As we begin 2009 thoughts turn toward New Year’s Resolutions, some firms may resolve to Go Green, streamline costs, or expand into new markets; however I challenge every fast-growth enterprise to make the following ten New Year’s Resolutions. Over the next few weeks, we’ll expand on how-to make each resolution effective and stick.
- Make Your Company Goals a Reality. Once goals are created make sure your employees know the goals, and more importantly enable them to reach them. Repetitiously over-communicating is enhanced with routine measurement and metrics meetings. It is one thing to make your goals transparent by sticking them on the walls and your employees’ PCs, but it’s even more important to provide weekly and monthly targets that are actionable. Experts agree, that what gets measured gets done. So measure, report, and discuss.
- Evaluate Your Strategic Alternatives. Perhaps it makes financial cents as well as common sense to merge given the state of your industry or financial outlook. For others it may be time to seek out a strategic alliance to enhance distribution capabilities or find a strategic investment partner.
- Create a ‘Prospective Buyer Pool.’ Obviously, not every prospect is ready to buy at the time when you meet them. A ‘Prospective Buyer Pool’ is an email database of qualified prospects that becomes a community of active sales prospects the more they are nurtured. Firms that utilize a Prospective Buyer Pool have on average a 10% higher close ratio for all sales opportunities (what is the financial impact of an extra 10% on your firm?) Common nurturing techniques include a monthly or quarterly newsletter, seminars or webinars, and surveys or polls.
- Use Surveys to cost-effectively identify high probability customers, gaps, and opportunities.
- Survey prospects to rank them in probability of buying order to focus sales personnel on the highest probability prospects.
- Survey your customers to measure your brand equities, additional revenue opportunities, and as a source of innovation.
- Have executives survey lost opportunities to reengage them in your sales process or to provide training for sales personnel.
- Build Your Brand Equities with Thought-Leadership. How do buyers know you are credible? Beyond providing references one of the basic pillars to creating interest and shortening sales cycles is building recognition and credibility by being viewed by your prospects and partners as a ‘thought-
leader’ in your specialty. How do you cost-effectively promote your thought-leadership? Use some of these techniques and these marketing tactics.
- Delegate or Outsource All Non-Core Responsibilities. Many small business owners opt out of hiring outside help (albeit an advisor, operating partner, outsourcing provider, coach, or consultant) for their business believing they can do it all themselves. This is not prudent given the pricing, resource constraints, and other pressures that companies face. Did you know that the majority of fast-growth enterprises outsource payroll, accounting, finance, and marketing? At least 25% of small businesses outsource IT and Human Resources as well. Nearly 40% of SMEs utilize subscription services for technology and tools beyond Quickbooks and payroll.
- Differentiate Yourself From The Competition (or substitutes if you don’t believe you have competition). Has your company defined what ‘Service Excellence’ means? Do your front line employees, service staff, and accounting/billing tell your customers the same thing? Regardless of a down economy buyers will always be looking to eat, drink, and save time and money. What daily actions support your service mantra? A few example ‘service mantras’ for you to consider:
- Go the extra mile.
- Under promise and overdeliver.
- Actions count, not words.
- Discuss Monthly Operating Metrics With Your Managers. Operating metrics are not financial metrics, but rather are performance indicators that highlight activity levels and results. Sample common operating metrics for service or technology providers are highlighted in the table below:
- Promote Yourself. What activities can team members take-on? Your time will always be your most expensive cost to the business.
- Improve Employee Motivation. (aka Retention, Productivity, and Utilization!)
- Implement productivity tools such as CRM, Wikis, web conferencing.
- Here are a few retention ideas:
- Develop and communicate clear promotion pathways and milestones.
- Develop a career development plan and/or reimburse employees for earning additional certifications/skills or attending industry conferences.
- Motivation bonuses include Paid-Time-Off, flexible work schedules for good performance, sales and performance contests, or implement employee recognition programs.
- Search through your LinkedIn and find contacts that can provide discounted services to your employees such as tune-ups, dry cleaning, spas, gyms, etc.
My advice on realizing your New Year’s Resolutions is two-fold:
- Changing habits typically is only possible one habit at a time; and
- Make your resolution known and determine who and what will hold you accountable in future months.
Inspirational and pragmatic! How very Obama-esque. Great post. Finally added you to our blog roll. Sorry it took so long.
Posted by: Jonathan Goodman | January 09, 2009 at 12:13 AM