World Business Web

Have you ever met with a prospect who thought they knew everything about your product or service? But, after talking to them you discover they have been misinformed or did not know as much as they thought they knew?

With search engines like Google being such an easy place to get information for your prospects, you may find prospects who are educating themselves before talking with you. The real challenge becomes making sure the information they are researching is really good information to help them in their decision process.

Imagine for a minute you’re going to have a kidney transplant and you decide to do some research on the internet before hand. Do you take that information and tell your doctor how they should be doing the surgery, or even how you plan on buying their service? My guess is you would probably not do that, but it is just a guess.

Your doctor would probably do a good job of explaining how the procedure was going to go, what things you should be aware of, where to expect pain, why they’re doing what they are doing, etc. If you have good rapport with the doctor you will allow yourself to fall under their care, guidance, and protection.

So the ultimate question you need to ask yourself is who is the expert with your product or service? You or the prospect? Just because somebody read some information on the internet does not make them an expert. Remember that you are the expert in what you do, it’s now time for you to take charge and act like the expert.

Let me share how I go about guiding my prospects through the key areas they should be concerned about as it relates to growing their small business. There are two main areas I share with them.

The first area you want to be aware of is where can you achieve business growth. You have three opportunities to grow your business.

Growth Area #1: You can sell to more clients.

Growth Area #2: You can increase your frequency of sales to your clients.

Growth Area #3: You can increase your average sale.

The second area you want to be aware of are the four disciplines in your business to achieve growth in each of the three areas.

The first discipline is getting in front of enough new prospects.

The second discipline is converting your prospects into paying clients.

The third discipline is expanding the current client relationships you already have.

The fourth discipline is getting the right people on your team to execute the disciplines.

So after I share this information I ask my prospect the following. “Mr. Prospect, as you and I talk about growing your business, do these areas and disciplines make sense, and more importantly, are they relevant to the conversation you and I are going to have?” My experience is that after starting the conversation together like this, my prospects are in complete agreement with me.

If they are in agreement I always ask if there is anything else we should add to our conversation to make it worthwhile to them. This makes sure that any other items they may want to discuss are added to our meeting together.

There was a time where I had been instructed to ask people what they wanted to accomplish together and it almost always lead to nonsense. When I say nonsense I mean prospects said things like, “I want to find out how much it is, who else you work with, why I should buy from you, etc.”

I’m not saying these things are not important, but they never shared their real issues openly. All that other stuff is just intellectual fluff and not the real emotional goals and frustrations that drive prospects to buy.

By sharing the structure of the areas we help small businesses grow I have been able to guide prospects on the key areas that are either helping or hindering their business growth. I promise you that people want to be lead, and as small business owner it is your duty to lead them in the right direction.

Now it’s your turn. I want you to think about the areas or structure of what you do that helps your clients. How can you do something similar to what I created?

I have a client who sells furniture. We helped them define the best objectives for clients in the areas of comfort, quality, and style. By creating a basic outline you give yourself a framework to operate within. It also gives your people responsible for building business relationships great confidence, and helps you manage the process more effectively.

Your objective is to now go and brainstorm the components of structure that will help you guide your prospects. Then you can help them discover you are indeed the best fit to help them achieve their goals and overcome their frustrations.

Cash flow is one of the biggest challenges that small business owners face. One of the reasons is because usually not enough attention is paid to managing it, until a crisis hits. Small business owners are often so focused on growing their businesses and making sales that they fail to see how their operational costs are eating into their profits. Suddenly, there are bills to pay and clients haven’t paid yet; as the business owner, you have to figure out a way to get cash in fast. However, if you are diligent about managing your cash flow, you can foresee and set up contingencies for situations like that. Here are a few tips that can help you to stay ahead of the game.

Know Your Operational Costs

Right from the start you should know what it costs to run your business on a monthly basis. Certainly, there will be some variable costs that change on a monthly basis but you should still have a rough idea of what they are so you can form a budget. If you do not capture all your expenses then you are quite likely to forget about some of them. A few hundred dollars here and there can quickly add up. The easiest way to do this is to draw up a simple spreadsheet. Capture fixed expenses such as rental costs and salaries first, and then have sections for income such as stationary, telecommunications and fuel. These operational costs should form the basis of your budget. They define your break-even point of your business. Bring in less income than that and your business will be in trouble. Always know the target that you need to reach in terms of turnover.

Define Your Payment Dates

Try not to have all your expenses payable at the same time of the month. Most landlords require that you pay the rent up front yet many insurance companies, for example, will allow you to schedule your debit orders for the 10th or 15th of the month. What this does is spread the load of your payments throughout the month. Instead of having to make sure that you have a lump sum of cash available at the end of every month, you need only a portion of your expenses to be covered then and have some more time to get in the balance of your cash before the next batch is payable. It may initially seem like a mission to split up the payment dates but it can make a huge difference to your cash flow.

Be Strict with Your Debtors

This is a trap that too many business owners fall into. They do not want to offend customers and potentially lose out on their business so they bend over backwards to accommodate them and let them get away with paying late on a regular basis. Large companies often use this tactic to help balance their cash flows. The longer they can stave off paying a small business, the greater benefit to them. You don’t have to be aggressive when chasing payments. From the outset with clients, make sure that you clearly communicate your payment terms. Ideally, small businesses should operate on a cash-on-delivery basis but in many industries, this is not possible. Try to have as short a period as possible for payment. Ideally, it should be seven or 14 days. At the outset, it should never be more than 30 days. If it is seven days then clearly state this on your invoice and when you make delivery. If after the eighth day you have still not received payment, make a phone call to find out if it has been processed. If it has but doesn’t yet reflect in your account, let your client know that you will call to confirm as soon as it does. This is a polite way of letting them know that you watch and manage your cash flow closely and that they cannot get away with delaying payments.

Make Sure You Have a Wide Customer Base

Many small businesses start with just one or two major clients. While this is great initially, think of what will happen if that big client delays payment or doesn’t pay at all. How will that affect your cash flow? It is much better to have lots of smaller amounts of cash consistently coming into your business than to depend on one or two large payments every month. To have large clients is great but make sure you can break even without their payments. That way, you will always have a strong cash flow.

Every business owner knows that when it comes to financials – cash flow is king. It doesn’t matter how many debtors and creditors are on your balance sheet, your day-to-day operations depend on cash.
When it comes to maintaining a healthy cash flow, good financial management is key. You’ll need to accurately forecast for the future and make sure ensure you have cash in the bank. Here are some tips to bear in mind:

1. Collect – many small businesses can do much to improve their incoming cash by simply following up with their creditors and collecting on receivables. Ensure you send invoices to your clients in a timely manner and send follow ups and reminders regularly. Merchant facilities will make it easy for your clients to pay you – consider setting up credit card payment with your bank, requesting a retainer before commence a job or offering a discount to clients who pay early.
2. Manage – budgeting is vital to small business success. Prioritise your current and future expenses to fit your cash flow forecast. Stick with your budget and schedule payments to maximise the amount of cash you have in hand. Plan for seasonality and variances in incoming funds. Smaller monthly payments are generally cash flow friendlier than large outright purchases, so operating leases and other forms of asset finance are great ways to manage your capital acquisitions. Make note of your debtors and determine which ones are more flexible with offering an extension on payment.
3. Respond – of course the nature of business is unpredictable, and there will be plenty of moments that you’ll need cash. Short term loans can help in these instances so maintaining a good relationship with your on-going lending institution is a good idea. Meanwhile, speaking regularly with multiple lenders lets you compare rates and find the best option for your business needs.

Finally, make sure your business isn’t affected by bad business. Doing a quick credit check on new clients will ensure that they good credit history – so you’ll know that you’ll be paid on time.

If there is one thing, you need to learn to acquire when you are in business, it is how to have the skill to attract clients. Nevertheless, let us go further and say that you need to learn the skill of attracting the RIGHT kind of clients.

More than any other skill or capability when marketing one’s business, attracting the right clients is one ability that can help your business to achieve its goal. And despite being economically unstable at the moment, your business will never want for profits and financial security as you will find your marketing endeavors such as your brochure printing or print brochures become more responsive to the goals you want to accomplish.

Having this skill can also provide you with enough time to not only devote it to growing your business, but more importantly to having quality time with your family and other social events. The bottom line is to attract not only more clients, but also especially those people who have the capacity to pay for what you are offering. When you learn how to attract the right target clients, you will truly have an amazing tool that can get you the leads you want, when you want it and where.

The next question now is how you figure out what your target market wants. The answer lies on the following steps:

1- Remember that being visible is not enough to get you your clients. Nor is getting your words out there. These things are not adequate to secure you the leads you need in order to grow your business.

2- Most clients and customers know what they want. They will not buy anything just because you believe they do want them. More often than not, consumers buy according to their wants.

3- Again, customers buy because they want to, not because they need it. Therefore, unless your offer matches what your target clients want then securing the right kind of clients will always be something of a dream for you. What is the solution to this problem? Keep tabs on your target clients and research on what products and services does your target client wants in the marketplace.

Next, in order for you to get the right target clients, you need start selling to those who have already signified their interest to buy your products or avail of your service. Focus on people who have said ‘aye’ to your offer, and then encourage them further so your business can gain profits in the process. This is more lucrative than trying to sell your products to just about everybody and anybody.

Then, learn to unlearn your perception of making your target clients more than what they are – people. Your target clients are people that are no different from you. Do not be afraid to approach them. They are people just like you – having the same physical functions, emotions, needs and wants. By understanding this, you will gain more confidence to talk to your target clients about your business so they can relate their needs more effectively.

Finally, learn to accept rejection. It is not you. It is the product or service you are offering them that they rebuff. When you do accept this reality, you will be able to be more honest and confident in dealing with your target clients.

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