Business owners are always time-challenged, have staff issues and, cash flow is a perpetual juggle. The old saying “if it is to be ..it’s up to me” has never been truer than for the business owner preparing to sell
Distraction is real, selling takes effort and additional focus to prepare the business for the selling process. This effort is above your normal operational work or day-to-day aspects where the tendency is to focus on the urgent things rather than the important issues that build long term value. Focus is a choice and discipline.
Understanding the Value of your business is critical. Most owners typically have an overinflated view of their business value until the market tells them otherwise. The majority of owners have the bulk of their wealth tied up in their business. Yet only 20% of those listed will sell and many will just close their doors. A lot of wealth is left on the table or lost.
Most owners procrastinate in developing an exit plan. This is natural as it can seem unpleasant, however, the stark reality occurs when there is death, sickness, divorce, or life-changing events when matters are forced. The outcomes can be devastating to an owner and tragic to the beneficiaries. This doesn’t have to be the case.
Alternatively, the sale or a business exit should just be a process of actually building the business. By having the result in mind it is easy from inception to continually grow the business correctly. Ask the daily question, “Will this decision enhance the value for an investor in the business?”
By consciously acting like a company that does everything to empower the shareholders it will naturally shape to being a valuable and saleable business.
Whether a total exit, management buyout, partial sell-down, or retained interest an owner will maximise their business value by making conscious decisions daily. Having an investor-ready business allows ‘opportunity to meet preparedness’ if an offer or situation presents itself. Exits take time, so start acting now for future benefit.
Get your business in shape at www.advancedbc.com.au/system
Sales are referred to as a numbers game.
Business is really about maths and knowing your numbers. Sales also reflect this and also the culture and leadership of a company.
Focusing on the right things can make a big difference in increasing your conversion rates, the number of transactions, the Average Sale Value, and margins. 92% of customer interactions happen over the phone.
Empowering the sales team
Sales teams need good training, good presentation skills, and the right offers to present to prospective customers. Did you know 99% of businesses are not clear on their market-dominating position? This unique difference is part of the culture and ethos the sales team will reflect on your clients. Do you know the Break-Even of your Sales Offers? Or the dramatic impact of any discounting on your gross profit?
Here are some specific things to do:
- Get skilled – Learn to sell and present. Get educated now and ongoing (increases sales by 50%)
- Have a specific ‘magic number’ of calls and follow-ups to be made in a month, broken down to weekly and daily amounts
- Track your activity – if it can be measured it can be managed. Accurate information in your CRM for follow up actions, campaigns, and deal progression
- Do you have multiple sales offers – a premium offer, Up-sell, Cross-sell, Down-sell, and bundles. Don’t get cornered with an objection and one offer.
- Be consistent – cold calls take on average 8 attempts
- Are the calls prioritized for the job – cold calls and prospecting Thursdays then Wednesdays, the best times are between 4 pm and 5 pm)
- Time management – break the call sessions into 45 minute blocks then check emails, etc
- Do some research before your call – out of respect and to gain insight for better conversations
- Listen to the client – You will stand out
- Follow Up – 80% of sales require 5 follow-up calls. 44% of sales reps give up after one follow-up.
- Challenge the client (higher conversion rates) on their thought or belief process. Challenging sells, farming doesn’t
- Tell more stories – Only 5% retain facts, stories are king
- Respond quickly to requests, leads, and inquiries – 30-50% of sales go to the vendor that responds first
- Never discount. It is a lazy culture, drastically impacts your gross profit. Instead, have alternate offers and bundles.
- Take the customer on a journey always with the next step. If you cant help then give them an alternative.
- Closing the deal – only 2 % of buyers purchase immediately the rest will need education and nurturing till they are ready.
- Pause when asking key questions or for the sale – silence elicits a response
- Drip Campaigns – all client contacts into a systematic routine to stay in touch and ‘top of mind’ with the customer
By implementing these sales tips you are on the way to being a world-class salesperson and becoming a valuable contributor to a company’s revenue capability. Your worth has also just increased
Get Your Business Groove On!
Tired of the frustrating and niggling things at work that stops the flow or creates blockages? … and you know they could be done so much better?
The saying, “If your frustrated you need a better process’ is often true.
Here is a technique to fix that and accelerate your Business Improvement process
Find the Top 3 problems you currently have in your business and then try the 7 IT’s!…
- Solve It – Identify the problem and break down the process into steps
- Redesign It – What is a better way to do it
- Test It -Try out your new process
- Refine It – Look to smooth any irregularities so it flows better
- Measure It – Benchmark and find the magic number to gauge performance
- Improve It – Keep reassessing the process at different intervals
- Document It – Record and video the process for your Operations or Job role – Build a manual
Doing the 7 IT’s will be great for any facet of business improvement. Having done this you will substantially enhance the value of your business. Having a business that flows and has a distinct business sale advantage. So get your business groove on
For more information go to www.BusinessProfitAccelerator.net.au
#Businessproductivity #BusinessProfitAccelerator #BusinessProcess #Businessgrowth
Educate them about what, you may be thinking. Well, consider this, many businesses focus solely on attracting new customers, but you NEED to spend a good chunk of your time retaining current and former customers. These are people you already know to be a good sales potential…they’ve already bought from you!
Take the time to market and sell new products to your old customers and less time trying to sell old products to new customers and you will see a drastic change in your sales, customer quality and branding position.
Here are a couple of key elements to use to retain your current customers:
- Stay in contact: This means by phone, email, e-newsletter, in person-by pigeon if you have too!
- Post-Purchase Assurance: This means you need to follow up with customers. Your customers need to feel like they are being supported for their purchase and with the item they purchased. How many times have you purchased a product, then felt completely abandoned? Something as simple as a Thank You note with your contact or customer service information can go along way in retaining a great customer.
- Deals & Guarantees: Always offer your current customers the best deals and guarantees you have. Show them you appreciate their business or even come up with a club specifically to reward loyal customers. You can also do this with a preferred pricing option.
- Integrity: Using good business practices and simply upholding integrity, dignity and honesty go along way with customers. Let’s face it, there’s a lot of swindling and crap out there and the safer and more confident you make your customers feel, the more they will trust you and that makes for an amazingly supportive and loyal customer.
There are three cornerstone ideas to a successful business:
- Quality product/service
- Offering useful products/services that solve a problem for or enhance the life of a customer
- Offer subjects your customers find interesting
Use this approach of educating your customers and offering them real information and insight and you will be rewarded with loyalty and success.
Stop wasting all your time on new prospects while your current customers fall by the wayside!
As Jay Abraham says, “Your best prospects are your existing customers. If you’ve been putting all your marketing efforts into acquiring new customers, stop and diverts some of your resources into reselling, upselling, cross-selling to those same customers. In every ways possible – through package inserts, regular mailings, special offers – stay in touch with those customers and get them used to buying from you.”
So, there it is! Remember, our FREE test drive can help you put together the resources and tools to do exactly that. We can help you educate your customers and you can watch the benefits pay offer many-fold.