You have a choice to make on how best to legally organize your business, as a sole trader, partnership or limited company. Broadly speaking sole trader is the simplest and limited company and the most complex way of setting up a business, but each of the three methods provides advantages and disadvantages according to the type of business you operate. A professional advisor will be able to give you more detailed advice on which will be the most suitable arrangement for you. However, the following guidelines I have provided will help you in the early stages.

Sole Trader

The sole trader embodies the spirit of the small business person. It is you, on your own or just making a go of it. The bookkeeping and accounting side should be very straightforward, although it is always helpful to seek professional advice. You are however, totally responsible for any liabilities you incur in your business, which means you’re personal as well as your business assets may be at risk.

Partnership

A partnership shares many similar characteristics of a sole trader in that it is simple to establish, but as its name implies, it involves two or more people jointly running the business.

Although you do not have to formally register a partnership, I strongly advise that you draw a partnership agreement with the help of a professional. Among other things this will outline exactly who has put what into the partnership, how the profits will be split, who does what work, and what happens if the business is wound up.

On top of this legal basis, you must ensure that you can trust your partner(s), because in theory at least each partner is personally liable for all debts incurred by the business. Through no fault of you own, you may find yourself paying off substantial debts, which your partner(s) may have has run up without telling you.

Limited company

A limited company is different from a sole trader or partnership in that it is an entity separate from its owners. As such, you would not usually be personally liable for its debts because normally creditors can claim only the assets of the business (although you may be asked to give personal guarantee on certain loans and liabilities)

A limited company is a little more involved to create, and I also strongly advise that if you wish to set up a limited company you seek the advice of a professional (an attorney or accountant). You must register the company and have properly audited annual accounts.

Limited companies have the following characteristics and requirements:

(a) They need to be registered
(b) They are owned by shareholders
(c) They are managed by directors who are appointed by shareholders. In the majority of small limited companies the directors are also the shareholders.
(d) The rules for managing the company, including what the business can undertake and the power of directors are set out in a document called the “Memorandum of Articles of Association.”

As in a partnership, a limited company will often involve working with other people and again it is vitally important that you can trust your colleagues and will be able to enjoy working with them. Should the relationship breakdown, a business can be severely damaged, or even brought to its knees, while people try to untangle themselves.

When starting a business you should do a deep research and understanding on the legal forms I just supplied to you. These can be a make or break for the success and future of your business.

It may be the the most important thing you can do. Victor Frankl, in his book about his time in a concentration camp, talks about how a focus on the present helped him to deal with the discomfort of his immediate situation without being overwhelmed by the horror of his life as a prisoner of the Nazi's. Bhuddist teacher Thich Nhat Hanh emphasises being in the moment in his book, "The Miracle of Mindfulness". And Deepak Chopra cites 'Present Moment Awareness" as one of the "Seven Spiritual Laws of Success".

What is 'Being Fully Present'
A state of consciousness. A state of mind. A way of being. Being in the zone. Mindfulness. Whatever you call it, 'being fully present' means that you are fully absorbed and committed to what you are doing - NOW.

It is also probably true that being fully present can be a different experience for each of us, and indeed that it can be a changing experience for each of us. This implies that Being Fully Present can be a qualitative experience - factors can change how we experience it: Practice improves and deepens the experience and makes it easier; our state when we 'go into it' can affect the state we go into; it is a skill we can develop.

What are the benefits of Being Fully Present? What's in it for you?
To answer that question we need to consider it from a number of perspectives:

1. Your Life Will Have Meaning and Purpose
The philosophical, existential perspective. Consider your life as a conscious experience. Is it not true that the only conscious experience that you can have is the one that you are having now? And would that not lead to the idea that your life is being lived, now? That all of life is now?

So if we are not focused and completely giving ourselves to the present moment, are we not living a lesser experience, a watered down life? Don't you want to live your life to the full?

2. You are More Likely to Have What you Want.
Without focus on the present moment, we are less likely to succeed. If you do things with 50% of your mind on the task at hand and 50% somewhere else, you are less likely to get the quality of output - the result - you want. I know when I do this I usually end up being dissatisfied with my work. And, being a bit of perfectionist, that can mean that I don't want to use the output, which means that I have completely wasted my time. I needn't have bothered at all. How many times have you done something in a half-hearted way, put it down and never gone back to it? Or junked what you have done and started all over again? Each time you do this is a lost opportunity. If you focus on the task at hand, you will do it better. And if you are doing something at all, don't you want it done as well as possible? If you can do whatever you are doing to the best of your ability you are far more likely to succeed.

Now I feel the need to come in here and say that I am not referring here to the creative process. My creative process is often that I start something more than once, go round in circles, and generally look like I am wasting time and effort. What I have discovered about myself is that this is all a natural function of my creative process and is ok, even necessary. The point is, even while I am doing stuff that I don't use, I am doing it with full awareness and concentration.

3. We Are More Likely to Have the Relationships We Want.
Deep, meaningful relationships that enrich our lives and the lives of those we share with. In fact, being fully present in my primary relationships is the only way I have found to sustain them. (I then have to add the dimension of being there for the other person, so that my focus is on them not on me. But I couldn't do that until I was able to ground myself).

Perhaps the hardest lessons I have learned about living fully in the moment relate to relationships. I have been married twice and experienced many more relationships, and I can honestly say that if I had been living in the moment (for most of my life I didn't know about this at all, so that wasn't really an option to me except when I did it unconsciously, without trying) I could still have been in any one of those relationships successfully and happily.

4. Peace of Mind
Mindfulness allows you to be aware of what is happening, without being drawn into it emotionally. With mindfulness, you can maintain calmness of mind and choice of thought. If negative thoughts arise, you can divert your thoughts to more positive thoughts that garner good feelings. Say to yourself. "I want to feel good!"

'What you focus on, you become. So always focus on that which is the highest, brightest, happiest and most Noble of all Things - Enlightenment.' Rama

The detachment that can come with mindfulness helps you to remain calm in the midst of a storm. When something unwelcome or unexpected happens, there can be a tendency for the mind to become overwhelmed. This is triggered by a rush of brain chemicals and rapid activity in the brain. Immediately following this 'rush', you have a choice: reach for mindfulness or continue with the mental turmoil. With mindfulness you can find clarity of thought and rational decision making. Even better, you will reduce the stress of the moment. Reducing stress in the moment is a good outcome. The long term cumulative benefits to your health and emotional well-being of a reduction in stress are considerable.

How to Attain Mindfulness
There are many books and other resources to help you to become mindful. Here are some suggestions:

Meditate.
Meditation allows your inner self through. If you meditate by connecting to your breathing, using a mantra, or connecting your body in some other way by watching your body you are developing your abilities to observe and detach.

Focus on your breathing.
When you don't have anything in particular to concentrate on, or if the reverse is true and your mind is so full of 'stuff' you can't think straight, pull back from all of that, and just concentrate on your breathing. There's no need to change or alter your breathing, just give your full attention to it. Follow it. Notice how concentrating on your breathing brings you back to earth, quietens your mind and slows your body functions down.

Concentrate fully on whatever activity you are engaged in.
Thich Nhat Hanh suggest that 'when you are washing the dishes, be only washing the dishes'. Give your full concentration to the activity of washing the dishes. You may find that time seems to slow down and calmness sets in.

Be before you do.
Another way to say this is 'Be Do Have'. Before you launch yourself into an activity, consider your mental and physical state. What is going on now in your body? How is your breathing? Are your muscles tight and bunched, or loose and relaxed? How do you want your body to be for this activity?

What is going on with your thoughts? Are you thinking about what you want to think about, and in a state of mind likely to enable this activity, or hinder it? Are you fully aware?

Develop your Mind/Body Connection.
Using your awareness, and in a specific order, scan your body. You might start at the tips of the toes of your left foot and work up your left foot, your left ankle, your lower leg and so on in a similar way all the way up to your left hip. When you get to an area that doesn't feel how you want it to, pause and think about the feeling you want to have in that area until it starts to arrive there. Then move on, slowly. Pay particular attention to muscles and joints in your limbs, and to your organs in your torso. When scanning your head, pay attention to the muscles of your face and neck, and your scalp. If you sit down to practice this, you may fall asleep, it's so relaxing!

If you are sitting down, you can augment this by noticing the feel of the chair underneath your buttocks and the ground on your feet.

This practice will bring you back to the present moment and is very grounding.

Want to improve your Sales Performance? if you are a Sales Manager who wants your team to perform better, increase your Direct Sales or Channel Sales revenues and make your sales more profitable, Robert Neely can help you.

Sometimes when we're familiar with a particular process, industry, route, whatever, we assume that everyone shares that same insight. The is especially true in the technology industry, where "tekkies" assume everyone else embraces the cyber-world as much as they do. I just saw a commercial for a cell phone company catering to seniors that lets users call customer service to add phone numbers, as opposed to just doing it themselves. That and the numbers are huge.

It's been my observation that the individuals that have not had to use the Internet to perform their jobs or complete their schoolwork over the last 10+ years (blue collar workers, stay-at-home Mom's, retirees, for example) have been the slowest to embrace technology. Back in the early to mid-90's when your employer introduced MS Outlook as their email client, you probably weren't given a choice as to whether or not could use it. It was a new way to communicate and everyone within the organization would be using it, whether you liked it or not. I think the common bond all technically-savvy people share is an appreciation for change. They embrace change, not just for the sake of change, but for a faster, more efficient (and sometimes a more enjoyable) way of accomplishing a goal. I'm still amazed at the number of small to medium-sized businesses that do not have a web site. I don't mean a rough, slapped-together website; I mean NO website AT ALL! In my mind this is as basic as having a phone number--actually I can envision a business surviving better without a phone number than I can a website. My brother was doing some work recently with a commercial painting contractor that's owned by an old friend of mine. He mentioned how they were struggling to find new clients and she needed him to help generate new business. I asked if they were getting any leads from their website only to find out the business doesn't have a website. He said that she had not invested in one because she felt the type of client they worked with did not use the Internet. Now keep in mind this is a specialized business catering to a commercial client doing $1MM + a year and covering a three state territory. I explained to him how in the last year, I've been able to connect with everyone from a residential drywall contractor to my orthodontist to a wholesale carpet distributor via a quick Google search. "Yeah, but you like using the Internet; she should probably just stick to the Yellow Pages." My first reaction was "Who in the hell still uses the Yellow Pages?" Interestingly enough, they just delivered the newest edition of the Yellow Pages to our entire office building last week and 50% of them are still sitting in front of the office doors--probably being used as door stops.

Sales Management includes features for creating the sales force; organizing sales force, sales forecasting and planning, identifying potential customers, maintaining client information, and creating and managing schedules.

Sales management’s key functions are contemplated around procuring a clear perception into the activities of direct reports as well as the sales activities of the enterprise.

Key functions maintained by sales management are managing organizational sales structure and territories—crucial enterprises turnover; sales reporting and forecasting; quota management—handing assignments to sales representatives, implementing changes, etc.; and incentive management—producing compensation plan.

An organization’s sales management is enhanced through their workforces’ active participation to internal and external programs like symposiums—meetings or conferences conducted to discuss an issue; trainings—coaching people to a mode of performance in introductory, learning and transitional periods; and seminars—a gathering where there occurs information exchange and discussions.

These customized activities indulge the personnel’s yearning to gain more knowledge on individual productivity, team work, streamlining the sales process, sales performance precision, hiring sales champions, motivation methods that work, mastering the art of sales and sales coaching and tools, tactics, strategies for improvement.

The role of the sales manager is to provide an atmosphere where their subordinates can perform. They play a critical role in analytically examining, questioning and settling the sales productivity problems by creating structure and conscientiousness in the sales process.

To be good in these aspects, a sales manager must equip himself with the methodologies for planning sales activities and the know-how in using sound key performance indicators for managing the selling process. To increase sales productivity, concentration must be allotted to the sales process rather than consuming full focus on business outcomes.

Another character in sales management is the sales people or sales representatives. These are the people designated to solicit business in behalf of the organization in a specific territory.

To build successful sales relationships, a sales representative has to identify and attend to two necessities. These are the prospect’s psychological needs—intellectual concerns as to what makes him happy; as well as the prospect’s objective or business needs—the products, materials, equipments that are related to his profession, way of life, or hobbies.

In sales management the things that are taken into consideration are: the sales process—right variety to suit the business’s market and value delivery to consumers; psychological assessment—revolves around understanding and researching on the business and consumer needs; pre-approach planning and prospecting—understanding maximum value prospects and generating referrals; opening—engineering business affinities, establishing plausibility and gaining interest; and strategies—development of long- and short-term sales cycles.

A profitable sales management requires the comprehension of the prospect’s needs and the source of customer value. Active listening and questioning techniques should be applied to collect information on ways to further service and product value. And there should also be continuous personnel information upgrade to equip sales people with the right strategies and methods to top-notch sales and sales management skills.

My career has been comprised of sales, sales management and recruiting. I've worked for some of the largest companies in the world: Wal-Mart, General Electric, Gannett, as well as a couple small ones and start-ups (including my current firm--no longer a start-up after 5 years in business). With the exception of one (the giant retailer) each company relied heavily on cold-calling to generate new business. My definition of cold-calling is when a sales rep targets a company and/or individual that he or she thinks meets the demographics of a potential buyer and then without invitation (this is key, hence the italics) either picks up the phone or walks into their office in an attempt to initiate a sale. Cold-calling is marketing, pure and simple, albeit a caveman-like strategy in an electronic age. I've been giving a lot of thought to this lately because until a year or so ago, our company relied heavily on cold-calling to generate new business. Our cold-calling efforts have delivered a decent chunk of revenue for us over the last few years, however last year I decided to abandon the strategy completely and I haven't looked back.

It is Thursday a.m. and so far on two occasions this week I've had a knock at my office door only to have four total strangers (two on each visit) walk into my 10"x10" office and proceed to launch into a sales pitch. The first pair was peddling a local tire dealership offering 90% tires (my car is under warranty at my dealership) and the second was for "guaranteed savings!" on my color printing (I probably print all of two documents a month in color).

All four used the same strategy: walk-in, get comfortable--one guy immediately sat down--and start talking at me like I'm a 9 year old. In both situations I had to stop them in mid-pitch to say, "Guys, I'm NOT interested. Thanks AGAIN for stopping by." You're probably wondering how these individuals got past our receptionist. Well, the short answer is we don't have one--we have a phone and a nearby directory. Our partner whose office is closest to the front door is usually the first person hit on by these door-knockers. He thinks it's cute to tell them that he doesn't have purchasing authority but to be sure to go see me because I hold the purse strings (not necessarily true)--so he can pawn "bad cop" responsibilities on me. But lately it's a role I'm embracing. I now recognize what an outdated, old-school, ineffective strategy cold-calling is and it is one of the main reasons turnover in sales is so high. I would like to personally apologize to all those purchasing managers and perceived "decision-makers" that I dropped by over the years to have a little chit-chat with, completely interrupting their day and wasting both of our time.

Companies continue to employ cold-calling for a couple reasons: first, they perceive it to be cheap (it's not) and second, marketing (legitimate, creative, permission-based marketing) is hard (not always). Over the next few days or so I'm going to be discussing how our firm has been able to successfully secure new business without cold-calling a single person, while at the same time continuing to use proactive recruiting, what some would perceive as cold-calling (it's not) to find the highest qualified candidates for our client's open positions.

You need to begin to get the measure of people early on. Beware of thinking you are an expert psychologist, but do:

• Listen to what people say and how they say it

• Read between the lines

• Check immediately anything that is unclear

• Address (or note) any apparent hidden agendas

• Be aware of the informal communications channels as well as the hierarchical ones

• Note any areas requiring further investigation

You need to get to know people, their working methods, strengths and weaknesses. This cannot be done in five minutes; start early and handle it objectively.

Beware of making, and acting on unwarranted, instant assumptions about people.

A First Staff Meeting:

Get the team together as soon as possible, on the first day if you can. Remember, your meetings speak volumes about the kind of manager you are. Plan to make them really effective, therefore.

• Set the time and date to be as convenient to people as possible (you may need to check this with a new group)

• Organise the administration (place, refreshments, acting to stop interruptions, etc)

• Issue a clear agenda in advance

• Make sure the agenda is worthwhile, fits the time available and is useful for those attending

• Tell people what you expect from them (for instance, if someone is to give you a run down on their section or work, let them plan how to do it from your clear brief)

• Set start and finish times – and try to stick to them (you are setting up habits here so be sure to start on time)

• Give people a say – listen – make notes and be seen to take an interest in their views

• Make any action points clear (whether for the group or for individuals)

• Link to the next meeting (you might set a date)

• Confirm anything necessary in writing

A meeting should motivate. People will wonder how your presence and style will affect them. Show them your impact will be beneficial. Spell out how.

The agenda for the first meeting will depend on your precise role. It is likely to include items such as:

• Your understanding of the team’s role and immediate goals

• Any necessary explanations for change (e.g. why you are now manager)

• The current position (progress, problems, opportunities)

• A chance to ask questions

• Details of, and reasons for, any immediate changes

• Reporting and communications procedures (e.g.: when and how you plan to keep in touch with individuals and the group)

• Action points on immediate operational issues

You should ask as much as inform, and not change existing procedures without good reasons (and knowing the facts). However logical changes may be, people will be suspicious (Will it adversely affect me?) so see, and explain things, from their point of view. Empathy is your greatest ally in the early stages of managing a group.

Early Issue: Early Action

Here is something to do as soon as possible (though always with a firm basis of information). Identify an issue waiting for attention and which is seen as needing attention. And sort it out.

Something where you can:

• Tell people you recognise it is a priority, one that must not be left

• Explain the basis of a decision

• Specify action to be taken (this could be a temporary measure)

• Take any additional action necessary (e.g.: confirm in writing, consult or advise further a field than your section)

• Get it off the department’s to do list promptly and definitely

You need a task that is seen as due (overdue?) for action, one that will also be seen as well resolved – an example of how you mean to go on. Select carefully, act in a considered fashion and this will not only clear an outstanding issue but will also say something positive about you.

Ground Rules

Consultation is important to the management process but there are times when arguments must be avoided and an authoritative approach taken. If every initiative involved lengthy consultation, time would run out, little would get done and we would all be in trouble.

You, might, for example, consult about departmental policy on dress code or what can be claimed on expenses. Then – for a while at least – what is decided (what you decide) assumes the status of a rule. It is expected that people toe the line, and no time is wasted on endless arguments about exceptions. In due course you may need to reassess the situation and possibly change the rules.

The precise definition is Customer Relationship Management, in reality it means changing the focus of your business to become customer centric. Funny thing about that statement is most organizations believe they are already customer centric. Yet a great percentage of businesses both large and small haven’t committed to building long term relationships with their customers.

After being in the CRM industry for ten years, here is my definition: CRM is about engineering your company, it business processes, departments, workflows, customer service, and marketing, products and business intelligence for the benefit of increasing customer loyalty, and longevity. A properly implemented system can offer a ROI of up to over 900% or more in a two to three year period.

Let me say that CRM is not a box of software, some computers and a telephone. It is not a task you hand to your IT/MIS department and say lets do this!. CRM requires a knowledgeable consultant to help design, implement, customize, the CRM tools, and help train your staff on how to use the system.

An immediate analogy is the CRM consultant is much like the architect of home. It is spending time with the clients, learning the lifestyle of the customer, how the home will function, what amenities, décor and the esthetics, and of course budget of their clients. It is only then the architect will develop a blueprint, and maybe a model of the house.

You can try to build your house without a sound blueprint, and you may even end up with something that sort of looks like a house, but oops what happened to the second bathroom? What happened to the garage? Well you get the idea. It certainly wouldn’t be considered a good house.

I got my start in CRM at an early age. I worked for a finance company that made small loans to mostly blue collar families in Indiana. Our particular office made 6-8 loans each and every day. Most of our customers could easily qualify for such small amounts (usually $1000 to $3,000) with their local bank or credit union. The interest rates we charged were as high as 36%. Yet our office grew, and was extremely profitable because our customers came back time after time. Why you ask; because, we knew our customers on a very personal level. We knew their families, what they did for a living, we offered loans with custom payment schedules, and we were there when our customers needed us. We had relationships with our customers.

As I went into business on my own, I wanted to use computer technology that would not only help grow my business with new clients, but also generate referrals, and allow us to up sell, cross sell, and earn repeat business. It would take a lot of time and investment, trial and error until I figured out a winning combination. At the time in 1989 you just couldn’t go out and purchase a CRM package. The idea didn’t even exist then. I began with a copy of a database called Corner Stone written for MS DOS.

At the time it was state of the art, and a huge investment. Other associates of mine asked why not use a rolodex? What am I going to do with that data anyway? It was if just building a database of my customers was an foreign concept to them. I mean computers were just beginning to show up in offices to run Visi Calc (a spreadsheet application), and WordStar (a word processor).

I grew my mortgage brokerage and eventually “ACT!” came into the market. We installed it and used it with varying successes. We then moved on to a product called GoldMine, which was a much more robust system. It was then that I decided that I wanted to get into the CRM business and become GoldMine consultant.

That decision has led me down a path of spending a great deal of time learning what CRM is and what it is not. I have had the opportunity to work with some of smartest sales and marketing experts in the world and within a short period of time become one of GoldMine’s most successful resellers in the western states.

I left the world of GoldMine in 2001, for another business venture, but kept up with the changes in the industry. When Microsoft entered the business with their CRM tools I was impressed. Microsoft CRM in my opinion offers that toolset that allows a CRM consultant to offer a easy to use, extensible, application to help our clients realize a successful CRM project.

Many smaller businesses have advanced beyond back office automation using PCs and client-server IS platforms. More owners are looking at advanced sales automation software as a way of improving the productivity of their sales force as well as customer satisfaction. Salespeople are often more resistant to using PCs compared with those working in finance, logistics, materials management and other functions. Thus, business owners need to sell the benefits of automation to both their sales managers and reps. Sales has long been considered more of an art than a science, which explains part of the resistance. Also, some businesses find themselves with older reps who, though they have critical industry knowledge, did not grow up with computers. You could just load up each rep with a laptop and all the accoutrements:
• sales management software, including automated fax and e-mail capabilities
• groupware for proposal and contact information sharing
• templates for contact reports and follow-up letters
• product, price and delivery information that can be called up via an intranet link.
Why not let them discover the value for themselves? There's a good reason: Throwing sales automation software at the reps is no guarantee it will be used. Sales automation software has been growing of late, with close to $300 million a year in revenues. There's a reason: improved functionality and user-friendly features geared to what the reps consider their priority needs are the reasons behind the recent spurt in sales. Before pushing sales automation on your reps and territory managers, conduct an audit within the company. Here are some key steps to take:
• Ask your reps what they consider to be their three priority tasks in the field. Ask for their recommendations on how to improve their productivity. For example, which tasks are taking longer than they would like, or what are the bottlenecks they face in getting prompt and accurate information to prospective as well as current customers.
• Involve all of your key functional managers in a discussion of the order management and order fulfillment processes. Although sales force automation can begin with discrete tools such as contact management software, your business may really need a more integrated and more robust information systems architecture that will improve the entire order-to-delivery process chain in the company.
• Decide whether you should try to improve sales productivity as a single function or carry out a more extensive overhaul of your business' IS platform.
• When you survey vendor offerings, involve end-users in the discussion and trial testing of the software. Many off-the-shelf products allow sufficient customization for your needs. Some of the tools have more open-ended integration capabilities with other IS tools, and it is important to know how much integration is possible. You want to avoid investing in another legacy system that could end up walling sales off from other business functions. Finally, even when software tools and other IS enhancements are the right solution for boosting sales productivity and customer satisfaction, that is no guarantee you will get buy-in from the sales force. You need to motivate use and experimentation. Besides involving end-users in the discussion and evaluation of software choices before you commit to a vendor, there are three other steps you can take to assure that your reps accept the new system: 1. Assure the sales force that the time required for getting up to speed on the software will not reduce their income if they fail to make their sales numbers at the customary level. However, set a fixed period of time for the conversion to the new system. 2. Monitor the productivity payoff among the committed users, with before and after comparisons of their sales productivity. Productivity measures should not just focus on goods or services sold but include discrete task productivity, at least initially. For example, the time it takes to get letters written, or get correct pricing information out to customers. Then, communicate the benefits throughout the sales organization. 3. Go with a software vendor or systems integrator that will stay on board well beyond the installation to provide additional customization of the tool and training if needed.

All companies are in constant need of aggressive, creative and resourceful salespeople to have their products specified, accepted and used by customers. Without informed and capable field salespeople, no distributorship could hope to compete in the marketplace today.

How often have any of us stopped to consider the fact that good salespeople, the kind who can help a company really grow, don’t just happen to come along by chance or fate. There is no such thing as a “born salesperson,” because selling ability is much more than an intangible given that a person either has or doesn’t have.

Selling does require certain attributes in a person. He or she should, for example, be basically outgoing in manner and capable of making a genuinely favorable impression almost immediately. Also, the person must be intelligent, able to grasp ideas and details easily, retain them and recall them for use whenever necessary in selling situations. These factors and many others relating to personal and emotional characteristics are contributing elements in the makeup of the successful salesperson.

Non Performance ---- Now What?

So, all that being said, what do you do when one of your sales people just isn’t performing up to standards? The key to answering that question is determining the cause of the non performance. Start by reviewing the obvious. A sales person must have adequate tools, resources and leadership to maximize their effectiveness.

The review process is a critical component of sales effectiveness. This review should occur monthly for regularly performing sales representatives (reps) and even more frequently for those reps that are under performing. This review enables the sales manager and the sales representative to discuss, plan and measure success. In addition to possessing and capitalizing on certain natural talents and traits, the review process should encompass the following issues:

1. Knowledge of products, customers and customer organizations.
2. Skills in the application of this knowledge.
3. Development of a favorable attitude as it pertains to that knowledge and those applied skills.
4. Review of all Target Growth Accounts, Prospects and Long Term Target Accounts
5. Review of all opportunity reports or lack of
6. Review of specific territory objectives including sales to plan and gross profit to plan

Instructional Guidelines for the Under Performing Review:

I. Preparation

The sales representative (sales rep) and the sales manager should prepare ahead of time by reviewing territory objectives. Preparation should include reviewing personal performance on each target account, opportunities, sales to plan and gross profit to plan. A quick checklist of what went right and what went wrong for each objective will prove very helpful during the review.

More and more, the sales rep is becoming all things to the customer. Pressed for time, customers tend to require quicker and more complete answers to their inquiries, and they look to the salesperson to provide solutions, not just products. Selling skills tend to center on the ability of a salesperson to translate product features into customer benefits as they apply directly to the prospect’s problems. This in effect is the value proposition.

Lastly, a generally positive attitude is necessary to promote the maximum and optimum use of knowledge and skills in the selling situation.

II. Attitude Is the Foundation

It is agreed that the attitude of the sales rep is a key factor in their success. It is really the foundation for success. The critical question then becomes how to ensure that the best possible attitude exists on the part of the non-performing rep. If the individual is not receptive and has a poor attitude to begin with, very little can be done to create an atmosphere conducive to learning. This attitudinal problem must be corrected before another step is taken. If it can not be corrected then termination may be the best answer for both the rep and the company. However, don’t give up too soon. Sometimes the “devil you know is better than the devil you don’t know.” In other words, turnover is very costly. Besides, if it is something you as the sales manager or something about the culture of the company that contributes to the employee’s attitude and lack of success, then termination will only temporarily solve your problem.

III. Fundamental Steps to Address Attitude Issues

There are a number of fundamental steps that can be taken to improve the attitude of the employee. Some of these are:

1. Encouragement of maximum participation in sales meeting and other training opportunities.
2. Creation of enthusiasm by demonstrating support and enthusiasm.
3. Creation of confidence in the program by providing support and resources
4. Giving success examples – documenting case studies
5. Asking thought provoking questions (without prying into their personal life) with the hope that they will open up and allow the exploration that points to the real cause of their poor attitude and non performance
6. Personal skill development training that addresses people skills

If you can discover the cause and correct the attitude issue then hope exists for this employee. The proper attitude at the very least can help you determine if this employee is worth the investment of your personal coaching time, additional training and the deployment of other company resources. If the root cause of the attitude problem can not be determined and corrected, probation and termination certainly enter into the equation. Sometimes we just don’t hire right and need to correct our mistakes.

IV. Is Training the Issue

Generally, if you are good at the hiring process, non-performance can often be traced to a lack of or improper training. The training program should be designed to achieve maximum participation on the part of the sales rep; as much time as possible should be devoted to realizing this goal. This is especially true if you need to set up a special training program to help a non-performing rep. It has been proven time and again that active participation in sales training is one of the most effective methods of developing both an attitude for learning and an attitude for successful salesmanship.

V. Coaching for Non-performance
To help a poor performer the coaching process would include these five steps:
• Define the Situation Clearly - gather facts and identify performance results. Don’t sugar coat this or pull your punches. It is important that the rep understands the critical nature of this process and the necessity to improve on performance.

• Counsel - meet with the rep and make it clear that your goal is to help them improve their performance. Avoid blaming, reprimanding or delivering ultimatums. Show support and a belief that you can help the rep improve their performance.

• Ask the Sales Rep – Many times the sales rep knows better than you do how to solve the problem. Get their opinion on what they think they need to change. Don’t command an answer or give them instructions on what to do. Help them find the answers with your guidance

• Develop an Action Plan Together – Focus on the activities that are necessary to create the expected results. Make sure the plan has clarity; it’s all encompassing, comprehensive and achievable. In other words, look for short term wins and set up success milestones to encourage the rep to be persistent.

• Continuous Review – Once you have established a success plan it is essential to establish regular follow-up meetings to monitor the activities and make course corrections when necessary. This review process is outside the scope of the normal territory review process as it should occur much more frequently (perhaps even on a weekly basis).

• Take It Seriously -- When a sales rep is under-performing, the manager needs to hold them accountable. In some cases it may be necessary to reestablish expectations. However, if the expectations are not unreasonable and all the other reps seem to be able to meet expectations and additional training and coaching just isn’t working then “Termination” is a decision the rep himself makes for the sales manager. It’s usually better for the rep, better for the manager and better for the company. That is exactly why this process must be taken seriously.

The sales manager is not personally responsible for sales. However, he is directly responsible for the development of the sales force which generates sales growth. The sales manager is charged with the responsibility of setting proper expectations, developing systems to track and record sales activities and results and eliminating any excuse making when results are not achieved. A sales rep cannot perform without knowing what is expected of them. Expectations spell out what is required to succeed, and believe it or not but the majority of sales reps do want to be held accountable. The single biggest key to success is desire and desire dictates attitude. Unless the sales rep has an internal burning desire to succeed, nothing else matters.

Just the term “Cold Call” has threatening, wasteful connotations in my mind. Yet, every sales person has to make this kind of call sooner or later. Most sales people would rather have bamboo shoots stuck under their finger nails than make cold calls. The reason is simple, “Cold Calling” carries with it an extremely high rejection rate. And, even though as professional sales people we realize that rejection is part of building our sales success, that doesn’t mean we like it.

Let’s start with the basics, cold-calling success is dependent on attitude. The first thing we need to do is realize that a “Cold Call” is really nothing more than a “Qualification Call”. This relates to attitude. Our goal (attitude about the call) should be only to gather information and not make a sale.

1. Determine the customers specific needs, the current distributors that fulfill those needs and how they match up with your company’s core competencies
2. Provide initial information on your company such that the buyer becomes aware of your stature and capabilities.
3. If the match is adequate, develop interest in the buyer for further sales contact. Conversational Tips:
Start your initial request or conversation by addressing the customer’s pain. This means you have to do some research on the customer and his industry.

"All I'm asking for is 10 minutes of your time, I honestly would not be wasting your time or mine if I didn't think our company could help you address some of your critical issues, improve profitability etc etc. Of course, you need to do your homework in order to make a statement that can be beneficial to the customer. Once you have determined that potential exists and you set an appointment for a face to face meeting, the following questioning strategies may be helpful during that follow-up qualification call. Questioning Strategy:

1. Introduce a direction statement to set the tone, for example:

“Mr. Buyer, today’s purchasing agent has to deal with inventory levels, inventory turns, delivery and price problems, cost of money and so forth. We have developed specific solutions for these problems and more.”

Of course, your questioning strategy in person is determined by how much information was gained during the initial phone call that set up your appointment. Often times that information is very general and superficial to the extent that the total or real potential isn’t fully understood.

2. Introduce the purpose of the call as an exchange of information, for example:

“Mr. Buyer, I think we may have a good match-up of resources. To be sure, I would like to ask you some questions about your operation and tell you a little about our company.”

3. Use some open questions to develop background information about the customer for example:

• “Mr. Customer, how do you market your product?”
• “Mr. Customer, can you tell me about your internal operation and how your paperwork flows?”
• “Mr. Customer, how would you rank delivery, inventory levels, price and service in terms of your specific priorities?”

Remember, research is important. The more you know about the customer going in the more powerful and directional your questions can become. The power is in the questions more so than the answers.

4. Every favorable response should be reinforced. On the not pad jot down a list of responses that you were able to support.

A follow-up note outlining your discussion with the customer and the required next steps will make you look like the professional you are. It will also differentiate you from the competition because most sales people just don’t follow-up their qualification calls with a written summary and call to action.

5. Use closed questions to complete your customer profile, acquiring as much of the following as possible. What/Who are ….

• Total annual purchases of products
• Major vendor preferences
• Purchases through distribution --- direct from manufacturers
• The customer’s current vendors
• Who is involved in purchase/vendor selection decisions
• Required lead times versus desired lead times
• Current inventory levels --- desired inventory levels
• Potential future markets for the customer’s product
• Current cash flow situation, desired credit line

6. Continue to reinforce every favorable response, logging them on your note pad. Reinforcing done at this stage becomes the outline for a capabilities presentation later.

Next Steps

Remember, your objective going in was to gather information and determine whether this prospect is a match and worth investing additional time and effort. Of course, if the opportunity to get an order presents itself you would be foolish not to pursue it.

Closing Commitments to Request:

1. A facility tour of yours or his.

2. A follow up appointment to make a capabilities presentation.

3. Opportunity to quote.

4. Buyer commitment to check your references.

5. An order, perhaps cleaning up some of the customer’s current backorders.

Cold calling may be the sales tactic that gets no respect. But it really can work -- if you do it right. Stop thinking of such calls as "cold" in the first place. "Qualification" is a more accurate description. Don’t forget, plenty of research is necessary before reaching for the phone to set up that in-person qualification call.

Fear of rejection is the main reason so many of these calls fail. A “Qualification Call” whether it is in person or by phone is nothing more than a way to introduce yourself and your business to a prospect. Yet even seasoned salespeople are intimidated by the tactic. Keep in mind, the last thing you want is to have a field sales person running around chasing smoke stacks without a prior phone call to, at the very least, determine if there is potential for the prospect to buy your products. This means that the qualification call should start on the phone. A personal qualification call should only be made if the information gained by the phone call determines that potential does exist. Inside sales can often be the driving force behind initial phone qualification. However, this does require training and support. It can also often evolve into a very proactive outcall program that supports new account development and market share growth.