Eight Steps to Keeping Prospects Engaged In Your Sales Process

Ever have a prospect who reminded you of a submarine? You know the one - actively engaged on Wednesday; ready to move forward on Friday; disappears on Tuesday, never to be heard from again . . .

 You can prevent this phenomenon from occurring eight times out of ten by following these simple tips.

1. Have a clear sales process in place that you can articulate to your prospects. Step one should always include discovery, where you are qualifiying your prospects and determining their time frame for making a decision. Then, simply focus on 'closing' each prospect on taking the next step.
2. Explain the process during the first telephone call. The final step in the process should always be the day the service begins or the contract is signed.
3. Let your prospects know the average length of time it takes most people to make a decision, from the time of first inquiry to close.
4. Tell your prospects that they are 100% in control. They can tell you that they are not interested and you will accept this answer, although you will likely ask 'why' so that you can make changes in the process in the future.
5. Explain that the only thing that you ask your prospects to do is to let you know how they are feeling at each step in the process. Reinforce that 'no' is a perfectly acceptable answer.
6. Ask each prospect if s/he will commit to exploring this opportunity with you. Once they commit, explain that you are at the end of step one in your process. Ask the prospect to rate his/her interest on a 1-10 scale, with one being "not interested" and 10 being "ready to start".
7. Ask this question at the end of each interaction with your prospect.
8. ALWAYS set a time and date for your next conversation or step in the process

Article Source: Fairfield Business Solutions

inDay Speaker Series with Reid Hoffman

Posted by Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Enthusiasm & sticking to a system is your guarantee of success.

Greg Longstaff

What are the 2 main reasons people buy a franchise business? Firstly because there is a known brand name, and secondly a business system that allows people to follow guidelines of what should be a successful business model.

When I look at some of the franchise system I have worked with, there are some very clear guidelines that when followed by owners will ensure good sales. As business owners we can sometimes forget the basics of what we did at the start of our business that ensured our initial success.

Enthusiasm, the desire to succeed, even fear of failure are great motivators for you in the initial months of taking over your business!
So getting back to basics, what did you need to do to succeed when you bought your franchise?

Enthusiasm is a great start. Think back to the early days of when you took over your business? That feeling of excitement and adrenalin, nobody would dare say no to you because your excitement for your new venture was infectious. They (your prospects) wanted to jump on the happy train with you. Whether you knew it or not that’s what was happening.


So how did you get your leads initially? That’s right you printed off a marketing area and you called on every business in that area to tell them you’re open for business. You see what I have noticed over the years is that in some cases some franchisees get to a level of turnover and then the operation manual is no longer needed. Sometimes we need to go back and look at got us to where we are today. 

At a certain level of sales a business owner can become tied up in ensuring the production requirements are meeting their deadlines so they no longer find time to do market their business! It's almost like they think they have done enough and the business will just keep coming in to them!

What I am saying is that everyone gets off the ground initially by walking the streets telling people who you are and what you can do for them. To get from $0.00 to $20K this is what you need to do, so to me it would make sense to keep following the same process to ensure your sales keep ascending.

If your sales staff spends all their time quoting because your business is at a level where you are getting enough repeat business, then you as business owners you need to map out a plan for him/her to either keep calling on new businesses or perhaps put on a another sales person (either internal or external). If you current don't have a sales person then maybe now is the time to bite the bullet and hire one. By doing so you WILL take your business to another level. By not doing this you run the risk of your sales either staying stuck on a level, or your sales will more likely go backwards because you’re allowing your opposition to capitalize on the new business in your area that you haven’t yet secured.


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Is Your Client Follow Up Professional or Painful?

We received a cold telephone call at home a couple of weeks ago from a company offering private tuition for children. Like most parents there is nothing better to stir our emotions than getting the best for our children. Their cold call was successful and we met with a sales representative a few days later.
As the meeting ended, we were promised a follow up call in a couple of days. That was fine – it gave us time to talk and were to expect a call.


Half an hour after the meeting the phone rang. This company wanted to arrange another meeting with us. We said ‘no, the lady who has just seen us is calling in a couple of days time, we’ll talk to her thank you’. We then received several more phone calls wanting to know if we had made a decision or wanted another meeting. All of them were polite and none persuasive, but all were hassling.

This is an extreme case and I’m not suggesting that all sales people hassle their prospects, but it raises the question of where the line is between respectful follow up and objectionable hassling.  In this case they didn’t seem to get it that every call lessened their chances of getting any business from us.


Let’s be honest here, when was the last time you made a follow up call to a client and they said – ‘thanks for calling. I’ve been waiting for days for you to call so that I could give you the order’. Buyers don’t do that. If they want to and are ready to do business they call you. Don’t they?
But we all know, follow up is necessary…

So How Do You Follow Up? 

Follow up is necessary. You have to progress the sale. People are busy, reprioritise and forget things. They need help in making a decision, and your call may provide that help through your ability to aid the logical decision or influence emotion.
But self serving questions don’t help or encourage anybody to buy.
Don’t pour your credibility down the drain by looking like a desperate sales person and asking the obvious questions like ‘Have you decided yet?’, or the dreaded ‘Can I do anything more to help?’
So how do you follow up, build trust and maintain credibility at the same time?



1. At every engagement with the client, set the next step then stick to it.This way you are managing the clients’ expectations, and will not appear to be hassling.  If you have agreed to talk again in a weeks time, then talk again in a weeks time. If you are sending some information by the end of the week, then send it by the end of the week. Include a note to say what will happen next, then stick to the next step.
2. When you make the follow up call be prepared to discuss their business, not yours.(Your business is what you want to know – did they receive the information, when are they going to place the order, what you can do to help?….)
Their business is about how you will:
A. Improve their process efficiency

B. Help them become more profitable

C. Find ways to get ahead of their competition

D. Anticipate and solve future problems and reduce their costs.

If you do this well, the answers to your questions of when a decision will be made and what you should do next will come out in conversation.


On long lead time opportunities, consider these ways to maintain contact and build trust with the client:

• Introduce clients to your network
• Help at a project or event
• Send some additional information, a report, or a website link that will be of use or value to the client

Be there when a client is not expecting it – eg, send a card or make a ‘good luck’ phone call.

Article Source: BusinessBlogs - by Paul Newsom NZ Sales Manager article

3 Tips - Increasing Your Average Invoice- by Julian Chong

I was recently in a store training a new internal sales person and I heard the owner explicitly say that he
ALWAYS has the goal of adding an extra $100 to every order. I LOVED hearing this.

If you’re doing 50 orders a month (many of you will be doing more), that’s an additional $5,000 a
month in sales, and a whopping $60,000 a year. If you’re netting 20% this is an extra
$12,000 in your pocket come Christmas time. It’s not complicated maths!

So how do you go about it? The best way is to ask…
1) Up-sell – After you’ve gone through the qualifying process, give them a more
expensive option by explaining to them the value of going with the higher
investment. It might cost a little more now, but in the long term would be more
beneficial to them
2) Cross-sell – Think about what goes with what in your store. If they’ve bought a
display stand, what about a pull up banner as well. Did you even ask them? If
they’ve just started a new business did you also try them for some vehicle signage? 
3) Counter Display – What do you have next to your POS machine? When it comes time
for the customer to place the order, do you have completed signage pics? Graphics
on your A-frame ‘special’?
Go on, be true to yourself and give it a go. You have absolutely nothing to lose.

Article Source: Julian Chong


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Forget Doing Quotes. Create Personalised Proposals to Win More Sales

Closing the sale is much easier when you present your sales prospect a professional sales proposal instead of a quote.

First, if you are doing quotes, stop it! Don't just use the MYOB automated run-of-the-mill quotation forms or programs. Instead, create value-packed sales proposals.

As an example, let's say you are working with a prospect and you're dealing with a committee of three decision makers. Also imagine they are seated around a conference table for for a meeting to determine who gets the business. You're not there either by phone or in person to represent yourself. What's left is your sales proposal. In order to stand outfrom the others it has be spectacular. Let's assume there are three suppliers involved. Two of the suppliers have submitted boring boiler-plate quotations that scream out, "Hey, here's my price."These are the people who are perceived as "vendors." The person who likely gets the business is the one who is perceived as adding value, at THEIR price. This is accomplished with a dynamic proposal. Here are three ways to add pizzazz and value to your sales proposals:

1.The cover page is your headline. If there are three decision makers, be sure you have each person's namein large type on the front cover. Add a line that says "Especially prepared for____." Put the date of the decision making meeting on the front cover too, not the date you send it. This also forces you to find out when the decision is going to be made. (You are askingthat, aren't you?"

2. Include an organisation chart. Create a chart that includes the names of two to three people in your organisation who are most likely to have some interaction with your potential customer. Traditional organisation charts usually include names and titles. Go beyond that and include telephone numbers, fax numbers, e-mail addresses, direct dial extensions and a digital photograph the size of a postage stamp situated in the box.Including this contact information draws attention to the accessibility of all key people--exactly what you want. Having pictures adds faces to the names. You can score some major points by introducing your support team.

3. Include a Benefits Page. At the top of this page, in very large type, put "(Their Company) Benefit Page". List seven facts or features about your company and or products. But of course facts are simply facts. Under each fact express a benefit. This benefit statement should be indented, bold faced, slightly larger type, and printed in red so it jumps off the page at anyone who is looking at it.Begin each benefit statement with these words: "Which means ……."This page should be positioned as the page before your first page of pricing. What this means is your potential customer gets to see your benefits before he sees your pricing. That's a smart move and makes closing the sale easier for you.

Article Source: By Jim Meisenheimer

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Marketing on a Shoestring

Let's face it. if you're in business today then looking at getting the best return for every dollar is something we all have to do. Much of the marketing money that businesses spend has come under scrutiny and it's about time.

Mark Stevens, Author of one of my favourite marketing books Your Marketing Sucks says:

"Marketing is not about spending money on things such as advertising, direct mail, and PR. Those are just tools. Marketing is about growing your business - its revenue, its profit and valuation."

If you think of your marketing in terms of which 'tools' you spend your money on then think again. Marketing for most businesses is now about generating good quality leads or prospects that become wonderful clients.

The good news is many of the most effective marketing tools are virtually free and often go under the radar. They may not give you a nice warm feeling or put your name up in lights but they can be directly linked to sales, can save you money, and done well, will lead to great customers. They do however take some effort and commitment, and because of this you can safely assume most of your competitors won't bother!

The hottest tip first - How to spend less on marketing

Most marketers won't tell you this but often when you stop some of your marketing you will see no difference! Except the money you will save. The trick is to know what to stop, what to continue with and what new things to do. If you stop altogether then you are likely to get into trouble so choose carefully.

Start by reviewing how much you spend on marketing and the results you are getting.

Measure where your leads are coming from by listing all the marketing you are currently doing (free and at a cost) then track which ones are generating you the best leads. This is not necessarily the most leads - but those that convert to sales the easiest and are great customers to have. After a period of time you should have a clear indication of what is working and what is not. Stop all those that are not working. Of course you could always phone your customers and ask them where and how they heard about you. You can do this in conjunction with the next point too..

An easiest place to start for more sales - for free.

This one will cost you nothing. Start with a blank piece of paper or a simple word document. Make a list of all the people your business knows. These could be friends, family, customers, suppliers, prospects of yourself and your staff. If you have a database already then this job is so much easier!

Go through your list and highlight the people that are a good fit with your business and who you would like as customers;

• people who have bought from you in the past and should buy from you again.
• people who have talked about buying from you and have just never got around to it.
• people who said they knew others who would be interested in what you sell.
• people who you know but you have never offered your services to.

Note that you need to list the people, not the companies. All sales are done between people and even if you sell to very large corporates, it still comes back to the relationships and trust you can build with the key people. Also remember that the single best way to grow any business is by making it easier for your current customers to buy from you again. These people know you. Know your services, and hopefully value you and what you do. They will decide quicker.

Next you need to contact each one. For those who you know pick up the phone. It may be obvious but people just don't do it. It doesn't need to be a hard sales call. It can be as simple asa courtesy call or you can be completely up front and tell them that you are working out who are likely to be your customers over the next month or year, and you were just wondering where they were at in terms of your services and products. Being this up front can cut through a lot of guessing and wasted time and effort. People appreciate it too. If you are looking for another angle consider doing a quick survey on them and get some feedback on their experience of your services recently and ask some questions about their plans for the near future. Just by talking (and more importantly, listening) you will learn something and you may even get a good prospect or sale out of it. At worst you will have contacted a potential customer or even a friend.

Four shoestrings to new customers

1. Direct mail
Create a list of the people who you don't know and who should buy your products or services.

The telephone call works well if you have some cold calling skills but if not then look to another traditional and almost free tool - a snail mail posted personal letter. Follow this up with a polite telephone call. Once you have written your letter then it is only the cost of the stamp, envelope and piece of paper. You can't really get a much cheaper shoestring! You can find out more about how to write a great direct mail letter in The Nuts and Bolts of Direct Mail Lettersin mymarketingexpert or you can get our very popular handbook by the same name atwww.mymarketingexpert.co.nz

2. Database marketing
Marketing on a shoestring is all about reaching people directly. To make this easy, inexpensive and effective you will need to have a current, accurate and flexible customer database. This will cost you a little to set up but there are very low cost options available online or you can purchase something purpose built for less than $500. It is a no brainer when it comes to spending some of your marketing budget.

3. Networking
Meeting people through traditional and the more trendy online networking forums can be very cost effective. Many networking options are free and even if not the cost is nominal. If you select the right places, groups and even times of day you can meet many new people and get introduced to exactly the right potential people.

4. Publicity
Offering credible, news worthy stories about your business or industry can get you a huge amount of exposure with your potential customers at no cost. The trick with getting free articles and editorials about your business is to have a strong news angle that will be of value to the editor of the publications and of interest to their readers. Don't just think about traditional printed newspapers and magazines but look wider at online publications, newsletters, websites.

Article Source: My Marketing Expert

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Risk and Reward Getting paid 101

Produce, sell, invoice, collect. What a simple process business trading can be. Many businesses have excellent systems in place for the first three aspects of trading, but fall down badly when it comes to getting paid by their debtors. Here are some helpful hints for getting debtors’ money into your bank account.

Prior to making the sale:

•  Engage your customers and ensure they are familiar with and sign your terms of trade, which for larger transactions should include a personal guarantee and an authorisation for credit checking
•  Ensure your quotes are detailed and accurate and allow for any extras to be authorised. Develop quality control systems which prevent poor product or service delivery
• Clarify with customers how and when payment is expected

After delivery of your product or service:

• Send accurately detailed invoices promptly, restating the duedate for payment
• Promptly follow up any customer issues, avoiding the likelihood of a dispute
• Contact customers immediately if payment is not received on due date

What next if you have a satisfied customer who just refuses to pay?  We put this to an experienced fellow of the Credit Institute of New Zealand.  Here’s what he had to say:
1. If phone or email contact has been unsuccessful, write to the debtor advising that if the invoice is not paid within 7 days the account will be referred to a debt collector.
2. Be true to your word and don’t pussy foot around.  Take a strong stance and refer the debt for collection by a reputable agency.
3. The debt collector will take you through the process, which may include a number of legal remedies depending upon the debtor’s legal structure and the nature of the goods or services supplied.
Often the threat of legal action will frighten the debtor into paying up, so don’t be shy in demanding payment in this way.
Remember also that great debt collectors are very experienced at getting blood out of a stone.  Unless you or your staff have the experience and passion for collecting money, it’s unlikely you’ll get the same result.

DisclaimerThis post has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.

Article Source: Accounting North

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Marketing works better when you have the numbers to back it up

by Lisa Kember⁴,  Constant Contact Regional Development Director, Southern Ontario

As a marketer, small business owner, or nonprofit manager, you're likely obsessed with numbers. Usually those numbers have to do with sales, donations, event attendees, or operating costs. But there are other ways to gauge how successful (or not) a marketing program has been.
Email marketing and social media offer a wealth of options and success metrics. It's one reason why both have grown in popularity in recent years. After all, you can see how many people open an email, but you can't see how many people open an envelope.
Here are 5 ways to get data that will tell you how successful you are in your various marketing efforts, and how that data can contribute to your bottom-line results:
1. Email metrics Conventional email metrics, like open rate and click-through rate⁵, can instantly tell you whether your subscribers are opening and engaging with your message, so you can easily tell how effectively you've captured people's attention and prompted them to act. And you can compare your results to others too: Average open rates⁶ range from 17% to 28%, depending on industry and type of organization. So if you're a business-to-business organization and you're getting a 38% open rate, you know you're doing well.
2. Shares These days, knowing how far beyond subscribers' inboxes your email went is becoming a critical metric to measure. It's all well and good for one person to click on the links in an email, but if the content was so compelling that the person felt the need to share it on social media, then that extends the reach of your message even further. Constant Contact's email reports⁷ display the number of shares your emails get, and even say where your messages were shared (on Facebook, Twitter, LinkedIn, or someplace else). Of course, you won't get any sharing data if you don't enable your emails to be shared, so make sure to turn on the Social Share bar⁸ the next time you send a campaign.
3. Follower count While the number of Twitter followers you have is only half the equation⁹ (the other half being what you do with those followers), measuring your growth in audience¹⁰ is a significant metric to track over time. Follower count is not going to skyrocket overnight, but if you note the number of people who follow you each month, you'll likely see growth on a consistent basis.
4. Facebook Insights Yes, Facebook seems easy to measure because you can see how many fans, likes, and comments you get. But you can learn so much more about how well you're doing on Facebook by taking advantage of the site's free Page Insights analytics tool¹¹, which tells Page admins information such as demographics and how many people are visiting the Page during a selected time period. Facebook Insights can also tell you how many new "Likes" you got over a period of time, and where those new Likes came from, which can help you better spread the word about your Page to new fans.
5. Klout An increasingly important metric is your Klout score¹², which measures your online influence. The score is a quick, numerical rating of that influence, based on everything from comments to shares to number of Twitter followers. While there's debate about the validity of Klout scores¹³, some people look at the number to determine the credibility of a business or organization, especially when it comes to social media expertise. For you, a high Klout score could lead to more speaking opportunities. And having customers with high Klout scores opens the door to greater word of mouth marketing.
While sales or donations may be the final determination of how successful your business or organization is, these other metrics  can help you gauge how well you're doing in the meantime

Article Source: Constant Contact

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

The best way to teach and learn

Many of us acquire our dominant learning habits through our experiences as students.  However, those experiences we had in the classroom do not mean that this is the best way to teach and learn topics now.

New studies in education contain key lessons that can be applied to the business environment.

You will probably be pleased to hear that the quantity of study is not important – it is the quality.  Interestingly, the amount of time students spend on homework has risen over the last 3 decades – but the level of educational attainment has not risen with the increased workload.  In fact, traditional homework assignments in science, English and history have been shown to have “little to no impact” on student test scores.  What a waste of time!

Fortunately, in recent years, brain research has uncovered better ways to absorb, retain and apply knowledge.  Applying these new techniques in the classroom has been shown to lift exam scores by 13-25%.

As a business leader, you need to be aware of this new research, and apply it to the way you teach your staff on the job skills.  Here is an overview:

Spaced repetition.

This technique has a proven positive impact on learning. Instead of studying a topic, then moving onto the next topic as most training modules do, it is far superior to review the same materials over and over in a series of brief sessions spread over a longer prior of time.

When we are re-exposed to the same information frequently, we are forced to use the same neural pathways over and over – and the content becomes burned into our brains and retained.

So while we might roll our eyes at having to do yet another training session on how to use our CRM program – brain science suggests that we do in fact benefit.

Retrieval practice.

Rather than one big exam, a series of smaller exams that force us to retrieve the same information over and over are far superior. Reading and making notes on a subject doesn’t impact learning very much, but every time we are forced to retrieve a memory in an exam situation we make it stronger and more lasting.  Hurray – more exams!

How can you continually test your staff to enhance their learning?

Make them work for it.

Interestingly, if we make the subject too easy, our brains discount the information as not being worth remembering.  We need to make people work for it.  The extra effort signals our brains that the knowledge is worth keeping.  This can be achieved by creating different scenarios that force people to revisit the topic from a variety of different angles.

Your homework assignment:

How can you apply this research to the way you train and induct new staff?  How can you use it to reinforce and upgrade the knowledge of your existing staff?

Article Source: Results.com


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Are you really listening?

Most management writers these days encourage leaders to be more participative and collaborative in their decision making. Gone are the days of the top-down, hierarchical organization of the past they say (but then they contradict themselves by making heroes out of highly autocratic leaders like Steve Jobs).
Our view is that business is not a democracy. Decision making by committee is a recipe for mediocrity.  “Leaders must lead” and that means making clear decisions.  You are not a politician, and this is not a popularity contest.  You are paid to make the good decisions that are in the best long-term interests of the company.  However, we recommend that in order to make good decisions, it is highly desirable to solicit a variety of different viewpoints and opinions before making your decision.

Peter Drucker in his timeless book The Effective Executive said that effective leaders create dissension and disagreement rather than promote consensus.  In fact, he recommended that you should not make a decision unless there is disagreement first.  If everyone agrees at the outset you should tell them to go away and come back with some counter viewpoints. “Groupthink” – where everyone in a company (sometimes even in a whole industry) thinks the same - is a dangerous pitfall to guard against.  ”If everyone is thinking the same, then someone isn’t thinking”

As a leader you need to have the confidence to surround yourself with people who are willing to disagree with you, and demonstrate that you willing to hear what they have to say.

You may not like hearing criticism, or opinions that are different to yours, but you must ask people to tell you what they really think, so you get to see things from a variety of angles.  Introverts are unlikely to speak up to you, so you need to find a way to get their opinion on the table as well.

Recent research shows that motivation, job performance, and morale increase when employees have the opportunity to contribute their concerns and ideas.  That does not mean that you need to please everybody (you can’t) but you need to show that you are willing to listen.

The study also shows that there is a consequence to giving your employees a voice: The leader must listen.  If you pay lip service to listening, and have no intention of seriously considering their ideas – your staff tend to stop offering input and get increasingly frustrated and dysfunctional in their jobs.

Conversely, employees who think their leaders do pay attention tend to speak up more often, and get along better with one another, improving the organization’s functioning as a whole.

In summary, if you want to make good decisions; get input from many people – especially those with a variety of different viewpoints.  Then provide tangible evidence that you have heard them and seriously considered what they have to say.

Now do your job.  Go and make a good decision! 


Article Source: Results.com


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Switch Business Guide Steps to Selling Your Business

Selling a business is a complex procedure. Whether it’s your first time, or you’re an experienced seller, it’s very easy to forget things and to feel overwhelmed.

While you should always feel comfortable asking questions, the following will give you a better understanding of the process.

STEP 1 - PLANNING
Owner interview and data gathering

This gives a clear understanding on the history and the performance of the business.

Recast financial statements

Normalising the accounts involves adjusting the accounts by adding back interest on debt that won’t transfer, one-time non recurring expenses and to remove benefits accruing to the owner that aren’t related to the actual operation of the business

Provide opinion of market price range

Switch Business prepare a full market appraisal of the business utilizing various valuation methodologies including a market comparison to other similar businesses that have been sold.

Obtain Authority to Sell

This agreement authorises Switch Business to act on your behalf. It outlines our fee structure and both parties’ responsibilities.

Prepare Business Information Memorandum

This document will eventually be released to qualified buyers who have completed a confidentiality agreement and it is very important that it is a true representation of your business. It provides preliminary information on your business enabling Purchasers to determine whether it fits their buying criteria.

STEP 2 - MARKETING
Implement marketing programme

Any marketing that is undertaken will not identify your business (unless agreed). Switch Business uses a multi faceted approach, with our database of qualified buyers being the most powerful. Other marketing may include national newspapers, trade publications, industry databases, or magazines.

Screen response

Initial discussion with interested parties to ascertain whether the business fits their buying criteria.

Obtain confidentiality undertaking

This is obtained from all purchasers before Switch Business reveal any information that could identify your business.

Qualify buyers

This is to ensure that they have the financial resource, business experience and commitment to complete the transaction.


Present Information Memorandum

The purchaser is provided with the Information Memorandum (which you have previously signed off on).

Determine buyer interest

Once the purchaser has studied the Information Memorandum Switch Business follow up to ascertain whether they have any interest in pursuing the business purchase further.

STEP 3 - NEGOTIATING
Arrange first visit

Switch Business generally have this meeting in our board room, this does not disrupt the business. If a site visit is required this is usually arranged after hours.

Provide further business details

As a result of the initial meeting, the purchaser will have a list of questions to be answered.

Negotiate offer from purchaser

This will generally be in writing as a Sale and Purchase Agreement or a Heads of Agreement. The agreement sets out all the terms and conditions of the offer and will almost always be dependent on the purchaser completing due diligence to their satisfaction.

Facilitate negotiations

Switch Business will lead the negotiations on your behalf to ensure you receive a premium price for your business. You will be advised to seek the relevant legal and accounting advice from your other advisors.

Obtain sale and purchase agreement

Once both parties have signed the contract there are now various conditions that need to be satisfied.

Agreements to solicitors

Each original contract is sent to the respective solicitor.

STEP 4 - DUE DILIGENCE
Assist in satisfying conditions

The contract is usually conditional on due diligence, finance and if a lease is involved upon obtaining the Landlord’s consent for the assignment of the lease. Switch Business is involved in all steps of this process and will liaise with professional advisors to ensure that all conditions have been satisfied.

Due Diligence

Due diligence is the process where the Purchaser along with their accountants and solicitors will examine the business in more detail. This usually involves an audit of the company’s financial and non-financial position and performance. Until this stage most of the information provided has been accepted on its face value and now the purchaser would like it verified. This process normally takes between 10 to 15 working days depending upon the complexity of the business and also on the ease in which information is available. Switch Business works closely with all parties during this process, ensuring that any confidential information is protected and that the day to day operation of the business is not disrupted.

STEP 5 - CLOSING
Confirm unconditional

The contract is usually declared unconditional in writing by the purchaser’s solicitor, and both parties must honour the agreed transaction.

Deposit into trust account

Once the contract is declared unconditional, Switch Business will ensure the deposit is paid into their audited trust account and be dispersed according to the relevant law.

Settled sale

During the period between when the contract is declared unconditional and possession takes place, both parties and their accountants and solicitors will attend to any legal requirements that need to be finalized. A stock take is usually done before settlement and the settlement sum adjusted to reflect the value of stock (stock is calculated at cost price with any adjustment made for old and obsolete stock)

Seller’s Assistance

The Vendor will generally be required to assist the new owner in the running of the business for an agreed period of time (usually up to four weeks), payment for this period is included in the purchase price. Any assistance beyond this period is usually by prior mutual agreement at an agreed rate of compensation.

SUMMARY
To a first time seller the above process may seem overwhelming, however the brokers at Switch Business have been involved in hundreds of successful sale transactions and are able to lead you through the process.

If you wish to have a confidential, obligation free chat or come in for a coffee, contact Switch Business today.


Article Source: BuyaBiz Blog


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Business legal advice: Do your Terms of Trade cut it?

Law is often about the ‘what if’ scenarios, planning for the best but preparing for the worst.
Do your terms of trade do this for you?

Lizandra Bailey of MacDonald Pilcher  Partnership

There are too many issues to consider to list them all here, but here are a few to get you
thinking

Approach

• Who is your customer buying from? Make sure your company name is correct, believe it or not this is a common error.
• Do you offer quotes or estimates? Make it clear as to what your prices are and how long they last.
• Can your customers easily tell how payment is to be made and when.

After-sales

• Delivery or pick-up? Pizza companies aren’t the only ones give these options, so you should make it clear what the options are, and who covers the cost and the risk.
• Don’t want them copying your design? Then make it clear that they are buying just the product, not the right to produce more of them.
• Like your privacy? So do your customers, so reassure them that you will keep their details secure, where it will be stored and how they can gain access to it. Make sure you comply with the Privacy Act 1993.
• Sending out spam? New Zealand has strict legislation on what can and can’t be emailed out, so consider having an email policy, that is within the law, and letting people know what it is and how they can be removed from it.
• Why isn’t this thing working? What warranties are you providing or excluding?
• No payment or late payment – do your terms allow you to charge interest for late payment and the costs of debt collection?

Not unexpected, just undesired

• Have a dispute? With the high cost of adjudication or court action you might want to set down a procedure to mediate any disagreements that occur before any court action can be taken.
• Alien invasion? That might seem far fetched, but wouldn’t you rather have a force majeure clause there, just in case something happens that is outside of your control?
• Is it just not possible? There may be a number of reasons that a contract may be cancelled, so make it clear what these are and how it will be handled.
• Can you get your goods back if there is no payment? If you are giving possession of goods prior to payment, a PPSR clause is essential to protect the goods from other creditors. You must also register your security interest within a certain amount of time to gain protection.
• No guarantees – if the customer is purchasing the goods and services for the purpose of a business you can contract out of the Consumer Guarantees Act 1993 but must do so in writing.
• Have you limited your liability as much as you can?
• Can you change your terms? You should be able to change your terms at any time and your contract should state this and when any changes will take effect.
• Overseas customers? Make it clear New Zealand law will apply.

If you think your Terms could do with updating, we have some great fixed price deals. For help with these and all the rest contact Lizandra Bailey at MacDonald Pilcher on 09 307-3324 or visit us at www.macdonaldpilcher.co.nz


Article Source: BuyaBiz Blog

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

The Simple Art of Networking

Networking is something you either love or you hate. However, whichever side of the fence you sit it is something that can quickly change the fortunes of your business. It is not difficult, not expensive and done well, can generate exactly the sort of business you want right now. If you have done your networking well, when business starts to slow down, kicking in a little extra networking can turn it around in as little as one hour and for next to no expense.

If you think you are just not cut out for networking, and it's all about pushing your products and services then think again! With the right attitude and approach you may even enjoy it!

The simple art of networking to grow your business

Networking - online or offline - even the word is enough to send many capable business owners diving for cover with excuses like "I'm just too busy, maybe next month", "I'm really not good at that sort of thing", and "Oh God, I'd rather do the dishes!" Well it's time to take a whole new look at networking because targeted, planned, well executed networking can be one of the most effective marketing activities you will ever do.

Great networking is a very cost, time and energy efficient marketing activity - a recipe all businesses love! But before we delve into the details of what great networking entails, and how to use it effectively in marketing your business, let's just clear up a few misconceptions.

What effective networking is not.

• Net coffee
• Net meeting
• Net chatting
• Net drinking. NetWORKing is WORK!

What effective networking is.

Networking is all about building relationships with others for mutual gain. It's an opportunity to work together with people to grow your business while also ensuring that they are receiving benefits from their relationship with you. It's a two-way street of mutual support and assistance.

Networking is a very active marketing tactic. It's an activity you need to plan, prepare for, set goals around, and regularly evaluate and measure the effectiveness of.

Networking is a very low cost or even free marketing activity. It doesn't take large amounts of cash or require a big proportion of your marketing budget. However there may be some hidden costs that need to be accounted for.

Networking is a very effective way to gain the people and practical resources you need to grow your business. It is a tried and true method of finding customers, suppliers and staff, learning about your competitors and gaining new skills to assist you in managing and growing your business.

Getting Ready to Network - The Right Attitude

Success at networking does take the right attitude and the right approach:

• Remember 'Givers Gain". Approach networking with what you can give to others, and how you can help them solve problems.
• What can you give to the people you meet
• Think about what is in it for them.
• Be generous
• Aim to be memorable!
• Will they remember you?
• What will they remember about you?
• Will you be the person they talk about when someone asks them how the event went?
• What will they say about meeting you?
• What have you given them to help them remember you?
• Have fun - and look like you are having fun!
• Remember people do business with people, no matter what you are selling, so always start by establishing a good relationship with the person at an individual level.

"A mans feelings of goodwill towards others is the strongest magnet for drawing goodwill towards himself."
Lord Chesterfield 1694 - 1771 English Statesman

Get the whole story

To develop your own networking skills, upgrade your membership to Standard or Full to access the complete October issue of mymarketingexpert featuring:

• A simple 4-step guide to effective networking
• How to assess whether your business card is working for you, and if not what to do about it
• Knowing where to network
• An 11 point checklist to rate and improve your own networking ability
• The 6 traits of great networkers
• 22 tips on how to start and engage in conversation with people you don't know
• 10 things to take with you to networking events
• Plus 10 additional networking tips to give you that extra level of confidence

Article Source: mymarketingexpert

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

Everybody lies! (Here's what to do about it)

That’s right - everybody lies.  In fact, if you never lied, you would find it very hard to function in society.  Of course, I am talking about “white lies” - the little things we say to make people feel better. For example:

• “Your table will be ready in 5 minutes” (The statement has no basis in accuracy – it just sounds a lot better than a waiter saying you'll have to wait 15 minutes, and is intended to make you feel comfortable about waiting)
• “I’ll start working on that today” (Really?  Or are they just saying that to reassure you that you are being taken care of?)
• “Thank you. What a wonderful present” (We have all been taught that it is polite to say this – no matter what you honestly think of the gift)
• “No – of course you don’t look fat in that dress” (Everyone knows there is only ever one “right answer” to this question!)

However, at the other end of the lying spectrum are the things people say to deliberately deceive others.  When these lies are exposed (and that is the key) – trust gets eroded and ultimately destroyed.

• “The dog ate my homework” / “I’ve never been in trouble with the law” / “This mess is the other party’s fault”  (Excuses invented to “avoid pain” – blaming something or someone else, because they fear punishment or loss of reputation)
• “Buy now before we run out of stock” / “I was asked to turn pro, but decided to build a career instead” / “Purchase this program now, and you too can become a millionaire”  (Persuasive stories told to “make a gain” – to impress someone, make a sale, or influence them to take the desired action)

Sadly, we see far too many examples of these lies and deceptions; in the news media, in politics, and in business communications.

To protect yourself from being deceived – you must “shine a spotlight” on any statements that you believe to be false (or where someone appears to be stretching the truth too far).  Very few lies can stand up to the scrutiny of these 3 approaches:

1. Separate fact from opinion

• “How do you know that this is true?”
• “What evidence do you have for this claim – can I see it?”
• “Are there any studies that claim the opposite?”
• “Who else besides you shares this opinion?”
• “What is the counter argument?”

2. Slow things down

• “Can you repeat what you just said – and give me more details this time?”
• “I’m going to sleep on this before I make a decision”

3. Simplify

• “I will not sign this proposal until I fully understand it”
• "Explain it again - this time as if I knew nothing about this subject?"
• “Can you reword this in simpler terms that a teenager could understand?”

Ignorance is not bliss.  Remember to use the spotlight approach, and as per the song from the rock band ‘The Who’, you “Won’t get fooled again!”

Stephen Lynch 

Chief Operating Officer - Global Operations 
RESULTS.com

Article Source: Results.com

 

Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860

The Art of Asking Questions

How well do you ask questions? From my experience, most managers don't think about this issue. After all, you don't usually find "the ability to ask questions" on any list of managerial competencies; nor is it an explicit part of the curriculum of business schools or executive educationprograms. But asking questions effectively is a major underlying part of a manager's job — which suggests that it might be worth giving this skill a little more focus.

We've all experienced times when we've failed at being good questioners, perhaps without realizing it. For example, not long ago I sat in on a meeting where a project team was reviewing its progress with a senior executive sponsor. During the presentation it was clear from his body language that the executive was uncomfortable with the direction that the team was taking. As a result, without any real questioning of the team, he deferred approval of the next steps until he could have a further discussion with the team leader. When he met with the team leader later, he ripped into him for allowing the team to go off-course. Eventually the team leader was able to explain the thinking behind the plan, convinced the executive that they would indeed achieve their objectives, and was given the go-ahead to proceed. But in the meantime the team had lost its momentum (and a week of productivity), and began to focus more on pleasing the sponsor rather than doing the project in the best way.

This is not an isolated incident. Many managers don't know how to probe the thought process of their subordinates, colleagues, and bosses — and instead make assumptions about the basis of their actions. And when those assumptions are wrong, all sorts of dysfunctional patterns can be created. In a financial services firm, for example, a major product upgrade was delayed by months because the product and IT managers had different assumptions about what was to be delivered by when, and kept blaming each other for delays. When a third party finally helped them to ask the right questions, they were able to come up with a plan that satisfied both, and quickly produced incremental revenue for the product.

There are three areas where improved "questioning" can strengthen managerial effectiveness; and it might be worth considering how you can improve your skills in each one.

First is the ability to ask questions about yourself. All of us fall into unproductive habits, sometimes unconsciously. Good managers therefore are always asking themselves and others about what they could do better or differently. Finding the right time and approach for asking these questions in a way that invites constructive and candid responses is critical.

Second is the ability to ask questions about plans and projects. The examples mentioned above both fall into this category. The challenge with questioning projects is to do so in a way that not only advances the work, but that also builds relationships and helps the people involved to learn and develop. This doesn't mean that your questions can't be tough and direct, but the probing needs to be in the spirit of accelerating progress, illuminating unconscious assumptions and solving problems. This is in contrast to some managers who (perhaps out of their own insecurity) ask review questions either to prove that they are the smartest one in the room, or to make someone squirm. On the other hand, many of the best managers I've seen have an uncanny ability to engage in Socratic dialogue that helps people reach their own conclusions about what can be done to improve a plan or project, which of course leads to much more ownership and learning.

Finally, practice asking questions about the organization. Although usually unspoken, managers have an obligation to always look for ways that the organization as a whole can function more effectively. To do this, they need to ask questions about practices, processes, and structures: Why do we do things this way? Is there a better approach? Asking these questions in a way that does not trigger defensiveness and that is seen as constructive is an important skill for managers.

Most of us never think about how to frame our questions. Giving this process some explicit thought however might not only make you a better manager; it might also help others improve their inquiry skills as well.

Have you seen good and bad examples of how to ask questions? What's your own self-assessment? Are you asking yourself the right questions?

Article Source: Ron Ashkenas


Greg Longstaff
Business Development Consultant
Franchise Network Specialist
greg@salesmarket.co.nz
+64 9.307.7860