Business Development Tip Archive - 2003

January

Phone Interviews

They're a quick and easy way to screen potential employees.

Phone interviews are being used more and more as a tool to evaluate candidates before bringing them in for an interview. They save time and can help you determine whether you want to arrange for a face-to-face meeting. Before you call a prospective candidate, make sure you have a clear agenda of the items you want to cover. Organize your questions in advance so that your conversation will follow a natural and orderly process. It is courteous to schedule a phone interview rather than assume the candidate will have the time to talk whenever you call. Be prepared to ask him the same direct qualifying questions that you would ask in person. 

If the candidate doesn't sound right on the phone, chances are he won't sound any better when you meet. If this is the case, you've saved yourself a lot of time. Go on to your next candidate.

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Business Card Basics

The more you can hand out, the better.

Business cards don't do any good hiding in your desk--they're only useful when they're spread around. Here are some ideas to get them into circulation: 

• Don't hand out just one card. Make it a practice to hand out two, then ask the recipient to pass the extra one onto someone else.

• Give one to the customer on every call, not just the first one. Ask them to pass them on.

• Give one to every person in a group presentation, not just the decision maker.

• Give a card to every receptionist when you ask to see the prospect.

• Put two cards in the envelope with every letter, birthday card or thank-you note.

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Goodwill Works

Giving back to the community will nourish your business.

Many business owners feel they have an obligation to help people in the community who are less fortunate than they are. After all, a percentage of the profits you make comes from the community. Finding ways to reinvest those dollars benefits not only the community, but also your business. For instance, supporting economic revitalization projects that spur business growth creates a win-win situation. 

On a smaller scale, set aside one day per month as your "nonprofit day"—literally! Publicly commit to giving the profits earned one day each month to a community project, and make a big deal about it. Hang a banner or place an ad in your local paper reminding customers that any purchases made on that day will help support a local community program.

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Business Image Checkup

New and experienced business owners alike should evaluate their company's image.

Image starts with your company name. Is the name of your business descriptive and easily recognizable? If the name you started with isn't working, you can always change it. 

Phone communication is vital, so make sure you (or your employees) answer the phone by clearly and distinctly stating your company name. Also, the outgoing message on your voice-mail system should be short, upbeat and professional. If you still use an answering machine, consider the switch to voice mail, which is available from your local phone company; it leaves a more professional impression. 

Finally, what does your company do? Of course you know, but can you describe it in a single, concise sentence? Once you determine this description, make sure you repeat it to all your prospects at networking events or on cold calls.

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February

Watch the Clock

Don't waste your prospect's time with a lengthy presentation.

Never ask for more than 15 minutes of the prospect's time. Fifteen minutes is a small price to pay for an idea--and 15 minutes is easy to manage. The prospect can fit you in between other appointments. Fifteen minutes is a coffee break. Anything longer, and most busy prospects imagine their day eaten away by your presentation. Remember, the prospect's time is valuable. 

You can easily complete a standard proposal in 15 minutes. In fact, if it takes longer than that, it's usually because the prospect is very interested and asks a lot of questions.

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Collection Protection

Your ability to collect from past-due clients may depend on the language in your documents.

Have an attorney--preferably one who specializes in creditors' rights--review all your documents, including credit applications, sales contracts, invoices and statements, to ensure they conform to your state's regulations. 

For instance, invoices should state when the payment is due. If you offer terms, you must clearly state the interest rate and conditions under which interest accrues. In some states, customers must agree to this in writing; find out if this applies to you. Also, stipulate that if there is a problem, the debtor is responsible for paying any attorney and collection fees. 

Do yourself a favor: Protect yourself now, and collections will be much easier later. 

Excerpted from Get Smart: 365 Tips To Boost Your Entrepreneurial IQ

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Securing an Acceptance

What to do before you make an offer to your top job candidate.

Be sure you know a candidate's salary, benefits and career expectations before extending her an offer. Is the candidate looking for a bonus that is beyond your company's means? The candidate's idea of a commission plan for a sales position may be completely different than yours. Can you meet her expectations? Make sure you address all these issues before making an offer. 

A candidate will usually reject your offer if you can't meet most of her expectations. All you can do is accept her rejection if it's for reasons beyond your control. However, if it's for a reason that you can address, then start negotiating. Be sure to find out precisely why she rejected your initial offer.

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Power of Networking

Taking an active role in industry events will lead to more business.

As an active member of your industry's trade association, you'll build credibility with customers and create opportunities for strategic alliances through networking. You may have to eat your share of rubber chickens, but when you chair committees for your trade association, you'll get to meet important people in your industry and exchange ideas and leads. The next thing you know, referrals from three states over will come knocking on your door.

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March

Helping Employees Improve

Never underestimate the power of feedback.

It should be simple, honest and unfailingly constructive. Try to make sure that every piece of feedback you provide contains the following elements. It should: 

• Highlight something good the employee has accomplished. 
• Point out something that needs improvement. 
• Contain specific suggestions about how the employee can improve.

Don't neglect to say something positive. Even making a note of the amount of effort the employee has expended can make the employee more receptive to feedback. If you can't think of a positive comment and specific suggestions for improvement, it's better to say nothing.

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Getting Customer Feedback

Whether you like it or not, you have to find out what customers don’t like about your product.

Even though it may be a painful process, you need to learn what customers don't like about your product or service. How else are you going to improve if you don't know what people don't like? Is your product difficult to use? Is the color obnoxious? Do your customer service reps take too long to field their calls? Make it a point to ask customers what you could be doing better. You'll be surprised how much they appreciate it when you ask for their input. But don't stop there. Once you hear what they have to say, do something with it. That way, you can build the better mousetrap before your competitor does. 

For example, if you own an auto body shop, you have ample opportunity to visit a bit with your customers because they'll usually have to come to your shop at least twice--once to drop off and once to pick up. When they stop by and there's a wait, use the time to find out what's important to them. Offer a cup of coffee or a cool drink, and ask if they would mind filling out a short questionnaire or answering a survey. Zero in on how the place looks, what your service has been like, and how they liked your work.

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Effectively Timing Your Marketing Efforts

Timing is everything, especially when it comes to marketing. Find out how to beat the clock.

To get the most for your marketing dollar, make sure you properly time your efforts. 

• Try to ensure that your direct-mail package arrives on Tuesday, Wednesday or Thursday. 
• When relevant, tie your message to what's going on in the world. 
• Don't launch your marketing too soon. Make sure you've worked out all the bugs, that your salespeople know all the facts, and that you can deliver on what you promise. 
• If you're in retail, wait a month before you have your grand opening celebration. This way, you'll be more prepared. 
• Don't waste time telemarketing when nobody's out there. Find out when the best times to call are. 

Never rush through the creation of your marketing materials. The key words to keep in mind here? Economy and quality. Remember, when it comes to marketing, speed can kill.

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Prepare For Retirement

Chances are you're going to live a good, long life. Are you financially prepared for it?

Follow these tips to make sure your money is working as hard as you are. 

• Are you saving enough money? Start building your nest egg now by saving at least 10 percent of your annual income. 
• Do you have an IRA, a 401(k) or SEP plan? If not, start one today. 
• Where are your investments? Don't put all your eggs in one basket. Make sure your investments are diversified. 
• Do you know where your money goes? For one month, keep close track of how you spend your money. You'll be amazed by what you uncover. 

Are you prepared for life's big events? School costs, a new house, a wedding? You need a targeted savings plan for these circumstances.

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More Than a Manager

The best managers are also good leaders.

All teams need team leaders. They don't need team managers. Your organization will succeed if you hire people who have the ability to become outstanding team leaders. What is the difference between a manager and a leader? A manager administers, maintains and plans. A leader innovates, develops and sets direction. This is not to say that a person cannot be both a strong manager and a good leader. That's what you want.

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April

Writing Effective Sales Letters

Here are four things to keep in mind.

1. Pretend you're the customer. Imagine yourself as the reader of your letter, and write what the customer wants to know, not what you want to say. 

2. Organize your letter. Good sales letters need an introduction, a body, and a conclusion. First, tell why you're sending the letter. Then make your sales pitch in the body of the letter, and bring all your points together at the end. 

3. Make it easy to read. Write conversationally, using short sentences and paragraphs. And edit and re-edit your letter. Typos and grammatical errors destroy your credibility. 

4. Most important, ask your readers to take action. State what you want them to do, whether it's to call, visit or send for more information.

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Invest in Your Employees

Tuition reimbursement is the benefit that keeps on giving.

Looking for an employee benefit that delivers a big bang for the buck? Consider tuition reimbursement. 

"If you invest in your employees, it comes back," says Michelle Lemmons-Poscente, 39, president and CEO of International Speakers Bureau Inc. in Dallas. Lemmons-Poscente's 30-employee company pays 50 percent of the cost of any personal or business development course taken by employees who have been on board at least six months. "We only pay 50 percent because we want the employee to be 100 percent committed, and we believe that if they have skin in the game, they are much more so," she explains. 

Tuition reimbursement works as a benefit employees appreciate while enhancing their value to the company as their knowledge and skills increase.

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May

Pricing a Product

The following structure should help in deciding what to price your product.

To price products, you must become completely familiar with pricing structures, including the difference between margin and markup. Every product should be priced to cover its production or wholesale cost, freight charges, a proportionate share of overhead (fixed and variable operating expenses), and a reasonable profit. Such factors as high overhead, unpredictable insurance rates, shrinkage (theft, shippers' mistakes), seasonality, shifts in wholesale or raw material product costs, freight expenses, and sales or discounts will all affect the final pricing. 

Excerpted from Starting a Home-based Business, by Entrepreneur Magazine (Author)

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June

Property Rights

What gives you the right to your idea? We'll tell you.
Entrepreneur magazine - January 1999
By Tomima Edmark

You've heard the terms: patent, trademark and copyright. You've seen the symbols: ®, ^(TM) and ©. But do you really know what they mean? Your ideas are known as "intellectual property"--and if you want your ideas to remain under your control, you need to protect them. Here are some basic facts about the different types of intellectual property protection available to you under U.S. laws

What is a patent? A patent is a grant of protection for an invention. It's granted by the U.S. Patent and Trademark Office (PTO) and has a term of 14 to 20 years. Owning a patent gives you the right to stop someone else from making, using or selling your invention without your permission.

What is a trademark? A trademark is like a brand name. It is any word(s) or symbol(s) that represent a product to identify and distinguish it from other products in the marketplace. A trademark word example would be "Rollerblades." A trademark symbol would be the peacock used by NBC.

What is a copyright? A copyright is the legal protection of the way someone expresses his or her idea. This kind of protection is awarded mostly to authors, artists, composers and software programmers. A copyright only protects the particular arrangement of words or the way something looks. It does not protect the subject matter or information communicated. For example, only an exact copy of the word order constitutes copyright infringement of a book or part of a book.

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Conquer Your Fear of Public Speaking

Don't shy away from a networking group because they ask you to do a presentation. Here are five ways to vanquish your nervousness.
By Ivan Misner

1. Prepare, prepare, prepare! Don't wing it! Prepare an outline of what you want to say and practice it. 
2. Be specific and talk about the things you know best. Don't try to teach people everything you do. Focus on no more than two or three areas of what you want them to learn about. Most importantly, cover the topics you feel you understand the best. This will reduce some of your stress 
3. Use handouts, visuals or PowerPoint slides to support your presentation. For people who are worried about stage fright, these props can help carry them through the talk. 
4. Remember, you're the expert. Think about ways that help show that and are not threatening for you. 
5. Be creative. Think of some way to communicate the information in a way you feel comfortable. 

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Think differently.
Excerpted from Networking Basics by Laura Clampitt Douglas

Don't focus on finding customers at a networking event. That's what everybody else is doing. There's nothing worse than being descended on by a flock of eager sellers when you're simply there to meet other business owners or to learn from the program. Instead, reorient your thinking and look for people to refer. Since most successful businesses grow by referral, be the person who does the referring, because the fastest way to get referrals is to give them. This means you'll do more listening than talking, more asking than telling. The ancillary result is that your new friend will also think you're brilliant.

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Make notes. 
Excerpted from Networking Basics by Laura Clampitt Douglas

If you receive a business card, be sure to make a note on it about the person or the conversation you had with them so when you find it your pocket two weeks later, you'll have a reminder about the person. It also never hurts to make similar notes on the cards you give. The recipient may not be as savvy a networker as you.

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July

Follow up.
Excerpted from Networking Basics by Laura Clampitt Douglas

If you discuss having lunch, call within three days. If you ask for their marketing materials, ask again. Write a note-hand-written if possible or at least hand-sign a typed letter. E-mail is fine for subsequent, informal communications or for the exchange of information, but in the early stages of a relationship, it isn't as personal as one might hope.

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Never give up. 
Excerpted from Networking Basics by Laura Clampitt Douglas

Whether you do business with an individual or not, if he or she is someone you respect, the contact is valuable. Not only should you refer others to your contact, you should also maintain the contact. Amazingly, referrals are rarely direct. More often, the actual referral comes second- or third-hand. The wider your network, the more people you have working for you in your marketplace.

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Don't Underprice Yourself
New businesses in particular tend to price themselves too cheaply.

They may start off getting lots of work...and slaving away to get it all done. Then they realize they're not making enough money to justify their expenditure of energy. Avoid the temptation to underprice to get your business started. You'll find it hard to raise prices too quickly, so you'll pay for your mistake for years.

Excerpted from Knock-Out Marketing: Powerful Strategies to Punch Up Your Sales

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Be a Good Corporate Citizen

There are plenty of good causes that can use a helping hand. Here are a few ideas that might work for your company.

• Join an adopt-a-highway program.

• School intern program: offer high school or local college students the opportunity for some real-world experience.

• Food for the elderly or homeless: Help financially or by serving meals.

• Audiobooks for the blind: Audiotape producers are always looking for readers and funding.

• Hold an American Red Cross blood drive at your place of business.

• Help with fund-raising for any number of good social causes.

• Get involved with a high-profile telethon for local public TV.

• Invite service clubs and youth groups to visit your offices or plant. Show them your product and how you make it, giving some idea of your impact on the local economy. For youth groups, prepare a token visit remembrance.

Excerpted from Knock-Out Marketing: Powerful Strategies to Punch Up Your Sales

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August

Do It Your Way

Leave a positive lasting impression with your customers.

Help your customers remember you by making it easy for them to associate your business with something pleasant or positive, whether it's a catchy slogan, logo, upbeat song or a free gift. Whatever it is, it can be as serious or silly as you want.

Excerpted from 303 Marketing Tips: Guaranteed To Boost Your Business

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Learn to Encourage Repeat Business

Current customers are your best source of business.

They know you, they know your product and they have demonstrated a willingness to purchase. What's more, you know them, you've learned about their needs and you've invested a significant amount of time in the success of their business. Protect that investment and encourage it to grow the same way you manage your investment portfolio, making adjustments periodically to maximize your return.

Excerpted from Creative Selling: Boost your B2B sales

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Educate Site Visitors

The more they know about your product, the more likely they'll buy.

Provide your visitors with good information about your product. This might include studies that have been done on your product, testaments from other customers who have purchased your product or general, rich information about your product and not another sales pitch.

Excerpted from 101 Internet Marketing Tips For Your Business

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Drop the 'Tude

If there is one golden piece of advice to heed regarding getting publicity for your product or service…

It would be this: Treat the media with respect. Be friendly and helpful to all media representatives, whether they're calling you for information or you're calling them to pitch a story. When you make a pitch, you might think you're going to get patched directly through to the editor in chief, but, more likely, you're going to be speaking with an assistant or lower-level editor. Whatever you do, don't be snobbishly presumptuous, insisting that you'll only speak with someone "important." Reporters are constantly jumping from one publication to another; the cub reporter you snub today could be the editor of a national publication tomorrow.

Excerpted from 303 Marketing Tips: Guaranteed To Boost Your Business

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September

Don't Bother With Post-Call Reports

Your sales reps have more important things to do with their time.

I've always questioned the usefulness of post-call reports, which are nothing more than reports to management on what you did all day. As a stand-alone procedure, they take up time better spent working on an activity with future benefits, rather than reporting on something that's already done.

In their worst manifestation, the sales manager (or the poor administrative assistant) keeps a tally of the number of calls, sales, presentations and so on and calculates a bunch of performance ratios. This gives the sales manager a club to "motivate" the salesperson.

At their best, call reports are a source of market information for sales mangers and those above them, but this function is better accomplished in other ways.

Excerpted from Grow Your Business

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Why You Need a Service Contract

When you invest in new technology, a little coverage can go a long way.

Don't neglect service contracts if you are buying a computer network, feature-laden phone system or high-end copier. These complex systems can cost you $100 an hour or more to repair when they break. Investigate terms of service contracts you are offered and don't be afraid to negotiate--but don't reject them out of hand either. You can grow with confidence if you know you're covered if your equipment breaks.

Excerpted from Grow Your Business

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Make Face-To-Face Time a Priority

There's just no substitute for meeting with clients in person.

There's a simple principle involved in time management for salespeople. More calls means more sales. As Woody Allen said, "Eighty percent of success is being there." You're "there" more often when you make more calls.

Let's define a term here. A "call" is a face-to-face meeting where you ask a prospect to buy something. It's not a telephone call to get an appointment or a service call on a current customer. These are important activities, but when I talk about making more calls in the context of B2B sales, I'm talking about asking for more orders in person.

Excerpted from Creative Selling: Boost your B2B sales

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Take Advantage of Free Advertising

Why it pays to use online classifieds.

The benefits of online classified ads aren't limited to brick-and-mortar retailers. Various Web sites have also used free classified ads successfully for years now. Sites put up by distributors, entrepreneurial service providers and hobbyists have all provided fertile ground for free classified ads.

Excerpted from 101 Internet Marketing Tips For Your Business

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Keep in Touch With Customers

It's important that people be able to reach you when they need you.

Here's how to remain as accessible as possible:

• Maintain an up-to-date phone system. Your communications technology is advancing so quickly, it's hard to keep up. Call several phone companies and compare how they can serve your needs. 

• Get connected with a reliable voice messaging system and/or a cell phone and pager. Remember, busy signals are unprofessional, so make sure calls are forwarded to an answering system if you're on the line. 

• Strongly consider creating a Web site. A site can establish your presence in the market, provide existing and potential clients with information about your business, and send the message that you are a forward-thinking company. 

Excerpted from Get Smart: 365 Tips To Boost Your Entrepreneurial IQ

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October

Hire Honest Employees

You can start by asking the right questions in the interview.

Employees who lie to you about their work are a major problem. How can you tell if your candidate will be honest and candid? Ask them to describe one of their projects that failed. Beware if they tell you they have never had a failed project. They have either never had a project assigned to them or they are not telling you the truth. You want to determine how your candidates handle failure. Do they learn from their mistakes? Are they afraid of failing? People who are afraid of failing have difficulty making decisions and may lie to cover their tracks.

Excerpted from Attracting & Rewarding Outstanding Employees

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Improve Your Productivity

One of the most common time-related job complaints is that so-called "emergencies" never stop.

Entire days are lost as one "critical" situation after another clamors for your attention. Every department in the company brings you a smoldering problem to stamp out. The next time someone barrels into your office with the latest "emergency," ask if you can get back with him or her at noon because you have an emergency of your own--a customer meeting--at 9:30. Make them take the responsibility for canceling a sales call. Most "emergencies" can hold for a couple of hours, and you'll be surprised how many seem to get taken care of before your noon appointment.

Excerpted from Creative Selling: Boost your B2B sales

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Why You Need Word-Of-Mouth 

It pays when customers speak highly of your business.

People are much more likely to listen to the recommendation of a friend than to respond to a mass-market campaign. They tend to trust the opinions of their close friends and family. So viral marketing may not reach as many potential customers as a mass-market campaign, but the ones that it does reach are more likely to become customers.

Excerpted from 101 Internet Marketing Tips For Your Business

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Business Lunch Etiquette

Is it proper to have a drink with a potential client?

The answer is it depends. If you're offered coffee or a cold drink, have one if the prospect is having one. Sharing sustenance is a bonding experience, so take advantage of the opportunity. But if the prospect isn't partaking, however, you're better off without.

Excerpted from Creative Selling: Boost your B2B sales

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November

Using Publicity Photos to Your Advantage

Pump up your press kits with a little creative photography.

Do you send out publicity photos with your press releases and kits? Make them fun, different and exciting. Editors and reporters see thousands of dull, sitting-at-the-desk photos every year. Come up with a creative way to showcase something photogenic about your business, and it will stand out from the pack. 

Excerpted from Start Your Own Business: The Only Start-Up Guide You'll Ever Need

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How to Dress for Success

What should you wear when meeting a client?

Dress appropriately--in the same manner of your prospects, yet slightly better. Take note of their degree of formality when you make your reconnaissance visit. This will give you a heads up of what you can expect when the formal introduction takes place...and give you a leg up. 

Excerpted from Creative Selling: Boost your B2B sales

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Saving Money on Your Purchases

Always find out if your business is eligible for discounts.

Businesses that sell to other businesses commonly have a whole range of quoted charges, offering discounts of 50 percent or more depending on the quantity purchased, the terms, the length of the relationship and other considerations. You may be able to comfortably conform to some of these requirements, qualifying you for a lower price. To find out, ask about discounts and what is necessary to earn them. You may be able to get anything, from an interest-free loan in the form of trade credit to a substantial discount for paying early. 

Excerpted from Grow Your Business

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Shop the Competition

Don't just compare prices--evaluate how their sites handle online purchases.

Fully explore competitors' Web sites, try to understand the rationale behind their formats and even test-drive their systems. For example, if a competitor has a shopping cart, run through the mechanics of what it's like to make an order using that cart; you can always cancel at the last minute. You may discover that your own site needs improvements. 

Excerpted from 101 Internet Marketing Tips For Your Business

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December

Prospects Not Interested?

Don't give up—you still a chance to win them over.

How do you respond when you're trying to make a sale and you hear, "I'm not interested?" You may encounter it when you show up to make your presentation. But don't let it stand in your way. Be encouraged—it's easier to manage this problem in person that it is over the phone. Prospects who see you but then tell you they're not interested are contradicting themselves. They're playing poker—they're bluffing. All you have to do is call the bluffs without calling them liars. But first you have to determine whether they lost interest in your oral presentation, aren't interested in this specific proposal or have no interest in your type of product or service. 

Excerpted from Creative Selling: Boost your B2B sales

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When Disaster Strikes . . .

The government is ready to lend a helping hand--full of cash.

If your business suffers physical damage as a result of a hurricane, flood or other natural disaster and is located in a declared disaster area, you may be eligible for assistance from the SBA. You can apply for a loan to help repair or replace damaged property to the way it was before trouble struck. Disaster loans of up to $1.5 million can be used to repair or replace buildings, machinery, equipment, fixtures and inventory, and make improvements. SBA loans can help cover physical damage that is not protected by conventional insurance. 

Excerpted from Grow Your Business

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Change Your Pitch During Your Pitch

To sell clients on your presentation, follow these presentation tips.

• Speak louder and softer, emphasizing different points in your presentation with different vocal volumes 

• Practice speaking in higher and lower pitches—which help convey excitement and intimacy 

• Work on different tones for different places in your presentation—authoritative, humorous, decisive, inquisitive 

Every time you change your delivery, you get the prospect's attention back on your pitch.

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Family and Medical Leave Act Facts

A quick look at your obligation to employees

The federal Family and Medical Leave Act (FMLA) requires employers to give workers up to 12 weeks off to attend to the birth or adoption of a baby, or the serious health condition of the employee or an immediate family member. 

After 12 weeks of unpaid leave, you must reinstate the employee in the same job or an equivalent one. The 12 weeks of leave does not have to be taken all at once; in some cases, employees can take it a day at a time.

In most states, only employers with 50 or more employees are subject to FMLA. However, some states have family leave laws that place family leave requirements on businesses with as few as five employees. To find out your state's requirements, contact your state labor department.

Excerpted from Start Your Own Business: The Only Start-Up Guide You'll Ever Need

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Erroneous e-Mail Subject Lines

Do you want your message opened? Then avoid these subject lines that trigger your readers' "delete" instincts.

Any message that comes in the subject line referring to sex, money, or reduced airfares can safely be avoided. The same is true for any messages that claim to offer vacation deals, tax relief, or miraculous cures. Other words that should be banished from subject lines are: 

• free 

• exclusive 

• first time 

• make money now 

• limited-time only 

• naked 

• incredible 

• adults only 

• a one-time offer 

• act now

Excerpted from 101 Internet Marketing Tips For Your Business

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