How can eProcess Pros reduce the cost of providing essential business tools to small businesses?

Most small business owners didn't get into business because they wanted to build a better administrative environment. They got into business for several reasons, being the best administrator was not one of them. They wanted freedom to chart their own course. They wanted to take responsibility for their own future. They had an idea or a passion they wanted to chase. To accomplish this they had to build the typical administrative infrastructure required of all businesses. Aside from the regulatory compliance issues of reporting and paying all levels of taxes from business taxes to sales taxes to income tax, a business must be able to track progress against revenue and expense goals.

Think what your world would look like if all you had to do each day was to pursue your passion. The company ran itself from a bureaucratic standpoint. Purchase orders and invoices were processed. Revenue was booked according to government regulation. Expenses were applied correctly. Marketing collateral was created and deployed automatically based on predictable rules. All you had to do each day was manage the customer and prospect interaction. For those that are creating and delivering a product or service, you spent some of your time managing that critical process. The view was not in the rear view mirror dealing with events that have already happened, but looking forward to impact events yet to come… this sounds too good to be true.

For a small businessperson to achieve this state of business nirvana two important resources have to be captured and they have to be captured at a cost below what the businessperson would pay to do it internally. There has to be access to subject matter experts that can provide expertise faster, more accurate and more cost effective than the current environment. There has to be a technology infrastructure in place that makes the business processes seamless to the business owner, more reliable and highly cost effective. In both cases more cost effective is maybe the most critical element. I say this because in a small business "cash is king". Small businesses can't afford elaborate solutions with multi-year paybacks. They would like them, but they generally can't afford them.

Subject Matter Experts – There is no shortage of subject matter experts (SME) calling on small businesses. The problem is that most small business can't afford to take advantage of them. In a lot of cases their cost is not unreasonable; the payback just doesn't support the expense. These SME's can be accountants, marketers, HR professionals or business consultants. eProcess Pros has solved this problem for many small business by allowing them to take advantage of only what they need. We have a pool of resources available through our partner network. Think of it as group insurance. We contract for excess capacity within our partners, which enables us to deliver highly cost effective resources to our clients. Because we can commit to higher volumes of activity than any one small business can, we can negotiate a better price then you could get on your own. We even have access to college level resources (professors for advice, students for labor).

Technology Platform – The problem with dedicated resources is, like time you can't recover unused resources. The typical business that has a server running in their IT closet pays for that server 100% of the time even if it is only used once in a while. The dedicated server has to be configured for peak traffic, even if that is only once a month or once a quarter. The same is true for the applications running on the server. In many cases it includes the human resources required to keep the server, network and applications up and running. eProcess Pros helps reduce cost by using the "cloud computing" approach. Our architecture allows multiple companies to share physical resources without compromising security. This approach not only improves overall performance of the application, it reduces the ongoing support headaches and reduced cost.

It's the perfect solution. We take on the tedious every day repetitive business processes freeing the small business owner to focus on the strategic and dynamic daily activities of building their business.

Hiring in a bad Economy

I just saw the title of a newsletter saying "Now is the Time to Upgrade Your Clunker Talent". Nice take off from the Obama Clunker program, but probably just as ill advised. Let me start my premise with some facts. The Automobile Association stated that on average 220,000 clunkers have been traded in per month over the last few years. The Department of Transportation reported that in July there were 245,384 clunkers traded in, a net increase of 45,384. These cars cost the taxpayers $1B. That's a little over $45,000 per incremental new car sold. Basically 220,000 people got a better deal on a car then they would have gotten anyway. The tax payer paid an incredible price for the incremental improvement.

So what has this to do with upgrading your talent at work? A bad economy and high unemployment is not the right reason to decide to look at your employees. The Obama Administration rushed out a program to make their bosses happy. The concept on the surface looked good, but the true numbers didn't wash out. Don't roll out some employee upgrade program just to make your boss happy. If you have employees that shouldn't be there, then a bad economy and high unemployment isn't the reason to change them. You should change them because they aren't the best employees.

This brings me to my second point. You hired and kept them up to this point. What in the economy makes you a better decision maker? Rushing out to hire someone else just because people are begging for jobs, won't make you a better hiring manager. If anything you are likely to hire someone who normally wouldn't take the job and will leave you after things get better.

Hiring the right people entails matching a lot of attributes including the job, the compensation, cultural fit, skills, aptitude and more. A bad economy might make more people available, but it won't improve your ability to hire and manage. You still have to find the right talent. The people out of work who wouldn't work for you long term, still won't. The job isn't a right fit for them. They will work for you until they can find the right fit.

The last point is this; just like the Clunker Program, everything has a price. Productivity of new employees is always below existing employees. The new employee has to learn your products, your culture, your procedures, and the way you do business in general. This not only takes up the time of your new employee, it takes time away from others on your staff. Replacing a consistent mid level performing employee with a new one will decrease productivity in the short term. There is a cost associated with hiring a new employee that is not just dollars and cents. If the employee isn't going to stay long enough to recoup that cost, like the Clunker Program, it's just bad math.

We are not defined by what happens to us, but how we react to what happens to us.

Today I met Elijah, Elijah Sebuchu from Kampala, Uganda. Elijah is the eighth of thirty-eight children. His father has twelve wives. His grandfather was chief over 60 villages. He was twelve when he got his first blanket all his own. He was fifteen when he got his first pair of shoes. He was twenty before he knew food was sold in stores. He was over thirty when he met his first westerner. He never had anything. Drinking water was as scarce as food. He has to travel six kilometers to get water and bring it home in a bucket. That water has to be boiled before it can be consumed.

He now runs an orphanage for 460 orphans whose parents have died of AIDS. These orphans just come to him because they are hungry, thirsty and alone. They sleep on the ground or in bushes. Finding shelter is a very big problem for them. Elijah feels blessed and is happy that he has the opportunities he has. When he first came to America in 2007 he couldn't sleep for three days because of the abundance all around him. We water our lawns with water his people would die for. But he is in no way angry. He knows we are blessed so that we can bless others.

WOW, can I be an Elijah? We are all dealing with problems in this down economy. I am certainly no exception. I haven't blogged in several months because I was just heads down trying to cope. I certainly don't mean to trivialize our problems, but maybe put them in perspective. We are blessed to be born and live in one of the greatest countries in human history. We have access to almost unlimited resources, opportunities and ideas.

Plato said "Necessity is the mother of invention." On Maslow's hierarchy of needs, we as Americans very seldom go without the physiological needs of food and water. We seldom truly deal with the issue of true safety on a regular basis. We may at times feel insecure or even afraid, but it is typically transient. The needs that drive our invention are belonging, self esteem and self actualization, the higher needs.

Today I was reminded that I am blessed beyond my comprehension. I will survive and prosper. I always have. I am blessed so that I may bless others.

Commission Only Sales?

Recently I have been involved in a number of "commission only" sales discussions. It's only natural in a down economy to try to find ways to cut cost and remove risk. I will give you my bias up front, I have never had a commission only position and I have never wanted to implement one within my organizations. Keep in mind that I have spent most of my career in technical sales, with long sales cycles (typically more than two or three visits) and a fairly strong price tag. It has been a solutions environment, not a product environment.

Now having said that, I'm not opposed to commission only sales positions. I do think that several conditions need apply for it to be successful.

1. Short sales cycle, one stop selling is best.
   
2. Lower price point, typically one that would facilitate an immediate decision
   
3. High transaction level, several sales per day or week
   
4. Simplistic sales methodology, the fewer steps the better
   
5. Strong lead generation program to support the process
   

I know of a couple of companies that have tiered compensation plans. A new Territory Manager might start out year one with a reasonable base and lower commissions. Year two they are required to select either a lower base and higher commissions or commission only, which pays the highest commission rate. The reason this model is successful is because the sales cycle for the initial system is long, but there is a high volume of additional sales once the system is installed. The really good sales people have a strong base and recurring revenue. They have a steady stream of revenue every month thus insuring a monthly income.

So if the environment is right, what's the down side? I have heard it stated by several sources that the cost of hiring a sales person, including training cost, is $40,000 to $100,000. Most sales people become more efficient and productive the longer they are in territory. The risk in a commission only sales position is employee turnover. What is the incentive for the sales person to stay? How does the company protect their investment?

The second downside is loyalty. Many commission only sales people do not see the need to act out of a sense of loyalty toward the company that has hired them. They are very territorial in their approach. They tend to not share best practices. They are very reluctant to perform most administrative tasks that don't lead directly to compensation. They feel they do not owe the company anything, because they only get a small portion of what they provide to the company via sales. If they are making enough money and the company provides them the freedom they want, they may stay indefinitely. But that decision is predicated on them achieving their goals, not the companies.

If the current economy is causing you to seriously change the compensation plan to a commission only plan, think long and hard first. It may be the solution, it may compound the problem. Trying to multiply the sales force by reducing the base may not work as well as you think. The numbers may say differently, but give it the logic test. Will six commission only sales people outsell three with a small base? What will the administrative cost be with higher turnover and a sales force that just doesn't seem to get around to the paperwork. Can they hunt on their own (and what is the incentive for them to do that for you verse anyone else) or do you need to provide leads? If they don't follow procedures what's your leverage?

Again, I have intentionally stayed away from commodity, product sales so I wouldn't look for a commission only sales position. I have always felt my value to my employer and my client was my ability to solve problems. There is a place for commission only sales. Many very good sales people have made a very good living on this type of plan. But it comes at a cost for both.

What makes "Cold Calling" such a hot topic?

Cold calling is an old and fundamental sales skill like closing. 10 years ago a sales person might use direct closing techniques like assumptive closes. Today smart sales people let the prospect close themselves by constantly injecting soft closes in the discussion. No one likes to be sold, but everyone likes to buy. Leading the prospect in direction you want them to go builds long lasting relationships.

Cold calling is another very old sales technique that has changed over the years. It doesn't make sense to start dialing through the phone book. There are just too many defensive strategies that your prospects have already engaged. They are inundated will sales pitches. The old adage that you have 3 seconds to get 3 minutes to get 30 minutes applies. If you can't say something in the first 3 seconds that gets them to stop multi-tasking and respond, you'll never get to your 30 second elevator pitch.

What that means is that you need to already know what would stop them in their tracks before you dial the phone. As a cold caller you will need to segment your market so that each group has a discrete business problem that they would stop what they're doing to hear more about. You can't use a shot gun here, its work for a sniper. You have to be able to present that business problem in the form of a question that they would respond to. And then you have 30 seconds to hook them into a conversation.

Most cold callers are dialing machines. They could care less what the response is on the other end. They assume they will lose 98% of the time. They are trying to get through the no's to get to a yes. This is brutal on everyone. If you really planned out your approach you might only get shot down 93% of the time. Your probability of success goes up if the caller knows and expects you to call. That is where referral marketing, web marketing, snail mail, and e-mail marketing can help. It's like artillery bombardment before the beach landing.

If this is an important tool in your sales arsenal, then it makes sense to think the entire process through from the prospects end before dialing the first number.

How should a Sales Program be created and run?

Kees Vogelesang, Head of Business Operations, Oracle EMEA Strategic Accounts division
wrote:


Best Answer: Took some time for me to rate all the answers ;-)

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His Question: How should a Sales Program be created and run?

My Answer:
First of all I distinguish "Sales Program" from "Sales Process" they are very different. You're at Oracle, so the first question is; "What is the sales program for? Is it to grow revenue organically or provide market share growth?" Sales programs around market share growth are much more difficult than programs geared toward organic growth.

In any case I would start with an analysis of the installed base. What have they bought, when have they bought and who are they. Knowing the business profile of the clients that bought the product you want to promote during the same time frame you have targeted gives you a running start. If you don't know what you want to promote or when, this might help answer that question. Sometimes a trend pops out that answers the question for you. During this analysis for another program my staff noticed a very large installed base of EOL software; we quickly created a sales program to get these upgraded. Easy money…

Once you have a good understanding of who buys today and why, you have the starting point to move forward. Again, not knowing specifically what you would like to accomplish I can only guess at potential avenues to follow. I generally have target revenue for my program, so I work backward. What is the value of the product I want to promote and how many of these do I have to sell to make my target? I can look at my data to see who has bought it in the past. I can project that profile over the market to see the potential prospects. I can calculate the probability of success.

Now the hard part… the science is easy, the art isn't…. Now you have to be able to exploit the unique sales proposition you have in the market place to create two important things… a driving mechanism and a critical event. You have to create an offer that is so compelling that the market will want to act and a time frame to act that causes them to make a decision. Without these you have nothing….

Once you have these in place; (i.e. steps 10 through 600 are left up to you) you can create a program roll-out package for the sales force. They need the list of targets, sales training, the product promotional, and the calling scripts. Personally I would go one step further and provide proposal boilerplate and sample letters. The less you leave up to them the faster they can execute.

Last, and I always leave this to last, you will need a sales SPIFF. Some incentive to get them to act differently during this campaign then they would normally. Sales activity is driven by the compensation plan. Tie it to desired financial goals, not sales activity.

This is the best I can do without writing a book.

"Two men are walking in the woods when they come across a bear...”

At the point of conception we are endowed with a stew of DNA. It determines our height, our weight, our hair color, our eye color, everything about us. This includes our intelligence, our passions, our resilience and our desires. We have a DNA blueprint of how our lives could roll out. We are in part a reflection of our life experiences, but more importantly, if we choose, we are the product of who we are destine to be.

Every morning when we first wake we are given a chance to mold the rest of our day. We can choose to look backward at those things that have happen to us or we can chose to look forward to how we will change our existence into something of meaning. All too often I meet people whose yardstick of success is predicated on the performance of those around them. In the story of two hikers in the woods who come across a bear, the one hiker puts on running shoes. The other asked "why, you can't outrun the bear." The first responds "I only have to outrun you." I would suggest that we are all given the innate ability to overcome the bear in our own unique way, without sacrificing someone else.

The travesty of this "outrun you "mentality is that first of all it creates a win-lose scenario and second it robs us of our true potential and our self actualization. We go through life thinking that we have to be better than someone else to have meaning and value. The problem is that we will always know people who are better than us in many ways. Ways in which we are not naturally talented or gifted. The truly competitive people among us become good at marginalizing these talents in an effort to build themselves up.

I know that a better approach is to surround yourself with those much more talented than you and learn from them. "Fly with the eagles." Know that your destiny is as unique as your talents, passion and drive. Spend every day living up to your DNA. The great thing about following your passions is that it makes everyday an adventure. It's easier to get up, it's easier to learn, it's easier to excel and you can do it longer.

Nothing could be more tragic than a life wasted and yet I see it every day, people going through life trying to be better than their neighbors or co-workers, but falling short of their true potential. In time this constant competition, in which we are doomed to lose, wears us down. Retirement is that far off goals that signifies the end of the race. Those, whose focus is on living to their potential, don't want the race to end. They are still creating the person they ultimately want to be. Retirement means no longer working for money.

At conception each and every one of us has all the tools to be successful and happy. It is not externally driven, but internal. Madison Avenue, MTV or Vogue Magazine doesn't own your potential, don't let them form it. Find that which your inner-self longs for, nurture it, feed it and watch it grow. Jack Trout, one of the great pioneers in marketing says "If you can't be first to market, create your own market."