The world is changing—fast.  If you are a business owner, you know how quickly your company can become commoditized. 

Commoditization can mean lower prices, lower margins, and (if you don’t do something about it soon), the demise of your business.

Over the last several months, I have discussed the notion of commodization with several hundred successful entrepreneurs.  We have discussed this phenomenon in our TABBoards and are developing specific tools and strategies to address it.   Many owners see great opportunities in hyper-rapid change, others are petrified.  Just about all agree that if they do not lead and stay differentiated, that they can quickly get trampled.  The question is HOW.  Here are a few tips to prevent you and your company from becoming a commodity:

1.  Develop a Proactive De-Commodization Strategy:    If you think your product or service is so unique that you are immune, you may want to think again.  Over one million people have viewed the Did You Know 3.0 video.  If you haven’t seen it, please take 5 minutes to check it out on YouTube.   Those who have watched it are struck not only by the speed at which the world is changing, but also the rate with which this speed of change is increasing.  In your business planning, make sure to incorporate the fact that commodization happens 10 to 1000 times quicker in the Information Age than in previous generations.

• Develop an Innovation Mentality:  This is not an easy feat.  It requires an unconditional commitment from the owner and from the entire leadership team.  Changing the way people think can be tough, but the rewards of developing an Innovation Mentality will be well worth the effort in the face of changing marketplace that all businesses face today.

• Develop a World Class Sales Organization:  Your competitors are the biggest readers of your website and marketing material. If a product or service is valuable and there is a decent sized market for it, someone, somewhere will soon be trying to duplicate it.   An effective, differentiated, scalable Sales Culture is something that can not be duplicated.  I have developed a simple checklist you can use to create a high-performance World Class Sales Team.  If you’d like a copy, click here and write “WCSO Checklist” in the Subject line.  

• Develop your Reputation by Becoming Your Industry’s Most Trusted Advisor:  Products and services can be copied quickly, but overcoming your reputation as being the most trusted source is difficult.

• Become a TAB Member:  Many of you who are reading this are already members of The Alternative Board and have developed an edge over your competitors by virtue of the proprietary TAB process.  This process includes peer learning, accountability coaching, effective planning tools, operational and financial assessments, business education and much more.  If you are not a TAB member, but have an interest in learning more or seeing if you qualify for membership, call 512-331-1822 or click here.

In our rapidly changing global economy, the great idea that you worked so hard to develop into a business advantage can likely be re-engineered in India, China, or a host of other places that can deliver your product or service at a fraction or your cost.   An idea that took years to pirate a generation ago can today be re-manufactured and delivered in a period of weeks or months.   By following these simple steps, you can create an amazing competitive advantage for your company.   

Copyright ©   Joe Zente  2009.   All Rights Reserved.

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	Small business owners who are members of The Alternative Board (TAB) get hands-on interaction with other owners who are dedicated to solving your business challenges. By working with your peers to create, implement, adjust and stay on track to meet your goals, you will learn new ways to run your business more efficiently and effectively. With TAB, there is strength in numbers. In fact, 4 out of 5 TAB members are optimistic about their business in their local economy.   When you become a TAB member, you can expect: Different and refreshing perspectives on the common challenges all owners face Accountability to and from a board of peers to help you develop and maintain your results-driven momentum Accountability to and from a board of peers that help you achieve your personal and professional goals
Start solving your business challenges today.
Call Joe Zente today at 512-331-1822 or visit TheAlternativeBoard.com/investinyourself.
© 2008 TAB Boards International, Inc. All Rights Reserved  |  www.thealternativeboard.com  |  1.800.727.0126

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A Recession-Proof Sales Pipeline

After every big party, there is often a hangover.  At least twice each year, many Salespeople, Sales Managers and Business Owners find themselves on the headache side of vacations.  In September, they return from a summer of sun and fun, only to learn that their pipeline from June isn’t going to cut it.  They must start filling it from scratch.  In January, they return from the holidays, only to learn that their November pipeline was deficient and the filling process must begin again. 

This pattern is so common that it has become boring.  During good economic times, managing this pipeline roller coaster can be costly.  During tough economic times, managing this way can spell disaster.

Why do we let this happen?  What about urgency?  Lack of urgency prior to vacation is why the opportunities are still in the pipeline instead of closed, and the elapsed time since then may have been enough for your prospects to forget about their compelling reasons for wanting your help in the first place.  We know this phenomenon as The Law of Diminishing Pain.

What can you do about a measly and inconsistent pipeline?  First and foremost, RAISE YOUR EXPECTATIONS and COMMIT to fixing things for the near term and long haul.   Get on the phone now, call former and current clients and learn what they’re struggling with today.  While you’re at it, get some referrals or introductions.  Plan your next 3 prospecting events, set dates in stone for the next few months and take immediate proactive action to fill the top of your funnel.  Finally, commit to refuse to accept mediocrity and to upgrading your sales organization for good.

Today’s activities are your leading indicator for tomorrow’s results.  Take control of your destiny by developing a right-sized pipeline.  What is a right sized pipeline?  It is a funnel that is the correct size and shape to withstand any external or economic force.   It requires contact definition.  Here is a guide: 

Suspects (obtained an initial appointment)
Prospects (have need, pain, compelling reason to buy, you are differentiated)
Qualified  (you meet their criteria and they meet yours)
Closable (indicated they will buy)

As an example, John Q. Salespro calculates that 3 closed sales per month are required to achieve his goals.  If John closes 60% of his closable opportunities a right sized pipeline would have 5 at the closable stage.  If half of his prospects don’t make it to closable, he might need 7 qualified and 10 prospects.  If half of his suspects don’t convert to prospects, 20 suspects are required.  So John needs a minimum of 42 opportunities in his pipeline at all times (even during vacation)

Now it’s your turn. Using the criteria above, complete the 3rd and 4th columns.

Is your actual much better than your desired?  If so, congratulations.  You are prepared to start 2009 with a bang.

Is your actual as good as desired?  If so, congratulations. You’ll probably outpace your competitors.

Are you short of where you need to be, or do you need help figuring out how to create a right sized pipeline?    Email me and I’ll try to help you get you where you need to be.

© Copyright 2008 Joe Zente

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As sobering economic news continues to permeate people’s airwaves and 401Ks, I receive dozens of calls from business owners about the increasing number of stalls they are hearing from their sales prospects and salespeople. 

Forecasts continue to be pushed out and people are wondering how to get clients to “pull the trigger” on pending projects.  Many are having a tough time closing business in the face of “wait and see” attitudes.

As a business owner, this economic climate makes it even more imperative to manage attitudes and paradigms (both your own and those of your salespeople).  In the face of various delays, spending “freezes”, discount requests, cancelled appointments, and other forms of increased resistance, it is essential to keep mindsets within the Circle of Influence and outside of the Circle of Concern.

As people get whipped up inside their Circle of Concern, it will not take long for your weaker players to believe all the “bad news”.  In the face of externals forces and chatter, they become demoralized and expect to fail.  You cannot allow this to happen.  Make every discussion you have with your salespeople positive.  Discuss only those things that they can control.  Also, find something to celebrate inside each situation.  Can the economy be better?  Sure.  However, business is still being conducted.   Even companies who are proclaiming project delays or spending freezes are still making purchases.  Whether inside a company, an industry, a country or an entire global economy, there is a Bull Market inside every Bear Market.  The job of a great leader and salesperson is to find it and seize the opportunity.

Some of the things your salespeople are listening to are situations that cannot be controlled or addressed, but most of the things they hear absolutely can be.  Superior salespeople already know this.  Encourage all your salespeople to listen more actively.   How much of what they are hearing are simply first-line excuses or pre-programmed objections, something prospects hope salespeople will buy into so they can get leverage?  What percentage of your prospects are simply bluffing?  How many of those objections, stalls and put-offs can be overcome with better strategies, better sales management and a more effective sales process?   How many of your salespeople are REALLY equipped to sell in an economy as difficult as this one?

It is easy to tell your salespeople what you need them to do and then fall into the trap of  hoping for the best.  Unfortunately, hope is not a strategy.  The fact is the great majority of salespeople simply not capable of doing more than they’ve done before in the face of tougher competition and resistance, without some fairly dramatic change.   So what needs to be changed?  You can learn by assessing your sales force.  There are great tools available to diagnose things and let you know exactly what needs to be done to fix it.

© Copyright 2009 Joe Zente

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Some Good Tips for Weathering an Economic Downturn…

View Video Here

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