Sales Magic is Bogus: Understanding the 80/20 Rule & Trigger Points (Part 2)

Sales Magic is Bogus: Understanding the 80/20 Rule & Trigger Points (Part 2)

January 18th, 2010 | Author: Gary Whitehill

In their profession, top sellers obsess over one critical rule: What is the 20% I do which makes 80% of the difference in the acquisition and retention of my customer?

This is not rocket science folks- just simple mathematics.

However, it does require a highly skilled salesperson to recognize the 20% which does in fact make 80% of the difference. So then, how do you recognize this 20% sooner rather then later? Well, to be truthful, it can be complicated in certain industries, but overall it boils down to a few things:

• Time – The longer you spend understanding your customer, both in person and through your own independent research, the more successful you will be in every stage of the sales process.

• Energy – It is contagious. If you’re high energy, your customer will be as well. High energy = high engagement, high engagement = more likely sale. High energy can easily tip the odds of a sale in your favor

• Persistence – On average, it takes 5 “no’s” to get a “yes.” Don’t simply take the first “no” as the customers only answer in the sales process and leave (as 99% of sales people do). Instead, expect and embrace the “no,” because the sooner you get all 5 out of the way, the sooner you’re going to make the sale.

• Enthusiasm – Believe in yourself, your product and the process by which you make the sale. If you don’t, you’re mediocre at best at the sales profession.

Leveraging each of the above points to learn about your target consumer is a crucial first step in understanding their purchasing triggers in both short and long-term contexts.

Next, take what you’ve learned from your customer (constructive feedback) and immerse yourself in their purchasing mentality. Devote a considerable amount of time and energy toward understanding every one of their tastes/habits/likes/dislikes. This is not meant to be an overnight exercise- the more time you spend reflecting, the easier it will be for you to identify with your customer.

Once a salesperson understands their target consumers purchasing mentality, they can then begin the process of honing their presentation into a few concise, actionable and repeatable steps. Over time, this makes all the difference in the world between selling just the industry average and selling in excess of 200% more then the next closest sales representative.

——Stop At Nothing. Achieve Anything.

Gary Whitehill is the Founder of The Relentless Foundation and New York Entrepreneur Week (NYEW), both of which reflect his entrepreneurial drive and relentless energy.

In 2009, The Relentless Foundation inspired the creation of New York Entrepreneur Week (NYEW), an unprecedented gathering of entrepreneurs, from innovation-minded start-ups to multi-million dollar revenue generators who are given the chance to learn, connect and leverage opportunities to help drive economic change.

The Entrepreneur Week movement continues to grow, with events planned in more US cities and around the world.

Additionally, Gary believes kids should have the ability to create the world they want, and that those who are driven to achieve must also be given tools such as entrepreneurship to learn, grow and express themselves.

Gary supports people and companies invested in driving social and economic change.

The Advice Most Important to Entrepreneurs in this Economy

The Advice Most Important to Entrepreneurs in this Economy

January 18th, 2010 | Author: Guest Blogger

When I look back over the advice given by entrepreneurs featured on NewsonWomen.com in 2009, it becomes clear what entrepreneurs think is important. The number one topic mentioned again and again by entrepreneurs on how to be successful is “people” – who you work with makes the difference.

The second most popular piece of advice mentioned is finding your “niche” and capitalizing on the opportunities it presents. Coming in third for advice on the road to success is the “customer”, and treating your customers well so they become loyal. This is an unscientific study, but interesting nonetheless.

I was not surprised to find very little mention of financing or advice on how to fund a business in my review, even in this year of economic hardship. Entrepreneurs are by nature creative and innovative, and most aren’t trained in the area of finance. It’s well known women receive only a small share of the venture capital dollars available, so what choices do women entrepreneurs have? I guess it comes down to banking or bootstrapping (using your own money, growing internally and maintaining control of your company).

What do entrepreneurs know of finance and of bankers? When they seek financing, are they focused on the banker’s needs as well as their own? As a banker, I came from a traditional background well versed in the five C’s of credit:

• Collateral
• Character (the entrepreneur’s)
• Cash flow (capacity to repay)
• Capital (the money invested by the owner)
• Conditions (economic environment, money use etc.)

Today’s financial mess is in a large part due to many bankers forgetting these simple rules. Bankers should be somewhat risk-averse, a far cry from the entrepreneurial personality. But these personalities don’t necessarily need to collide. They need to understand each other. Entrepreneurs need to understand the value of the five C’s of bankers. And bankers need to learn the five C’s of entrepreneurs – courage (to take the right risk), control (of their company and their destiny), commitment (to their dream and to growth), compassion (to their people and to their customers), and collaboration (among all). If this happens, 2010 could be the beginning of a beautiful friendship.”

—-

About the Bloggger:

Alice Krause, former Deputy Credit Executive of Chase Bank’s retail businesses, is Founder of the award winning www.newsonwomen,com, the daily news site that focuses on women’s achievements. News on Women reports on what women are doing in business, education, science and technology, philanthropy and the arts.

AOL Interview: An Entrepreneurial Lesson

AOL Interview: An Entrepreneurial Lesson

January 20th, 2010 | Author: Gary Whitehill

Recently AOL’s Daleela Farina interviewed NYEW founder Gary Whitehill on a myraid of subjects, including: his journey as a serial entrepreneur, thoughts on inspirational leadership, the vision of NYEW and plans for The Relentless Foundation in 2010.

The article can be found here.

——

Stop At Nothing. Achieve Anything.

Gary Whitehill is the Founder of The Relentless Foundation and New York Entrepreneur Week (NYEW), both of which reflect his entrepreneurial drive and relentless energy.

In 2009, The Relentless Foundation inspired the creation of New York Entrepreneur Week (NYEW), an unprecedented gathering of entrepreneurs, from innovation-minded start-ups to multi-million dollar revenue generators who are given the chance to learn, connect and leverage opportunities to help drive economic change.

The Entrepreneur Week movement continues to grow, with events planned in more US cities and around the world.

Additionally, Gary believes kids should have the ability to create the world they want, and that those who are driven to achieve must also be given tools such as entrepreneurship to learn, grow and express themselves.

Gary supports people and companies invested in driving social and economic change.

Becoming an Entrepreneur: Things to Consider

Becoming an Entrepreneur: Things to Consider

January 22nd, 2010 | Author: Guest Blogger

This past October I had a conversation with a member of the United States House of Representatives about health care reform. During our conversation, the Congressman made an interesting comment to me about entrepreneurship; he said that the biggest concern with health care costs now are that they prohibit people from becoming entrepreneurs.

When deciding whether or not to pursue an entrepreneurial opportunity, you are forced to choose between a job with a steady salary and health benefits or starting your own company with no salary and out-of-pocket healthcare fees that can cost you thousands of dollars each year.

The lack of salary is not as prohibitive for entrepreneurs as people build up their own cushion prior to leaving their 9-5 job knowing they will not have a salary while starting their business. But losing all of the various benefits that come along with a full time position at an established company can be a hindrance to budding new entrepreneurs as they loose these benefits, including the group rate costs of health insurance and a reduced cost for health insurance as some of the employees costs are picked up by the employer.

Different people will have different opinions on the health insurance dilemma for entrepreneurs. Insurance brokers will try and sell you a plan for your company stressing that it is a tax deduction, while others will tell you that you don’t need insurance right away since you can always go to a clinic or to just buy the cheapest insurance you can find in case of emergencies. But at the end of the day, this is just one of the decisions that people need to consider before starting their own company.

Some others include:

1. Do I need to quit my job – Can I continue working at my 9-5 job while working on my company at nights and on weekends so I can maintain a salary and benefits or do I have to give it all up and focus 100% on my new idea?
2. Should I try and raise capital right away – Do I need money in the company to cover benefits and expenses or should I keep as many shares as I can to myself and live on a shoestring budget until I am making a profits or ready for partners?
3. Should I rent an office – Do you need a place to work every day and pay rent or can you work from home until the company gets going?
4. Should I incorporate – Often people are very quick to incorporate so they can say that they have their own company. With LegalZoom and MyCorporation, it is so easy to do, but people often don’t understand what they are doing or the long-term effects of their decision now. The type of corporation you choose now may not be the best in the future should you need to bring on investors.

At the end of the day, entrepreneurs need to realize that while they have an idea that they believe in, starting your own company is much more than just an idea. When starting your own company, many decisions will affect not only your cash flow but your personal life dramatically. You will essentially be married to your idea and your business and you must devote all of your efforts to it. Entrepreneurs need to make sure that if the business fails, it is a result of the business and not because issues in their personal life caused them to shut it down. Being able to say that you gave it your best shot is all anyone can ever ask for.

—–

About the Blogger:

Aron Schoenfeld, is the co-founder of DreamArtists Studios (www.dreamartists.com), a boutique music production company specializing in music for television, commercials and film. Aron also serves on the Board of Advisors for New York Entrepreneur Week and the Bergen Newspaper Group. For more information about Aron, please visit his website at www.aronschoenfeld.com