Sales Projections Precede Sales Revenues: how does 2010 look for you? Up? Down? Level?
November 30, 2009 by Mary Ellen · Leave a Comment
One successful coach said, “I can’t project. I never have.” “I just coach my regulars and conduct one major workshop quarterly.”
Even service providers can make viable sales projections. Here’s how:
- To do your annual projections, set up a spreadsheet.
- Track your business sales month by month for the previous 12 months.
- Then, pull your numbers for the past two years. Determine your business trend (up, down, or level).
Now that you’ve completed a historical perspective, project (according to your trend) for the next 12 months. If you have difficulties, ask questions like these:
- Am I continuing to get more clients?
- Is my business expanding or contracting at this time?
- Where are the spikes (sharp increases or decreases) in my business?
- What precipitated those changes?
- If the changes are good, how can I repeat the result?
- If there are dips, how can I avoid them?
- Tip: project clients by name and by average term of contract
The coach with whom I spoke also had a variety of products, including e-books, e-courses and workshops. She had never done a projection for her products. Once again, I began with questions:
- What is the sales cycle for each of your products?
- Can you forward-project that cycle for the coming year?
- Do you have new products to add?
- How do you expect them to sell? Are you doing something to introduce them or give those new products additional exposure?
- What is your backup plan in the event your new products are not well received?
- Is there something that you plan to do to change the outcome of your plan? (Remember, the definition of crazy is doing the same thing you’ve always done and expecting different results. Nowhere is that more true than in projections.)
- Now that you’ve answered these questions, go back to your spreadsheet. Project your sales by client.
- Add a single line for each product. For example, add a line for workshops and then for sales at the back of the room in each workshop; add a line for speaking engagements and so on.
- Do a best and worst-case scenario.
There’s definitely no guarantee. As consumers get more cautious with their money, service providers must continue to show additional value. Now is the time to shore up your value statement. Take the time to listen to customers, respond carefully and plan for the future.
A final thought: do your sales projections. Do it now to prepare for 2010.
Closing the Gap Between Passionate Participants and Members of the Silent Majority
October 13, 2009 by Mary Ellen · Leave a Comment
I see it over and over in organizations. People/members/participatants profess to care passionately. Yet, the majority fail to participate.
For example: in one such organization, statistics show 30% open rates for emails. Email, due to low delivery costs, is the primary marketing channel for this group. The silent majority – the 70% that never opens a missive misses announcements, information, and special offers.
Because one marketing channel can’t serve everyone, I began to think about improving outreach efforts overall. How do you get the word out to a diverse following?
Here are some ideas. Feel free to add your own thoughts in comments below.
- Use collaborative efforts. In my example, the organization teamed up with a major vendor to offer a benefit to all members. As part of the plan, the vendor took a member list and made a commitment to contact everyone. In this case the vendor’s salespeople acted as outreach partners. Flyers approved in advance by the organization touted the partnership and its benefits.
- Focus on alliance partners. Many members of the organization have memberships of their own. A message about the promotion to their membership list might attract a different audience and thus increase exposure. The message could be a collaborative announcement in a newsletter, for example.
- Create messages for other channels. A blog post on the originating organization’s website augments its efforts. Like email, this web-based portion of communication may miss some members. In hindsight, my advice is for the organization to add different channels such as:
- Direct mail. An effective campaign involves a postcard mailing series using spaced repetition. Different postcards are mailed weekly to the targets.
- Telephone. One of the most effective outreach efforts for a small organization includes phone contact. Build a telephone tree where each member contacts one other member.
- Public service announcements. Local radio or television stations might collaborate to publicize a coordinated theme impacting the community.
- Public relations. With enough lead time, stories about the upcoming promotion could inspire membership and participation. Where are the juicy tidbits or the fun photos? Weekly newspapers or community-oriented magazines could be interested in these ideas.
- Social media. How about invitations from the Facebook fan page? Another effort involves postings from each member of the board of directors. Because of the diversity of the organization, each member of the board has a unique network and together everyone impacts different networks. With social media, follow up includes getting help from the masses so the message is retweeted, reposted, rebroadcast and forwarded again and again.
- Track your results. Follow the results for each of your channels. And remember, no ONE method gets to everyone. Multiple impressions ensure the reception of your message.
Ignite any campaign with one or more of these ideas. Warning: success isn’t automatic. It requires ongoing, focused efforts. So pause for just a minute and remind yourself of what you’re trying to accomplish. You’re trying to reach the silent majority, right? Good luck.
One of the great obstacles facing every organization these days is the time famine. In order to close the gap between the passionate 3o% of participants and the silent majority of 70%, you must cut through the clutter.
The right message paired with the right channel will carve out some additional participants from the silent 70% majority. I’m confident of it.
VAL-idation: Social Media Quick Fix Ranks Second or Worse to This Loyalty Program
September 21, 2009 by Mary Ellen · 2 Comments
If you’ve signed up for Facebook’s fan pages, a Twitter account, or any one of various other social media outlets with little result, you may have fallen victim to the quick fix.
No matter what business you’re in, today’s social media promise beckons because it sounds good. Build community. Increase visibility.
Good business may not come quite so easily.
Good business requires ongoing work. Anyone who tells you otherwise is clueless.
I got a call at 4pm Sunday from a good businesswoman: Valerie Compton of Body Language. There may be more reasons why Valerie’s doing well, but here’s a list of 10 things that put her in a class by herself in my book.
- Call former customers for no reason. Valerie calls people she hasn’t seen in some time. Not to beat them up (although she can do that. “Hmmmmmmmmmmmm…must be feeling a little guilty about the amount of time I’ve devoted to working out recently.”)
- Call when it works for you. How many times have you dialed a customer on the weekend? It got my attention.
- Make it all about “the customer.” Once you’ve placed the call, be interested in your customer. Draw them out with a specific question or two. See tip #4.
- Ask about the family. Everyone likes to talk about their family. An astute salesperson like Valerie remembers names and asks about partners, friends, and the pieces of your life that make you YOU. As a result, you feel cared for.
- Network. Early in the summer a friend mentioned Val had asked about me. How many business owners do you know who make/remember such associations (see tip #4)?
- Implement new ideas. Everybody is busy these days. Valerie too. Yet, after she took an interesting class in New York, Valerie found time to implement a similar program. Her Body Barre classes, described as ‘ballet on steroids,’ are consistently full. (Bonus: Look for like businesses when you travel and check for ideas.)
- Publicize your business, especially its innovations. Fit, a monthly supplement to the Albuquerque Journal published a story about Valerie and Body Barre. Earlier, Body Language opened a second location in Nob Hill to other publicity.
- Suggest solutions. Of course Valerie invited me into the studio. I expected her to. She hadn’t seen me in some time and I would have been disappointed had she not asked me to participate in some way in her business. It wasn’t a hard sell, however. Instead, she suggested I might benefit from a specific class. Once again she presented a reason framed in my interest.
- Participate actively in your community. Valerie’s a member of AIBA, Albuquerque Independent Business Alliance, (Disclosure: I’m the current AIBA president) and active in her church. She probably has other interests as well.
- Be passionate about what you do. No question. Valerie is energized, consumed, driven by her business. She works quickly, talks enthusiastically and emanates purpose. The result? A presentation people notice.
VAL-idation. Any one of these ideas could move your business forward.
How can you stand out from the crowd? Would any of Valerie’s techniques work for you?
Client Cancellation? Prepping for Disaster Avoidance
September 17, 2009 by Mary Ellen · Leave a Comment
What happens when you lose your biggest client?
A service provider I know rolled her eyes. “I’m already there,” she sighed. “Got the word yesterday…my biggest client has a cash flow problem and is taking a hiatus.”
Other group members responded:
“I’m worried about next quarter. It’s soft.”
“I don’t like to think about those things. I’ve worked with the same clients for years.”
“If I don’t add some business soon, I’ll have to lay somebody off.”
“My biggest client was just bought out. At the moment, it doesn’t appear anything will change.”
“There’s plenty of other gloomy things to consider. Don’t make trouble.” (Sarcastic NOTE: There’s a proactive stance. Stick your head in the sand and don’t worry. If you don’t think of it, “It” doesn’t exist.)
In any economy, business comes and goes. Clients change their plans, their minds and their habits. In tough times, anticipating these changes means the difference between survival and failure.
Smart day-to-day operations include practices for maintaining current business as well as soliciting new business. Here are a few ideas:
- Practice Pareto’s Principle: 80/20. Quick. Do you know the 20% of your customers who comprise 80% of your business? Focus efforts on the top 20% without completely neglecting other opportunities.
- Name your top customers. If you’re a service provider with a short list of clients, think about employees at your big clients. Can you address them by name? Retailers, do you know your biggest regular customers? Restaurateurs, do you address your regulars by name? Personalizing business makes a difference. Sometimes, people stay with you because they believe you care.
- Know the state of your clients’ business. Become familiar with business seasonality, industry trends, and competitive nuances of each client’s business. Know big selling items, high profit ones, etc. See reason number two. Demonstrate you care.
- Check in. When was the last time you gave a call to simply check in with a customer? That’s right. A no-sell, no-reason call.
- Develop an ongoing thank you system. Your thank you could be as simple as a handwritten note, or, it might be a new idea, an extra-value placement, or some other reminder of your company’s worth.
- Publicize your efforts. Sure, you use your Facebook status, Twitter updates and your monthly newsletter. Is that enough? Do you need another marketing channel? Have you looked at a case study or considered approaching a local publication about a client success story? The beauty of this kind of publicity is that it works for you and for your client at the same time.
- Identify a list of 10 to 15 prospects and do something each day to reach out to them. One advertising agency keeps a 10-postcard-mailer system in play. Over 10 days, 10 weeks or 10 months they mail to decision makers. For example, after meeting a contact at a chamber event, the agency systematically sends brightly colored messages; once the halfway point is reached, they call for an exploratory appointment. Key to the success of this prospecting system is systematic follow through and a definitive number of prospects.
- Market on! Ongoing marketing is the key to avoiding disaster. Prepare now for the possibility of client loss. Who knows? You might find yourself with an increase in business instead of a loss.
By now, you’ve probably got your own juices flowing. Go ahead. Tell us what works for you. What are you doing to ward against losing your biggest client?
Online – Online-itus? Taming the Email Beast!
September 4, 2009 by Mary Ellen · Leave a Comment
The Wall Street Journal published an article by John Freeman, acting editor Granta Magazine, entitled “Not So Fast: Sending and receiving at breakneck speed can make life queasy; a manifesto for slow communication.”
Freeman’s essay is adapted from his book, The Tyranny of Email.
Freeman got some things absolutely right:
How many of our most joyful memories have been created in front of a screen?
And so:
If the technology is to be used for the betterment of human life, we must reassert that the Internet and its virtual information space is not a world unto itself but a supplement to our existing world where the following three statements are self-evident.
- Speed matters
- The Physical World matters
- Context matters
You’ll find explanations for each statement in the essay. For #2, The Physical World, for example, Freeman points to the proliferation of ads on the web and laments the damage to our attention span as well as personal relationships if we give up face-to-face business interactions.
I found the commentary thought-provoking. Consider:
Making decisions in this communication brownout, though without complete information, we go to war hastily, go to meetings unprepared, and build relationships on the slippery gravel of false impressions. Attention is one of the most valuable modern resources. If we waste it on frivolous communication, we will have nothing left when we really need it.
As a proponent of local, independently owned business, I vote for relationships. With the exception of Amazon (“Hello Mary Ellen Merrigan. We have recommendations for you.”), few online businesses make the personal comments or offer the insights that a local shopkeeper can. I like relationships.
Has the Internet interfered with your world? (NOTE: Answer honestly.) Here are the five five questions I asked to build my analysis.
- Has a partner ever accused you of “not listening?”
- Have you been privy to a meeting where one or more of the participants spent more time on their PDA/iPhone/Blackberry than listening to the discussion?
- Have you ever responded to an email without including the promised attachment?
- Do you suffer from time creep when you begin to empty the Inbox?
- If you’re away from the high speed connection, do you suffer twinges of withdrawal?
If you answered “No” to all five of these questions, call me. I need to know your secret. If you answered “Yes” to all five – even four of the five – you’re a candidate for online-i-tus.
According to Mark Brownlow of Email Marketing Reports, 247 billion emails are sent each day. That’s one email every 0.00000035 seconds. If you imagine email’s increasing, you’re right. Overloaded? Overwhelmed?
Freeman’s got your cure: “Don’t send.”
Problem or Solution? Which do You Choose?
August 14, 2009 by Mary Ellen · Leave a Comment
Do your conversations have a common theme? In the past few days I’ve listened to some people repeat the same conversation. For instance I’ve heard yet again…
- The continuing saga of a business owner with a less-than-perfect website that doesn’t get better on its own;
- Ongoing reports from a client who is getting ready to approve and release copy for a brochure;
- A not-for-profit board with no money whose members discuss the future expenditures with which they’re confronted;
- A volunteer who complains about the lack of appreciation as she continues the thankless job of organizing information;
- Discussions about lack of communication due to vanishing targets: people who suddenly don’t respond to voicemail or email;
So, it’s hardly a surprise that a newsletter from Early to Rise caught my attention. When you have an ongoing problem, the root cause may be your “elephant tether” according to Bob Cox.
Did you know that elephants are trained to stay where they are by tying a rope around one of their massive legs and attaching it to a peg in the ground? Can the peg and rope really hold back an elephant? Absolutely not!
Then why does it work? Because elephants grow up believing it will. Maybe they tried pulling away when they were young with no success. Maybe they were injured by their action. After enough failures, they stop trying. They no longer test the restraint, and confine themselves when tethered to the rope.
During the course of my life and career I have run into many people (and no doubt will run into many more) who are holding themselves captive with their own “elephant tether.”
I’m reminded of the adage: are you part of the problem or part of the solution? Which do you choose? Or, did you even see the elephant in the kitchen?
Long Live the Proofers!
May 4, 2009 by Mary Ellen · 1 Comment
Get it write right.
Do errors matter? In some circles, spelling errors have become passé. The digital age and the internet makes correction somewhat easier, but incorrect publicity is just that: incorrect.
A local quarterly magazine misspelled the name of a business owner in its headline. I spoke with her to see how she felt about the problem. True to form she shrugged it off. Yet, I notice no live link to the story on the website. I suspect she dictated that because every other story opens instantly.
In my opinion, a printed publication with a misspelling loses value instantly. Another consultant claims a difference between major and minor spelling errors. Really? Can you be just a little pregnant?
Call me old fashioned, but free publicity that’s wrong is just that. A botched headline or a bungled fact reflects on the publication as well as the business highlighted. Here are the thoughts that come up for me:
- Lack of attention to detail. Who proofed this?
- Error-prone. It appears they don’t care enough to make it right.
- Inaccurate. What else is wrong?
- Embarrassment. Obviously this wasn’t important to them.
- Insult. They couldn’t be bothered because the account didn’t buy the story.
I understand how difficult it can be to orchestrate corrections particularly on deadline. It brings up another conundrum, though. When do you crater? When do you lower your standards and let it go? Or, do you disavow knowledge of the error? Does that make it okay?
Unfortunately, I don’t have the answers. I wrestle with the problem by asking questions:
A non-profit to which I belong has a directory with a key word misspelled on the cover. Someone pointed the error out to me; I’d overlooked it dozens of times. The piece was proofed by several people but not a professional proofer. There’s no budget for a re-do. Most people won’t notice. Does that make it okay?
In another instance, a publisher with known errors in a textbook ships errata sheets with every order. The company also posts errata sheets on the website. And, in a new move to transparency, this company announced it would replace incorrect texts for the cost of shipping at a customer’s request.
How do you treat errors at your company?
People or Events?
April 17, 2009 by Mary Ellen · 2 Comments
Do events move you? Or, is it the people who make an impact?
Ribbon-cutting ceremonies at Albuquerque’s WESST Enterprise Center celebrated several years of effort. Politicos, clients, WESST staff and people from a variety of organizations participated in the event.
Megan Kamerick at New Mexico Business Weekly captured highlights from nearly every speaker.
As current president of the Albuquerque Independent Business Alliance, AIBA, I’m especially committed to the opportunities and assistance provided to small independent businesses. I see those types of programs coming from WESST along with meeting space, training programs, advocacy for entrepreneurs and more.
It felt good to acknowledge those who worked to make this 37,000 square foot LEED certified building a reality. As the former marketing and training director for WESST (disclosure) I was involved in the planning stages of this dream, and I saw many familiar faces in the crowd.
G.O. WESST! (Grand Opening, WESST) offered plenty of opportunity for reflection.
Pedro Garza, Regional Director, Economic Development Administration emphasized individuals make the difference. Any organization can have a mission, he said. Unless you have people who can deliver, they’re just words on paper. He quoted from a poem he read in eighth grade:
‘Tis the Set of the Sail — or — One Ship Sails East
Ella Wheeler Wilcox 1916One ship sails East,
And another West,
By the self-same winds that blow,
‘Tis the set of the sails
And not the gales,
That tells the way we go.Like the winds of the sea
Are the waves of time,
As we journey along through life,
‘Tis the set of the soul,
That determines the goal,
And not the calm or the strife.
According to Garza, I’ve answered my own question. It’s the people – and the set of their souls – that make the difference.
Take Action to Move Through Doubt
March 19, 2009 by Mary Ellen · Leave a Comment
Doubt immediately washed over me. I gasped for breath, aware that I was physically reacting to the unknown. Awareness didn’t stop the experience.
“What if I can’t do it? How will I make time for this? Why would I do this? What if something happens?”
A hundred scenarios rushed through my mind. I saw myself lying by the side of the road, injured. I imagined flat tires, broken wheel spokes and other disasters I’d never encountered. Backing out of my agreement suddenly became an option.
I signed the check, completed the application and sealed it. For no apparent reason I felt better. Taking action made all the difference.
Over-thinking
I’d come up against an unknown situation: could I actually complete a 75-mile bike ride? Did I want to try? A thousand excuses offered me opt outs. Moving forward meant getting out of my head and choosing an action.
When you’re in the throes of uncertainty, fear paralyzes.
You face decisions daily. Questions threaten overwhelm: How will customers react? What’s the best thing to do? Should I introduce new products? What if the price is wrong? If I invest now will I get a return?
In many situations, over-thinking becomes a culprit, creating analysis paralysis that situation where nothing happens. When every decision is fraught with “if’s, a constant exploration of the possibilities yields only more “if’s.”
For me, facing the fear means acting through doubt. Once I sealed the envelope, I sent a signal to my mind. The debate began to fade.
Pedal your way through the challenge
Do you have a challenge to act through?
Signing up for the race was no big deal. I gave my verbal commitment to two friends and thought little of it. We lined up a training schedule and agreed to submit the registration form.
A week went by, maybe two. After a 35-mile solitary ride, I completed the official entry form.
Renewal Through Recognition OR, Re-energize With Feedback
March 9, 2009 by Mary Ellen · Leave a Comment
If you’ve questioned the difference you make, pushed through negativity, or simply tried to re-energize your commitment, you know the value of review. Review your successes or victories and watch your enthusiasm resurge. Outline for someone else the difference they made and see what happens to you. Let me explain.
A busy schedule led me to question choices. I seemed to have switched the amount of “pro bono” time versus billable hours. Overwhelm threatened and for a time I wallowed in the self-pity of “poor me.” Then, as I avoided work by addressing email, I discovered a note that made all the difference:
Mary Ellen: I noticed that you will be a speaker at that conference this Saturday at UNM Cont. Ed.
Just a brief note to tell you that a lot of things are finally coming together for me. I put a lot of your great ideas from your class on my New Years’ Resolution list. The title of your class was prophetic. Every week I try to do a little something to push my work by updating my site, getting on Facebook, printing and framing my art. Etc, etc. and sure enough, I am hearing more of a “buzz” about my work. I have a couple of jobs lined up and one project (cross your fingers) that I hope will turn out to be a great opportunity. I’ll tell you later, don’t want to jinx it.
Anyway, doing well, thanks Debbie
Debbie made an impact by telling me about her progress. What a great note to receive at a time when I experienced some doubt. The simple act of caring, of reaching out to connect with people makes a huge difference to you and to them. Because I’d recently heard from Debbie, I re-thought my commitments for the preceding week.
Wednesday: A budget planning session for a non-profit involved three hours and four dedicated women. It feels good to be a part of an organization that inspires such commitment.
Friday: The evaluation of a friend’s query for a book publisher suddenly seemed more of a privilege than a chore. After all, he’d fought brain cancer and survived. I just had overwhelm.
Creating excitement is the key to re-energizing. Review the things that work. Take the time to send an email or follow-up note to someone who made a difference for you. Then, get back on those tasks.
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