliment each other. These misunderstandings of disciplines cause unrealistic expectations and failure to achieve goals.
Business Development (Biz-Dev) is often misunderstood. It is often times mistaken as purely a sales role and other times as a marketing initiative. Well, it is a little of both, but it is also much more. Understanding what Biz-Dev is and what it does can focus the strategic direction of an enterprise, which ultimately creates new opportunities. Biz-Dev can be sales oriented, but it also can act as an operational function to support sales. Biz-Dev supplements marketing, sales, operations, and management. All of these functions are dependent upon each other. Biz-Dev is part sales, part marketing, part strategy, part planning, and part management. Biz-Dev can also work on promotion of an enterprise or even relationship building functions.
Isn’t a business developer’s main job expected to generate sales? Isn’t the lifeblood of business driven by sales? Yes, the ultimate business goal of an enterprise is to gain and grow sales. Even non-profit organizations need to raise money to survive. Without sales there is no revenue, without revenue there is no working capital, no working capital means no sustainability, and so forth. However, all units in an organization affect the outcome of sales. A company must define its purpose and objectives within their business plan. Upper management must communicate directives to staff and control processes. Employees are accountable to perform duties within their unit of responsibility. All units must work cohesively with their output contributing to the common goal of the company. For example, marketing cannot initiate a promotional campaign without input from finance, otherwise budgets and production costs will soon run into chaos.
Simply said, Biz-Dev is management process that uses resources available to an organization and coordinates plan activities to achieve goals. Sometimes the goal is increased sales, but other times an organization needs improvement or aid in another part of its operation. Examples that are not exactly sales oriented include business planning, administrative refinement, market research, finance, general management, and more. The bottom line is Biz-Dev can perform multiple initiatives to achieve a goal that will improve a functional business process resulting in opportunity. Think of Biz-Dev as project management for sales.
Understanding the various roles Biz-Dev can perform will improve the focus of your enterprise and help achieve its goals.
Spectrum Business Consultants
Too often, I have encountered business managers hiring Sales people and classifying them as Business Developers. The same holds true when managers call their Sales people Marketing Professionals. Main reasons behind this misclassification are twofold: First, many people DO NOT understand what the differences are between sales, marketing, and business development. Second, organizations do not accurately recognize which of these functional areas need help to drive revenue and how they compliment each other. These misunderstandings of disciplines cause unrealistic expectations and failure to achieve goals.
Business Development (Biz-Dev) is often misunderstood. It is often times mistaken as purely a sales role and other times as a marketing initiative. Well, it is a little of both, but it is also much more. Understanding what Biz-Dev is and what it does can focus the strategic direction of an enterprise, which ultimately creates new opportunities. Biz-Dev can be sales oriented, but it also can act as an operational function to support sales. Biz-Dev supplements marketing, sales, operations, and management. All of these functions are dependent upon each other. Biz-Dev is part sales, part marketing, part strategy, part planning, and part management. Biz-Dev can also work on promotion of an enterprise or even relationship building functions.
Isn’t a business developer’s main job expected to generate sales? Isn’t the lifeblood of business driven by sales? Yes, the ultimate business goal of an enterprise is to gain and grow sales. Even non-profit organizations need to raise money to survive. Without sales there is no revenue, without revenue there is no working capital, no working capital means no sustainability, and so forth. However, all units in an organization affect the outcome of sales. A company must define its purpose and objectives within their business plan. Upper management must communicate directives to staff and control processes. Employees are accountable to perform duties within their unit of responsibility. All units must work cohesively with their output contributing to the common goal of the company. For example, marketing cannot initiate a promotional campaign without input from finance, otherwise budgets and production costs will soon run into chaos.
Simply said, Biz-Dev is management process that uses resources available to an organization and coordinates plan activities to achieve goals. Sometimes the goal is increased sales, but other times an organization needs improvement or aid in another part of its operation. Examples that are not exactly sales oriented include business planning, administrative refinement, market research, finance, general management, and more. The bottom line is Biz-Dev can perform multiple initiatives to achieve a goal that will improve a functional business process resulting in opportunity. Think of Biz-Dev as project management for sales.
Understanding the various roles Biz-Dev can perform will improve the focus of your enterprise and help achieve its goals.
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