Improving Your Business
Is Our Business

Last week’s home improvement webinar on lead generation was a rousing success. There were over 950 companies on the program and we received numerous questions. As is frequently the case, we did not have enough time to answer them all on the webinar so we took the opportunity to respond on our blog (the first series of questions and answers are covered in our latest e-newsletter – to receive a copy e-mail admin@daveyoho.com).

Here is a sampling of the questions we received:

Q: You give the impression that many home improvement companies have tried canvassing, yet few have been successful at making it work “long term” within a practical budget.

A: As we pointed out in the webinar, it is not uncommon for companies with a canvassing program to issue as little as 30% of their canvass leads as appointments. In addition to that, they may only gain entry into 40-50% of these homes for a presentation.  They experience a closing ratio lower than they do for other leads (some of this is attributed to the salesperson’s dislike of that lead). Then top this off with marketing costs that sometimes exceed 20% (some even much higher).  Not a practical way to do business.

Q: Has your company made a study of effective canvassing programs?

A: You bet, and here are some of the basics:

Unless companies subscribe to a plan that includes territory and time selections (by management) for canvassing in middle income neighborhoods, they’re off to a poor start.

It is human nature to try to find the path of least resistance. Better neighborhoods with higher income families frequently represent better education and more well-informed prospects and in turn represent more complications in developing a lead.

But there’s more to it than that.  Actually, there are about 51 components for an effective program. The script language is extremely important.  Intelligent people with money to buy the products you offer have to receive information which they see as beneficial.  Many canvassing groups use a mini-presentation book at the door.  One company we studied has canvassers earning $40-60,000 annually with a fully loaded marketing budget of approximately 9.6%.

Q: What kind of results can be effective with a well-managed canvassing program?

A: The better managed companies have a 50-60% issue rate, a 60-80% sit rate and marketing costs below 15% (fully loaded).

Here is an actual case study of a very efficient program:  Canvassers working (average) 4 to 5 hours daily produce ½ lead per hour set with the homeowners by the canvasser (via cell phone) with their office. This translates into a 60% (minimum) presentation (sit) rate and a minimum of 1 presentation (sit) produced in less than 8 hours of the canvasser’s effort.

One of the keys in this last case study is the “canvass manager” who makes everyone (including himself) adhere to the “model” of the program.

Is it easy? No. Is it successful? Yes. Is it cost prohibitive? This particular company operates with overall marketing costs at 13% and their canvass program (fully loaded) is slightly over 12%.

Q: We are considering hiring a company to do our canvassing.  What are some of the cautions?

A: We received the same question from 12 companies who participated in the home improvement webinar.  If you tried canvassing on your own and couldn’t make it work, or it was too costly, you may succumb to someone who encourages you to let them do the canvassing and provide you with the leads.  There are several smaller companies who provide this service – however – be cautious of “canvassing companies” who want to sell you leads. Several larger companies who provide this service do not appear to have “long term” success stories.

Q: Our salespeople don’t like the canvass leads, so we haven’t been successful with closing many.  Apparently our canvass program “stinks”.

A: Your question probably contains the answer.  You hired salespeople, promised them bona fide leads and they expect to get them. However, if you are allowing your salespeople to determine the source of leads you will never get a canvassing program to work, and since this is but one form of face-to-face lead solicitation (which also includes “shows” and “events” and “SFI programs”) the failure is not in the lead, but in the method of adapting a salesperson on how a face-to-face lead has to be handled to obtain results. Unfortunately this is a management failure.

Management frequently “succumbs” to the complaint of the salespeople that these are “weak leads”.  When the sales department convinces management this is the case, the marketing department is told to get a stronger lead. Ergo: the number of leads decrease and management is unhappy because they don’t have enough leads for the salespeople.  Weak canvassing methods include “looking for”.  Successful canvassing programs treat the canvassing department as part of the sales methodology. At the risk of being repetitious, modern techniques require that the canvasser be hired with a behavioral profile indicating sales “traits” and the ability to follow special scripting devices which often includes a mini presentation book. The appointments were set via cell phone from the canvasser and the prospect to the call center.

Again, at the risk of being repetitious, The successful companies measure not only the number of leads which are produced by hourly effort, they measure the hours it takes to produce a sales presentation from the leads acquired with a marketing budget of 12% to 15%.  In short, the entire process is treated as a science – not – an art form.

Q: We received numerous questions on “diversified lead sources”.

A: Today’s marketing techniques, whether for a small company trying to stay alive or a large company attempting to expand, have to include diversification. Smaller companies may have 10 or 12 sources for lead development; larger companies 30 to 50 sources.  Companies who choose not to diversify their home improvement marketing typically tell us:

• The majority of their leads are referred to them through a satisfied customer.
• We are a recognized name in our territory, so we don’t do much advertising.
• We invested heavily in print ads – yellow pages – web design – or similar and couldn’t make it profitable.

Here is what you have to remember.  In every market and for every product or service sold in that market, there are a certain number of prospects who develop a “need” for most of the products sold.  The trick is how to identify and find these prospects then sell them without resorting to being the “lowest price” in town.

The next “trick” is to find ways to identify and attract prospects who haven’t yet met the explicit need level, but could be convinced to “take a look”.  That requires a good marketing technique which then has to be balanced with a strong sales technique.

This is not being critical of those who get “referred” as a good contract or source, because referral leads are great; most salespeople love them. The reason they don’t get more of them is usually determined by their lack of “asking for them”. If you can develop enough business without advertising or spending promotional dollars, I applaud you. However, keep in mind that past customers should be solicited for referrals with a plan that meets the requirements of your local state laws.

We will answer more questions on our next blog posting so make sure to subscribe so you can receive updates as they happen!

Let me preface this post by saying that this is not an assault on those within the home improvement industry who use a price drop as an incentive to close a deal.  The issue is the “big drop”.

Historically this practice dates back to the late 40’s and early 50’s when in an effort to sell roofing, siding and storm windows, sellers would offer a discount, maybe 10% of the quoted retail price to get the order.  In those days the average roof sold for $350 to $500 and siding ranged from $1200 to $2000. Accordingly, the discounts used were believable and represented a reasonable incentive. A siding job quoted at $1600 representing a $160 (10%) discount was equal to more than an individual was paid for a week.

By today’s standards, the $35,000 sunroom or basement, the $15,000 siding job or $10,000 window replacement (where there are multiple discounts ranging from $3,000 to $8,000 and more) start to resemble the way automobiles are sold – - with little or no credibility to the quoted price. If you are a proponent of this selling style, you need only review the manner in which you get rescission. The majority of respondents cite price as the reason.  If the customer believes your net price is too high, they certainly didn’t believe the list price was reliable.  Consider the number of people you don’t close because the abundant discounts don’t seem credible.

When the list price is validated and the customer sees value in the product versus the price, the incentive offered has reliability.  Often salespeople rely on that “big drop” to get the sale, because value was not sold. If you offer a bonus or discount as an incentive in your advertising, this price reduction is dealt with soon after you quote the list price.  The net sales price is then validated by your prospect.  Then the “buy tonight discount”, which can be anywhere from 3% to 5%, will make sense.

This is a call for home improvement companies to review the manner in which their in home presentations are made and how the value of their product is being established.  Once this happens, “big drop” is replaced with an initial presentation incentive, which will increase your closes and diminish your rescissions.

Last week’s home improvement webinar entitled “Open Your Mind to Close More Sales” generated an excellent response from our customers as well as industry leaders.

Once again we would like to thank all of the attendees as well as all of our sponsors of the program.

The 90 minute webinar was filled with tons of Q&A; yet despite that we were not able to answer all of the questions that were posed.

As has been our habit in the past, we are now posting a sampling of questions that were asked prior to and during the webinar.

Q: In today’s market, people seem to be more price conscious and our area is loaded with “price cutters”.  How do we justify our price for a quality product?

A: You can’t justify your price — stop trying.  With the right presentation, you establish “value”.  You have to demonstrate and have your customer agree that the product you sell is high quality, long-lasting, installed by experts and meets their needs better than other products in your market.  In our series “The Science of Successful In-Home Selling” we explain a method entitled The Total Offer Concept™ which goes into great detail on this topic.

Q: We are often met at the door (sometimes over the phone) with the statement — “We just want a price, not a long visit.”

A: Respond quickly by saying — “No problem.  Let’s take a look at your project and determine your needs.” During the review of the project, ask questions, write down the responses and sell yourself.  Present yourself as a professional.  It is your job to uncover needs.  Then present your product to meet those needs.  Explain the options, the various protections they need, such as a written proposal, a reliable guarantee, a product installed by specialists.  Most prospects will listen if you are talking about them — their needs — their problems — and how you can help solve them and why this home improvement project isn’t an expense — it is an investment.  You will extend your time with those prospects.

Q: Can I use a one-call close without high pressure?

A: It all depends on what you consider high pressure.  Explaining in detail what your product and service represents — isn’t — establishing the value of the product/service you are providing — isn’t —and — asking for the order, if done properly — isn’t.  Our closing system is utilized by the most successful companies in your business. I recommend that you listen to the free recording “The 7 Myths of In-Home Selling” — where this question is answered in detail.

Q: What is a decent closing rate?

A: Some companies still measure their close rate against presentations, which fails to account for the number of leads issued and this is a mistake.  So we measure closing efficiency against leads issued.  Yes, there will be some no-shows or some 1-leggers that you do not wish to present to, but if these are not exorbitant in number, it’s all part of the process.  So if you’re still measuring by the old fashioned rate – closes vs. presentations – 1 out of 3 or 4 is decent provided there is a 70% sit rate on leads issued.  Small ticket items ($4,000 or less) should close at 50-70% with a 70% sit rate.  Caution – don’t be too quick to blame the low sit rate on your marketing department.  Frequently it is the inept processing when the salesperson is at the door of the prospect.

Q: So what’s the difference if you’re measuring against leads issued?

A: First of all, our latest industry survey shows that the average cost of a lead issued is $285.  If a salesperson receives 7 leads per week, that equals $1995 – close to $8,000 a month and that’s $96,000 a year.   You will want to measure the efficiency rate of anything in which you have invested $100,000, I’m sure. Depending on the lead source, conventional leads (radio, television, print, direct mail) should look for a 70% “sit rate”.  That’s a presentation being made to all interested parties where you have sufficient time to do a needs assessment (walk around), company and product presentation, present the price and attempt to close.  If you sell 1 out of 3 of these presentations, that’s a 23% close rate against “sits” and roughly 33% against leads issued.  These would be effective goals.

Q: How do statistics differ with canvass leads?

A: A whole different ball game.  Our surveys indicate that canvass leads as well as those produced from other face-to-face sources, such as shows, malls and even S.F.I., don’t do nearly as well (greatly due to the attitude pervasive in salespeople who don’t like canvass leads ) – partially due to mismanagement by marketing (poor scripts and poor lead issuance management).

Our surveys indicate that 90% of all canvass programs are failures (too costly – poor sales vs. leads issued).  The person-to-person leads, when processed, have reached a 40% issue rate or less.  Remember, if you took in 100 leads that means you issued 40.  Then the sit rate as defined in the previous question is usually 50% against leads issued.  That means you’re now down to 20 leads from the 100 acquired.  The gross close rate averages 3 to 4 sales.  When you eliminate credit rejects and rescissions, you’re down to about 2 sales.  So fully loaded costs are usually more than 20% of the total revenue produced.

However, don’t sell the concept short.  Canvassing works if it’s structured properly, then managed properly including personnel selection and rigid script enforcement from the lead intake by the canvasser through the appointment setter or confirmer – - and, of course, add the “attitude factor” of the salesperson.

Q: What are your suggestions in terms of scripting for canvassers?

A: 2 factors need to be considered – -

1. You’ve got to have the right script
2. You have to rigidly enforce its use.

A well-scripted canvasser is not a canvasser. Modern canvassing requires the selection of the proper personnel.  Those selected should be profiled and have a behavior which is adaptable to a selling function.  The good canvasser is an extension of your sales department and will frequently grow into becoming a closer.

In addition, all scripting is subject to the discipline of the canvasser and management.  Scripts are what they imply, i.e. what to say and how to respond to questions.  With some success the canvasser starts to embellish these with war stories, personal philosophies and small talk that reduce effectiveness.  Successful canvassing programs have somewhere in excess of 50 components if done correctly.

Q: What are the statistics on rescission?

A: Here’s a rule of thumb – - if you’re getting no rescission at all, you’re probably selling “call back” business or you’re not attempting to close at all. On the other hand, if you’re getting too much rescission be aware that “rescission is a malfunction of the selling process” – so you’re doing something wrong.

Here are some statistics, if the size of your contract is $4-5,000 or less, your rescission should not exceed 5%.  If your average contract is $8-12,000, rescission should not exceed 10%.  If your contract exceeds $25-30,000, your rescission rate might be between 20-30%.  Remember, I said that rescission is a malfunction in the selling process.  In a well structured organization, 25-30% of the rescissions can be recovered and are then reinstated as valid contracts.

Should you have any follow up questions regarding this blog posting, or if your question was not addressed please comment or e-mail us at admin@daveyoho.com.

There is no such thing as a cold, rational, dispassionate buyer who buys solely on merit. Most decisions are influenced by emotion and similar feelings.

I once asked a purchasing agent who had placed an order with a manufacturer for products which he might have been able to purchase for less, “Why do you do business with this particular company?” His response was lengthy and contained specific references to the following emotions:

• He trusted and liked the salesperson.
• He felt the company was reliable.
• In a previous dealing with them, he developed confidence in them.
• The company seemed to care when a customer developed a problem.

In further questioning, he commented on the size of their manufacturing facilities and their quality control and customer service departments. Later I asked him if he had ever personally seen the plant or any of the departments he mentioned. He admitted he had never seen them, yet he was convinced of their existence and superiority.

Herein lies a portion of our proof on the importance of emotion in selling. If all aspects of his belief are true, he was nonetheless basing his decision on information supplied to him by the salesperson. The credibility, as well as other factors of the company’s substance, are validated by buyers largely based on their feelings toward the salesperson.

Frequently it is the energy, enthusiasm and creativity with which the product is presented that accelerates the prospect’s interest. Thus a great product or service which is poorly presented during a sales presentation may not get sold, while one of lesser quality which is presented well is purchased.

This is not an argument for emotional pitches in place of quality, service, and reliability. Rather, it is an appeal for more creative sales presentations.

Many years ago, we started teaching the practice of left versus right brain appeal in selling. Let’s review some of the ways the experts claim the two hemispheres of the brain function in terms of oral and written language.

Left Brain: Logic, practicality, statistical data, analytical thinking, technical problem-solving, proposal evaluation, arithmetic projections, procrastination, structured resistance, laconia, and pessimism.

Right Brain: Enthusiasm, creativity, visualization, humor, emotional response, impulse actions, upbeat feelings, analogies, allegories, rhythm, and optimism.

It is important to develop a sales presentation which is properly balanced between right and left brain appeal. The variations in balance are based on the product, the market, and the general buying style of the prospects. Let’s look at some examples:

First, consider products such as electronic devices which are frequently sold to engineers. In developing a presentation in this case, we would suggest an over-balance towards left brain thinking: problem-solving, statistical data, and logic. These have specific appeal to the buying patterns of this type of prospect, the engineer.

We would also include appeals to the right brain thinking with visualization and enthusiasm. This would encourage the prospect to visualize the product in successful application, reducing or eliminating problems, contributing to a quality image, etc. This enthusiasm encourages upbeat feelings in the prospect and a sense of well-being about the relationship between vendor and customer.

In another example, real estate sold to home buyers, we would suggest a presentation that is overbalanced toward right brain thinking: visualization, creativity, emotional response, and impulse actions.

A sound presentation of a home which meets the prospect’s needs has the prospect mentally moving in, placing furniture, and viewing the family in the setting. It encourages the prospect’s creativity toward changes in the decorations, furnishings, and landscaping. It prompts emotional responses whenever highlights of the home are presented.

Left brain thinking might be projected in the sales presentation toward practicality and statistical data. The practical aspects of the home could be brought out, like touting the needs of proximity to schools, churches, businesses, airports or shopping centers. Statistical data might relate to the turnover rate of houses in the area, equity increases, energy conservation features, potential return on investment, and tax savings.

If you examine again the appeals to each side of the brain, you might conclude that most decisions are weighed in the left brain and made in the right brain. Irrespective of the product or service, when the appeal is strictly to the left brain, the decisions are delayed, concepts are over-intellectualized, price becomes more of an issue, and the potential for conflict increases. Fortunately, it is possible to direct what is normally left brain data to the right hemisphere by using visuals and making the presentation in enthusiastic, positive, optimistic, and upbeat language.

In preparing and delivering your sales presentation, appeal to both brain hemispheres, but favor the right brain for those emotional appeals that close sales.

At Dave Yoho Associates we have been teaching the value of a structured sales methodology for over 45 years, yet even our best customers have employees working for them that waver from their script.

Nowhere is this more damaging than with your sales personnel. Of course, there are always a few cases that buck this trend.

One of our clients has a salesperson whose personality is an anomaly, and the only script he follows is to be pointed in the direction of his next appointment. He has now broken the company sales record two years running. Now, in an extreme case like this, we advocate letting the sales rep function in the way that works best for him.

However, these cases are the exception rather than the rule, and their is an inherent danger in allowing this salesperson too much latitude. You have to be careful that you don’t let his personality effect the rest of your sales force.

Brian Smith, whose client has this unusual type of sales rep in their operation, says that the salesperson is given leeway to do things his way with the understanding that during sales meetings he has to actively participate and contribute in concert with what the company methodology is.

If he were not forced to do so, the fear is that his habits could corrupt the rest of the sales department who need the system to succeed.

Do you have any of these people in your operation? They are extremely rare, and 9.9 times out of 10 we advocate the use of the scripting system below.

There are two parts, selling the appointment and setting the appointment and I am going to cover both of them.

Selling the Appointment:

• Make a great first impression
• Engage them – Obtain basic information – Identify their dissatisfaction
• Sell the value of the visit
• Obtain agreement to the terms

Setting the Appointment:

• Identify all the owners (and decision influencers)
• Select the best time
• Jog, reinforce and confirm
• Make a great last impression
• Build anticipation and confidence

Of course this is just the tip of the iceberg, but it will give you a better idea as to how to structure your scripting.

For more information on this topic, we invite you to download the free mp3 on The Science of Successful In Home-Selling – - or you may call our office at (703) 591-2490.

How closely are you monitoring your finances?

When we do an observation for a company within the home improvement industry, one of the first things we take a look at are their financial statements. There is no better way to get a “snapshot” of a company’s financial resources and obligations than by examining a balance sheet.

Here are some important guidelines to consider when analyzing your balance sheet:

• Measure the current balance sheet against the previous month’s and the same month from the previous year

• Use the entire balance sheet, not the company’s cash balance to determine the wisdom of a large purchase or acquisition of debt

• Construct and review depreciation schedules and aged receivables on a regular basis

• Balance sheet accounts are ongoing and are not reset at the beginning of each year

• When performing this analysis, you will be determining your company’s leverage (the ratio of debt to equity – assets are funded with either debt or equity).

• Compare tangible assets (cash, accounts and notes receivable, inventory, equipment, “lease hold” improvements and the like) to intangible assets (non-physical resources such as customer lists, goodwill, trademarks, franchises and similar). Keep in mind that tangible assets are are usually more liquid than intangible ones.

• How solvent is your business? Solvency = The ability to meet future debt obligations. Compare the liquidity of assets with the maturation of company liabilities.

• Liquidity is the ability to convert assets into cash. Accounts receivable that are collectible within 30 days are more liquid than a note or investment which might take several months or longer to sell.

• Evaluate earning before interest, taxes, depreciation, and amortization (E.B.I.T.D.A.) to ascertain the true value of your company

• Assess the book value for estate planning (and similar) purposes

• Plan for year end (or similar) tax liabilities, bonuses, owners (stock holders) compensation

• Structure an exit strategy to plan for the future of your business

Unless you are an accountant by trade, or someone who enjoys working with numbers, you probably find this to be a laborious process. However, if you are a business owner it is vital to account for all of the money that is tied up in your business.

For more information on how to analyze your financial statements, you can contact us directly at admin@daveyoho.com.

In-home presentations have evolved over the years. If you are still showing up in the prospect’s  home with an over-sized, clunky presentation book then you need to come into the 21st century.

This is not a knock against anyone who presents this way, the purpose of this blog posting is to provide you with another alternative that will be easier for sales professionals in the home, while providing prospects with a more dynamic experience.

The majority of companies have taken the next step, moving from presentation books to Power Point presentations. This has proven to be very effective, as long as the presentation avoids much of the “I, we, me” language that is not in sync with the prospect’s wants or needs.

The problem with Power Point is that the majority of prospects have seen everything that there is to offer in these type of presentations. They are not “blown away” by the typical Power Point anymore.

Would you like to know how you can recapture that feeling?

One of our clients has been utilizing an iPad for in home presentations for a few months now, and the benefits have been remarkable.

• As opposed to your average laptop, an iPad is incredibly lightweight and small. However the screen size has not been sacrificed so the presentation is still easy to view.
• The presentation on the iPad is incredibly dynamic, something that is lacking in most Power Points.
• Our client’s surveys have shown a large increase in the “professionalism” factor of their salespeople.

However, these statements do not do the ipad’s presentation capabilities justice. Watch this video to see how easy it is to create powerful presentations with a program called keynote.

Our experience has proven that if you combine the right customer-centric language with a powerful presentation your sales will increase dramatically. This tool will assist you in doing just that.

For more information on how you can replicate this process in your business, you can reach me at brad@daveyoho.com.

Regardless of your political beliefs, there is a health care bill which has just passed through Congress that will have an unbelievable impact on our industry. Section 9006 of the new health care bill has a provision requiring every business, charity and even state and local governments to file a 1099 tax form listing every purchase of goods or services or accumulated purchases which exceed $600.

In past years, this requirement was strictly limited to payment for services. This is not the case anymore. Now, if your phone bill is greater than $600, or your purchases at Home Depot or a similar store exceed $600, your business is required to file a 1099 tax form.

It is unthinkable the amount of paperwork that this will create for manufacturers, distributors, service providers and retailers within this industry (not to mention the IRS).  As such, you can count on a massive increase in the number of IRS agents and supporting staff which will be hired to respond to this requirement.

Furthermore, the added costs to most businesses will be tremendous. Estimates of up to $23,000 annually have been calculated.

Senator Mike Johanns (R-Neb.) has written an amendment to repeal section 9006.  It is suggested that concerned business people write their senators asking for support of this repeal.

There is also an alternative amendment submitted by Senator Bill Nelson (D-Florida), which would exempt businesses with 25 or fewer employees for compliance with this section.  However, with the current movement to reclassify independent contractor status, a majority of the companies in the home improvement business who are affected by section 9006 will not find much relief in Senator Nelson’s amendment.

Again – we urge you to become familiar with this provision and write to your senator asking for support of Senator Johanns’ amendment. Forward this to any of your suppliers and other companies similar to yours.

For more information on how this legislation will affect your business, don’t forget to attend the home improvement profitability summit in Baltimore, where our team of experts will give you the latest legal news regarding our industry.

There are those who seem to adapt to the sales role as if they were born for that very reason. There are those who are charismatic, who meet and get along with others easily and those who have the gift of language.  To those we believe their form of selling is an art.

Despite all the latter, what works best is understanding how prospects think and feel, why they say what they do and how they truly like to be treated.

If you or someone you know enjoys the act of selling, and particularly if they sell products to or through home owners, click here to access our latest recorded webinar which describes the science of successful in home selling.  Best of all – it’s free!

There were over 1,000 participants on this webinar.  We received rave reviews.

Then check out the 7 Myths of In-Home Selling.  To download that MP3, click here.

And – if you still want to know more about our 17 years study on the use of effective language (Power Linguistics©), click here.

Remember they’re all free.  However – once you listen to them, we’d like your feedback.

This is not an easy question to answer, particularly when our economy is so turbulent. However, contrary to popular belief, the economy is not the biggest factor in the decline of entrepreneurial selling organizations.

It is extremely complicated for most business owners to make the transition from an environment where they are at the heart of everything that goes on within the company to one where there are multiple levels of organizational structure.

Within the home improvement industry, this becomes even more complex as many companies that are looking to grow consist of no more than a few employees, and the principal owner of the business may be responsible for the majority of the “selling” that takes place.

As you are looking to take that next step to grow your business, keep these points in mind:

Hiring the right people and avoiding the wrong ones is the first step you need to take before you can undertake significant growth

As I stated in the last blog posting, “Turnover is the death knell of any small to moderately sized selling organization.” You need to decide what positions are most critical that you hire for first. Do not make the mistake of attempting to grow your business by hiring extra sales personnel, a canvassing crew and a marketing manager all at once.

Once you determine what position(s) you want to start out with, you need to invest the time and resources in hiring the right people. I have yet to meet a manager who was perfect at pinpointing the right person for every job. This is why we recommend the use of tests and behavioral profiles during the process. The test determines whether the individual can do the job that they will be assigned to (i.e. if they have the skill sets). The profile will determine whether the individual’s behavior matches the job. Behavior is neither right nor wrong, it just is, and we have identified specific behavioral types that fit best in certain job roles.

Stop thinking like a salesman

Easier said than done right? In all likelihood, if you are reading this blog entry, then you have been a salesperson (or someone in a selling role) for most of your professional life. The problem is that when you make the transition from a “salesperson” to a business owner you need to change the way you think. It takes a different mindset to manage sales than it does to manage people and you will frequently find yourself struggling to relate to your employees if you do not abandon some of the behavioral traits that made you a sales superstar.

Plan more structure

Some of your employees may like structure, others may hate it, but the truth of the matter is that all of them need it.

Without clearly defined boundaries and goals in place, there is too much freelancing and your employees will have a tendency to abandon reason in the face of personal priorities.

Furthermore, there needs to be organizational checks on this structure or it will be changed and altered within weeks of their training.

System selling

A common question we get when conducting a client observation is: “How many steps do you recommend in your sales system?” My response is that the steps aren’t as important as “sticking to the system”.

Too many people get hung up on a number, when that is not the key in closing a prospect. The key is a scripted sales methodology that you are comfortable with and becomes part of the organizational philosophy.

Structured price (formula – application)

I recently covered this is another blog posting. Too many companies arrive at a price based on what their competition is doing, what will give them a “competitive advantage”, or some other arbitrary number.

The fact is that in order to achieve a healthy profit margin, there is a formula we developed that is foolproof. No matter your product/service, by sticking to the numbers you will assure that you don’t miscalculate your profitability.

Log and track every lead

Yes – it is important to qualify your leads, but it is also a huge mistake to not log and track every single lead that comes into your business (by any form of communication).

Just as important is what you are using to track your leads. Without a strong system in place to manage, organize and follow up with your prospects, you are increasing your administrative time and costs exponentially.

Delegate, delegate, delegate

Staying involved in all facets of the business is critical for all business owners, but just as important is delegation.

As your business grows, so should the number of tasks that you assign to other employees.

What? You say that you don’t have faith in them? Go back to step 1 and get your hiring system up to speed to make sure that you have a team in place that you can count on to do the tasks that you simply don’t have time to do anymore.

Before you lay too much blame on the economy and the government (I’m not saying they aren’t responsible), you need to examine your internal processes, because unless you are sticking to these guidelines you are setting yourself up for failure.