January 2004 Newsletter
 
 
 
 

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January 2004

ANNOUNCEMENTS

Herb Rubenstein Consulting LOOKS TO EXPAND INTO THE DENVER AREA

Herb Rubenstein Consultingwill be conducting its first exploratory trip to the Denver area to assess the potential of opening a new office in Colorado in the fall. We will be having meetings with law firms, colleges and universities, venture capital firms and consulting firms from January 19-21st. I will keep you posted on these developments. If you have information on companies or firms that could benefit from our business and strategic planning services in the Denver area, please let us know.

UPCOMING SEMINAR ON BOARDS OF DIRECTORS

BCC Chamber Calendar of Events
January 15, 2004, Thursday
Smart Business Seminar
Time: 8:00am - 9:30am

"Get More From Your Board of Directors" presented by Herb Rubenstein of Growth Strategies.

Rubenstein will educate small businesses on the value and efficacy of having a Board of Directors. With most small and medium sized companies do not have active Board of Directors, they are "missing the boat". This seminar will provide concrete methods on how to create a strong Board of Directors and how to get the most from your board. This seminar will also discuss the cost in time and money of this process. The seminar will also address the organizational and psychological barriers that entrepreneurs encounter when considering whether to start a Board of Directors for your company.

This exciting "Smart Business Seminar" is free of charge to members of the Chamber ($10 for non-members) and will be presented on January 15th, 2004 from 8:00 a.m. until 9:30 a.m. in the Chamber's Board Room, 7910 Woodmont Avenue, Suite 1204, Bethesda, Maryland 20814. Seating is limited, so sign up now by going to www.bccchamber.org or contacting Holly Persinger at 301-652-4900 x202 to receive a registration form.

Register On-Line: https://www.bccchamber.org/event_reg.asp
** Remember to check January Seminar**
Or Call the Chamber Office for a registration form 301-652-4900.

THE MONTGOMERY DEPARTMENT OF ECONOMIC DEVELOPMENT ANNOUNCES NEW BUSINESS TRAINING GRANTS

New 50/50 matching training grants for training employees and managers are available from the Montgomery County Government. Since Herb Rubenstein Consulting provides entrepreneurial training, we can design a course for your CEO, President, senior executives or all of your employees on business and strategic planning, creating and securing great value from a board of directors, development of sales and marketing strategies and financial strategies for your business. Fifty percent of the cost of our training services for your company could be covered by these training grants up to $2,500 per employee and $20,000 per company. Other training services provided by many training organizations in Montgomery County could also be covered on a 50/50 basis by these new grants. For more information on this program, please contact Steve Greenfield, Director of Employer Services/Metro Tech CTC, Inc. at 301 929-6880, ext. 1570; or sgreenfield@montgomeryworks.com.

WORLD BANK ANNOUNCES A NEW GLOBAL BUSINESS
SCHOOL EXPANSION EFFORT

Herb Rubenstein Consulting is pleased to announce that the World Bank Group’s International Finance Corporation (IFC) is establishing a new public sector-private sector partnership: The Global Business School Network (“GBSN”). This will support a number of activities linking business schools in the developing and transition countries with leading business schools in the U.S. and Europe. The Network will work to strengthen the capacity of schools in the developing countries to improve the quality of the management education and business training they offer, and extend their reach in local markets to a broader set of firms and businesspeople, especially to small- and medium-sized enterprises (SMEs).

The Network: GBSN currently numbers fifteen top, global business schools: Harvard, Columbia, Wharton, MIT-Sloan, Chicago, Northwestern’s Kellogg, Stanford, Dartmouth’s Tuck, Michigan, NYU’s Stern, INSEAD, HEC, London Business School, St. Gallen, and IMD. These schools will be drawn on by the GBSN to provide the needed technical expertise. The Network is scalable and will respond to demand for capacity building programs.

Network Program Activities: The Network will support capacity building activities driven by the needs of developing country schools, firms and businesspeople; and by the needs of the Network’s partners and other members, who conduct business and operate in these markets. Proposed activities include curriculum development; development of customized executive education programs; faculty and staff development; Ph.D. student development; research exchange programs; and student exchange programs. The GBSN will also work to develop locally relevant teaching materials, utilizing the Internet to make them more broadly available. The GBSN has executed several programs successfully and is developing programs in several countries and regions.

A Multilateral Partnership: The IFC is recruiting additional partners. Partners will include corporations, foundations, trade groups, non-governmental organizations, governments and other multilateral institutions. These will join the World Bank, the IFC and leading business schools to form a single organization whose pooled assets will combine their intellectual and financial capabilities to launch the first global and multilateral approach to managerial capacity building.

Organizational Structure: A unit within the IFC has been established to administer the program. The Director of the GBSN Department is Guy P. Pfeffermann. Guy is a former Chief Economist and Director of the Economics Department of the IFC. To accommodate the expansion of the Network, and to invite others to join the effort, a non-profit organization has been established: The Global Business School Network Center. The President of the Center is William B. Bader, a Senior Research Fellow at the World Bank and a former U.S. Assistant Secretary of State. The Center will maintain a small staff, Board of Directors, Board of Advisors, Board of Regional & Country Advisors, and forge other relationships in the form of Strategic Alliances.

Funding & Other Support: The International Finance Corporation and the World Bank are providing financial and other support for the GBSN. The GBSN is seeking additional financial and other in-kind support from corporations, foundations, governments, NGOs, trade groups and others to help turn the GBSN Center into a significant tool for global progress. Supporters and donors will be grouped into three categories: (1) Founding Donor Partners; (2) Program Funding Partners; and (3) Strategic Alliances. Together, they will contribute important resources required by the Network to operate and deliver program activities.

Additional Information: For additional information regarding the GBSN, its program activities, or to find out more about joining the Network, please contact Guy P. Pfeffermann, Director, Global Business School Network, International Finance Corporation, 2121 Pennsylvania Avenue, NW, F7K-288, Mail Stop F7K-700, Washington, DC, 20433. Phone: 202-473-0786; Fax: 202-974-4306; Email: gpfeffermann@ifc.org. Or, visit the Global Business School Network website at www.ifc.org/gbsn.


THE ARTICLE this month outlines a sales process that has been used successfully for seven years by our clients. With the economy coming back, companies and even nonprofits are looking to refine their sales processes. Every business plan and strategic plan must take into account exactly how the organization’s sales process works. Usually, these processes are not well documented and followed only infrequently by most of the sales people in an organization. I hope that our article is useful to you in reaching your business or nonprofit organization’s 2004 financial goals. For additional information about the services of Herb Rubenstein Consulting, please see our website at www.growth-strategies.com or contact me at herb@herbrubenstein.com. I hope you can attend our seminar on Boards of Directors at the Bethesda Chamber of Commerce. Have a happy new year.

ARTICLE

THE PROFESSIONAL SALES PROCESS IN A NUTSHELL

Article by Herb Rubenstein,
Founder and President, Herb Rubenstein Consulting

Introduction

Sales is not only an art. There are sophisticated methods behind developing the right strategies, finding the right potential customers and learning what you need about the potential customer's needs, timeframe and budget. This process of finding and qualifying the potential buyer requires in depth research and analysis. At the SAS Institute, a process called "CPA – customer pain analysis" pinpoints exactly how much the customer is spending in a particular area, how much risk the customer is currently facing, explains exactly how much money the customer will save and how much risk will be reduced by investing in the SAS Institute's products and software for that customer.

This article provides a framework geared to selling energy savings related products but is applicable for creating an effective sales process for your organization. Although the process has ten steps, over time, it can become imbedded in the fabric of your sales organization. This process will help your organization manage its sales process as well as help improve the results you are currently experiencing in selling your goods or services.

The Sales Process Overview

The ten steps in the sales process are:

  • Step 1 – Create Your Sales and Marketing Materials, Your Thirty Second And Three Minute Opening Statements
  • Step 2 – Develop A System to Generate Leads and Know the Questions You Are Going to be Asked in Advance from Each Potential Customer
  • Step 3 – Understand the Potential Customer's Needs, Buying Habits and Buying Personnel
  • Step 4 – Develop Carefully Tailored, Probing Questions for Your Potential Customer

THEN

  • Step 5 – Make The Initial Sales Call
  • Step 6 – Collect Data and Record
  • Step 7 – Conduct a Precise Needs Analysis for Each Potential Customer
  • Step 8 – Prepare and Present the Needs Analysis, The Proposal, Answer Questions and Be Prepared to Negotiate
  • Step 9 –Develop and Implement the Game Plan to Close
  • Step 10 – Close the Sale; Start Work, Ask for Referrals and Possibly Enter into Referral Fee Agreement for Additional Leads

The Sales Process in Detail

STEP NUMBER 1 - Create Your Sales and Marketing Materials, Your Thirty Second and Three Minute Opening Statements

  • Among the materials you will need to sell anything significant today include a logo, an introductory letter, business cards, brochures, powerpoint presentations, CD's, advertising campaign, sponsorship campaign for events, articles, website, samples of your product or service, letters of reference from your past customers and many other forms of tangible marketing materials.
  • You must have the ability to send this material out within 24 hours of first meeting or learning about the potential customer whether you have a large sales force or whether you only have a sales force of one.
  • Set a goal to send out material to a certain number of potential customers each week (or month), with follow up contacts for each potential customer.
  • The introductory letter should include specific information about the potential customer and not just be a form letter. It must be "personalized" to the potential customer. This can be done by searching the potential customer's website, visiting the premises, interviewing an employee, customer or board member or other person knowledgeable about the potential customer.
  • Make sure your thirty second and three minute "opening statements" are so good that others you know can repeat them when they introduce you to potential customers.
  • Write articles and get them printed and published on websites, in newsletters, magazines, etc. You can use co-authors or professional writers, if necessary.

STEP NUMBER 2 - Develop A System to Generate Leads and Know the Questions You Are Going to be Asked in Advance from Each Potential Customer

  • The key word in step 2 is "system." Identify sales "channels" including individuals, companies, social and business organizations, trade associations, clubs and other entities who will help you find and connect with potential customers. Set a target for generating a certain number of leads each week (or month).
  • When you are asked a question about your business, its benefits or services, be sure to write it down with a careful answer, post the answer to your website under frequently asked questions and include the question and answers as part of your training of your sales personnel. Always look to improve your answers.
  • Create and manage a referral network with written agreements to give referral fees to those who provide leads.
  • Be very generous in referring potential sales leads that are not in your area to others who you know and respect.
  • Develop a system to predict accurately what each potential customer will ask you and be prepared with a well rehearsed answer.

STEP NUMBER 3 - Understand the Potential Customer's Needs, Buying Habits and Buying Personnel

  • Create a chart for each potential customer that includes key information about the potential customer and at least two reasons why the customer should (or must) buy what you are offering and why that customer should buy from you and not your competitor.
  • Remember, you have competition and often in the energy savings business, the strongest competitor is the potential customer just doing "nothing" rather than buying from a competitor
  • Figure out how your potential customer learns. Is he or she a visual learner, an auditory learner or kinesthetic learner? A customer's learning style will affect how you make the key presentation.
  • Know exactly who makes the buying decisions
  • Learn about your potential customer's current and long run business needs including:
    • financial goals
    • current financial situation
    • leadership and decision making structure/mode
    • history of operations
    • full range of products/services provided by your potential customer
    • how your offering fits in with your potential customer's urgent, current or future needs
    • potential tax benefits from investing in energy savings product and services

STEP NUMBER 4 – Develop Carefully Tailored, Probing Questions for Your Potential Customer

  • Develop a set of 10-15 probing questions that allow the potential customer to inform you of their needs and current level of interest in purchasing the services you offer. Examples of these questions are:
  • How much does your company (or non-profit) spend on energy related services? How much does it vary over seasons? What do you believe your competitors spend on similar services? When is the last time you had an energy audit? How strongly do you believe the USA should reduce energy consumption?
  • How are decisions made to buy energy related advice and products? Centrally? By facility? By division? Who makes these decisions and what is their budget authority
  • Is your organization going through significant cost challenges? If so, what cost cutting strategies have you deployed recently and which ones do you expect to implement in the future?
  • Is your organization planning for significant growth in the next several years which will affect your energy costs?
  • How much do you expect to grow your business over the next five years?
  • Do you have a business plan for your organization that includes an analysis of your energy costs and needs over the next year or several years?
  • Would your organization realize tax savings if you invested in energy savings products and supplies?
  • Would investing in energy saving products and services positively contribute to enhancing your company's reputation in the community or help with your marketing campaign?
  • Would your employees or board of directors support your decision to invest in energy savings products and services.

—————

After these four steps are completed and you have conducted research on a list of potential customers, now you are ready to make that initial sales call.

STEP NUMBER 5 – Make the Initial Sales Call

  • Once you have some understanding of the potential customer's needs and resources to pay, then contact the right person in the organization and make the initial call or take steps to find someone who will make an introduction for you.
  • If you do not have an introduction to a potential customer, it is a cold call. If the potential customer has been informed about your company through the lead generation process, it is a warm call. If the potential customer has expressed an interest in your products and services to the person who is making the introduction, and is expecting your call, then this is a hot lead.

STEP NUMBER 6 – Collect Data and Record

  • Your initial sales call should focus primarily on exploring the needs of the potential customer. Sixty percent of the time should be spent listening and 40% of the time should be spent talking and presenting your sales pitch.
  • Offer to sign a nondisclosure agreement and promise to keep all information given to you about the company in the strictest confidence.
  • Get the data on energy costs for the company and look for the low hanging fruit in the area of energy savings possibilities.

STEP NUMBER 7 – Conduct a Precise Needs Analysis for Each Potential Customer

  • Conduct a thorough needs analysis to offer the potential customer a fresh look at the potential customer's problem and the costs and benefits of the solution you provide.
  • Be precise and present the analysis in writing.
  • Invite your potential customer to show the needs analysis to others for reanalysis.

STEP 8 – Prepare and Deliver the Needs Analysis, the Proposal, Answer Questions, and Be Prepared to Negotiate

  • Meet again to educate the potential customer about your findings and make your offer in writing
  • The proposal should have a pertinent quote by the potential customer from one of your meetings, plus a timeline, budget, all warranty information and all key components outlined clearly and in plain English
  • The proposal should look tailored specifically for this potential customer
  • Make sure that you have some room for negotiation in your offer and be willing to make some type of concession to close the sale right then.
  • Show in the proposal how you intend to maintain a relationship with the customer after the initial sale is completed.
  • Include as exhibits to the proposal any new articles that are on topic and would help educate and persuade the customer.

STEP NUMBER 10 – Close the Sale; Start Work, Ask for Referrals, and Possibly Enter Into Referral Fee Agreement for Additional Leads

  • Make sure the contract is signed and all financial arrangements are satisfactory
  • Monitor implementation closely
  • Warn client immediately of any expected delays or problems
  • Ask for letter of recommendation
  • Ask for referrals
  • Offer to post your customer's name on your website or in your marketing materials
  • Offer some compensation for referrals, if appropriate

Conclusion

Ten steps. Easy to describe. Challenging to implement. Keeping accurate records of all sales efforts and results, as suggested by The Balanced Scorecard authors, Norton and Kaplan, is essential. Keeping abreast of your competitors is required. Learning new strategies from others who are successful in your field across the country or in other countries has become easier due to email, chat rooms, websites, and other forms of electronic information transfer. In addition, keeping all of your lead generators abreast of your successes and lack of success with their leads will help keep your lead generation pipeline healthy. Ultimately, you will judge yourself against the goals you and your organization set. Set "stretch goals" and when you reach them, increase your future goals accordingly.

Biographical Information

Herb Rubenstein is an attorney and the CEO of Herb Rubenstein Consulting, a leadership and management consulting firm. He is co-author of Breakthrough, Inc. – High Growth Strategies for Entrepreneurial Organizations (Prentice Hall/Financial Times, 1999). His email address is herb@herbrubenstein.com and he can be reached at (301) 718-4200 in Bethesda, Maryland or (202) 236-7626 in Washington, D.C.

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© 2007 Herb Rubenstein Consulting