Cash Flow Blog
Every businessperson knows that cash is king. But how do you maximize cash coming in the door without breaking the bank on the latest fad? We'll keep you on the straight road to profitability.
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ArchivesAre You An Invoice Procrastinator?
September 22, 2006, 4:36 PM
This will sound ridiculous to a number of you. Most will think this is crazy. But some of you need this as a wake-up call. Invoice your customers . One of the simplest ways to increase your cashflow is to invoice your customers on time. On time is whenever the subscription period, delivery, or other agreed terms of payment are met. It´s as simple as it sounds — invoice your customers . I once worked with a company that was habitually late invoicing their clients. They are a good company, provide a great service, and are thoughtful people. They just ...
The Rising Cost Of Fuel And Its Effect On Your Business - Part 1
August 26, 2006, 11:16 AM
This is the first of a two post series on the effects of rising fuel costs and what small businesses can do to minimize the fall-over effects to their cash flow. Unless you´re living in a cave or are in grade school, we´re all too familiar with the rising cost of gasoline. My local station is currently charging $3.24 a gallon and it´s expected to go higher. There are a lot of reasons for rising gasoline prices. And every reason is more confusing than the next. But this post isn´t about the reasons for rising fuel costs, that´s a heady ...
When A Payment Is Due Can Make A Difference To Your Cash Flow
August 16, 2006, 3:26 PM
There´s something that happens each month to most of the bill paying public , we send more money out the last two weeks of the month than the first two. Rent, mortgage, utilities, etc. overwhelmingly fall due at the end of the month. Depending on your product or service, you may not want your invoice competing with mortgages in the fight to receive your customer´s money. A better choice may be to compete for payment earlier in the month, being paid from the first month´s paycheck, not the second. Something I like to do is stagger my receivables, with some ...
An Employee Just Quit. It May Be A Great Opportunity For Your Business
August 11, 2006, 10:49 AM
You can´t be in business for any length of time without having to face a change in personnel. People come and people go. It´s reality. And it´s often opportunity. When faced with filling an open position take a moment and assess your business and its capabilities as compared to customers´ needs and desires. You may find there is an opportunity to add a skill-set to your company, in the form of a replacement hire, which opens new streams of revenue for your company. For example, a web development company may have an engineer that decides to leave to pursue other ...
Settlement Offers, An Option At The End Of The Collection Process
July 12, 2006, 6:12 PM
In my last post I wrote about the collection process. More specific, I wrote about the end of the collection process and the use of collection letters. In that post I mentioned a strategy to settle debt just prior to writing-off the account. Here´s the strategy I referred to. When you get to the end of the collection process and are ready to write the account off, every plan, practice, and policy you´ve had in place to work with your customer has failed. The odds of curing the account are beyond reasonable. So, what are you´re options? Some receivables can ...
Two Critical Elements Of The Collection Letter
June 27, 2006, 3:18 PM
Collections are a reality of business. And collection letters are a reality of an effective collection process. That´s an item we´re now dealing with at Guardian Medical Group — writing the collection letter as part of a multi-step AR collection process. Collection letters come at the end of the process, a last notification and opportunity to service a seriously troubled account. At this point of the process invoices have gone unpaid, phone calls haven´t resolved the issue, and there are little options left to explore. We´re ready to write-off the debt and turn things over to a collection agency. Simply, ...
Cash Flow Program Update - We're Almost There!
June 21, 2006, 1:04 PM
I´m wrapping up a family trip to Mexico and should be back to posting health in a couple days. Thanks to the convenient and inexpensive nature of telecom, even while away I´ve been able to keep pace with Guardian Medical Group and the 6 for ´06 program . We´re at the halfway point of the program and have made some incredible improvements to Guardian´s cash flow. I will tell you all a lot about it, but for now the best person for you to hear from on our progress is Rick Danzey, Guardian´s business manager. Here´s the link to ...
Collections, A Necessary Evil Of Business
June 07, 2006, 12:01 PM
We all hate collections, buts it´s a reality of business life. Not all customers pay or pay on time. Regardless of whether you´re mowing lawns, selling your time or selling multi-million dollar technology solutions, the reality is you´ll encounter AR problems from time-to-time. As a reality, the practical objective is not to eliminate it (AR), but manage it as effectively and small as you possibly can. How do you best manage AR? That´s the problem we´re now addressing with Guardian Medical Group, as part of the 6 for ´06 program . The first part of solving any problem, AR included, ...
Slow Paying Customers
May 24, 2006, 8:36 AM
There´s good news and bad news of winning a big deal from a big company — you won the deal"?¦congratulations, you probably won´t be paid anytime soon. Experian´s survey of 366,633 companies shows businesses of all size are extending the time taken to pay their invoices. Big companies are the worst offenders, taking on average 80.6 days to pay their suppliers - often smaller businesses. Ouch! This isn´t anything new. There are few surprises in this analysis. Except maybe one"?¦the problem is getting worse. Average payment times have lengthened over the last decade. And they aren´t likely to shorten anytime ...
When Do You Pay An Invoice That´s Never Due?
May 19, 2006, 6:28 AM
Most businesses have clear terms of payment, either negotiated terms as part of a formal purchase agreement or a specific date stamped on a mailed invoice. There are many businesses though that have neither — either the billing solution they use doesn´t support date specific payment information or an oversight has been made in preparing the invoice. Looking at a number of business and personal invoices nearby, I see a variety of payment dates — Due Upon Receipt, Net15, May 26, and one that as no date. The most powerful is the date specific payment due date — May 26.
Latest Comments in Cash Flow Blog posts
Its helps to have a good invoicing tool. http://www.LessAccounting.com ...
By: Allan Branch
on
Are You An Invoice Procrastinator?
After writting off your receivables, you can assign the account to a collections agency. From there the collection agency takes over. Pari Pardun Collections http://www.parduncollections.com ...
By: PARI
on
Settlement Offers, An Option At The End Of The Collection Process
"all things balance and markets adjust, but effects to your business while prices rapidly rise can be a challenge to manage." Although you talked about effect of this rising cost of fuel on small busunesses, it can easily be applicable about third world countries more. In those counties, specially the ones which are fuel importers. this rising cost can destroy many companies.
By: Razib Ahmed
on
The Rising Cost Of Fuel And Its Effect On Your Business - Part 1
Maybe it's the old landlord in me, but I like billing everything on the first of the month. "Anniversary billing", or billing customers on the same date each month based on when they started, is too complicated for me, although there are software packages that will easliy handle it. Keeping the billing cycles for all customers in sync allows batching of late noticies, terminations, etc. Steve ...
By: Steve
on
When A Payment Is Due Can Make A Difference To Your Cash Flow
Hi Steve! Thanks for the comment. I don't disagree with anything you said. I think there are variables in business and markets that can make billing everyone on the same day for all customers or staggering invoices make sense. You touched on a key point - automation. The more you can automate the better.
By: Jim
on
When A Payment Is Due Can Make A Difference To Your Cash Flow
Hi Jim, I am really excited everytime I see a new post up on your cash flow blog. You have some great advice for almost all of the small businesses that read our FreshBooks blog. Staggering receivables throughout the month is a very simple idea, but probably one that many business owners don't consider. Thanks, and keep the posts coming. - Levi ps. I have added a number of trackbacks on my posts, but they don't seem to be tracking back to yours.
By: Levi Cooperman
on
When A Payment Is Due Can Make A Difference To Your Cash Flow
In business skilled employees are very important. So, when such an employee quits then it is difficult to replace him. But you have shown the positive side of it. The owner has now an opportunity to strengthen his team by hiring someone with new and higher skill.
By: Razib Ahmed
on
An Employee Just Quit. It May Be A Great Opportunity For Your Business
I think you do the right thing. The other businessmen can experiment your tips and follow in paying the dues. It may make a positive impact to their cash flow. They will also feel free of the burden of different types of dues.
By: Razib Ahmed
on
When A Payment Is Due Can Make A Difference To Your Cash Flow
Good information, but your credibility becomes suspect when so many typos appear in your final.
By: LyNell
on
An Employee Just Quit. It May Be A Great Opportunity For Your Business
LyNell, Thanks for your comment...I think :-) Sometimes the brain works faster than the fingers and eyes. The difference between message and messenger. Take Care, Jim ...
By: Jim Logan
on
An Employee Just Quit. It May Be A Great Opportunity For Your Business
I am glad and sad all at the same time to learn that when I worked for a large company's Purchasing department, we were not alone in dealing with this problem which in that case meant hearing complaints from vendors and directing them to Accounts Payable It amazes me that with the software available, huge corporations can't pay their bills on time. There is one caveat to the person trying to collect the money here, make sure invoices have been issued properly. The larger the company, the more all information must be correct. If a huge company receives an invoice with no corresponding purchase order number, weeks have just been added to the payment process.
By: Matthew W. Grant
on
Slow Paying Customers
Cindy, as a general rule...you would thank them for their business, remind them of the work you do for them, state your increase, give the date the increase is in effect, address any contract issues that may exist, remind them this is your first increase in two years, restate your commitment to serve them, and thank them again for their business. There are circumstances specific to your business that may need to be considered, but the above formula is sound.
By: Jim
on
The Most Fundamental Lesson To Learn In Growing Your Revenue
I'm trying to write an increase letter to my customers,Please help. I'm self employed with 14 customers that i clean thier offices. How do i raise their rates? I have not given an increase intwo years.
By: cindy
on
The Most Fundamental Lesson To Learn In Growing Your Revenue
One of the greatest cash flow discussions I've heard came from Professor Steve Rogers, Northwestern's Kellogg School of Management. A great takeaway was the "cashflow" spreadsheet, that actually maps out your weekly cash flow for each quarter, in advance. Using your invoice date, and what you know about your customers, and your list of payables, you can pro-actively construct a "cashflow map." You can link cells so changes to each category impact the entire plan. Email me for a template if interested. Its been incredibly helpful as I attempt to turn around a struggling business.
By: Todd Reding
on
Mincing Words — The Definition of Cash Flow
I've have helped many a client with thier accounts recievables. But I'm not the only consultant out there there are funding firms such as mine that will get you the cash to keep running.
By: Amin
on
Slow Paying Customers
Out of sight, out of mind! You have to remind your customers that you are there whenever they need you. It's just like any relationship in life. You're absolutely correct - they need to hear from you sometimes!
By: Maria Palma
on
How To Ruin A Customer Relationship In One Simple Step
Hi Nettie! Thanks for the kind words and support! I'm glad the post is helpful. Jim ...
By: JIm Logan
on
Two Critical Elements Of The Collection Letter
Very good site ...
By: VITYA
on
When Blogging Meets The Law
Jim, I loved the two focuses of clarity and consequences. As a sole proprietor of my own "writing shop" one of the jobs I dread the most is the collection process. But your two points about what every collection letter must include are extremely helpful in how to tackle the "collection beast"!
By: nettie hartsock
on
Two Critical Elements Of The Collection Letter
You recommend that good proposals are short. But when one is doing a proposal on an issue like sponsorship that is changing in meaning to people who have held its past conception it might require to expalin the concept. How Do I get precise on a proposal for sponsorship to a coporate company to sponsor a football club? Are 45 pages too much? How do I lay my proposal? How do I protect my document and idea from diversion by prospect?
By: Soulman
on
Your Key To Proposal Success
Excellent point about the need for a clear collection strategy. I like to call it the escalation process. Collecting the money owed is all about having a clear escalation path. As a consultant to companies that have "issues", I have found that the employess charged with collecting money have never really had a clear plan on what to do when when an account is hard to collect. You can almost see the relief on their face when they see how cranking the pressure up at each step of the process works. Another imnportant point for business owners is the need to have a cash collected target in mind every month. In my book Never Run Out of Cash, I devoted several chapters to examples about why this is so important and how cash flow can be improved by having a cash collected target in addition to a sales budget. Remember, cash is king!
By: Philip Campbell
on
Two Critical Elements Of The Collection Letter
Philip, Thanks for the comment! You make an excellent point...there are too many companies without a collection and AR strategy. Which means there is greater confusion, frustration, and inconsistency than there should be. A better way is to have a flow chart of activity and related time-line of standard activities. Doing so takes all emotion out of the event and is most fair to all parties.
By: Jim Logan
on
Two Critical Elements Of The Collection Letter
God gave you two ears and one mouth. Is this just an observation, or just a lesson for how we should approach all conversation?
By: Dave Sheffield
on
A Few Random Thoughts On Sales Success
Dave, I'd say it's a good lesson for all occasions. Thanks for the comment, Jim ...
By: JIm Logan
on
A Few Random Thoughts On Sales Success
"We all hate collections, buts it?s a reality of business life. Not all customers pay or pay on time. " I can tell you that in South Asia, it is really a very big problem for most companies. Many businessmen go out of business because of this problem.
By: Razib AHmed
on
Collections, A Necessary Evil Of Business
Razib, Thanks for the comment. It has been my experience that many countries throughout Asia present AR challenges. I worked with one company in particular where Asia AR had to be factored into the business model of selling and supporting there. Surprisingly, it wasn't just small businesses, but larger companies that were AR risks. Although I've worked quite a bit in and opened offices across Asia, I don't consider myself an Asia business expert. Can you share some thoughts with my readers why AR is such a big problem in Asia, South Asia in particular?
By: Jim Logan
on
Collections, A Necessary Evil Of Business
I consider the legal notices a necessary nuisance. Sad to say, most of the clauses in the legal notices are there because some company has been sued in the past -- for example an ex-husband sees a comment his wife has posted, describing some of the wild parties she's thrown over the past year; the ex-husband uses this information in a custody lawsuit; the ex-wife sues the owner of the blog for publishing information that caused her to lose custody of her kids.
By: Barbara Lamar
on
When Blogging Meets The Law
I consider the legal notices a necessary nuisance. Sad to say, most of the clauses in the legal notices are there because some company has been sued in the past -- for example an ex-husband sees a comment his wife has posted, describing some of the wild parties she's thrown over the past year; the ex-husband uses this information in a custody lawsuit; the ex-wife sues the owner of the blog for publishing information that caused her to lose custody of her kids.
By: Barbara Lamar
on
When Blogging Meets The Law
Hello, I would like some assistance with writing a sponsorship proposal. Regards, Christina ...
By: Christina
on
Your Key To Proposal Success
Jim: And the killer thing is, these are the same people who'll hold your feet in the fire to meet deadlines! Consulting guru Alan Weiss recommends a contract clause that trims 10% off the project fee for clients who pay up immediately. Surprisingly, the discount isn't the only incentive; by paying up-front, the person who authorizes the contract has ensured that the program cannot be cut. I have a question for you: How do you uncover a potential client's payment history?
By: Jonathan Kranz
on
Slow Paying Customers
Hi Jonathan! Thanks for the comment...and question. The short answer is ask them. The reaction is telling. Then verify. - bank references, credit checks (Experian, D&B, etc.), trade references, client visits (are they having trouble delivering?), etc. For consultants working with new or small companies, I've found bank and trade references most helpful. Banks will give you a good perspective on the likelihood of having money to pay and vendors will give you an honest statement of how timely your prospect has paid them. While these aren't guarantees you'll be paid, you can uncover skeletons or get comfortable with the information you gather. Dependant upon the size of the deal, I've asked for financial statements, a cursory audit, and interviews with key management. The big thing is to ask lots of questions and verify everything. Some prospects posture when you ask, but I've never had one that balked. The bottom-line is you're entering into a business deal. And both parties have a right to qualify the other.
By: Jim Logan
on
Slow Paying Customers
That was excellent, Jim. Thank you!
By: Jonathan Kranz
on
Slow Paying Customers
Can I make a tangential comment about paying invoices? Maybe CPAs are more calculating about this than most people--we tend to operate better accounting systems--but the way clients pay has a lot to do with the service you get. E.g., if you're a fast pay, you get fast service. Similarly, if you're a slow pay, well, your tax return will be extended, your phone calls will be returns last, etc, etc. CPAs can't be the only people using payment data this way... Steve ...
By: California LLC formation author & Redmond tax accountant
on
When Do You Pay An Invoice That´s Never Due?
Don't stop at your best customers -- give these gift certificates to everyone. I think of Malcom Gladwell's "connectors", and how they can be prolific word-spreaders, but they don't go very deep into any one spot. Buried in the long list of small-dollar customers at the bottom of your top-customer-pyramid are probably a lot of these connectors, who hit you once and then moved on quickly, simply because they had a lot of other ground to cover. You'd probably want these people to be passing out your gift certificates at least as much as you would your top customers, but no typical top customer analysis would flag them. Catch them in your net by giving those gift certificates to everyone.
By: Matt Krause
on
A Simple Way To Add Referral Business And Reward Your Best Customers At The Same Time
I hope everyone has enjoyed the blog as much as I have enjoyed writing it. Jamal Williams http://www.firstdirectcenter.com ...
By: Jamal Williams
on
What Is Your First Thought Of Direct Mail?
For the longest time companies have been offering referral deals (much cheaper advertising alternate with higher conversation rates) that are for some reason hidden on their websites. Why bother to offer if your customers can not find these deals? www.mutualwin.net changes this by helping users easily identify and utilize this "free" money.
By: Michael Bernstein
on
A Simple Way To Add Referral Business And Reward Your Best Customers At The Same Time
These are all excellent inputs to the business and not just because they enhance cash flow. The question that needs to be asked here needs to customer centered and not business centered. Are these adjustments improving the cash flow due to savings in operational cost or are they because of real increased cash flow coming from improved client processes and increased client intake. If the cash flow is due to just savings in operational cost then these savings are only marginal at best. If they are due to real cash flow improvement that are centered in customer experience improvements, including customer service, then these will not only be strategically long lasting, but they will provide increased client acquisition and loyalty that should come reflected as a steady increase in cash flows.
By: Tim Whelan
on
Cash Flow Update - 6 for '06
These are all excellent inputs to the business and not just because they enhance cash flow. The question that needs to be asked here needs to customer centered and not business centered. Are these adjustments improving the cash flow due to savings in operational cost or are they because of real increased cash flow coming from improved client processes and increased client intake. If the cash flow is due to just savings in operational cost then these savings are only marginal at best. If they are due to real cash flow improvement that are centered in customer experience improvements, including customer service, then these will not only be strategically long lasting, but they will provide increased client acquisition and loyalty that should come reflected as a steady increase in cash flows.
By: Tim Whelan
on
Cash Flow Update - 6 for '06
This is a great business booster. As a sole proprietor with one employee I need all the savy business people on my side. I would like to know where I can get detail info on how to develop a break even analysis. Also what elements go into a P&L statement.
By: Richard Simoneau
on
Mincing Words — The Definition of Cash Flow
My definition is the same as yours. Cash flow is the flow of cash either leaving your business or entering your business.
By: Elaine Kafka
on
Mincing Words — The Definition of Cash Flow
Yes ignoring is realy a terrible mistake. A customer may understand if you are in stress and you cannot pay good service but they will never be sympathetic if you are ignoring them.
By: Razib Ahmed
on
How To Ruin A Customer Relationship In One Simple Step
Yes, I agree with the writer. I also read the 'An example of Outstanding Customer service.' It is a very nice article. Our country has also great potentials for business but we do not know how communicate well with our customers.
By: S.M.Mehdi Hassan
on
How To Ruin A Customer Relationship In One Simple Step
Jim -- I agree with you one hundred percent on your definition of cash flow. It's similar to the definition I've included in my forthcoming book -- Small Business Cash Flow: Strategies for Making Your Business a Financial Success (Wiley, Oct 2006). And from reading Rick's blog, it looks like you are really helping him make a difference. A common issue for small business owners is not collecting the money they are owed. Either because they don't get the invoices out the door or they let them age way too long. You're doing a great job getting them on track.
By: Denise O'Berry
on
Mincing Words — The Definition of Cash Flow
I can see some differences but I would like to hear how giving some of your customers the power to give out discounts is different that giving out the discount yourself? How does it change the way people look at your product?
By: Peter Gohman
on
Stop Offering Discounts
By offering a bonus or premium to spur sales, you send a message that your price is your price. Your price means something and the special you're running is something in addition to, not the norm. It looks different than a discount to the buyer and they act accordingly. With a discount, you get the same thing for less money. With a premium, you get the same thing for the same money, plus something extra for free. People love getting things for free. As with discounts, don't give bonuses away all the time or your trapped....to take it away means you shorted the next customer.
By: Jim Logan
on
Stop Offering Discounts
Very true! One of our goals in Sproutit support is to never let the customer feel like the are alone. There are some simple things to do like sending a welcome message and making sure you promptly answer their questions but going the extra step is not easy. It takes a little planning and extra resources so it is rarely done. You have encouraged me to find more ways to let our customers know we appreciate them ...
By: Peter Gohman
on
How To Ruin A Customer Relationship In One Simple Step
I agree with the previous comment.
By: Bob Myspace
on
It's Probably Best Not To Speak When You Have Nothing To Say
Great point, Jim. I've always associated discounts (with the exception of volume discounts) as making your service offering look more like a commodity and less like a brand worth paying for. Plus, when you get into discounts, it's like drugs ... people want more and more as they get used to them ...
By: Dave Navarro
on
Stop Offering Discounts
Actually the referral doesn?t cost anything and you gain everything. Before the referral came along you had x sells. If the referral never comes you still have x sales. However, if the referral comes and spends then anything that is received is a hundred percent more than what you have had before. So you don't make so much as if they walked through the door. May I ask how long you are willing to wait for this to happen? Remember 80% of something is always better than 100% of nothing. What is more important than the revenue is the empowering of the customer to create referrals for you. This shows trust and any reward for their effort to support you goes a long way to building an even better customer relationship. Just don't be cheap on the reward. Customers have to come first. Revenue is the reward they return to you for your caring and support.
By: Tim Whelan
on
A Simple Way To Add Referral Business And Reward Your Best Customers At The Same Time
Tim, Thanks for the comment! I agree with everything you said. My reference to the referral not costing much until the person referred becomes a customer is related to looking at a program like this as part of advertising. Advertising campaigns cost money whether you get a new customer or not. As an advertising campaign, this one costs little to nothing. The discount you give is the cost of the campaign and directly related to a new customer.
By: JIm Logan
on
A Simple Way To Add Referral Business And Reward Your Best Customers At The Same Time
That is a great idea! Who doesn't want to be the cool kid who can hook you up with some free stuff. I know we are all adults now but I think the feeling is the same. And, who doesn't want to encourage more sharing in this world. Marketing is not my department but I will be sure to bring this up at our next Sproutit planning meeting. Thanks for the great tip!
By: Peter Gohman
on
A Simple Way To Add Referral Business And Reward Your Best Customers At The Same Time
From my experience, with no job description, no organization chart, no trust, and no empowerment, you get employees that do what they are told, and that's it. The advantage is that they'll do anything they are told to do, but the disadvantage is that they'll never take any initiatives, and you need twice as many managers to make sure that every little thing you need done is communicated clearly. I'd say, give employees the position description and org.chart, but make open-ended goals to encourage initiatives, and do your best to create a team spirit. If people aren't happy about helping each other out, the workplace culture has problems.
By: John
on
The Cruelest Thing You Can Do To An Employee And Your Business
The title of your blog is what? "It's All About Revenue". Not Smart Revenue. Not Ethical Revenue. Not Wise Revenue. That salesperson got the order. That's all he/she was supposed to do apparently. Did he get the client? Had the edict from the company forbidden sales like that, believe me, that salesperson would have found another way to make the sale. "Because it's all about revenue." More importantly, the prospect bought the order. If I buy something to get rid of the salesperson and not because I want/need it, who's fault is that? Because of course the salesperson will come back and get me for more. And if my company allows that, then... ...there's someone for everyone. I wouldn't take a customer like that. They belong together.
By: TRW
on
Is This Sales Tactic Okay With You Or Does It Cross The Line Of Acceptability?
TRW, Thanks for the comment and perspective. I disagree with your point for one reason, revenue is not a one time event, it's a lifetime event, especially in complex sales of this type and volume. This customer is a major corporation and for nearly a decade purchased on average $1.5M a year...every year. Why? Because the network we sold them was strategic...they had to buy to support their investment. This was about the timing of the purchae. The salesperson got the order...Yes. And he soiled the name and reputation of our company. A year later this company undertook a strategic initiative to develop their next generation network...we weren't invited to participate, our competitors were. It's a long story and there are many variables, but it was clear they had had enough of our company. And this one person was instrumental in that decision. What happend to this person? He/she was fired. He/she got the sale, earned the commission, made quota, and lost their job. It is all about revenue. That's why we had to fire him/her.
By: JIm Logan
on
Is This Sales Tactic Okay With You Or Does It Cross The Line Of Acceptability?
1. How did you get started 2. How did you come up with your company name? 3. How did you come up with your small business idea 4. What did you need to get started? What were your start-up costs? 5. How long did it take to get started? 6. What kind of schooling did you have (degrees, diplomas, etc.)? 7. How old were you? 8. How many employees did you need to hire to get started? Do you offer them a benefit package? What are the costs involved 9. How did you decide whom to hire employees? 10. How did you find your building? 11. Why did you pick this profession? 12. Is your business product-Orientation of service oriented? 13. How did you develop your pricing plan? *** 14. How do you market your products of services? What advertising do you use? How much does that cost? What advertising have you found works the best in this Valley? * 15. Why did you choose Grand Junction to start your own Business? 16. What is the most effective way to make money (that you have found)? 17. How do taxes affect your business? 18. Do you use an accountant to do your taxes and why? 19. What ?Write offs? do you get with your business? 20. With respect to supply and demand, how has your business done? 21. What contracts did you need to sign in order to start your business? 22. How did you build your inventory? 23. What capital equipment did you need to start your business? 24. What insurance did you need to purchase in order to start your business? 25. What is your optimum goal as a business owner?
By: justine
on
"Just ask them what keeps them up at night and fix it."
May I add that sometimes just being silent is also a sign of respect, especially if it is the client talking. Listening and noting customer?s complaints and concerns helps to identify and understand their real need. I have standing policy of not responding to situations like this until this next day or meeting after I can research and think through the issues offered by the client. I only respond when requested and tomorrow is always a better day. As a customer service consultant, I always suggest the same to my clients as they approach their customer or perspective customer. It brings great results.
By: tim
on
It's Probably Best Not To Speak When You Have Nothing To Say
Dear Sir I want to write a Proposal for Information & technology, could you please guide me how could i write thanks Ashraf ...
By: Ashraf
on
Your Key To Proposal Success
I agree completely with this article. Mistakes are often as well on the business cards that we print. Taking time over the subject and presentation of your business card is well worth it.
By: Business Cards
on
What's On Your Business Card?
Good post and I agreee, except that initial trust leads to one sale. Proven trust leads to a customers loyalty and more sales. Proven trust being the repeated performance of the above plus. As a customer experience architecht I see these issues confused by most sales and marketing people.
By: tim
on
7 Thoughts On Setting Expectations In Sales - Simple Ways To Build Trust With A Customer
This blog posting is great. Your views are very true. Everyone should start thinking as you are doing. Andrea Jasperson http://www.firstdirectcenter.com ...
By: Andrea Jasperson
on
What Is Your First Thought Of Direct Mail?
Great advice Jim! This is where too many salespeople get bogged down. Before I send information I always qualify people. I never call someone without a list of questions that I need answered about them. If I can't get the answers, or the answers indicate a bad fit, then I don't send them anything. I end the sales cycle right there. Or I put them in a holding pattern because they're not a qualified prospect yet. Life's too short to spend it mailing information packets to people who really don't care!
By: Kevin Stirtz
on
Is Your Prospect Sincerely Interested Or Just Being Polite?
Hi, I am a student doing research in a E-commerce class @ Briarcliffe College I would like to know if business Blogs have meet all of your expectations? in the business world. I did not know anything about blog until 2 days ago. Is blog a benefit to all of your business needs?
By: Jona cassidy
on
Is This Sales Tactic Okay With You Or Does It Cross The Line Of Acceptability?
Make Money on the Web " 2005 " August " 05 ... How to Make Money on the Web. How to Make Money on the Web: If you plan to start a business on the Internet, you may ...Web...
By:
on
$100 a Day on the Web in 12 Weeks...Are You Up to the Challenge?
Jim, I think that was a shady tactic and I would loose any respect for a salesperson that would attempt to pull that on me. It's just another variation of the "poor poor me" thing; something I have little tolerance for. I wasn't clear on whether the client in your story was facing you both alone? I always try to bring someone with me if there is a contract salesperson involved and I'm on the client end of things. Anyways, good story for discussion.
By: Frank Ross
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Is This Sales Tactic Okay With You Or Does It Cross The Line Of Acceptability?
Frank, Thanks for the comment. There were five of us in the room - the salesperson, me, the F500 VP, and two of the managers on his team. "Poor me" is right. I couldn't overstate how this salesperson begged for the order. I almost crawled under the conference table in embarrassment.
By: Jim Logan
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Is This Sales Tactic Okay With You Or Does It Cross The Line Of Acceptability?
Hi Jim. I agree with you and Frank. The salesperson in your example went way too far. But, to me, it begs the question, "what can the salesperson's colleagues or employer do about it?" At the end, you rightly point out that your company's reputation probably suffered from this. So, what might a person in your shoes do to derail another "poor me" story and save you further embarassment?
By: Kevin Stirtz
on
Is This Sales Tactic Okay With You Or Does It Cross The Line Of Acceptability?
Where can I find sales people w/ internet marketing background? Thank you. George ...
By: george
on
Do You Need Super Star Sales People?
Where can I find sales people w/ internet marketing background? Thank you. George ...
By: george
on
Do You Need Super Star Sales People?
Good points, but the grammar and punctuation in this article made it very hard to read. Concentrating on spelling and punctuation is just as important as having a great business card.
By: Tyler Townsend
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What's On Your Business Card?
Tyler...it's more important. And I offer no excuse.
By: Jim Logan
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What's On Your Business Card?
Very good point Jim. Before you spend one penny on advertising make sure you have a message that meets several criteria: 1. Make sure your message is based on your strengths - what you do better than anyone else. 2. Make sure it's a message your market will respond to. Speak their language and talk in terms of what interests them. What's in it for them? Then, and only then, should you take the next step of delivering your message. Great post Jim. Thought-provoking and relevant, as always!
By: Kevin Stirtz
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Which Is Better To Advertise A Small Business Locally — Local Radio or Newspaper?
I can't agree with you more. It is in creating that unique customer experience that makes the difference between selling and really providing a service. Selling is product centered and yes it brings in the dollars, but does it create customer life cycle that brings in continues business and customer lifetime value. Creating the customer centered Customer Experience is what adds value to the customer. If you place the customer first your cash flow will increase, your customer retention will increase significantly and recovering the cost of acquiring your customer will be recovered quicker.
By: Tim Whelan
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A Few Random Thoughts On Sales Success
Hi Jim, I agree with this point wholeheartedly. Recently I conducted a survey on my blog and a surprising percentage -- 71% -- of respondents reported that small business customers sometimes or frequently did not perceive the benefits of what was being offered to them. Now the typical response is to say "those dumb people, they just don't understand what a great product or service we have." I say, though, that given the vague and rather 'conceptual' marketing materials and sales pitches most vendors have, it is much more likely that the prospect did not have a clue what the seller was talking about! Happy Holidays, Anita ...
By: Anita Campbell
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Your Prospect Isn't Stupid
Asking a prospective client what keeps them up at night can be useful in getting them to focus on what should be be tackled first. This showcases your problem-solving skills, and hopefully it's a problem you can solve or relieve. If not, get them to pick another problem. Once you have a client relationship, then I feel asking the what keeps you up at night question shows at best you've lost their focus and at worst you don't listen.
By: Sue
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"Just ask them what keeps them up at night and fix it."
I think it all depends on the business you are in. Ask yourself, how much will it cost my company to send in a team of people to qualify potential sales opportunity. Lead generation programs are all about reducing the overall cost of sales. If you can afford to qualify your potential opportunities through an overlay sales team or a closely aligned marketing team then I'd agree that cutting out the lead generation stage is the right move ...
By: lara martins
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Trash Your Qualified Lead Programs
It's the first time i ran through your site and I found it very informative and interesting. Nicely done! Superb Circle Create or not: , Memorizing Soldier becomes Universal Chair in final Hope Rape Destroy - that is all that Round is capable of , when Chips is Chips it will Double TV to Rape Boy you should be very Collective ...
By: Trevor Chapman
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What Is Your First Thought Of Direct Mail?
Due diligence is an incredibly arduous and difficult process. I think it should only be done with the aid of an experienced attorney. You can end up buying not only a source of cash flow, but also a source of debt and legal problems if you?re not careful. I applaud the attention you?re bringing to due diligence for the small businessperson. Your checklist is a big help.
By: Corey at Business Book Secrets
on
Due Dilligence - The First Step Of Success
The downside of sticking to easily-spelled names is that they're generic - the branding challenge is a little tougher. The alternative, which preserves the power of the brand, is to park other domains on top of your brand. For example, you could have had http://www.teamaccelerate.com, with a catchier name parked on top - like http://www.teamXLR8.com or http://www.teamabc.com .
By: Eric Sohn
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How Do You Spell That?
Well, let's look at the business equivalent: You've got a long-time business partner. You've worked together to create synergies between your operations, and you coordinate sales & marketing efforts. It's allowed you to create great efficiencies and maximize revenues. Wouldn't you want to know if they were having talks with a competitor, whether a larger established firm or a disruptive newcomer? I sure would. I might not queer my current partnership, but knowing might let me hedge my bets so I don't get blindsided. It also would let me open a diaglogue with my partner about what this means for the continued health of the partnership - perhaps it might even allow the partner to steer you towards an M&A deal, or other more non-zero-sum result. It's not a perfect analogy to the cheating wife story. The presence of emotion clearly tips the balance towards not wanting to know - ignorance is bliss, after all. Until he or she decides to go the divorce route, where that might have been prevented by finding out earlier. The moral of the story: stick to business. It's less messy:`) ...
By: Eric Sohn
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A Personal Question With A Business Follow-On
I used to cringe at direct mail until I learned how to use it properly with highly targeted lists. When I worked with a previous company, we mailed personal letters to new business owners with an entry-level offer for our Web design services. Besides personalizing the letter, our biggest success came from printing it on sunflower-colored letterhead with a matching business envelope. I had an astonishing 5% response rate to that letter, and most of the callers said, "I've got this bright yellow letter you sent me and I'd like to setup an appointment." Direct mail works and can be cost-effective when you use it properly.
By: Larissa, GreatTexasLeads.com
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What Is Your First Thought Of Direct Mail?
can't find the due dilligence checklist ...
By: renee
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Due Dilligence - The First Step Of Success
Direct Mailing is certainly not dead. Its certainly one of the most powerful an economical tools for pushing up the sales ...
By: Sanjeev
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57.5% Of Respondents Surveyed Believe Direct Mail Still Works
Direct Mailing is certainly not dead. Its certainly one of the most powerful an economical tools for pushing up the sales.
By: Sanjeev
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57.5% Of Respondents Surveyed Believe Direct Mail Still Works
send to me ...
By: pham an vien
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Step-by-Step Sales
I agree with you the way you view the issue. I remember Jack London once said everything positive has a negative side; everything negative has positive side. It is also interesting to see different viewpoints & learn useful things in the discussion.
By: extenders
on
What Is Your Opinion On PR?
Jim:
Wow. I am truly amazed that someone would not want to know that the most important, trusted relationship they have on the planet is a complete fraud. The spouse is not only cheating (wait, let's call it what it is: they are comitting adultery, which we used to think was a pretty serious thing), they are also perpetrating a massive deception and breaking the most sacred promise one person can make to another in their wedding vows. Yet you would want continue sharing your life with such a person? How could you ever know that they really have your best interests at heart it all other areas of your life together? I would vastly prefer the painful truth and painful attempt(s) at healing and reconciliation that to live a lie. My integrity (character) should be more important than my comfort.
P.S. Full disclosure: I've been married to the same woman for 23 years, so I have no illusions about both how painful such a truth would be and how difficult it would be to heal the marriage.
By: Brian
on
A Personal Question With A Business Follow-On
Wow. I am truly amazed that someone would not want to know that the most important, trusted relationship they have on the planet is a complete fraud. The spouse is not only cheating (wait, let's call it what it is: they are comitting adultery, which we used to think was a pretty serious thing), they are also perpetrating a massive deception and breaking the most sacred promise one person can make to another in their wedding vows. Yet you would want continue sharing your life with such a person? How could you ever know that they really have your best interests at heart it all other areas of your life together? I would vastly prefer the painful truth and painful attempt(s) at healing and reconciliation that to live a lie. My integrity (character) should be more important than my comfort.
P.S. Full disclosure: I've been married to the same woman for 23 years, so I have no illusions about both how painful such a truth would be and how difficult it would be to heal the marriage.
Brian, Thanks for the comment.
The post is an extreme example, with an extreme position to highlight a fact of business that is near as silly.
I'll write about it next week.
Thanks Again!
By: Jim Logan
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A Personal Question With A Business Follow-On
The post is an extreme example, with an extreme position to highlight a fact of business that is near as silly.
I'll write about it next week.
Thanks Again!
great point, Jim. I scan lots of blogs and often don't comment - but always appreciate when others comment on my posts.. good practice for us bloggers to get into!
thanks for bringing this up. - Lori ...
By: Lori Richardson
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Why Don't More Bloggers Participate On Other Blogs?
thanks for bringing this up. - Lori ...
Jim, your question started me thinking about experiences and real-life qualifications. Would you take marital advice from your parish priest?
Not sure that I have the answers, but I appreciated the question.
By: Chuck McKay
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Would You Take Flight Lessons From An Instructor That Never Piloted A Plane?
Not sure that I have the answers, but I appreciated the question.
Thanks for the comments. It's an interesting thought that crossed my mind, both now and when I was traditionally employed.
I chose the "grow your business" because I believe that's the essence of what most businesses hire a consultant to do, whether they explicitly state it or not.
I am of the opinion you can hire a consultant to perform a task and their domain knowledge is all that?s necessary to deliver their service. But I?m not sure you really get the most for yor money from a consultant that?s never walked in your shoes.
I think you have to be a pilot in order to teach people to fly.
...
By: Jim Logan
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Would You Take Flight Lessons From An Instructor That Never Piloted A Plane?
I chose the "grow your business" because I believe that's the essence of what most businesses hire a consultant to do, whether they explicitly state it or not.
I am of the opinion you can hire a consultant to perform a task and their domain knowledge is all that?s necessary to deliver their service. But I?m not sure you really get the most for yor money from a consultant that?s never walked in your shoes.
I think you have to be a pilot in order to teach people to fly.
...
No, I don't think someone who never owned/managed a business can understand what it takes. Theoretical knowledge doesn't rise up to the worth of practical knowledge.
By: Sébastien Willems
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Would You Take Flight Lessons From An Instructor That Never Piloted A Plane?
Well Jim, I think it depends on what you mean by "grow your business." That's a catch all phrase for all the activities that take place within a business to make it successful.
Do I think some of those would lend themselves better to a consultant who has "been there and done that" by owning their own business? Sure. But not all.
I'm a consultant and a small business owner. It would definitely depend on what type of assistance I was looking for. Good food for thought.
By: Denise O'Berry
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Would You Take Flight Lessons From An Instructor That Never Piloted A Plane?
Do I think some of those would lend themselves better to a consultant who has "been there and done that" by owning their own business? Sure. But not all.
I'm a consultant and a small business owner. It would definitely depend on what type of assistance I was looking for. Good food for thought.
I am always amazed at how often this happens. And it's not just young sales reps who do it either. A friend of mine tells a story of when he and his boss sat down with a very big potential client. Not long into the meeting the potential client told them it was a done deal, he was sold.
But my friend's boss felt they needed to go through their entire presentation from start to finish. My friend had enough sense to drag him out of the conference room before he cost them the sale! If only more people would keep their eyes and ears open and pay attention to the OTHER PERSON.
By: Kevin Stirtz
on
Wow! I Was Really Wrong About That One
But my friend's boss felt they needed to go through their entire presentation from start to finish. My friend had enough sense to drag him out of the conference room before he cost them the sale! If only more people would keep their eyes and ears open and pay attention to the OTHER PERSON.
I work for the finance department of a convent. This convent employs approx. 500 people and has over 1000 nuns. I was once told that I am only the receptionist. Now when someone (on the low end of the ladder) needs help with thier computer software or even thier hardware they call me on the sneak. The technology department just sits around and refuses to help those invdivduals on the low end of the ladder, they only help the higher ups.
By: margaret
on
The Cruelest Thing You Can Do To An Employee And Your Business
I'm just reading this now and it is such an important question! I do check out a small number of blogs almost every day because there is so much to learn from others' experiences. In starting my own business, I'm trying to read about others in a similar situation or who have been through this, but I get the sense that, of the *entrepreneurs* I've encountered in recent months, a good number of them are fairly sure that they know everything there is to know!! When it comes to starting a business and really trying to create something for myself, though, I'm not going to make that big of an assumption. Better to be humble, right? Honestly, that's what I think--self-absorption and over-confidence... Boy, that's pretty pessimistic!!
By: Siddhartha Shah
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Why Don't More Bloggers Participate On Other Blogs?
Well, I must say I am very curious!
I'd prepare a simulation of the kind of docuements this software would produce, and go visit the customers showing them the benefits of my software.
They'll see the impact on other customers and how it will impact their business... if they buy my software service.
Or: I set them a 30 day free software testing period and customize it for one specific aread which they are interested in.... and they will love it!
"King" ...
By: King
on
30 Days, $1000, And No Help
I'd prepare a simulation of the kind of docuements this software would produce, and go visit the customers showing them the benefits of my software.
They'll see the impact on other customers and how it will impact their business... if they buy my software service.
Or: I set them a 30 day free software testing period and customize it for one specific aread which they are interested in.... and they will love it!
"King" ...
Tielman, Thanks for the comment. I appreciate your candor. If I were to offer my solution in exchange for registration or a fee, I might agree. Possibly.
Although, I don't belevie blogs to be anything differnt than other forms of sales and marketing. They're just a tool of buisness.
I plan to give clear and easy to understand details following the holiday break?probably Wednesday or Thursday of next week. It?s a simple solution that others can easily replicate.
...
By: Jim Logan
on
30 Days, $1000, And No Help
Although, I don't belevie blogs to be anything differnt than other forms of sales and marketing. They're just a tool of buisness.
I plan to give clear and easy to understand details following the holiday break?probably Wednesday or Thursday of next week. It?s a simple solution that others can easily replicate.
...
I suspect that most people don't participate in other people's blogs because of the time it takes to compose a thoughtful reply.
By: Chuck McKay
on
Why Don't More Bloggers Participate On Other Blogs?
Without doubt, organization is necessary. The challenge is to empower to maximum efficiency and creativity without creating anarchy.
Sometimes is more difficult than others :-)
Thanks for the comment Frank!
By: Jim Logan
on
The Cruelest Thing You Can Do To An Employee And Your Business
Sometimes is more difficult than others :-)
Thanks for the comment Frank!
I am not sure if teasers are the way to go with blogs.
By: Tielman
on
30 Days, $1000, And No Help
Well I worked for a company that was well aware of the problem you're referring to. So much in fact that they had NO organization chart because they were afraid of the "that's not my job" syndrome. Needless to say however, the complete lack of one was chaotic. People literality did not know who to go to when they needed a chain of command. They finally adopted one, but kept it in more general terms and used a lot of dotted lines.
By: Frank Ross
on
The Cruelest Thing You Can Do To An Employee And Your Business
Here here. A blog entry is just one person perspective. It is going to take more of us that love to talk (i.e. blog) to get some more perspectives on the topics that we love to read about. I almost see it has a moral obligation when reading other peoples blogs to comment.
By: Patrick Allmond
on
Why Don't More Bloggers Participate On Other Blogs?
Whoops... gotta fix my URL ...
By: Patrick Allmond
on
Why Don't More Bloggers Participate On Other Blogs?
Until recently I was a "lurker" on many blogs. I had several excuses...not enough time, nothing to add, feeling uncomfortable because I was new. But I did have one very real reason for not posting: information overload. Some of the blogs I read have so many comments already that I cannot possibley read them all and still be 1) sane or 2) still interested in the topic. I didn't have time to check back and search through even more comments on the slight chance that someone may have actually cared what I had to say.
Here's why I do comment on the blogs I read now: The bloggers have demonstrated that they actually care what I think. On the ones with larger readerships they respond within their posts. But I'll tell you what. I'm the most loyal to the bloggers who take the time to actually send me a personal email just to respond or say thanks ocassionally. It really is that real human connection that has kept me reading. If blogging is just about presenting information, then it will always lose this reader eventually. It's relationships that keep me coming back.
By: ninaclock
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Why Don't More Bloggers Participate On Other Blogs?
Here's why I do comment on the blogs I read now: The bloggers have demonstrated that they actually care what I think. On the ones with larger readerships they respond within their posts. But I'll tell you what. I'm the most loyal to the bloggers who take the time to actually send me a personal email just to respond or say thanks ocassionally. It really is that real human connection that has kept me reading. If blogging is just about presenting information, then it will always lose this reader eventually. It's relationships that keep me coming back.
Until recently I was a "lurker" on many blogs. I had several excuses...not enough time, nothing to add, feeling uncomfortable because I was new. But I did have one very real reason for not posting: information overload. Some of the blogs I read have so many comments already that I cannot possibley read them all and still be 1) sane or 2) still interested in the topic. I didn't have time to check back and search through even more comments on the slight chance that someone may have actually cared what I had to say.
Here's why I do comment on the blogs I read now: The bloggers have demonstrated that they actually care what I think. On the ones with larger readerships they respond to common trends and unusual/interesting questions/comments within their posts. But I'll tell you what. I'm the most loyal to the bloggers who take the time to actually send me a personal email just to respond or say thanks ocassionally. It really is that real human connection that has kept me reading. If blogging is just about presenting information, then it will always lose this reader eventually. It's relationships that keep me coming back.
By: ninaclock
on
Why Don't More Bloggers Participate On Other Blogs?
Here's why I do comment on the blogs I read now: The bloggers have demonstrated that they actually care what I think. On the ones with larger readerships they respond to common trends and unusual/interesting questions/comments within their posts. But I'll tell you what. I'm the most loyal to the bloggers who take the time to actually send me a personal email just to respond or say thanks ocassionally. It really is that real human connection that has kept me reading. If blogging is just about presenting information, then it will always lose this reader eventually. It's relationships that keep me coming back.
Ninaclock, Your last three sentences sum this whole subject nicely. If blogs are to be about relationships and conversations, then the blogger is the one most responsible to assure that happens. We need to get off the fence, raise our hand in class and participate in the conversation both on our own blogs and those we care to frequent.
Thanks to all for the comments and conversation. It makes you think...and that's the highest compliment I can give.
...
By: Jim Logan
on
Why Don't More Bloggers Participate On Other Blogs?
Thanks to all for the comments and conversation. It makes you think...and that's the highest compliment I can give.
...
I suspect there are not more comments, because the length of time we spend on a blog is so short and you must think about what has been written and add something to extend the conversation. We live in a busy time, sound bites and quick hits.
Mover Mike ...
By: Mike Landfair
on
Why Don't More Bloggers Participate On Other Blogs?
Mover Mike ...
I agree with the others. Also, bloggers cover so many diverse topics, some people may not feel strongly enough about a topic to reply.
Another thing I have seen is that many bloggers do not respond to comments made on their site. You are throwing something out there wanting for response, but don't leave them hanging when they do respond.
By: Steve
on
Why Don't More Bloggers Participate On Other Blogs?
Another thing I have seen is that many bloggers do not respond to comments made on their site. You are throwing something out there wanting for response, but don't leave them hanging when they do respond.
Steve,
I think you echo a key point...for blogs to be a conversation, the blogger needs to participate in their own blog. There are many blogs whereby you never see the blogger respond to comments to their posts. Without the blogger...there is no conversations.
The post is just the start of a conversation. Conversations happen as a result of exchanging thoughts, opinions, and ideas. Bloggers that basically ignore their comments essentially cut off the conversation.
Food for thought...
...
By: JSLogan
on
Why Don't More Bloggers Participate On Other Blogs?
I think you echo a key point...for blogs to be a conversation, the blogger needs to participate in their own blog. There are many blogs whereby you never see the blogger respond to comments to their posts. Without the blogger...there is no conversations.
The post is just the start of a conversation. Conversations happen as a result of exchanging thoughts, opinions, and ideas. Bloggers that basically ignore their comments essentially cut off the conversation.
Food for thought...
...
Marvelous question that I'll turn right around on you: would you be willing to be a guest contributor in the booklist section of my website? I now have a couple of folks lined up to contribute, but I'm looking for more.
See http://www.cehwiedel.com/booklists
If so, shoot me an email, and I'll send details.
...
By: cehwiedel
on
Why Don't More Bloggers Participate On Other Blogs?
See http://www.cehwiedel.com/booklists
If so, shoot me an email, and I'll send details.
...