Creating Luck

Ideas that will grow your business

Archive for the category “Creative Ideas”

25 Feb 2013

Pitching Mr. Know-It-All

Sometimes when you pitch your products or services, you will encounter Mr. Know-It-All. No matter what you ask about his company, he will say he already has it solved. You can tell you are dealing with a “know it all” by his demeanor, often arrogant and sometimes even belligerent – you can see his colleagues reluctant to go to battle with him. His subordinates stay quiet for fear of being ridiculed.mr know-it-all

In the early days of the Internet when I was building my first company, GovCon, a business development portal for government contractors, I was asked to present some technical options to the CEO of a 1,000-person firm. He brought my company in because we had a very strong reputation for helping government contractors like his. He had the reputation of being tough as nails and I wasn’t looking forward to the meeting.

As we started the dialog, I asked about their issues and was met very quickly with Mr. Know-It-All responses. He had a quip for every turn I took. So I finally asked him this:

  • I can see that you have a lot of these issues in good hands. So, what were you hoping to address by having me come here today?

This completely turned the tables. Instead of shooting down everything I said, this question gave him the opportunity to stop attacking and start opening up. At the same time, it acknowledged his need for showing off that he had most of his issues already under control.

Some people delude themselves into thinking that the solution they have implemented is the cat’s meow. If you know you can offer a better option, use this two-part question set to diffuse a Mr. Know-It-All encounter:

  • How is that working out for you?
  • Are you getting all of the results you want from that solution?

These questions usually force them to acknowledge their problem areas, giving you the chance to delve deeper into ways you can help. If you have several people in the meeting, you will see some of them bring up topics on their minds.

When you start asking the right questions, people will open up to you because quite often nobody has ever asked them before. This approach allows you to find opportunities and turn prospects into clients by offering ways to make their businesses better. You become a trusted partner, not just a vendor.

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10 Jan 2013
1 Comment

Business Planning Process for an Existing Business

Charting your course plays a major role in the luck you bring to your business. This week, I conducted my company’s annual business planning process and review sessions. It took about 3-4 hours each day over 2 days. The business planning process for an existing business, one that has products and services and customers, is usually different than one for a new enterprise. Existing businesses have to take into account the needs of current customers as well as figure out how to get new ones.business planning process for existing business

Here is the business planning process we use to hammer out our plan:

  1. Discuss last year’s accomplishments and shortcomings, including “small wins”
  2. Review our mission and values that shape what we tackle going forward
  3. Review current status of and new ideas for each component of the business
    • Infrastructure
    • Products and services
    • Customer Service
    • Marketing
    • Operations
  4. Rank the large list of activities we come up with based on estimated time involved to complete and impact to our customers and business
  5. Prioritize the activities we feel will result in the biggest bang for the buck

This exercise results in a one-page action list that we review a few times a year to 1) see if we are on track and 2) see what needs to change. It has been a very useful way to crystallize our collective thoughts and get everyone rowing in the same direction – and that leads to good luck. It is not a 15-20 page document, just a list – see the screenshot below. I’ve blurred out our actual tasks, but you get the idea (D=just about done, 1-5=priority order, WL=wait listed).

business plan action list example

You can take this action list and create a goal list for each team member involved. Short action lists like this are easy to pin on your wall so you are reminded of your key points of focus throughout the year. Mine hang right next to me and are filled with short notes I scratch in as the year goes by. The best feeling is checking one of those items off the list!

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03 Jan 2013
2 Comments

Forget New Year’s Resolutions, Use a 3-Word Plan for 2013

Toss your new year’s resolutions. You probably won’t stick with them.

top new years resolutions

I’ve been getting lots of email newsletters with tips on how to plan for 2013. I’ve found that Chris Brogan’s 3-word annual theme is by far the best approach. It’s simple. You just have to remember 3 words. And each of the words you pick will have meaning to you.

I expanded my list of 3 words to have one set for my personal life and one set for my business. Here are my personal growth words for 2013:

Declutter

My old boss used to say that gravity is the most powerful force in the universe. Over the years, everything gravitates to the storage room in the basement. My storage room has been cluttered for too long. During the holiday break, my wife and I got rid of the junk we collected. It appeared to be a daunting task when we started so we took it one section at a time, removing unwanted objects to haul off. By the end of the day – and it was a long day – our storage area was completely cleaned out. Everything was on shelves and fully organized. The best part: it decluttered our minds. I’ve got lots of other areas at my home and office that could use a clean-up so the term “declutter” to me in 2013 means to work on something every weekend until I’m satisfied. This week, the target was my email inbox, which is now fully decluttered. My goal is to be completely decluttered by March 31.

Run

I try to exercise regularly, but sometimes I allow myself to slip on my routine. I’ll then feel guilty about it so it’s a no-win situation – I might as well just do it. Between managing work and a family life with young kids, time can easily escape. Of all of the different types of workouts I’ve done, I’ve found running makes me feel the best. It also provides me with the best return for the time invested. Every time I jog, I feel like I cleaned my body from the inside. I breathe better, have a stronger focus and bubble with creative ideas. It makes me happy and productive. Run has a dual meaning. When I set my eyes on a goal, I want to make sure I don’t put obstacles in my own path or subconsciously slow down. So, “run” in 2013 to me means two things: 1) physically run every week, 2) keep pushing myself hard until I achieve a goal I set.

Read

I love reading. It’s the fastest way to building new skills. I read magazines and blogs all the time and pick up a lot of new ideas that help in growing my business. I find that I do most of my book reading over the summer. My weekends are slower then and I enjoy going out on my deck in warmer weather to relax with a tasty beverage and a good book. So I got to thinking: if I enjoy that feeling so much, why don’t I do more of it year-round instead of in the summer? It prompted me to put “read” to round out my top 3 words for 2013.

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Here are some other words and possible meanings that you can use as you develop your own 3-word plan for 2013:

  • Start - stop just talking about starting a company, do it
  • Analyze – evaluate detailed metrics for my business so I make informed decisions
  • Content – write articles to share my knowledge with clients and have a long lasting impact that showcases my expertise
  • Publish – write a book and get it published on Kindle
  • Fund – pitch investors and get financing to grow my business
  • Mingle – join an online dating site to meet my match
  • Laugh – throw at least one party every quarter to enjoy a glass of wine with my friends
  • Hawaii – save for and plan a vacation to Hawaii
  • Participate – find out about openings on local boards or commissions in my county and apply to become a member; plan a strategy to run for a local political office

So forget your new year’s resolution. Create a theme instead. It’s only 3 words so it will be easy to remember. Paste your words on your bathroom mirror so you are reminded of your theme every morning and night. Want something a little longer? Read my big list of sample goals. You will have an amazing 2013!

Posted in Creative Ideas and tagged , , , , , , , ,
27 Nov 2012

The 5 Smartest Things You Can Offer a Prospect

Offer your prospects any of these 5 things and they will respond to your phone calls and emails much more quickly:what to offer prospects

  1. A live lead. Giving someone a lead is by far the fastest and most effective way to get someone’s attention. I’ve used this method with tremendous success and it works every time. When I hear about an opportunity for any kind of work through my network, I look to see who else in my network – and extended network- might be able to do the work. There are always a handful of companies. I send an email with this subject line: “Can you help with this lead for <type of service needed>?”  In the email, I say something like “Bob, I came across a business lead and thought of you. A colleague of mine is looking for <one-line description>. If this might be a fit for your business, please let me know and I’ll connect you. Otherwise, no worries – I’m happy to send other leads as they come up.” I also send another email to the person looking to have the work done, something like “Jody, I know a couple of companies that might be able to help with your requirement. Let me know if you would like me to connect you.” People always respond, regardless of how well I know (or don’t know) them. Nobody wants to turn down a lead for more business or to solve an issue they are facing. This entire process is very easy and does several things:
    • Shows both parties that I am looking out for their interests.
    • Gives me an opportunity to reconnect and spread goodwill.
    • Helps both parties – people usually remember who helps them.
  2. A way to make more money. If your product or service helps an organization raise brand awareness that brings in more business, you can help them scratch an itch. Every organization wants to grow – companies and non-profits both want to make more money. Show a direct path that correlates how your offer will result in increased business, more revenues and higher margins. Include examples of how similar organizations have gotten positive results by hiring you.
  3. A way to cut costs. Increasing your bottom line can be done in two ways: 1) more revenue and 2) reducing costs. Do some digging to pull together an educated guess on the types of expenses a prospect is incurring. Outline how your product or service can help them reduce waste, cut expenses or get something done cheaper without sacrificing quality.
  4. A way to save time and increase productivity. Paint a picture of how your product or service will save the organization money by taking over routine tasks, laborious processes and other time-consuming activities. Do you have a unique dashboard that shows metrics to identify bottlenecks so they can increase productivity? Tell a story about how your insight provided an executive with critical information to help their organizational machine run more smoothly.
  5. A way to achieve peace of mind. What would happen if a storm not only knocked out your power for a week, but caused physical damage to your office so you weren’t able to recover your data? That’s what happened to many New York and New Jersey businesses affected by Hurricane Sandy this October. “Peace of Mind” products like insurance, data backup and disaster recovery can help ease fears that keep business owners up at night. In your pitch, talk about a real-life example of how your product or service saved a client from a major catastrophe that other businesses suffered.

To reiterate, #1 is by far the most effective offer to get a prospect to call you back. I continue to use this technique with very high success. Share a qualified lead and I can almost guarantee that you will wake up a prospect into contacting you.

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02 Nov 2012
2 Comments

Using a Loss Leader to Get More Consulting Business

Retail companies use a loss leader all of the time to get more business. You’ve probably seen sales for $1 or even $0.01 products that are clearly priced below their cost. Retailers use this strategy to get you in the store in the hopes that you will buy much more than the loss leader product. Usually those loss leaders are scattered throughout the store so that you see many other products that you might want to buy along the way. It usually works. Web sites place loss leaders near related high-margin products to encourage more sales (and typically charge for shipping to discourage people who only want the loss leader at the heavily discounted price).

You can also use a loss leader for a consulting business, but in a different way. Since your “product” is consulting services, offering yourself for a $1 rate would sound ridiculous to a client and would devalue what you bring to the table. Never discount yourself like that! Instead, you can offer to do a small project for free. This would be something that takes you an hour or two, or a little more if you are comfortable with that.loss leader

Offering an initial consultation like this does two things: 1) gives the client a taste of the value you will bring to their organization and 2) gives you an opportunity to see what working with this client is really like.

Free “high value” consulting session

I had a client who was almost ready to engage, but was slow in pulling the trigger. During our conversations, I asked several questions that uncovered a laundry list of ways I could help. My consulting rates aren’t cheap. They seemed excited, but they were hesitant because they weren’t sure of the value they would get. So, I picked one of their most pressing topics as my loss leader and offered a free one-hour in-depth consulting session about it.

During our conversation, I didn’t keep track of time and we did run over an hour. I also did not sell my services during this free consultation because I wanted them to experience what it would be like to actually work with me. I only focused on their problem and asked probing questions that got deeper into the real issues. I was able to offer several on-point solutions that provided a direct benefit very quickly. They were able to see that I had their best interest at heart.

When they compared the value they received to the price of my rates, it was clear that they were getting a good deal. They made back more than they invested. After that dialog, they were ready to ask more questions about other issues they were facing. When you provide rock solid consulting services, people see the value.

Responding to Push Back

To ward off attempts to gain more of my consulting insight for free, I asked if they would like to tackle some of their other issues as well under a more formal agreement between our companies. That helped them understand that  I wasn’t prepared to give more away for free. You can use responses like these if a prospect keeps trying to get your advice for free:

“I appreciate your question and it is definitely something I can help with. Shall we go ahead with our formal agreement so that we can get started right away?”

“This question warrants a deeper discussion and I want to make sure that the time that both of us invest in solving these issues is spent efficiently. There’s no 5 or 10 minute solution to this topic so rather than start a dialog that we can’t finish, how about we move forward with an engagement letter? This way, I can make sure you’re on my calendar and that I can give the topic the full attention it deserves.”

“I hope the value you gained from our prior consultation illustrated how we can help go deep into solving problems. So rather than start a conversation that only touches the surface, let’s proceed with moving forward in a more formal way. Shall I send you our engagement letter?”

If you encounter a company that isn’t ready to engage you even after your initial consultation and after trying the responses above, watch for signs that they do not have the budget to hire you. The worst situation you can be in is engaging a consulting client that can’t pay you.

When Not to Use a Loss Leader

Not all consulting services lend themselves to a loss leader consultation in which you can provide in-depth advice. Often, consulting requires deeper, long-term commitments. In these cases, your initial consultations need to focus on problem discovery so your proposal addresses the client’s key questions and not something that you think they want.

For those times when you need to nudge a prospect to close a deal, give them a taste – just a morsel – of what you can do for free. Don’t discount your services because then your value will be the discount, not your knowledge.

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