How to Get Business - MMG's Growth Blog

OH, NO - Let's Blow our Software Demo

Having worked with a ton of startup software companies, both traditional and SAAS, I have seen just about everything with respect to demos. What follows is a list of DO and DO NOT's based on actual experiences across a variety of companies:

1. DO - Run a professional demo that plays to the client interests and highlights specific functions or features that are relevant or key for them. Ask if a particular function is important or if they need additional features.
DO NOT - Cover everything and go over every feature or function, particularly if certain aspects are not relevant. Research the company a bit in advance and tailor the demo to the company.

2. DO - Ask questions and intersperse follow up questions and observations regarding the prospects questioning and commentary. Acknowledge when a positive comment is made from a prospect and confirm that the information is accurate.
DO NOT - Intersperse the demo with self serving commentary like "I knew we built a great product when we developed it!" or "You really are a smart guy who realizes great stuff when you see it". Or worse yet, talk and talk and talk without acknowledging anyone else on the demo or centering the discussion solely on you, your company, and the greatness or capability of your product.

3. DO - Acknowledge that a particular feature or function is not present in the software. Determine whether it is something that SHOULD be there or can be billed to the prospect as a time & materials project.
DO NOT - Off the cuff say, "NO, we don't do that" and end the conversation without asking for clarification of what the prospect wants, scoping out the requirement, or understanding how impactful from an overall market adoptive stance the additional feature can be.

4. DO - Acknowledge and address objections when they arise, stop the presentation and ask for clarification and try to "turn the thinking" to your insight unless the objection is really something out of bounds for the company or product.
DO NOT - Let an objection go, especially in early product launch, without further clarifying and understanding it. By not asking why the prospect believes what they do or why they perceive the issue, an opportunity to better understand the buyer is missed.

5. DO - Use demo's as a showcase and step forward in the sales process, chances are a demo is only the FIRST serious look at what you have to offer. Use the first demo to really understand and further qualify your prospect and gain more insight into why they are your prospect.
DO NOT - Assume demo's are the act of closing a deal or that they should only be reserved for "certain" people or after certain steps are achieved. We live in a VERY small world where word of mouth is powerful. Not allowing someone to see a demo can send a negative message that your product is not really that great also.

Many of the entrepreneurs I have worked with are very close to their creations and forget to separate themselves from the act of selling a solution - yah, that is another thing - you are selling a solution. Making sure that the software solves a problem which is clearly demonstrated along with the benefits also helps, not just a long winded boring speech. And, hey, don't forget - I am on the demo also!

SMARTFormulator to Debut at Society of Cosmetic Chemists Show

http://www.smartformulator.com

Just a note to all who may be involved with the Society of Cosmetic Chemists or visiting Raritan Center's Suppliers Day on May 11 & 12. I will be working the booth - 1361 - along with the great team of SMARTFormulator to debut this truly fantastic software. It is the first "public appearance" for the company and the SMARTFormulator.

The SMARTFormulator is a powerful, yet intuitive software enabling information management for formulations and ingredients. Launched in 2009, the SMARTFormulator was designed by chemical industry executives in the personal care/cosmetics segment. The tool eliminates the use of Excel sheets and dependency on complex technology solutions, tools that typically present inefficiencies within small to midsize laboratories. The SMARTFormulator creates a standardized platform and centralized repository, plus presents powerful functionality for formulations development and related information management.

We have a lot of buzz going with tons of expected visitors and already scheduled site demos. All the prospecting and outreach really paid off and I am looking forward to meeting a lot of our demo'd and not yet demo'd visitors! Credit to the management for having the smarts to attend and exhibit at a key industry show - may this company end up a million dollar+ !

Partner vs. Vendor Relationship - Everyone is a Partner Right?

Every business talks about being a partner: "we will partner with you", "we are your partner", etc. But, what is being a real partner? A partner is someone who shares risk and reward and is also a part of the business - in many ways, employees which are resources to the company are partners in the overall company. I thought I would provide an illustrative example of partner vs. vendor in a business relationship:

Example 1: Worked with a client that had a small business and quickly became an integral part of the company. In addition to working directly with the key executive, the relationship grew from just transactional to being part of the family - literally. Cards were exchanged at the holidays, photos of children shared, and well wishes on birthdays. From a business perspective, open discussions ensued, new ideas launched, and I usually was paid 15 days earlier than the contract stipulated. Business really was done on a handshake and it was a very nice family oriented scenario.

Example 1B: The client's small company was acquired by a much larger firm. Whereas I NEVER was referred to as a "vendor" suddenly, I became one - called "vendor" not only by the purchasing/accounting department, but also my new *supervisor* the VP of Sales. The relationship was strictly transactional and very impersonal with reports being exchanged, meetings occurring every Friday to discuss activity, and more directives issued. Payment terms were now changed in favor of the company and they paid me "on time" or later. The company couldn't care less about me personally, professionally, or otherwise - I was just a vendor providing services. (Even though I am an independent contractor and outsourced employee). They couldn't care less.

A vendor is basically a replaceable number, a supplement, and just there as a transactional resource. In employee terms, it is a boss who says "I pay your salary, you do XYZ". In company relationship terms, it is a client who says, "I pay your fees, you provide XYZ". There is no *real* relationship, no recognition of value or higher level potential - it is transactional. A partner however, is viewed as a valued resource providing not only skills or expertise, but also relationship to the company. A partner shares stories about kids or what was done on the weekend, works together to accomplish goals, and respects and values the other party - you grow together as a business.

Most of my clients are partners, which is what I like and expect - I like to be part of the company and work with the people as an "outsourced employee". Any other way, quite frankly is demotivating and contrary to achieving success.

Speaking at Fox Temple MBA Conference

http://www.foxconference.com/

Anyone in the Philadelphia area and/or associated and affiliated with FOX School of Business, Temple University - come on out to the 2010 MBA Conference on Sunday, March 21 at the ungodly hour of 9 a.m. (no chance to sleep in).

I will be speaking on the Entrepreneurship Panel answering questions not only about MagnusMG, but all the great key learnings I have had from working with clients. Some of my key advice is:
1. Avoid the Venture Capital people until you have clients and market share and never give up control of YOUR company!
2. Do not give salespeople equity in your company unless there are YEARLY performance goals attached to attainment of it!
3. Hire sales/marketing people who know your business or industry or have enough related knowledge to intelligently converse with your target market!
4. You won't launch a business and get clients for months, years, or never!
5. Patience is a virtue, cash is king, get the right resources - they are out there!
6. Forget the book, throw away the business plan, and do what the market wants you to do!
7. Don't do what everyone else does, social media is helpful, but not the be all - get on the phone!

And much more. I look forward to talking to the budding entrepreneurs and seasoned experts. Maybe I can get some new clients out of it also - lots of great companies were built in dorm rooms!

Come see me there!

Business is Harder to Get

Wow, today I was truly depressed. After following up with a bunch of companies I had contacted previously as I hunted for new clients, I was told by two that they had hired someone who did what I did, and part time also, and the rest didn't even return an email or phone call. It is very scary, because this would not have been the situation a couple of years ago. The economic situation is such that people are working part-time to make money and many of them are as experienced or talented as I. It isn't a matter of telemarketing here or cost, it is the flood of talent that is out there.

I was hunting for new clients because one informed me that they could no longer afford my very affordable rate and were looking into pay-for-performance models. This is usually a sign of a company in a bit of trouble - so I don't think they are viably returning.

Engaging one or more part-time sales people is definitely a win-win on both sides and an entire part-time staff can be built for very low cost with wider coverage. No benefits to offer, no management, just training and ramp up.

I have to consider the environment and rework my intro and tactics. At least I eat my own dog food. And, if you need a good prospecting, inside sales, marketing expert - reach out - I have a slot available for one or two more companies!

Beware of Sales Training

Sales training, when it comes to general process or construct stuff can be helpful. However when it gets more specific or is vendor sponsored, then sales training can become quite questionable. Case in point:

Recently, one of my clients enabled me to join a sales training session for a service that they newly launched. The service is rather new to the SMB market and requires a bit of strategic positioning, business orientation, and analysis in order to sell it. My client, the Owner/President, of the business informed me that the way to get the sales process going is to talk only with the CFO. He presented a script which talked only about a cost saving and implored the target (the CFO) to set up a meeting and some general collateral. He then let me loose. Well, I talked to a fair number of C-level executives, CFO and COO, even a CEO here and there and ALL of them directed me to the IT Director stating that this person would know the information and decide whether the service would fit. In fact, in speaking with IT Directors - it appeared as though they were the evaluators and final decision-makers for the service and could talk quite intelligently - as other positions could about infrastructure related issues. I also scrapped the script, favoring a more descriptive service/benefit pitch to help people understand how the service would work.

So, I attended the training session - it was the last of a series. The sales trainer, a semi-aggressive type with a bubbly personality quickly went through a bunch of slides. She mandated that the people on the call (many non-sales types) MUST get a meeting with the CFO, be a trusted advisor, talk about value, and get the appointment at all costs. Out of one side of her mouth - the CFO doesn't understand the service, it is new - you need to educate him about the service and talk costs, out of the other - get the appointment quickly. (Not gonna happen). You are a trusted advisor, she said, and not selling anything - you just want an assessment. And how many prospects are dumb enough to believe that an assessment isn't tied to "selling anything" - so you are just taking time up to waste time and talk to them??? Use the script we provided - repeat the same thing everyone else is saying with the same cost/benefit statement without explaining what you are trying to accomplish so the "uneducated" CFO will automatically invite you in. Sure. Also, pushing for a meeting without qualifying whether the infrastructure is there to support the service initiative is a ripe way to show how stupid you are. And the list goes on. I even asked a question about a particular objection I heard - which she replied, "Oh, he was just giving you the brushoff" - or at least she maintained that - until I went into a very detailed description of what transpired between me and the C-Level executive, to which she changed her tune quickly and advised me to "bring it up next time". Sure, no answer today...ok, maybe she had to think about it.

I felt sorry for the non-sales people on the call who would waste their time and sales cycle trying to meet and educate the CFO, while I was being a vendor meeting the IT Director to actually get into the company and discuss the service.

Sales is about following the organization, navigating, finding who is who and how it works. Maybe in some cases it is the CFO, in others it is the IT Director - but demanding it be that one, approached THIS way, for this reason is a cause for failure. Provide a value proposition, scenarios, role play, talking points and let the people present the service the best way they can to the right contacts who can make things happen - which isn't always the C-level, by the way. The C-Level has better things to do and usually that is why they have a qualified, intelligent staff of people who support them - because evaluating services and vendors is partly their job.

No Business in 7 days - You're Out

Yes this is a true story. A friend of mine was lucky to land a job at a staffing firm in a sales position. This was a small firm and the job was suited to her talent very much. Suddenly, I receive an email from her saying that an opportunity was available that she was pursuing and to be alert to a phone call for reference. I was skeptical, is she JUMPING jobs already? Not happy? I asked her what was going on, it seemed odd. Well, she told me that she joined the company on Monday and exactly 7 days later, 7 days, was called into the office and told that she did not generate enough business and that it wasn't working out. Unless the guy was lying to her because they personally didn't like her or was threatened by her incredible talent, this is one for the books. Gee, she didn't bring enough clients in one week for you to pay your bills for your newly renovated marble strewn office? Or maybe you thought she had a BIG book of business that would automatically become yours by bringing her on? Then, of course when you "had" her clients, you would terminate her.

People like that should be out of business and deserve to be. Using salespeople like commodity books and churning them. And, we are expected to move to a relationship oriented, less transactional culture by doing that? And, the salesperson gets cut and doesn't take the clients and book to another firm? And this works out win-win for who? It takes months for a good salesperson to establish themselves and build a strong marketbase, not a week. A week!

Hopefully, this agency will fold like the many others that have. Hopefully, my friend will get a real job with a good company that will value her talent and enable her to build their company. Let's not work for people like that or with companies that do that and restore professionalism to the business environment!

Weighing in on the NBC Late Show Situation

Oh, what a great Harvard Business Case study the Conan O'Brien/Jay Leno situation will make when someone writes it up. A great study in decision-making, talent retention, public reputation, ratings/money & profit, and more. I admire both Jay Leno and Conan O'Brien and enjoy their shows, although Conan's show lost its luster for me over time. I did enjoy seeing his show taped live in NY, went a couple of times. Here is my commentary.

1. If something is working, don't break it. Never, ever promise anyone anything that there is no intention on delivering on or put conditions on it. If Jay retired, if the ratings fell, if Jay wanted to go - then the show is Conan's to take over. It was just bad, bad, bad to promise and not follow through. It creates bad blood and a situation where regardless the person not only will leave, but leave for a competitor. Hey, I was promised a "Sales Intelligence Director" position which my employer reneged on, I was quite Conanized, so...I now have my own business, while my former boss got himself a job.

2. Conan stated that he didn't want to destroy the Tonight Show and he didn't have time to build ratings. On point one, he DID destroy the Tonight Show - all that was done was taking a "watered down version" (sans masturbating bear) of the Late Show w/Conan O'Brien to 11:35. He did NOT step into the Tonight Show and did NOT adapt his material to the 11:35 audience. I tuned out when the guy who repeats stuff loudly started the dumb stuff with Twitter. I quickly realized that this was the same stuff he did at 12:30 and my expectations were dashed. Brand equity means consistency. Everything from the set, music, and logo should have been retained with more mainstream "Jayish" skits, over time - the Conan stuff could wend its way back in to the format. Oddly, the really good funny stuff like the "interviews" with Arnold, Clinton, etc were removed. On point two, not only was he expected to take his core audience with him to 11:35, but those folks who couldn't stay up and wanted to see his show would tune in. Again, expectations were dashed.

3. Underestimated INDIRECT competition. Sure, the focus groups indicated Jay would work at 10, but they forgot about the new shows on CABLE. While CSI may repeat at 10, Drop-Dead-Diva (a super show) premiers in the summer. While I love Jay, I'd rather watch Drop-Dead-Diva on Monday at 10. Also, Jay needed to really keep it fresh and COMPELLING every night, the material and format at 11:35 competes well against other material (apples to apples - repeats, talk shows), he is competing with compelling storylines, ongoing characters, and compelling content (Dateline Mysteries). Having the Green Car Challenge everyday - BORING. 10 at 10 everyday- BORING. He should have mixed it up more, created some interesting stuff like: 1) a new comedian showcase, 2) popular hot star with extended movie preview, 3) entertainment scoop news, 4) fresh SNL type comedy skits, 5) hot music group. The idea was good, the execution was not.

4. KPI's. If the ratings aren't there, try something else. They cancelled both shows essentially before reformatting or "fixing" them to try to meet the public needs. Re-engineer the shows a bit, cut the days, mix up the format, anything before changing the line up.

5. Unanticipated issues and poor response. It didn't work and the effects were far-ranging. From unhappy affiliates to negative press to other late-night hosts gleefully destroying the targets, it became a public mess ever-widened by the blogosphere and social media. The suits at NBC really should have dealt with the situation early by making a statement much like Leno did earlier this week. The generational gap was also exposed as Leno professionally and upstandingly made a superior commentary on the situation, while O'Brien lashed out at NBC, Leno, and anyone else. Talk about bad-mouthing the boss, O'Brien got that down pat! Sometimes, however, that behavior is justified.

6. It's Business. With all the polarization for Leno or O'Brien, no one thought about the business end. The ratings drive cancellation, neither show performed well. Conan had his shot, he couldn't make it. Leno had his shot, he couldn't make it. End of story. As Leno said, "I have a staff of 175 people to take care of and when the boss offers you a job, you get humble"...like any great boss - both men had to look out for their staff support. No one seems to comment about the loyalty and concern for their employees BOTH of them demonstrated. It is beyond admirable. And, as usual, the executives who "dick around" with their subordinates lives suffer nothing. No one at NBC is having their head rolling! Accountability?

There is much more. Regular people like you and me have been through similiar stuff, but we don't make the entertainment news. Look at the polarization, disruption, loss of talent, bad blood, and overall general mess this situation has caused. It happens more often than not with similiar consequences from organizations like GE/NBC to tiny start-ups where the devastation can be even greater. Lesson noted.

My StartUP, Show Me the Money - NOW

Oh, boy, I may have written about this before, but many start-ups never see the light of success because of greed and unrealistic expectations. I was talking with a former salesperson who worked with start up and small businesses, we ended up passionately laughing together about our respective "careers". He said, most of the companies he worked with are gone and the options wallpaper - not pretty at that. He, like me, went from three year stints with tech firms to six months to less - that is when he too, became a consultant and then looked for more mature firms. He validated my opinions about the VC's and how, more often than not, they tend to take over firms and run them straight to the ground - all the while hoping to "strike it rich". A terrible oxymoron for companies that are supposed to be the economic driver of this country!

Just because a firm has a product or service and a few people buy it or like it or review it favorably DOES NOT MEAN it is the next Google. For every MILLION startups, probably ONE is Google! It takes YEARS to build a brand and build brand equity, HELL IT CAN TAKE A YEAR JUST TO GET ONE PAYING CLIENT. And, just because you get that ONE client, doesn't mean that the implementation will go well or more clients will immediately follow.

I keep working with start-ups that have so much promise, but with founders that seem to put greed or instant gratification ahead of actually building a business. They run for the VC's instead of finding out if the product has a sustainable market, they get a meeting with a larger firm and hope they will buy them out - not considering that slowly growing the firm can yield a few MILLION dollars, they build a product and go-to-market without considering if the product has any sustainable VALUE - all the while wanting to be GOOGLE. Amazingly, by doing really STUPID things, these firms which ACTUALLY MAY HAVE SUCCEEDED - end up in the wrong hands, end up becoming a mess in the client, cause the founders to lose everything, etc. and get steamrolled along with employees, managers, and clients.

A lot of tech products are me-too solutions and not innovative or comprehensive enough to fight the big boys, some have real innovation - but lack the resources, others are not business solution oriented enough. It takes a lot of backwork and time to build a company. Do the right things, do the market research, the trial sales, the marketing, hire the right people, prove you have a sustainable product and market before running to VC's or stay the hell away from VC money - if your solution is good enough - it will build a market ON ITS OWN. Resources will come to you if you have something worth coming to.

Be a SMARTTREPRENEUR NOT A DUMPRENEUR and maybe you actually will have the next big thing!

Kohl's Holiday Season 2009

WOW, and there is a recession? You wouldn't know it from the last two weeks of activity at our friendly neighboorhood Kohl's stores. Once again, I have concluded my 10th retail Christmas and 7th at Kohls with much fanfare - actually a ton of cookies - some of which I MADE WITH MY OWN TWO HANDS.

The blizzard dampened our Santa and the Elves event which we do yearly - still singing with hats on - we encourage customers and all the clueless guys "looking for sweatsuits and Snuggies for mom" to ask questions. I personally love the holidays at Kohl's when we really can help customers who need it.

The thing that ruins the holidays is, like any other business, the bad Santa customers. Customers who destroy neatly (and recently) folded tables, demand rudely that you must do their personal shopping (over-reaching the help me find something for mom), and the last minute shoppers. The last minute folks were numerous this year, with I think, record breaking sales for Christmas Eve. Please, I implore those shopping, do not get upset when we have no Snuggies or matched sizes in on the LAST shopping day of Christmas, do not demand discounts and misunderstand your Kohl's cash acquisition at 5:55 p.m., and wait until 6 p.m. (store close) to bring a "Santa cart" full of merchandise. Like our manager, Dave (who I traditionally close with every year) announces - the workers do have families and events to get to. It is very unholiday spirit like to force the workers to work hours extra because of your thoughtlessness regarding gift giving, however your spending is appreciated.

The jolly elf turned into cranky annoyed elf running register at 5:30 when the lines went to customer service. OY. But it was fun. I look forward to closing with Dave again next year and the crew and more bellybusting cookies. Our new store manager is aces, real nice employee and customer focused manager...that too made it an enjoyable season. To another year at Kohl's, great sales, great co-workers, and overall nice customers!