Posts tagged "suppliers"

Advice Customer Service Sales Strategy

Are customers testing your patience?

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“You can’t just ask customers what they want then try to give that to them. By the time you get it built, they’ll want something new.” Steve Jobs

Prospects and customers have an uncanny ability of getting under your skin, often driving you close to the verge of insanity. It all begins when you begin to identify potential prospects for your target segment. Those first couple of cold calls, emails and introductions set the wheels of the sales cycle into motion. Then it begins, the non responses, the transferring of your calls all over the company, being on hold for ages and even some rude responses. At this level you need to be somewhat thick skinned, you should then not have a problem getting through this stage with a list of higher probability prospects. It is during the next couple of stages when you have initial meetings, send proposals and quotations that your patience really begins to get tested. This stage differentiates the sales people who succeed, and those who just get by.

Over the last couple of years some tips that helped me during this period are:

1. Prospect Selection: In today’s market place, no one really cares for the generalist anymore. It is slowly becoming a market where niche specialists have a marked competitive advantage. I would therefore suggest you tailor your sales strategy to focus on a particular market segment and cover it extensively. If your prospect list selection covers any and everybody the number of mild leads will drive you insane. Be selective and choose your segment wisely. Next build a prospect list specific to that segment and start to make inroads.

2. CRM Software: If you are not using one for your sales development and pipeline monitoring, I would strongly suggest you look into one for your organization. If you haven’t used CRM software before, start by using simple systems such as the ones available at 37signals.com. These help tremendously in making correspondence with prospects structured, efficient and professional. It also allows you to get a dashboard view of what is moving in your pipeline and what is not.

3. Disqualification: Customers who are not interested or ready for your product/service at the present moment should be disqualified from your list. These are clients who gather information from you, and then become dormant. I suggest you develop certain time quotas, after which, if the prospect does not respond they should be disqualified from your qualification process. If this step is not done it will drain a lot of your time without necessary results. 

4. Contracts: Once you have signed up a customer for your product/service, make sure you sign comprehensive contracts with them, these must cover exactly what you will be delivering to them. Failure to do this will result in some customers asking for more than promised and you will find yourself in a difficult position. There are few things more irritating than a customer who continues to ask for changes, reviews and modifications during the delivery process. 

I don’t completely agree with the statement that “the customer is always right”. There are some situations when you will have to draw the line. Difficult customers end up costing the organization a great deal. They increase the level of frustration within the team and decrease morale. Constantly review your prospect and customer list, I use a rating system in some of the companies I work with. This lets the entire team know which customers get priority over others. Focus your energy on those leads and customers where you have the greatest ability to cross sell and develop deep relationships with.

Marketing Strategy

A Marketing Secret

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“Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish.” John Quincy Adams

The secret to getting the most out of your marketing plan is to remain patient. It is not as easy as it sounds however, and I have broken this rule many a time in the past. This lack of patience is due largely to the fact that most startup organizations have fairly loosely defined marketing plans. If you allocate $X per year on “marketing” activities, the chances of earning substantial returns on your investment is wishful thinking. Therefore, before beginning any marketing activity please map out your marketing plan in detail and allocate appropriate funds and metrics to the plan. Having a marketing plan is one thing, sticking to what you have charted out is a completely different ball game. 

I would like to clarify a couple of false notions that people have about marketing,

1. Instant Results: One should not expect a TV ad campaign which was screened over the weekend to help achieve quarterly target sales. Marketing is not a magic pill, which will the generate the results you want instantly. It takes time, effort and most importantly consistency to get the results that one is looking for.

2. Marketing is a Cost: I like to treat marketing as an investment, made into your organization. If one treats marketing as a cost, unfortunately it becomes one of the first things to get cut during tough times. Like any investment made in technology, infrastructure or talent, marketing must be treated similarly, to get maximum return on investment.

3. Marketing is not Advertising: I get this one a lot during discussions. A core fact is, advertising is just one tactic which can be used in a total marketing mix. Restricting your perception of marketing solely and totally to advertising will not get the required results .

The secret behind companies who are able to market themselves successfully is patience. Once they formulate a strategy, they remain committed to carrying it out to the end. Do your best to remain consistent in the messages that you send out, ensure you send them out regularly. Once the messages are out there, be patient, results will follow!

Advice Strategy

Strategy + Patience = Success

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“There is no royal road to anything, one thing at a time, all things in succession. That which grows fast, withers as rapidly. That which grows slowly, endures.” Josiah Gilbert Holland  

Instant sales, results and profitability seem to be the mantra of today’s marketplace. It seems to be so deeply ingrained into our subconscious, that to think otherwise is blasphemy. However, in this mind blistering tizzy we seem to be losing an important component of the success formula, patience. The sad reality of business is, that instant results are often short lived without adequate planning and strategy. Sure, everyone would like to accelerate the speed of achieving targets. However, we have to keep in check what is on the line for this short term acceleration. Very often we forget to look at the bigger picture, lose patience and ultimately throw in the towel if we do not see the result we want. Is this an optimal strategy? I think not. 

From the onset you have to realize, that the startup route requires long term outlook. Looking for great short terms gains usually results in disappointment and disillusionment. For a long term perspective, we need to develop a strategy accordingly. Many a time during your journey, things will not go as planned. If you fail to adjust your strategy accordingly, growing impatient with the lack of momentum is inevitable. This is a situation that needs to be avoided at all costs, as it can bring your startup to a very abrupt end. 

There are a couple of pointers that help me through tough times when my patience is being severely tested:

1. Take a break: If your startup has been through a couple of challenging quarters, I suggest you take a short break from the routine. A break could be a short holiday, catching up with friends, taking a course or doing some community work. This helps to clear the mind, and see things from a different perspective. It is like hitting the reset button when the base memory is full and slowing everything down.

2. Adjust strategy: This is something I have done repeatedly in some of my past ventures. It requires looking at your current strategy statement, and comparing it with feedback that you have received. Is the market asking for something else? Are we selling to the wrong market segment? Is our market positioning correct? What are our successful competitors doing differently? Take a comprehensive snapshot of where you are and where you want to be. Is there a disconnect somewhere? If you find a gap, adjust your strategy to make sure you fill it.

3. Accepting change: Lets face it, if you have spent the last year building an organization which has not gathered the momentum you expected, changing your strategy is going to be a challenge. Talk things over with your team, investors and mentors. Make sure everyone on the team buys into a new direction. You may lose key people at this juncture, this is unfortunate, but something you must take in your stride and remain focused on the end goal.

4. Analyze yourself: It is during tough times that the true character of individuals is revealed. Take this opportunity to see and gauge how you manage your actions and emotions at this time. Are you more vocal? Do you participate less in discussions? How does your mood affect the rest of the team? In the end you can only take responsibility for your attitude. Make sure that it is not negatively affecting everyone around you.

5. Asking for feedback: Get feedback from your clients, distributors, suppliers, mentors, investors, friends and family. Receiving feedback from a diverse group of individuals will help you see the forest for the trees. I find this process rejuvenating as I get affirmation for what I am doing, it also helps me look at situations from different angles. 

Instant success for entrepreneurial startups are rare anomalies. If you plan to embark on this journey make sure you realize that it is for the long haul. It will require you to remain committed to your strategy, and constantly keep adapting it to what the market wants. As an entrepreneur you can never find yourself standing still, if you do, losing your patience will be inevitable.

Advice Teams

5 Ways To Be a Better Team Member

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“In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two.” Lee Iacocca

“Are you giving your best to the team you are working with?” All of us, who are part of any team, must ask ourselves this question periodically. It forces us to look at the larger picture, and how our actions affect it, for better or for worse. This is vital for our own personal development as well as the team’s progress. Having worked with many teams, I know first hand how easy it is to play the blame game. Team member X is not giving enough time, member Y is not bringing the value he/she is supposed to, a myriad of such thoughts constantly float in your head. We need to make a fundamental shift in our thinking, and focus on giving 100% to the team. We cannot compromise our commitment because other individuals on the team are not pulling their weight. What we can do, is become more proactive in helping other members of the team grow, as well as ourselves.

Listed below are five ways to become a better team member and help the rest of your team follow suit as well.

1. Playing to your Strengths: Understanding and playing to your strengths is a process that takes time. It is important that we start this process as early as possible. There is  much trial and error involved in this discovery process. Often, we realize our choice is not showcasing our true potential. No problem! Use the experience as feedback and move forward. To learn more about playing to your strengths please click here.

2. Being Action Oriented: Team members, customers, suppliers and investors look for people who can deliver what they commit to. This trait is common in successful people, they do not over think things, they, just do it. The concept of “Ready, Fire, Aim” is one I believe in, it has has served me well over the last couple of years. It certainly accelerates the learning process, helps you add tangible value to business, and gets you the reputation of being the guy who gets things done. To read more about becoming action oriented please click here.

3. Giving and Asking for Feedback: The art of successfully giving feedback comes with experience and time. By providing feedback you add value to the team and all of its members. There will be times when feedback will be uncomfortable and these are situations you need to learn to manage. Suffering in silence is not a smart strategy, it is one where both the team and individual lose out. To learn more about giving and asking for feedback in an effective manner please click here.

4. Being Sensitive: Being sensitive is commonly associated with weakness and insecurity in business. I do not believe this, I believe, this is an essential personal characteristic, specially one that entrepreneurs must possess. Being sensitive to the feelings of others, situations and circumstances allows you to focus on larger issues in a more comprehensive manner. Highly effective team members understand the need for sensitivity when dealing with issues which impact the entire team. To learn more about sensitivity in team dynamics please click here.

5. Paying the Price: Every team member has to pay a price when he/she becomes part of a larger entity. For a team to work effectively together, they need to reach a stage where there is price equilibrium. This creates a situation where everyone on the team has similar vested interests and are fully committed to its success. The price of being a team member consists of many elements, two of the most prominent ones are, time and sacrifices. It is critical that all team members find a balance to maintain stability within the team. To learn more about the price of being a team member please click here.

Being the best team member that you can be, is each team member’s responsibility. We have to continuously focus our energies on bringing increasing value to our organization. This may, sometimes be at the cost of your own personal goals, time and other opportunities. When you make a commitment to be part of a venture, remember, to identify the price of entering into the agreement beforehand. This is something to keep in mind when embarking on any entrepreneurial journey. Usually the price for entry is steep, by the same token, so are the rewards. Success is the result of consistent action towards identified goals. The better you perform as a team, the faster you can reach those goals.

Advice Teams

Paying the Price

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“There’s a difference between interest and commitment. When you’re interested in doing something, you do it only when circumstance permit. When you’re committed to something, you accept no excuses, only results.” Anonymous

Every team member has to pay a price when he/she becomes part of a larger entity. For a team to work effectively together, they need to reach a stage where there is price equilibrium. This creates a situation where everyone on the team has similar vested interests and are fully committed to its success. Reaching such a level is a difficult process, because “price” is relative. If a team consists of 2 junior partners along with 2 senior partners should each member be paying the same price? If a team consists of 3 partners out of which 2 have sacrificed their social life should the third follow suit? I have debated this topic with a lot of people and am always surprised when I hear unique responses to some of the questions asked above.

At the end of most discussions however, there is a consensus that “price equilibrium” needs to exist in every team, it just varies according to the circumstances. Two key aspects of the price one needs to pay, to be part of a team are:

1. Time: Time is a vital and required input into an organization, majors rifts are caused in the team if this is not done seriously. Team members need to dedicate the time they have committed to. For example, if you have a partner who is assisting you while keeping his day job, it is his/her responsibility to be contribute to the team during nights and weekends. When one of the team runs multiple businesses, it is essential to demarcate time commitments according to your level of involvement. Without contributing time an individual is causing a disequilibrium and it usually has nasty consequences.

2. Sacrifices: When you embark on an entrepreneurial venture, get ready to make serious sacrifices. Building a business is not an easy task, it requires all members of the teams to sacrifice their own personal goals for team goals. Many find this difficult to do, some have lifestyles which they want to maintain and others may not be ready to give up personal goals. The fact of the matter is, if you are not ready to sacrifice your time, money and opportunities, do not join a startup. If you are part of the team and you are not sacrificing, in comparison to other members, it is time to step up.

In order to become a valued and key member of your team, it is essential that you are willing to pay the price required. If you find the price too steep, let all your team members know. It becomes challenging to keep paying out and not receiving anything in return during the early stages of your organization. Therefore it is critical to find out more about the team you want to join, before, you sign up. Find out what sort of price you are going to have to pay and whether you are going to be willing to do so. Doing this will make both your life and those of the other team members a lot simpler.

Advice Teams

Being Sensitive

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“It is… axiomatic that we should all think of ourselves as being more sensitive than other people because, when we are insensitive in our dealings with others, we cannot be aware of it at the time: conscious insensitivity is a self-contradiction.” W. H. Auden

The topic of discussion today is not a subject you usually find on business blogs. Being sensitive is commonly associated with weakness and insecurity in business. I do not believe this however, I believe this is an essential personal characteristic, specially one that entrepreneurs must possess. Understanding this, is the result of interactions with my mentors, who have constantly impressed upon me the importance of being sensitive to your team members, customers and suppliers. I have seen and experienced this in my own interactions of working with several teams over the last couple of years. Being sensitive to the feelings of others, situations and circumstances allows you to focus on larger issues in a more comprehensive manner.

Being a team member will inevitably result in times when the situation requires compromise and taking action in ways you may not always be comfortable with. Reactions to such situations can often be the ‘make or break’ factor for some teams. The key factor in all of this, boils down to balance. Being either overly sensitive or insensitive, bring their own share of difficulties. Maintaining a balance between both extremes requires discipline, an open mind and flexibility. I have worked with several people who have had trouble maintaining this composure, it has invariably led to difficult situations. 

Highly effective team members understand the need for sensitivity when dealing with issues which impact the entire team. Some areas requiring sensitivity are:

1. Dealing with conflict: The manner of handling conflict is a telling sign of whether balance can be maintained between extremes. For example, an individual is in a conflict with another team mate for not contributing adequately to the team. If you were the person who brought up this issue with your team member, your tone, rationale and way of handling this issue is critical.

2. Dealing with change: Whenever an organization undergoes a structural change process, substantial friction is created. This could be when individuals are required to move out of their comfort zone. As an effective team member, it is our responsibility to ensure that everyone on the team is given enough support during this transitional period. Focusing selfishly on yourself or how this change process will impact you alone, is not a winning attitude.

3. Dealing with loss: Every organization has its share of ups and downs. It is during down periods that a team is required to come together and figure out how to fix the situation. I have learnt, dealing with organizational loss tends to bring out the ugly side of people. The fact is, no one likes to lose, but it is a part of life. The success of a team comes down to, how we react to such situations and whether we are able to handle it well collectively as a team.

I agree entirely that some people are more sensitive than others. It is important however, that everyone on the team does their best in dealing with difficult situations and individuals, with an open mind. This attitude will not only help create stronger bonds between all team members, it will also make you stronger as a person. The next time you find yourself in a difficult situation, do your best to understand where the other person is coming from as well. Always remember to treat others in the same manner you would like to be treated yourself.

Advice Teams

Do you give and ask for feedback?

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“What is the shortest word in the English language that contains the letters: abcdef? Answer: feedback. Don’t forget that feedback is one of the essential elements of good communication.” Anonymous

Regular readers of my blog will be able to identify with the topic discussed today, feedback. Today, we will discuss feedback specifically in relationship to teams and it’s members. When working with any team and specially a close knit startup team, it is essential that communication remain open at all times. In the flurry of developing the product, chasing the suppliers and completing the marketing material, communication channels tend to get clogged up, resulting in much distortion. This break down of communication eventually leads to the creation of an environment in which it is difficult to work with each other. To avoid reaching this state, we need a culture of candor and feedback in the organization.

When giving feedback to someone, it is essential to keep a couple of things in mind, to make sure that the person actually benefits from what you want to let him/her know. There is no point in telling Tim “You are always late, I think you should do something about this habit of yours.” If I were Tim I wouldn’t be very happy with that sort of feedback. I would much rather like to hear, “I have noticed that you have not been able to make our weekly morning meetings for the last 3 weeks, is there something I could do to assist you in making it to the next one? Is there a particular problem you are facing that is causing you to come late? I know this great book about time management and I think it could be of great help to you, I will give it to you by the end of today.”

Good feedback consists of:

1. Timing: Feedback needs to be provided at the appropriate time and place. There is no point bringing up something which happened 3 weeks ago. Deal with it as soon as you can. If required make sure it is done in private to reduce anxiety or pressure.

2. Specific: Avoid using words like “always” and “never” which do not correctly portray the situation. In order to be constructive, feedback needs to be specific in nature. Avoid being sarcastic, very frank and overly aggressive. The reason we provide and receive feedback is to help others and, ourselves. Always treat the other person how you would want to be treated, because tomorrow, that person could be providing you with feedback.

3. Clarity: Sometimes even if we are being specific the meaning doesn’t actually come across clearly. For example “We have missed you during the last 3 weekly morning meetings, there is a lot of critical information shared during these meetings and the team would like you to be a part of them. Team work is essential for our organization to grow and given that we are struggling with this quarter’s number we really need you to cooperate with us on this matter.” The meaning has been partially lost and now the receiver of the feedback is not sure what to make of it.

4. Action Steps: Whenever feedback is proposed it is essential that it is followed up with some action steps which include targets, timelines and metrics to help the individual. Without these, we more often than not, revert back to our old habits, making the entire feedback loop redundant. Therefore, when giving or asking for feedback, make sure that that goals are set to help monitor progress.

The art of successfully giving feedback comes with experience and time. By providing feedback you add value to the team and all of its members. There will be times when feedback will be uncomfortable and these are situations you need to learn to manage. Suffering in silence is not a smart strategy and one where both the team and individual lose out.

Related Posts:

– There is no Failure only Feedback

Advice Teams

Are you action oriented?

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“Thinking is easy, acting is difficult, and to put one’s thoughts into action is the most difficult thing in the world.” Johann Wolfgang von Goethe

There will always be some people on a team who are constantly coming up with ideas, different scenarios and ways to take the team forward. These are great people to have on a team and are an amazing resource to motivate and inspire other team members.  There is a flip side to this coin as well, if this individual does all the talking, without delivering, it can be a serious issue. When someone is an ideas person, or works on the strategic element of the business, some form of action needs to be taken on it . This can be in the implementation of the concept, in the trial of the business model or even gathering feedback from the rest of the team. Hence, there need to be clearly defined action steps, for practical implementation.

There have been numerous occasions when I have been on teams where you find a particular individual providing the bulk of ideas and suggestions, but, they never put down action steps. If this happens continuously, rather than being a source of motivation, this converts into a source of frustration for the rest of the team. It is true that everyone provides value to the team in different ways. In my experience however, individuals who do not shoulder responsibility and shy away from taking action, isolate themselves. Being action oriented is a critical characteristic in any individual, more so in an entrepreneur. There needs to be a sense of urgency for execution, rather than prolonged deliberation. When assessing yourself, and how you add value to your team, ask yourself whether you consider yourself as action oriented or not?. Next, ask others for feedback to learn which areas you need to improve on for taking action.

Team members, customers, suppliers and investors look for people who can deliver on what they commit to. This trait is common to most successful people who don’t just over think things, but, just do it. The concept of “Ready, Fire, Aim” is a theme I believe in, it has has served me well over the last couple of years. It certainly accelerates the learning process, helps you add more tangible value to your business, and gets you the reputation of being the guy who gets things done. If you are sitting on the sidelines waiting for that perfect opportunity, I strongly suggest you get your feet wet, and take things as they come.

Related Posts:

– Lights…Camera…Action!