Marshall W. Northcott, Canada's Sales Expert

Straight Commission vs. Salary

2012-01-01T00:03:00.004-05:00

Before I get myself too deep into this controversial topic let me make it clear that I have been in sales for over 23 years at this point and for the vast majority of those years my compensation has been either 100% commission based or minimally supplemented by a base salary. I should also make it clear that for the most part I made a conscious choice rather than a forced (act of desperation) no option decision to accept positions that offered no base salary. Some people myself included have earned a tremendous income in commissioned sales and for those who aren't afraid of being in a career that is purely performance based it can be an excellent way to earn an income. As a matter of fact there are many straight commission income earners who make more annually than those who work in more admired and sought after professions. Having said all that, it is my desire to offer a balanced and personal opinion on both forms of remuneration.

Only a certain kind of individual will be open to the idea of being compensated purely on a commission basis. There is a degree of risk involved in even considering this as an option. If the candidate has no previous knowledge of the employer, the industry or the income earning potential then it can be very difficult for them to overcome their concerns and any skepticism that they may have regarding the position or the credibility of the company and it's products or services. Any individual who has a low level of personal belief in themselves or who is surrounded by peers, associates, family and friends who think negatively about the idea of commissioned sales will certainly have their decision swayed by this circle of influence. Unless they are desperate enough to take any job offer that comes along or they have a burning desire to break into a sales role then they will need to be provided with ample evidence in order to feel comfortable with making such a commitment. Even with such evidence their resistance may be too great for them to give the idea a second thought. Those individuals with an entrepreneurial spirit will tend to have a lower degree of resistance to considering a straight commission opportunity. Those who are open minded to the idea will focus their attention on gaining a full understanding of the opportunity, the company, it's leadership and the products and/or services to determine if the position is a good fit for their personal situation. They will look at the upside, they will search for the evidence that strongly supports their desire to prove that what they are considering is the right move. Unless they have been burned in the past they will be less concerned with certain aspects of the who, what, when, where, why and how.

The company offering the position obviously has their reasons for operating under this sort of business model and pay structure. Understanding why they have decided to renumerate people based on straight commission may be helpful in determining whether the risk is worth the potential reward for those considering a straight commission role. There are some businesses that have historically operated this way such as Insurance Sales or Real Estate Sales. Understanding that typically the single greatest expense in most operating budgets is payroll sometimes it's a matter of dollars and cents, the company just doesn't have deep enough pockets to carry the load until the revenues generated by sales surpasses the cost of carrying the salaries and expenses associated with securing business. They may even be attempting to grow their numbers too quickly without having the infrastructe in place to financially support their business goals and objectives.

All sales positions are performance based the ones previously listed are even more so impacted by performance. High performing, self disciplined people can make better than average incomes in these careers. People who know themselves and know that they need more structure and a support system that holds them accountable (their feet to the fire so to speak) won't (or at least shouldn"t) even consider this as an option. Companies that want or need a higher degree of control and accountability over their people and the results that they generate know that hiring straight commission income earners can be like contracting rogue gun slingers who dance to the beat of a different drum. As a personal observation I would say that the majority of people who are higly successful in a straight commission position are strong willed, confident individuals who don't like being told what to do, they don't like others forcing their will or expectations on them, they don't believe that anyone has the right to force them to show up for what they perceive to be unproductive and/or unnecessary meetings and generally speaking they want to be left alone to sell or do whatever they want with their time. In their mind the perspective is "You don't pay me for my time, I get paid when I generate results, therefore you don't own me and you certainly don't dictate my schedule." This attitude can be detrimental when the industry or selling enviroment depends on a team effort and/or involvement but in my opinion, who can blame them for feeling this way after all, they are "Independent" Contractors.

Taking this whole thought process one step further there is also a difference between making a decision to take on a straight commission role where you are either employed by the company or working on a contractual basis as an independent contractor. When the company provides some degree of perceived security or safety net by hiring you as an employee this can certainly increase your confidence in accepting the role. As an employee you may qualify for some advantages that make the move a little less risky. I am referring to potential benefits (i.e. dental coverage, medical coverage, certain insurances, etc.) and safety nets like disability coverages incase of health issues and once you qualify unemployment insurance benefits if something happens to the position or your ability to continue working. Depending on where you reside and the employment laws or any policies that the employer may have you may qualify for vacation pay, sick day pay and also leave pay (i.e. for maternity leave). In addition, as an employee the company may realize the need to provide new hires with some form of training allowance or a draw against commission to allow for ramp up time. Whether it be one week, one month, three months or more, some ramp up time is normally required before people begin to produce results that generate an income. If there is no form of training allowance or a draw against future earnings paid to new recruits during that time frame it makes it difficult if not impossible for them to cover their basic costs to survive never mind the costs associated with doing business. If the company also provides some form of allowance on either a temporary or permanent basis to cover "the costs of doing business" such as fuel consumption, communication (cell phone) etc. then at least, they have some skin in the game. Most people have fixed monthly expenses and they are operating at the threshold of their income based on what they are accustomed to earning. They also have little in the way of savings and therefore they don't have the personal finances required to bridge the gap between zero income and ramp up to a monthly commission that sustains the lifestyle that they are accustomed to. If they are just entering the workforce or they were between jobs for a period then their finances may be depleted so expecting them to use their own tools and vehicle without renumeration may be out of the question. Unless they happen to have a spouse, partner or some other family or friends that provide a support system to manage the household expenses on their own then this form of employment may be impossible for them to consider. When you take on a straight commission position as an independent contractor the risk is all yours. There can certainly be income tax advantages as a self employed individual and you may have more freedoms when it comes to taking time off for vacations or for other purposes. If the rewards are worth it or taking the risk is perceived as acceptable then this may not be an issue. A strong candidate will always weigh this out and if they can see there is big financial potential in the position then they will accept the risk.

Those high performing people, who have the potential for being better than average income earners are usually bright enough to ask some intelligent questions when evaluating any sales role. If they know their worth, value or have a clear mental picture of their desired annual income or income earning potential then they will ask enough questions regarding the position and all of the factors associated with how the money is made in order to determine if the fit is right for their needs and situation. They know that numbers don't lie so if the person they are meeting with to discuss the role is forthcoming with adequate information regarding what is conservatively possible then they can make an informed decision as to whether or not the fit is right for them. I am referring to information such as training time required (how long does it take before I can begin making sales calls?), selling cycle time (average time between first contact and commissions being paid), typical activites of the role (cold calls, meetings, presentations, etc.), how much activity (number of calls, visits, meetings etc.), average closing rate (how many sales appointments or presentations does it take to generate a sale), average sale or commission per sale, any hold backs on earnings, the average income of the top 20% of performers and how long it takes to get into that income range. They will ask what the company is going to do for them in terms of how they are going to support their efforts and what resources and people they are going to provide to make their transition easier and their tasks more streamlined and simplified. If there is a contract involved (which there normally will be) they will make sure they scrutinize the agreement so that it is very apparent how their needs will be met and in what ways the company is prepared to protect them and keep their best interests in mind. They know that if person doing the interviewing has this information readily available and is willing to share it and even provide evidence then the role is viable and worth genuine consideration. If however, they feel that the information provided isn't genuine, that at best it is guesswork or a shot in the dark or a fabricated stretch of the imagination then alarm bells will sound and the position will move off their radar.

Typically there is a clear difference in the interview for these two forms of payment. Companies that offer salaries plus will be much more selective in their recruitment process. The higher the base pay is the more specific they will be with the skill base, experience and core competences that the ideal candidate must possess. When interviewing for this kind of role you are more likely to be placed in a position that you must convince and influence the interviewer that you are well suited for and more deserving of the job. The degree of concern when recruiting people on a straight commission basis can vary from none (we hire anyone with a pulse) to a more selective criteria based on the position and how complex and advance it is. With a straight commission position there may be some degree of convincing necessary for the candidate or the interviewer may focus all of their time selling the candidate on the role, the company and the products and/or services sold. When people are recruiting for straight commission sales positions the candidate needs to avoid getting caught up in any hype or a sales pitch and determine if they can trust the interviewer based on whether they feel they are holding back, covering up or glossing over certain information and ultimately if they are being transparent enough.

I am not opposed to earning a straight commission income I have done it for years. My recommendation to anyone who is considering this as an option is as follows; don't sell yourself short this might be an excellent option for you, be careful if you have financial and other responsibilies to consider, if you are adverse to risk then this is not likely your cup of tea, don't be swayed by people who don't work in sales or business, get the facts by asking lots of questions about how the money is earned and what your conservative expectations should be, be honest about who you are and your level of personal motivation, how much you worry (in general, your emotional stability), ask if you can speak with some of the people working at the company who have been there longer than one year and are doing well financially and lastly trust your gut instinct after doing a thorough evaluation because if it feels right or it feels wrong then you're best served to listen to your inner voice.

Marshall W. Northcott

Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.

Traditional or Conventional Selling vs. Consultative or Conversational Selling

2011-12-22T18:40:00.004-05:00

Traditional or Conventional Selling:

The focus is on what you plan to "Tell" the Prospect.

There is an emphasis on what the sales representative and their company knows.

It's all about how smart they are, what their expertise is, all the information they have been able to gather or gain about their prospect's company, industry and competition. Note: Whenever you set out very deliberately to prove how smart you are about someone else's business you risk breeding competition.

It's all about impressing the client by presenting information, offering facts, figures, proof and assurances they can deliver.

There can be a heavy handed or pressure oriented feel to the interaction and use of persuasion, influencing and convincing are essential to the outcome and a definite drive towards "Closing the Deal!"

The seller is competitively focused (a fear of loosing to a competitor is always present). Fear and pressure tactics are applied to create a sense of urgency and vulnerability.

The number one priority is "Getting the Deal" with no consideration for the quality of the opportunity or fit between the supplier and customer.

Cards are held tightly to the chest nothing is offered in terms of suggestions, advice or value until the contract is signed.

Consultative or Conversational Selling:

The focus is on what you plan to "Ask" the prospect.
There is an emphasis on what the prospect's concerns, issues, challenges are and how they would like to see things improve or evolve. In addition there is also a keen focus on what matters the most to them in general as well as with the results you, your company and the products or services you offer can potential play or provide for them.

The mission is to learn how smart the prospect is, what their expertise is, what they know and what they wish they knew, all the information they are willing to offer about their company, industry and competition. Specifically and in general what they know and what perspective they are willing to offer and what opportunities for improvement that are prepared to share and what they will admit they don't know.

It's all about creating an atmosphere of cooperation, mutual respect and projecting a willingness to listen and learn in order to impress the client and build a foundation of trust.

The atmosphere or feel of the interation is more relaxed and there is a definitive focus on discovering many ways in which value can be brought to the prospect though the introduction of the products, services and solutions available by the vendor.

The seller is customer focused (There is no fear of loosing to a competitor because it isn't about the competitor), approaching the selling profession in a more mature and confident manner.

The number one priority is "Finding the Fit" with an emphasis on understanding the quality (or strength) of the opportunity or fit between supplier and customer. Closing isn't a tactical move it is a natural progression that occurs once a comfort level has been established and an intent to move forward has been identified and acknowledged. The sales person simply has to outline the next step and ask suggestively or assumptively take actions towards it (i.e. schedule an implementation or delivery date).

As a show of good faith and a sign of strength and integrity information may be shared, suggestions for potential improvements may be offered and professional advice may be given with nothing expected in return.

Summary: There is a big difference in these two approaches and for those who cross the threshold between the two there really is no going back. The transition to this more sophisticated and professional approach is liberating and not something that you ever want to give up once you experience the difference.

The Nose, Knows!

2011-12-10T23:27:00.000-05:00

At its best, the human nose can distinguish between 4000 to 10,000 smells. Odors are tiny molecules of chemicals that drift through the air. Many odors aren't singular scents or molecules but a combination of two or more.

Odors come in many forms ranging from competing colognes and perfumes to various food items. While some scents are pleasant and can trigger fond thoughts and memories, others may be quite distracting and disturbing. Sense of smell is unique to each individual. What smells nice to you may not smell so nice to others around you. Using caution, being sensitive to others can save you from offending others and negatively impacting working relationships with customers, prospects and colleagues.

Although the use of cologne or perfume is an individual preference, it is important that you do your best to keep competing scents to a minimum. You should limit the use to your personal “scent circle” (within arm’s reach). In an open work environment, or when you meet with clients face to face, it’s important to be courteous and respectful regarding scents.

Marshall W. Northcott

Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.

Product Knowledge is Over Rated

2011-12-08T16:44:00.001-05:00

Throwing out information in a fast and furious manner with the occasional gust of speed is more commonly referred to as an information dump. This is something that junior, untrained, undisciplined listeners, immature, technically minded, nervous or less sophisticated sales people have a tendency of doing. They focus too much attention on features, benefits, bells, whistles, functions, widgets and gadgets and do not pay enough attention to exploring needs, opportunities, applications and ways in which they can bring value to the prospect and easily justify their position for change and/or improvement. They also forget about the person they are speaking with and they neglect to engage them by leveraging people skills, stimulating conversation and paying attention to them. They usually have an agenda that is concentrated on spewing out all that they know and/or have learned about the products or services that they are attempting to sell and they fear any hint of silence so they fill the void with the most minor and insignificant of details even if the information doesn't apply and the customer or prospect couldn't care less.

It's not uncommon for people who have been involved in an industry or environment to become old, stale and tired. Without proper awareness they can fall into bad habits as a result of their overwhelming base of knowledge which increases their dependency on the knowledge preventing them from being open and intelligent enough to know that it isn't necessary to unleash it all in every customer interaction. Putting people first (the customer or prospect) and putting the vast knowledge that you have acquired second is the key to maximizing opportunties. The focus should be sharing relevant and applicable knowledge as required and showing restraint with any other information.

Narrow minded people who are involved in human resources and the hiring or recruitment process often make the mistake of over looking truly talented individuals and instead letting their criteria for industry related experience or technical knowledge over shadow sound business judgment and even common sense. The problem is that it is easier to measure factors such as post secondary education, technical know how or the amount of time that an individual has been employed in a certain career track. It is much more difficult to ascertain their talent level in terms of what they bring to the table. Or put into other words, it is simpler to read a sheet of paper to see what a person has done vs. assessing their potential in order to determine what they can do. This can be a key contributing factor to what eventually becomes the sales person who knows it all and thinks that it is necessary to shoot both barrels in order to impress and win over a customer every time.

A person with advance communication skills who asks brilliant questions, listens, observes and intensely soaks up ideas and concepts is worth their weight in gold. What they lack in experience and/or product knowledge they can more than make up for based on their superior method for assessing needs and guiding a conversation. If they have the kind of attitude that keeps them open minded to new possibilities, experiences and knowledge combined with an aptitude for learning at an accelerated pace and an ability to look at things from an inside out perspective they are far more valuable then someone who can simply spew and regergitate facts, figures, specifications and memorized product information.

I'm not saying that product knowledge isn't important because it is! What I am saying is that product knowledge and industry related information in the wrong hands or that is improperly used can be detrimental when it isn't combined with a balanced application of other skills and attributes. Thinking that product knowledge is the most important factor can lead to big blunders in hiring and it can also result in the kind of sales interaction that most of us detest being assaulted with.

2011-12-08T09:00:00.001-05:00

Bachmann's book off to slow sales start

2011-12-06T09:00:00.001-05:00

TORONTO, Nov. 15, 2011 /CNW/ - IC Potash Corp. (ICP or the Company) (TSX: ICP; OTCQX: ICPTF) announced today the successful conclusion of the Prefeasibility Study

Is Your Word Good?

2011-12-04T02:00:00.003-05:00

When you agree to a deadline or commit to delivering or following through can you be counted on? When you say you will be somewhere at a specific time how true are you to the words that you speak?

Have you ever thought about how this impacts your reputation? Will or do people trust you and can they rely on you?

If there was a scale that ranged from one to ten and on the left (the number one score) was the worst extreme and least desirable characteristics and on the right (the number ten score) was the most highly regarded traits where would you score? Or more importantly where would you like to score, what would you prefer others say about you and how would you like to be known?

Generally speaking, it seems that as a society, we tolerate such an incredibly low standard when it comes to what is considered acceptable with regard to an individual's follow through on their word. The person who does as they say they will, within the time line in which they commit to is often in the minority.

Your reputation follows you where ever you go. If you have been consistent in doing as you have said you will do, then people will speak favourably about you, they will provide a positive reference without hesitation and you can stand firmly on the foundation that is supported by the pillars of your word.

"Your word is your worth, your worth is your word."

Marshall W. Northcott

2011-12-03T18:00:00.001-05:00

OTTAWA - The number of new vehicles sold in September increased 1.5 per cent to 134,389. Statistics Canada reports higher truck sales more than offset a decline in passenger-car sales. The agency says preliminary industry data indicate the number of new vehicles sold in October increased three per c

2011-12-03T13:00:00.001-05:00

Retail sales increased 0.5 percent in October

Does Technology Make You Stupid?

2011-12-01T15:50:00.004-05:00

Years ago my Mother worked in the bank and she used to get so frustrated by Tellers and other bank employees who were unable to do the simplest of calculations without the use of a calculator. It was something that she often mentioned in the evenings after observing a co-worker's inability to solve a fairly simple and straightforward mathematical problem during her work day. When I was a child she made me learn how to do calculations in my head so that I didn't become lazy and fall into the trap of thinking I couldn't figure out how to tabulate some figures without the aid of a calculator. I don't know if I was ever annoyed by this as a child but I can say as an adult I am thankful that she cared enough to take the time and patience to teach me how to do basic math problems in my head or on paper because I am better off for it.

I recently encountered a similar sort of frustration while riding as a passenger with a younger family member. We were on a trip and without the aid of G.P.S. I wasn't going to be making the return trip and so I was trying to teach her how to use landmarks and how to remember the names of the roads that we were traveling on and the directional information she would need for the journey home. My young driver kept telling me that she couldn't remember and that she was used to being given instructions and told when to turn and what direction to go. I attempted to get her to say the names of the roads but she refused to because she thought it was silly. I pointed out buildings, signs and towns that we passed on the major highway but she didn't see why she needed to remember any of the things that I pointed out and further more she didn't think she had the capacity to remember it all. The key point that she kept referring to was that she was used to having the G.P.S. in the car.

I love technology! I think gadgets that simplify our lives and save us time are wonderful! I'm not condemning the use of tools. What I am concerned about is that when we never learn how to do a task with the aid of technology (tools) we lack the necessary capacity and common sense to operate and survive without it. This can hurt us big time!

When people loose the capability to use their brain or when they fail to exercise it when they are first learning a new task or technique they miss out on an opportunity to learn, they fall short of truly understanding their own potential to do for themself and worst of all when the tools that do simplify life are unavailable or not functioning properly they are completely lost and useless.

People will often resist learning something the old way, using the basic method or the non technological approach. Yet when they learn this way first they are never stuck when faced with equipment failure or absense of technology. The next time you are learning something or educating someone else you may want to keep this in mind. As difficult as it may be to learn and as much as it may strain the brain to have to actually think in the long run you are doing yourself or those who you are training a favour and giving them an unfair advantage over those who won't take the time, the extra steps or have the patience to grow through the process.

Marshall W. Northcott
Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.

2011-11-30T18:00:00.001-05:00

Asset Sales Expected to Generate Total Gross Proceeds of million

2011-11-30T13:00:00.001-05:00

VANCOUVER, Nov. 9, 2011 /CNW/ - Taan Forest has successfully achieved Forest Stewardship Council (FSC) certification for all of its forestry and harvesting operations on Haida Gwaii, BC.

2011-11-30T09:00:00.001-05:00

LITTLE ROCK, Ark., Nov. 29, 2011 /CNW/ -- ABC Financial (ABC) is pleased to announce the addition of Cheryl Rogers as Regional Sales Director - Canada. Steve Ayers, Senior Vice President of Sales and Marketing announced the news today.

2011-11-29T18:00:00.001-05:00

TORONTO, Nov. 10, 2011 /CNW/ - The City of Toronto can bring its budgetary shortfall down to zero without gutting city services and selling off assets, a new report by the Wellesley Institute says.

2011-11-25T18:00:00.001-05:00

* Consolidated retail sales up 16%; basic earnings per share up 36% * Quarterly dividend increased 9% * Acquisition of The Forzani Group Ltd. (FGL Sports) completed

2011-11-25T13:00:00.001-05:00

<< Integra Products Ltd Streamlines Product Development at Every Stage of Development, From Initial Design through Marketing to Shipment of a

2011-11-25T09:00:00.001-05:00

QUEBEC CITY, Nov. 10, 2011 /CNW/ - Discovery Air Technical Services (DATS), a wholly-owned subsidiary of Discovery Air Inc., is pleased to announce it has successfully achieved ISO 9001:2008 Certification.

2011-11-24T18:00:00.001-05:00

TORONTO, Nov. 10, 2011 /CNW/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) today announced the successful completion of a Canadian public offering of million of Class A Non-Cumulative Rate Reset Preferred

String Me Along Why Don’t You

2011-03-01T08:26:00.004-05:00

Being strung along by a qualified prospect can be exhausting, extremely frustrating and an enormous waste of time. The enormous amount of energy you can burn up trying to get what seems to be derailed back on track and moving forward can be exhausting. If you are a persistent sales person, the customer who you have the best of intentions to help can turn you into a professional pest.

How do you feel when you suspect that you are being strung along by a prospect? You may lose respect for them and think that they are a wimp or that they don't value your time. Possibly you feel sorry for them or even more so for the people who are counting on their direction and leadership. In your mind, you may consider them to be a very indecisive person. For those who are determined, you likely believe that if you keep calling they will eventually cave in and go ahead. Sometimes you will be right and other times you will not.

Why do prospects string sales people along? There are all kinds of reasons and it has been my experience that in most cases you will never learn what the real reason is, or what has happened. It may be because they are ashamed or embarrassed to admit that they have misled you and that the decision making is actually out of their hands or that possibly the initial circumstances have changed which has altered their plans to act. Possibly, someone else told them that they could not proceed with their plans. Often people aren't comfortable enough sharing the truth with you or they just don't want to say, "No, we have decided otherwise." Your contact may really want to go ahead but they just don't have the funds or means to do so. They continue to hold out hope and don't want to tell you it is a dead issue because that would be like admitting defeat. Many other things could have potentially happened behind the scenes that you may never be made privy to. Their company could be in financial turmoil, they could have a personal situation that is delaying the decision, they may have gotten involved in negotiations to sell the business, they may be playing internal politics and the list goes on.

Under what circumstances could it possibly be your fault you are being strung along? Are there times when you chicken out and fail to ask the tough but direct questions that you should be asking? Did you insult or offend them? Have you been guilty of calling too many times and leaving voice mail messages when you should try to have them paged or ask for an alternate contact method (cellular number etc.) to reach the prospect? Do you sometimes secretly not want to hear the truth because if the news isn't positive you will have one less active prospect? Here are a couple of suggested questions; "The level of urgency seems diminished, has something changed since we originally spoke?" "Things seem to have become stalled, is there something I can do to get us back on track?" "Mr. Customer I know you wouldn't lead me astray, have there been delays beyond your control?" "If so, may I ask what they are?"

As your ability to properly qualify a prospect improves and you ask enough of the right questions the likelihood of being strung along by a prospect diminishes. When you are more effective at building rapport and making a personable connection with prospects, you increase the chances of being rewarded with honest responses. Being strung along will never disappear entirely because there is always going to be someone out there that will refuse to tell you the real goods.

There have been times when I felt I was being strung along for an extensive period of time to the point that I thought the prospect was probably going to explode on me. I was staying in touch, following up on a timely basis but each time there was nothing to report. I was thinking I was beating a dead horse and even came right out and asked, "Is this thing (the potential deal) still alive?" I was put off again and again and in the end got the business. I have told my contact, "I'm getting nervous that this (my phoning) is bordering on stalking" only to be told, "No, I'm really busy, it's still a priority and I appreciate you staying in contact and following up with me." In some instances, in the end, I have secured the business and in others I have not.

"Anything that is wasted effort represents wasted time. The best management of our time thus becomes linked inseparably with the best utilization of our efforts." - Ted W. Engstrom

Marshall W. Northcott, Canada’s Sales Expert

www.marshallnorthcott.com

Canada Wide Toll Free: 866-896-6603

Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.

Letting Go

2011-02-02T17:01:00.004-05:00

What are you holding onto that is prohibiting your ability to move onto greater things in your career?

Like many people, I have made the mistake of hanging onto business for too long. Depending on the business that you are in, the best and most exciting accounts that you secure today can lose their luster over time or it can become financially irresponsible for you to hang onto them. Over time their demands and expectations may become unreasonable, the margins can become unacceptable or your abilities may evolve to the point that it is ridiculous and costly for you to continue to service and maintain the business.

As emotional beings it can be difficult for us to let go of the known when faced with the fears and mysteries of the unknown. Hanging onto business past the point of reason shows a sense of human insecurity. Rather than focusing on the positive "what if" possibilities, we have a tendency to focus on what is comfortable which also happens to be negative.

At one point in time, I had an account that I held onto for four years which was probably a year past it's peak. It was comfortable and a friendly environment where I felt welcome and appreciated. I wouldn't let go for fear of perceived impending loss. Rather than appreciating my value and income earning potential I let my emotions dictate my actions and I clung to the business. I wouldn't allow myself to get logical and realistic about the situation. I didn't get smart and do the math and come to the realization that what I was doing was impractical from a business perspective. By the time the business relationship ended I knew it was long overdue.

What did happen was I ended up feeling a sense of relief because I no longer had the option to do otherwise. I took advantage of the opportunity and began to secure new business that was often worth twice the amount or more and in some instances required as much as half the work. It turned out to be a great thing and I felt silly that I hadn't done something sooner before the situation was stale and I was forced to do so.

Is it time for you to do a review of some of your accounts? Are there some clients that you need to pass on to a junior associate? Do you have some customers that you need to release in order to free up some of your time to do more profitable and lucrative business? Show some sensibility and emotional fortitude. Take a deep breath a have faith in yourself. Stretch to the next level in your career and push yourself out of the nest. Let go of the accounts that have outlived their ability to feed your maturity and challenge you mentally, emotionally and financially. Free up some time so you can move onto greater and more rewarding opportunities!

Click Here to Learn More About: Module 25 – Securing the Complex Sale

Marshall W. Northcott, Canada’s Sales Expert

http://www.marshallnorthcott.com/
Canada Wide Toll Free: 866-896-6603

Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.

Seek First to Understand

2010-12-04T04:00:00.003-05:00

In much of what I do, both at work and at home as well, I find myself facing situations or coaching others on circumstances related to conflicting viewpoints.

If you are filled with stubbornness and no one can teach you a thing, you are your own worst enemy. If you are so hung up on what you think or the perspective that you have, to the point that you won't allow yourself to consider other options, ideas or choices, you'll never progress beyond where you are. Do you become indignant when you feel that your motives, methods or practices are being questioned? Are you emotionally reactive or do you get defensive when faced with thoughts that somehow go against your own? Does your brick headed approach to life and the world often land you in trouble? Do you find that because of your opposing views you tend to lock horns with people more frequently than most? You'll never learn a thing when your judgment is so clouded that the words of others fall upon deaf ears or when your lips are moving. Your entire life will be filled with conflict and controversy if you are never open to the perspectives of others. Worst of all, chances are, your thoughts and ways are burning you out and the friction you create causes an unnecessary overload of stress on all of your work and likely home relationships. Even if it is unknowingly, you likely burn bridges and create ill will towards yourself. Chances are, your habitual nature is driving people away and destroying your credibility. Do you reject new ideas, and ways that are different from your own? Are you basically a rigid, closed minded individual?

Although you may not see it, an overwhelming lack of maturity is blatantly obvious to those that you clash with. Your frightening resistance to change or anything that threatens your way of life or thinking confuses people and makes them wonder what you are so afraid of and why you won't listen. Do you recognize any or all of these characteristics within yourself? Are you frustrated by the inner and external turmoil that your abrasive manner ignites? Maybe it's time to let go?

One of the greatest life lessons that I have ever learned is the power of letting go. The ability to put aside my own view and park it while really listening to the perspective of another individual is powerful and liberating. Knowing that I am not perfect and always being willing to listen from a point of strength rather than attack from a point of insecurity when faced with questions about my beliefs and opinions, has allowed me to grow. It has freed me to rise above pettiness. When you seek first to understand others in a calm, non reactive, professional, mature and respectful way you make a transformation that crosses a boundary from ordinary to extraordinary from mediocre to exceptional. Your mind becomes freed from the bondage of fears that hold the narrow minded back from growing in academic, worldly and common sense ways. You know a peace that eludes many and people will begin to look at you differently for the grace that you conduct yourself with.

When all is said and given honest consideration it doesn't mean that you have to agree, it just shows that you care enough to try to understand. Sometimes as a matter of fact you may have to agree to respectfully disagree however, in doing so, you project an astonishing and healthy respect that shows no fear of allowing others to be heard, accepted and yes, even be able to reshape your views when you begin to see life from another angle, one that you weren't previously aware of or willing to consider. Stop being the unreasonable person who has such a high need to be right or get your way that you become blinded and deaf. Strive to become the person who takes the less traveled high road and be open to hearing people out. Learn to control and suppress the emotions that drown out the voice of others and the inner voice of reason. Take a deep breath, clear your mind and open your ears wide. Listen, really listen! Ask questions and reserve judgment until the other person has offered you all the necessary pieces of information. Always hold the relationship in the utmost regard and be thankful for the other person's willingness to share and be vulnerable in the moment. Always seek first to understand and you will be pleasantly surprised how often you will have wonderfully positive, deep and meaningful conversations where ever you go and with many of the people you engage in dialogue with.

You will also begin to notice those who haven't been enlightened and transformed by this knowledge and you will smile with a renewed understanding and think to yourself I used to be like that. The good news is that you changed and for that you will be forever grateful.

Click Here to Learn More About: Module 13 – Advance Customer Service

Click Here to Learn More About: Module 26 – Elite Customer Service

Marshall W. Northcott, Canada’s Sales Expert

Entrepreneurial Spirit in the Face of Uncertainty by Bill Zinger

2010-11-24T14:17:00.003-05:00

Dedication
I dedicate this chapter to my father who passed away on July 5, 2008 after a
courageous battle with Alzheimer’s disease. He is the greatest man I have ever known.

Entrepreneurial Spirit in the Face of Uncertainty

I have worked for large, multi-national corporations and I have been an entrepreneur who turned failing companies into flourishing companies. I have successfully grown business in robust economies and in zero growth economies.

Over the years, I have learned that whether you are a company employee or its owner, whether the economy is strong, stagnant or in recession, the secrets of success remain the same. In fact, I wouldn’t even call them secrets. Is hard work a secret? Or is treating staff with respect a secret? Or building your organization around customer needs?

I suppose I will simply call them basic principles – the rules of business that have worked well for me year in, year out. When we face uncertain times, more than ever we need to stay true to the fundamentals that brought us success in the first place.

There are five principles I will outline, but first I want to go back in time. For the most part, my principles of success are rooted in the earlier years of my work life. The observations I made and lessons I learned in my earlier years had a profound effect on the way I have run my business as an entrepreneur. So here is my chronicle of years gone by.

I was born and raised on a farm in rural Ontario by devoted parents who committed their lives to providing a solid foundation for our family, including my two brothers and five sisters. My father worked full time at Roxton Furniture as well as working our farm in the evenings and on weekends. The farm was a necessity for our supply of food for the 10 hungry mouths that would descend on the table three times a day.

Driven by love for his family and passion for excellence, my father worked tirelessly to provide us with more than creature comforts in our humble surroundings. I didn’t know it at the time but he was a role model who moulded my very being, showing me that there is no replacement for hard work. The early years taught me to appreciate what you have but also to constantly strive for improvement. Most important, I was discovering something crucial about my own career aspirations, and that was to never be put in a survival mode situation.

My father provided my first job at age 12 sweeping and cleaning three floors of a large factory that took the majority of the weekend. At 14 I had a full-time summer job that started the very Monday after the school year ended, and I worked until the return to school in the fall. The job was repetitive line work for unskilled labour. It was extremely difficult to return to work for yet another day and be passionate about the tasks at hand. The slowness of the day did allow me time to observe the behaviour of management and co-workers. It also gave me the desire for continued education and was the start of my dream to succeed.

With a passion for mechanics from an early age, I entered college studying to become a mechanical engineering technician. Throughout my college years I worked two 12-hour shifts each weekend. Time demands were exhausting, but it allowed me to continue my education and earn a significant income. I worked as a maintenance mechanic, quickly learning the equipment and getting to know the staff operating the textile machines. Within a short period of time, I was given the opportunity to become a shift manager responsible for over 20 staff. The prestige of a managerial position was very appealing. I enjoyed the added responsibility, the authority and the positive impact my team could have toward corporate performance.

My part-time career as a working student was personally rewarding, but for my co-workers’, it was their permanent job, and they were largely uneducated and laboured at unskilled jobs. I was amazed that people could be satisfied with such an existence, toiling in jobs without any opportunity for growth or satisfaction. I could only find one reason why a person would perform such mundane tasks and that was out of necessity for required income. The more I had worked in substandard conditions the more motivated I became and the more real the dream became. Also, I didn’t realize it at the time but my early observations in the workplace, particularly what I thought was lacking, became valuable lessons. It helped me to develop my current management style and motivational techniques.

After graduating as a mechanical engineering technician, I was set to take on the real world. With diploma in hand, I hit the job lines only to discover that the roles were junior in nature and the pay was slightly above poverty level. It was difficult to have managed people for years and then be placed in a position with limited responsibility. Unwilling to accept the prospect of a long, methodical journey, I took a different path.

By chance, an insurance agent called to sell me life insurance and ended up selling me on a sales career. He said life insurance sales is the highest paying hard-working job and the lowest-paying lazy job. Knowing I was a hard worker, I signed on to a career I didn’t have the faintest idea about. I was a life insurance sales representative. My parents thought I had lost my marbles.

The transition from plant to office was overwhelming. The atmosphere and attitudes brightened, morale was high, and the motivation to succeed was beyond my imagination. I could not help but wonder why there was such a significant difference between the two workplaces. As I would quickly come to learn, it was pay plan driven. Life insurance sales were based on commission, with a reward to succeed.

After weeks of participation in the weekly sales meeting it was evident that certain sales representatives were much more successful than others. Wanting to be the best, I began associating with the top producers. I questioned them and listened. I mimicked their habits and practices – but with a couple of differences. First, I added creative prospecting ideas of my own invention and used sales approaches that were far from standard. Second, I had higher productivity. In the first eight months I qualified for the President’s Club, which had a 12-month qualifying period. I also achieved Million Dollar Round Table status that only about 5 per cent of all insurance agents worldwide achieve in a lifetime.

Although I was successful, I did not enjoy life insurance sales. One day while prospecting, I met a young Xerox salesman who made double my income. A few weeks later, I was working for Xerox.

I spent a year in life insurance, but I spent 15 years in the office automation industry with Xerox and Canon. My competitive spirit was formed while selling life insurance; with Xerox it was nurtured, fed and strengthened to the point where I refused to lose.

Xerox and Canon were two organizations at the top of their game fighting for supremacy in a crowded marketplace. Each company has a distinct and different business model, with Xerox as a complete service company, manufacturer, seller and distributor, while Canon focused on manufacturing and appointed privately owned distributors to sell and service the products. Both organizations spent tremendous energy and effort on sales and product training.

Xerox’s famous sales training modules were sold at home and around the world, including to the U.S. army. The training was intense, with long days and even longer nights filled with assignments. Located in Leesburg, Virginia on a Xerox campus, we were housed in a dorm and held captive with our classmates for three of the longest, most gruelling weeks you could imagine. Most people are under the impression that a sales representative is a fast-talking smooth operator who will force you to buy something you do not need. In fact, Xerox training will teach you the opposite. To Xerox it is a science. The best sales people are great listeners, not talkers. The Xerox sales process breaks the sales call into a needs analysis concluding with a successful closed sale. Failure to achieve budget was not an option once you were given the skills, provided with quality product and monitored for daily activity. These organizations carefully design pay plans with marketing incentives to fuel the competitive spirit. They instill in the sales force that second place is no place to be, there is only one winner, and you will never be remembered as the runner up. Winning became a way of life.

I enjoyed my success at Xerox and Canon, but after many years of watching, learning, questioning and listening, I believed I had a solid foundation to exercise my acquired skills in my own business. I spent quite some time searching for a company with the right mix, then found it. The company I acquired was well-established, underperforming, and had a large target market. Kissner was family-owned and had been in business since 1878. It supplied and distributed chemicals and salt products. In the past while, the company had not kept up with the times and was nearly bankrupt. I acquired this small distribution company with the intention of growing the company and expanding market share.

I saw the route to future growth through an expanding group of team leaders. If I could build each department with the best possible leaders, they could relay the new corporate message throughout the organization. It is usually necessary to start with the sales department with a turnaround scenario. Without sales revenue there is little else to manage. Having exposure to the sales training and management style of the office automation industry it was an automatic location to start my recruiting process. My recruits used aggressive solicitation and direct customer contact: sales quickly grew. As sales strengthened, we required a professional purchaser with a skill set to secure products at or below market pricing. In many cases purchasing can be a better profit centre than sales once the customer base has been acquired. The next department to require attention was logistics and distribution, as transportation costs are one of the largest budget components of a distribution income statement. As the team grew, it became important to recruit a sales-minded General Manager to bring departmental cohesion and capitalize on the improvements. Once the structure is in place you constantly look for continuous improvements to take your organization to the next level.

Today, after 15 years of a collective team effort I am proud to say that the Kissner Group is now a market leader in supplying salt and chemical products, offering food and industrial chemicals, ice melt products, water softener salt, food grade salt and packaging wrap. It’s a large-scale operation, sourcing products from thousands of manufacturers around the world and distributing to business, manufacturing and residential markets across North America. From a company on the verge of bankruptcy, Kissner is now an ISO certified organization with solid revenue and increasing market share virtually every year.

In building the company, I followed five basic business fundamentals. These are the principles that I believe remain the same regardless of the state of the prevailing economy.

1. Leadership is a full-time job

When you are a leader, you must always lead – never become complacent. You are the company and your actions determine the company’s success.

You must establish a winning corporate culture. When I purchased the company, it was filled with employees completely comfortable with mediocrity, complacency and failure. In the first telephone conversation I heard from the receptionist, she indicated to a customer that we could not guarantee a shipment at the appointed time and if the customer needed that assurance he would be better off buying from our competitor. I was soon to learn that old habits die hard. My everyday life for the past 20 years was one of working extended hours, being motivated to succeed and having a focused desire to exceed the expectations of corporate objectives. Landing in sleepyville posed a real challenge. But I led by example. I was first into the office and last out and worked diligently and displayed a winning attitude all the while. The team slowly began to rally around the positive results. Those that could not make the transition were terminated and replaced with like-minded individuals. If you believe, you will achieve.

Leaders set goals with action plans. Each year, our corporate goals are established collectively by sales management after an in-depth review of the previous year’s performance on a per customer basis. Leadership does involve a team effort. Together, we review our successes and failures and look for opportunities for improvement. We discuss new product launches, marketing campaigns and new horizons for growth. Once the goals are established we formulate the action plan and implementation timelines. We review the required support and assign tasks to each manager as a sales support system.

Corporate success comes from the leaders, not the corporation. There is an army of self-declared business experts who can explain why businesses fail, providing statistics that show your odds for failure are great. They display thousands of PowerPoint slides providing elaborate strategic explanations for failure – poor customer service, underestimating the competition, bad acquisitions, too much debt. These are usually described as an abstract collective failure. “The company failed to innovate, the company ignored direction. The company did this. The company did not do that.” Companies are artificial constructs. A company doesn’t fail to do anything. Individuals do, and when you probe a bit you usually find the failure lies not in a string of strategic mistakes but the real fault lies in the leader of the company. Businesses are a product and extension of the personal characteristics of its leaders. And how does a leader fail to lead? If you are a leader of an enterprise large or small that is achieving great sales and profit, be careful. That is the time you are in danger of becoming comfortable, and failure is just around the corner. Live uncomfortable, wake up broke every morning and finish the day only after you have made your day’s target. Also, make sure you take time to think. Not taking time to think is just plain foolish, even dangerous to the business. Time to think is not a luxury – it is a necessity. “Action is easy; thought is hard.”

Some cases in point: When I acquired the company, Kissner had distributed salt products and was a leader in certain markets, but did not manufacture ice melt products. I added this capability and now we ship over 4 million bags annually throughout North America. Also, our manufacturing plants used significant quantities of stretch film, so I founded Kissner Plastics to supply our requirements as well as those of other end users; today we have a significant presence in the Ontario market. Food ingredients and industrial chemicals, sourced from North America, had been a limited offering when I took over the company. Today we source and import from around the world and stock over 200 products for most manufacturing needs. Never be comfortable.

2. Treat your people like people

When you recruit the right personnel and establish a positive work atmosphere, your people will be productive and your company will prosper.

When you take over a department or a company, your greatest resource is your staff. When I acquired Kissner, the first order of business of course was to assess what I had purchased. Even after in-depth due diligence you will not fully understand the culture, the motivation or team members. It is important as a new leader to meet with all department heads and their subordinates to gain knowledge on what the company is doing right and search for opportunities for improvement. Be prepared, as you will learn more in a day from the staff than you would in a year trying to figure it out on your own. I have been involved with several successful turnarounds and each starts with this necessary experience. It must be in a relaxed environment with no fear of reprisal. Ask lots of questions related to the method of operation, how it could be improved and why competitors do it better. An MBA will not provide you with the knowledge your employees have, so never underestimate their feedback.

Create an environment where people can grow responsibly. The business has grown significantly and I have not been present on a daily basis in a company office for the past 12 years. The success is attributed to the management team, all co-workers and an atmosphere that allows everyone to grow responsibly as individuals to achieve their career goals. My early years of observing employee behaviour allowed me to conclude that if trained like a monkey you will act like a monkey. In absence of thought, people may take comfort in repetitive tasks and never progress. Conversely, if asked to identify any problems and propose the solution, they have a tremendous feeling of self worth and feel of value to the team. Assuming you have recruited the appropriate personnel, their competitive spirit will drive larger and more rewarding challenges. Over the years it has become evident that most people will be more critical of the decision they make on their own than if the decision was guided by their superior. Allow your staff to grow and flourish, and you will be amazed at the level of talent within your organization. Listen to their feedback.

A desk is a dangerous place from which to view your business. You must listen to your staff’s feedback, and do not create a climate of fear. A positive work environment is often a rare thing. But you can achieve it if you try, and when it’s achieved then your staff and your company will reap the benefits each and every year.

Seek and trust others who can share leadership responsibilities. Among some of the most successful people I’ve known and worked with I’ve found there is often a humble quality – an avoidance of the spotlight. When listening to or reading Warren Buffet’s articles, it doesn’t take you long to discover how he lavishes praise and gives great credit to others. Whatever you do in life, surround yourself with people who’ll argue with you. That is one reason I am a strong believer in management teams. When a team of leaders complement and balance one another, then one person’s short-coming can often be offset by another’s strength. Watch out for the bright lights that surround themselves with dim bulbs. I have been very fortunate to have a strong executive team working with me that would not only tell me I was wrong on occasion but that I was dead wrong and they would be proceeding as they saw fit.

3. Know your customers, know your market

Entrepreneurs approach business as if their very livelihood depends on each customer; I suppose because it is true.

Find a market niche for upside gain and diversify for downside protection. It is critical to evaluate the market you are involved in to determine how your organization is best suited to handle market needs and competitive threats. For example, we have determined that we are not interested in competing at the commodity level. Our products and services are value added premium-priced solutions that other larger competitors cannot handle due to their rigid systems, corporate bureaucracy or simple complacency. For example, we don’t just offer natural rock salt to melt ice; we offer 14 different ice melt products to precisely suit every conceivable application. Taking such a position reduces competition and establishes our organization as solution finders in the minds of the customer. Be certain the market is large enough to allow for achievement of your corporate goals.

Most importantly, diversify. Do not allow your company to be tied to one specific market as you are guaranteed an ebb and flow of economic cycles. You can protect your downside through diversification of markets and products. Relying on one product or marketplace is the kiss of death when the market moves. It is not a matter of if the market will change but when.

Customer focus starts by putting your executives in the field. Our executive managers spend a significant portion of our selling season paired with a sales representative, travelling three to four days per week for six to 10 weeks per year. Kissner management understands the customers’ needs, competitive strengths and weaknesses, as well as potential market opportunities. There is little that is left to chance – our environment is designed for success. The sales force appreciates the support as they are paid commission regardless of who may have convinced the customer to switch. The internal staff witnesses the support and appreciates the difficulty of attracting new customers in a competitive environment, so every single employee understands how valuable each and every customer and order is to our organization. Customer satisfaction is paramount.

The practice of having executives in the field goes back to day one. My first task after purchasing Kissner was to visit the customer base to determine why people purchased from Kissner. In many cases I found it was out of necessity, complacency or simple convenience. In an effort to grow the business I would inevitably ask: “Are there any other products you purchase that I may quote on?” and the response was always yes. We soon began to sell ourselves as a one-stop shop that would supply all your needs with one call, offering the convenience of single source, one purchase order, one invoice and one cheque. Not long into the ownership Kraft/Nabisco tendered 18 commodities for 13 plants. Kissner won the tender as we were the only organization of 12 vendors that quoted on all products. My favourite customer question is: “Are there any products or services that you are having difficulty with?”, as we will find a solution. When our largest customer described being unable to outsource a particular requirement, I met the need by building a small production plant on a handshake for the order. That customer calls us “the go to guys.” We make it easy to do business with us, and have great difficulty saying no to any customer.

Marketing matters at all times. In difficult times, the marketing budget is often the first to go. I am of the belief that the budget should be increased during times of economic trouble. Typically the media, your customers and the marketplace in general will flood the airwaves with images of doom and gloom. If you buy into it as a corporate leader, so will your team, and failure will be a self-fulfilling prophecy. Once your sales force collectively decides the company is no longer supporting their effort there will be a paradigm shift and sales will fall supporting their theory of economic collapse. Regardless of the significance of the economic downturn, business will continue provided you ensure your company succeeds at the customer level. That will only happen with a team that believes they deserve to win and they have the support of the corporation behind them.

Marketing and the power of persuasion is a powerful tool. As much as we would like our sales force to do all the corporate selling and represent our firm at the customer level, it is impossible for them to have significant enough coverage.

Not long after I acquired Kissner, I knew we had the capability to fill larger orders, but we lacked the track record or image. I wanted to portray our company in the market as being larger than we were. So I hired an advertising agency to develop a brochure and corporate website creating an illusion of size and depth. The image was quickly accepted by the market giving us the rite of passage for larger contracts with the national firms.

Strategic marketing will provide product features and benefits to a mass audience that a sales force cannot penetrate. For example, we have enjoyed considerable success via the internet. Kissner goes to great lengths to be at the top of as many search engines as possible. With countless potential viewers on a daily basis it is imperative that you are found by buyers seeking your goods and services. Our efforts have yielded great returns from Central and South America, Europe, the Middle East and Africa where we have no direct sales presence. Also, e-marketing is a very cost-effective method of keeping in touch with both prospects and existing customers.

4. Operate with an entrepreneurial edge

Know your business inside and out, always seek new opportunities, and trust your own judgment.

Analyze your business … daily. When I took over Kissner I broke down the financial statement one general ledger line at a time, looking for any causes for concern. Any anomaly was drilled down to the source and action put in place to correct for the future. Once the ratios for inventory turns, accounts payable and accounts receivable are in order relative to the sales volume, your next area of focus is margin. Gross margin is the single most important item to review on a daily basis. After 15 years of ownership, I still to this day review our daily invoice journal on a per customer and product basis to ensure every order meets our margin qualifiers. Look to your suppliers and marketplace for cost improvements. When there are cost increases, move them through to your customer base. Most executives and sales people will give you hundreds of reasons why you cannot increase the customer’s price. I will give the one reason you must – to stay in business. You owe it to your suppliers, staff and your competitors.

Never take your eye off the ball. Make sure you micromanage the numbers, not the people.

Take calculated risks. “He who is overcautious will accomplish little.” Many things could happen when you take risks, some of them bad, but I assure you nothing good will materialize if you don’t take risks. It’s reasonable to think that because you have achieved some level of success, even very little, there is great temptation to quit taking risks. It’s human nature – I’ve got something, why risk it? But not taking risks is one of the major diseases of success. Regardless of your level of success, feel discontent and search for opportunities. “The world belongs to the discontent.” Don’t be known as the company that died risk free.

One of the most dramatic and widely studied business stories of risks taken and subsequently risks not taken is the Xerox story. Xerox had grown to over $1 billion in revenue in less than 10 years based on taking a risk on a single technology to replace carbon paper. Then they temporarily lost their way because they didn’t take a risk on another product – their own invention, no less. In 1973, Xerox developed the first personal computer and mouse. At that time they had at least a five-year head start over future rivals. But headquarters failed to take the risk as they were too comfortable with their new-found copier success. By the late 1990s, Xerox had lost its leadership in copiers and was posting losses and announcing large layoffs. They ignored the simple truth that to create profits in the long term requires innovation in the short term. Xerox was not discontent in anyway. If you are too comfortable either remove yourself or the chair from your office. You become an impediment to the company’s success. Be prepared for change. “For this is the tragedy of man – circumstances change, but he does not.”

In 1980, IBM forecast revenues of $250 billion by 1995. In 1984, IBM has the greatest after-tax profit of any company in history, nearly $6.6 billion. Nine years later in 1993 IBM announced the greatest corporate loss of $8 billion. What happened? IBM was too comfortable with their mainframe business and didn’t take the risk on the PC. They had market dominance and believed that the computing power would remain at the mainframe level. PCs now have more computing power than the mainframes of that time. The executives were too comfortable and inflexible.

In 2003, I took a calculated risk that paid off handsomely. Two manufacturers dominated the Canadian ice melt market – Kissner and Nu-Gro Fertilizers. We had gained significant market share over a four-year period that strained our production facility. Looking for additional capacity I approached Nu-Gro to determine their interest in selling a production plant and their industrial ice melt division. To my surprise they agreed to put a proposal together; it so happened they wanted to focus on their consumer ice melt product. However, in conducting our due diligence, our VP Finance and two CAs concluded that the industrial ice melt profit would not justify the plant purchase, especially considering the plant was aged and needed repair. They advised me not to proceed. But experience has taught me that advisors often guide from a pessimistic position. A great many times I have encountered experts and consultants, often armed with flashy PowerPoint presentations, trying to talk me into decisions that went against my better judgment and gut instinct. Just remember, consultants, accountants and lawyers are not for the most part entrepreneurs, so they generally are guiding from a pessimistic point of view. They do not want to deal with future legal suits so they may steer you toward the safest approach. Rarely have they looked at the future opportunity and the positive “what ifs.” In this case, they saw a division needing restructuring and equipment requiring automation. I saw our sales force requiring production capacity to expand revenue, and an opportunity staring me in the face. I purchased the operation. We doubled our sales the first year after the acquisition and have continued to grow over 20 per cent per year profitably since the purchase. Let people guide you but remain uncomfortable and take calculated risks.

Embrace technology. Technology is next in importance only to sales revenue and quality staff. Invest heavily in computerization systems and controls. I am always amazed when I get close to some companies and see the lack of control and limited amount of information that is available to access their financial condition. Far too many organizations judge their success based on the bank account and only have financial reporting on an annual basis. If you cannot determine if you have made money per shipment, by product, by customer on a daily basis you are not equipped to survive tumultuous times. This data provides necessary daily tracking and is the basis of analysis for your go forward plan. Through technology, you can track historic events so you can with a high degree of certainty predict the future.

Growth requires cash and operational costs consume cash. So the only way you can determine if the money is well spent is by being able to analyze the profitability at the customer, territory and market level – through technology.

Technology must be used to measure efficiencies. Corporately, we track via GPS our delivery routing, plant line efficiencies, sales performance and customer relationship communication.

Customer satisfaction can only be assured if the appropriate financial tracking is present. Technology ensures you of appropriate inventory levels, on-time order tracking, and up-to-date invoicing and payables. Technology will significantly improve customer satisfaction and communication with the sales representatives responsible for the account. Instantaneous response time has become a market norm. Anything less puts you in a very unfavourable position and at risk of losing the business due to customer frustration. Customer profiles allow the sales person to take the opportunity to show the customer that they are special and we care on special occasions like birthdays and anniversaries.

5. Approach life with a positive attitude

There is no doubt in my mind that your chance to succeed increases greatly when you always view the glass as half full instead of half empty.

See the positive, not the negative. Given the nature of media today, it can seem like a challenge to be optimistic. Television is the greatest gift to pessimism since the invention of communication devices. It is the lens through which we see the world and the images are not flattering. When you focus on the failures of the world day in and day out, it shapes your whole attitude toward life and the future. The news business has never been about good news. With the internet and cable churning out negative stories 24/7, we are inundated with reports of disaster from every corner of the globe. We are bombarded into a mood of extreme despair and pessimism over even the most inconsequential issues. The most serious problem with great pessimism is that it is absolutely paralyzing. People are so afraid of dire consequences that they throw their hands up in despair and do nothing. Fear of the future guarantees that the future will be a failure.

Is trouble and turmoil the way we want to see life? As the story goes, two men looked out through prison bars. One saw mud and one saw stars. A tilt of a head, a different attitude, makes all the difference on how you shape your world. Helen Keller once said, “No pessimist ever discovered the secret of the stars, or sailed to an unchartered land, or opened a new heaven to the human spirit.”

I am often asked, “When is a good time to start a new business? What are the preconditions that you look for?” If you believe the fear mongers, there is never a good time to start a business. Something is always wrong. There are always holes in the business model. But if you believe in the essential creativity of entrepreneurs, then almost any time is a good time. As to the preconditions, simply ask: Is there a market? If so, that is a good place and time to start a business. To aspire to any kind of leadership in business you simply have to be an optimist. If you want to fail, be afraid of the future. If you want to succeed, approach the future with optimism and passion.

Reach for your goals with passion. A major component of happiness in the business world is finding something you love doing and finding a way to do it. To have success you need a high level of desire to get up in the morning and go to work. It’s not that it has to be fun in the sense of laughter; it simply has to be a passion to accomplish a goal. You have to be passionate about the task at hand to get the best results possible. The easiest way to develop an inner passion in a business setting is to focus your mind on your customer, staff and your dream.

The same idea applies to staff. Rallying the troops is not telling the staff to have more fun. It’s telling them to work harder because they have the capability of doing better. They deserve, for their own satisfaction, to perform at a higher level. It is that passion to work as a team to strive for a common goal that must be rewarding.

Make an emotional connection with your dream, whatever it may be. Dreams do not come true by wishing, but if you internalize them and are determined to grow into them and visualize them coming true, then there is a greater chance they will be realized. I have had the pleasure of dreaming and living the dream most of my life. I owe gratitude to my parents for the teaching, my wife for understanding the passion, my children for caring, and to every single employee and customer for the many contributions to our corporate success.
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When I look back at my business experience thus far, I likely owe most of my success quite simply to hard work and common sense. Though it’s said that common sense isn’t all that common, and I suppose hard work might be rarer these days too.

I truly do believe that focusing on business fundamentals, the same practices that brought you success over the years, will sustain and grow a business during uncertain times. I know that I will stay true to the principles that brought me here – to resist complacency, continue to motivate my staff, keep customers satisfied, maintain my entrepreneurial edge and stay positive.

Though I make the point about business as usual in any economy, there are certain practices I have outlined that do become particularly important when the economy is struggling. For example, it becomes more critical to keep staff positive so they aren’t dragged down by negativity in the marketplace. Be sure you are protecting your downside through diversification of markets and products or services. Look for ways to reduce costs. Maintain your marketing presence. Above all – keep your customers satisfied, or you’ll work twice as hard to replace them.

The entrepreneurial spirit can really benefit anyone. I believe that if you apply your lessons learned, remain persistent, take calculated risks and stay perpetually optimistic, you will be better positioned to profit during good times and face challenges at all times.

Authored by Bill Zinger, from the Compilation Book: Taxation, Valuation and Investment Strategies In Volatile Markets

The Voice Mail Barrier

2010-11-11T09:25:00.003-05:00

The introduction and growing popularity of voice mail has made it increasingly difficult to make direct contact with key contacts and decision makers. Even if you leave a message there is no guarantee that it gets listened to and even less likelihood that you will receive a return call. What does it take to get through? How do you increase your odds and crack the voice mail barrier?

Qualify your opportunities better by doing adequate research to ensure that you are investing more calling time on business that has greater potential.
Be persistent and increase your call frequency. (If you choose not to leave messages then this is the only way to increase your odds of connecting with your contact.)
Track your calling times and vary the times of day in which you call so that you increase the odds of catching your intended contact available.
Likewise, if you vary your calling times and phone when the primary receptionist is on a break or lunch you are more likely to speak with someone who is less skilled at screening calls and consequently get through to your intended contact.
Call outside normal business hours (i.e. before 8:00 a.m. or after 5:00 p.m.) when there isn’t someone on switchboard to screen your calls and also because business people are more likely to answer their extension during these times because they assume it is a personal call.
Get the cellular number for your contact or another number where you can reach them.
If you’ve made multiple attempts and left messages with no response, have the person paged.
Befriend the receptionist, get her/his name, use it when you call and ask them if there is a better time to call when you would be more likely to get a hold of your contact.
Keep trying, don’t give up! As a last resort, if you want to speak to them badly enough and you dare to do so, get their home number and call them there (just remember this one could backfire).

The most important thing to always keep in mind is that those who are the most difficult for you to connect with are also the most difficult for others to reach as well. It is a game of persistence, mental toughness and applied strategic intelligence. Those who press on with a consistent effort and combine a solid work ethic with working smart are the ones who will win more frequently.

Click Here to Learn More About: Module 5 – Telephone Skills and Appointment Scheduling

Click Here to Learn More About: Module 6 – Successfully Handling and Overcoming Objections

Marshall W. Northcott, Canada’s Sales Expert

http://www.marshallnorthcott.com/

Canada Wide Toll Free: 866-896-6603

Professionals Lead with Credible Communication

2010-06-06T13:00:00.002-04:00

Before I get up on my high horse and make it sound like I have never done what I am about to talk about, I want to clear the air by saying, “Guilty!”

I exchanged CD’s with a good friend of mine as I often do. She had purchased the CD she provided me with and thoroughly enjoyed the content of the live presentation and thought that there was some very valuable information and insights in it that I would also benefit from listening to so she provided it to me and I swapped it for one from my personal library.

Being a student of personal and professional development myself I was very excited to put the CD into my player and give it a listen. As I often do, I don’t just listen to the message once, I listened to it several times because being in the business there are always valuable pieces of information that I can glean from this form of medium and therefore I am always taking notes and on those points that have a high level of interest and doing additional research to check out the information that is being provided by the speaker.

As I was stopping, rewinding, replaying, taking notes and going onto the internet, checking out some of the information from this wonderful CD, the name of a Doctor was provided and reference to this Doctor’s incredible work in a specific area of Psychology was made. Several times “he” was referred to with phrases such as, “he found this” and “he said that” and “he discover this” and so on and so forth.

Imagine my shock and surprise when I Google searched the Doctor’s name that “he” in fact was not he, he was a she. My first thought was if this is as credible as the speaker is being with regard to the sex of someone he was referencing in his talk, which I am sure he was paid a very large sum of money to present, how accurate was the rest of his information?

I began to listen more closely and take copious notes and do additional research checking. This additional research checking led me to additional discrepancies in the information that was provided which ultimately, hurt the credibility of the presenter and the overall message.

My son overheard me making a comment about what I had discovered and asked me why I was so shocked based on what I had said. I proceeded to explain that when a person works in a career or field where they provide information to others, whether that be in a form of speaking, writing or a combination of both it is critically important that the information that they provide be accurate because the accuracy of the information that they offer to their audience is directly proportionate to the credibility of the individual presenting. I went on to explain that when a person provides information that is either incorrect, erroneous, unfounded, a mistruth or a blatant lie and the reader or listener discovers this fact, they will begin to discredit, disallow or turn their ears and eyes off to anything that follows.

Oddly enough within the same time frame I rented a movie titled “Resurrecting the Champ” with Samuel Jackson and Josh Hartnett. Based on a true story, the storyline is about a reporter who works for a Denver Newspaper. He is stuck in a dead end job with a boss who doesn’t really appreciate his talent. He meets a homeless man and goes on to learn from the man that many years previously had been a heavy weight contender and was ranked third in the world of boxing. The reporter convinces the man played by Samuel Jackson to participate in a human interest story about his life and his rise and fall. Due to the age of the homeless man and the time frame that had passed since he was a heavy weight contender, he finds it very difficult to find anyone that he can speak with to do proper research and get other perspectives on this man and his life. He writes a wonderfully moving article about the fighter which is featured on the front cover of a national magazine which gains him exposure and notoriety beyond his imagination.

Just as he is basking and reeling in his new found fame, he begins to receive a series of phone calls from people claiming that the man that he has supposedly written about died twenty years earlier. As the truth comes out and his story is discredited the reporter finds himself in a very difficult and challenging position. His career is in jeopardy, he is threatened with a law suit and he is discredited amongst his peers when he has to write a retraction and admit that he didn’t he didn’t get his facts straight because he didn’t do the proper research and due diligence prior to offering his story.

I must admit that as someone with an analytical personality, I tend to excel in attention to detail. I want to make sure that what I say and convey is accurate. As I said earlier I have made mistakes over the years. However, in making those mistakes I just became that much more committed to making sure that I got the facts before I jumped in with both feet and opened my mouth just to find that I shot off my foot.

It is the duty of anyone who works in a career track or a profession where they are counted on to provide information and/or consult people to make sure that what they are saying is accurate and credible not only because it impacts their reputation but also because the person who is counting on you is counting on the fact that you have been thorough and in your diligence, made a commitment to strive to provide pure, honest, integrity focused communication.

Marshall W. Northcott, Canada’s Sales Expert
http://www.marshallnorthcott.com
Canada Wide Toll Free: 866-896-6603

Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.

Way to go WestJet!

2010-04-26T09:36:00.002-04:00

How often have you endured lengthy wait times when calling a customer service department or some form of organization or government office? If you gave some consideration to the number of wasted hours for yourself and then multiplied by all the others who have also had to wait their turn I'm certain that the number of wasted hours would be staggering!

Last week I had to call customer service at WestJet to make an inquiry about some airline tickets that I had purchased. The automated system notified me that their company was experiencing high call volumes and that there would be an extended wait period. This I have encountered before and of course I wasn’t pleased to hear that a bunch of my time was going to be chewed up waiting on them because they didn’t have the foresight to have enough staff manning the phones to handle the workload. Why should I be punished for doing business with them?

Then something unexpected happened, I was given an option, I was provided with the opportunity to receive a return call. The automated service offered me an option of inputting my number and receiving a call back rather than having to wait. In addition I was given a very precise time frame in which I could expect a return call. They didn't inconvenience me and make me wait because their call volumes were too great, they called me back.

The best of the best companies are constantly looking for new and better ways to service the needs of their clients. It is these efforts that truly shows that they care about our business. Obviously this kind of technology or feature is available why aren't more companies, government agencies etc. using it? From a customer perspective this is awesome and I'm left wondering why more organizations aren't offering their customers this option during peak call periods?

Thank you WestJet, it’s no wonder that you are growing and succeeding the way that you are as an organization, congratulations!

Marshall W. Northcott, Canada’s Sales Expert
www.marshallnorthcott.com
Canada Wide Toll Free: 866-896-6603

Your comments, questions, feedback and additional insights are appreciated! Please take a moment to add your thoughts and feelings in the comment section below and if you would like me to respond please include your contact information.