Many of us remember those famous words from the movie “Jaws”, but, what does it have to do with business?

Recently we were in conversations with a potential client.  The discussion was centered in a marketing promotion effort to increase customer awareness and exposure.

After the meeting was over we made a rapid assessment of their company, service offering, value proposition, business image, and benchmarked their key competitors.  Our findings were staggering:

• Four companies offered comparable services in the area.  One visible leader, and three following from a distant behind at a similar level.
• Two competitors had facilities in prime locations, high traffic, high visibility.  Our prospective client was a few miles away from downtown in a less transited area.  We attempted to find their offices but we were unable to find them easily, no signs or ads leading to their facilities.
• Key competitors’ websites were vivid, colorful, modern and mobile-friendly; descriptions were clear and easy to understand.  Our prospective client’s website was outdated, lacked e-commerce capabilities, and was not mobile friendly.

We immediately realized that this client needed more than advertising.  Our rapid assessment showed areas that required immediate attention in order to drive client interest and conversion.  Investing in promotional marketing alone would very likely result in little or no economic impact.  This was the moment when we thought “You are going to need a bigger boat…”

The day after our initial meeting we discussed our findings with the prospective client, and after some consideration they decided to evaluate and expanded scope to their anticipated marketing plan.  These included business image and branding, services positioning and segmentation, pricing strategy, and client retention strategy.  We also identified opportunities in their physical address location and accessibility.

Our proposal was more elaborate than the client had originally envisioned; however, they understood the principles and by reviewing actual data they felt comfortable pursuing our recommended path.

Is your company currently considering investing in advertising and marketing? before taking this action explore the key elements of your business delivery model.  What is your business readiness to leverage the results of your campaign?  Is your product/service positioning clear to your customers and adequately differentiated from your competitors? Is your website ready to handle the increased traffic? Is your team ready and adequately prepared to address client requests or inquiries?

If you would like assistance answering these and other questions please contact us.

On November 18, 2015 Edmundo Torquemada, General Manager at Kellerworx introduced Beecose.com to a tight community of entrepreneurs and start-up business owners at Idea Works FW.  Following the presentation Edmundo addressed questions and also discussed ideas and recommendations from the audience on how the application could be improved.

1Million Cups is a weekly national program designed to educate, engage, and connect entrepreneurs.  Developed by the Kauffman Foundation, 1Million Cups gives participants the opportunity to present for a maximum of 6 minutes a recent or soon to be launched venture.  The presentation is followed by 20 minutes of questions and answers.

Most recently, on January 5, 2016 Edmundo introduced Beecose.com to more than 100 members of the Dallas community of entrepreneurs gathered at Dallas New Tech.  Following the presentation and as customary, Edmundo responded to a variety of questions from the audience.

Dallas New Tech is a monthly showcase event for new and exciting companies/technologies.  Entrepreneurs and people interested in start-ups gets together to socialize and check out the hottest developments in tech from local companies around the metroplex.  Dallas New Tech is organized by LaunchDFW, a start-up incubator based in Dallas, Texas.

“Beecose is a great way to uncover skills that otherwise may go underutilized” said Michael, one of the event participants

Dallas New Tech presentations last 5 minutes, and are followed by 5 minutes of questions and answers.  To view Edmundo’s presentation follow this link.

Kellerworx is a business consulting and application development company based out of Keller, Texas.  Information about Kellerworx’ services and applications can be obtained using this contact form.

As you start the new year its a fantastic time to review 10 sales strategies that can help you hit the ground running, land your first sales, and build a robust pipeline of orders.

#1 Understand your value proposition

Before you talk to your first customer you must know your product to the highest extent possible, your value proposition, what is the benefit for your customer, what different presentations or configuration exists, what is the lead time for delivery, pricing, pricing flexibility, volume discounts, and more.   You must be prepared to describe your product or service from multiple angles and answer any question that your customer may have.

As you demonstrate knowledge of your product or service you will transmit confidence and earn the trust from your customers.

#2 Know your customer

Learn everything you can, what is important for your customer, what are his/her needs, challenges, where he/she excels, where he/she struggles.  The more you know about your customer the better you will be prepared to present your product or services in a way that highlights its benefits.  Also, as you get to know your customer you will be able to pick-up cues on times when you should stay close and work on the sales process, or give your customer space to focus on his/her priorities.

#3 Know your competitors

Equally important as knowing your customer is knowing your competitors, and your competitors’ products/services.  Unless you enjoy an absolute competitive advantage that positions well above than your competitors, sooner or later they will come up in your conversations with your customers.   Comparisons will start, in performance, price, and other dimensions.  In order to be able to manage every question or statement from your customer you must understand what your competitors offer, their value proposition, strengths, and weaknesses.  Remember, every sales person is also a consultant, and to be able to help your customers make the best decision you will need to be fully informed about their options.

Always be ethical and professional in learning about your competitors and their products/services, this will help you earn the respect of your customers.

#4 Know your industry

What is the latest trend in your industry? the newest technology? any game changer? what drives prices? what are the supply and demand dynamics? In order to be prepared to answer these and any other questions you must be an expert in the industry where you are operating.  Be an avid reader, research, learn, share, investigate.  Also educate your customers, become their go-to person for the most up-to-date information about the industry.  Let them know that anything they need to know they can find out by just giving you a phone call.

#5 Be a story teller

In a good way! as you present your facts draw a picture, tell a story, bring life to your pitch by incorporating elements of your customer’s application, make him/her connect the dots and see how all comes together! remember that according to experts a high percentage of communications is not what you say, is how you say it, and how you make the person feel.

#6 Listen, listen, listen

We sales people have so many things to say! after becoming an expert in your product, competitors, and industry you have a wealth of knowledge to share… well, hold your horses! When your customers have something to say, let them talk, for as long as they need to… Remember that every piece of information that you obtain will help you align your proposition with your customer’s needs.   Ask questions, listen, ask more questions, listen, develop a theory, present it, test it, listen to your customer’s feedback, adjust, and present again.

Also remember that as  you develop a relationship with your customer some conversations may not always relate to work.  Well, be there for your customer, and if there is something that you can do to help, step up and help.

#7 Be a problem solver

This strategy is deeper than just solving the immediate problem, the problem why your customer is talking to you.  When your customer reaches out to you he/she may have an idea of what he/she needs and plans to work with you to achieve that goal.  As an expert, you shall recognize if your customer’s path is correct, and by purchasing your product or service he/she will indeed solve his/her problem.  In this regard, make sure that you understand the ultimate objectives of your customer, dig deep, ask questions, test, and make sure that together with your customer you both find a solution to the root cause of his/her needs.

#8 Go the extra mile

When you meet with your customers and as you interact with them working around a proposal you may find out that there are other areas where your customer might need help.   These areas may very well extend beyond your area of expertise or scope of products/services provided.  When you find your customer in this situation try as much as you can to give a hand.  It could be a referral to a prior service provider, contacting someone who you think might be able to help your customer, even doing some research on his/her behalf.  Going the extra mile will not only be a nice thing to do, but will also build and strengthen your relationship with your customer.

#9 Stay close Always pick-up the phone

Have you heard about TOM? Top of Mind? be always present, be always close, in such a way that when your customer needs you he remembers you well, and how and where to contact you.  If a problem arises, be the first one he calls, if he has a question, be the first one he contacts.  Achieve this by always being within reach, by staying close either through periodic visits, calls, by sending newsletters, or by leveraging any other method.  Read our article on TOM for further information.

#10 Value your customer’s time

Time is money! both for you and your customer.  When you contact or visit your customer be mindful of his/her time.  Always ask how much time he/she has available, and stick to that time.  Is your customer in a hurry? be quick, be done, be gone!  Did something come up and your customer needs to re-schedule your appointment? be flexible! And always express your gratitude for your customer’s time.   If you follow these basic principles you will probably find out that your customer will always make time to meet with you.

We hope that these 10 strategies are beneficial to you.  After years selling products and services we have found that these basic fundamentals strongly help nurture relationships, develop customer loyalty, and bring more orders home.  If you have questions or comments please do not hesitate to contact us!

For some time we had been struggling with one of our business partners.  In general the relationship had been healthy; however, there had been some performance gaps… nothing urgent or a high priority… until one of their competitors called….

TOM, or Top of Mind, is one of the priorities and goals of marketing professionals.

But what is TOM? Simply described it is the brand that your clients will remember when they think about a product or service.  For example; think of social network and you will most likely think of Facebook; think of coffee shop and you may think Starbucks; or think about search engine and you may think Google… the first brands that come to your mind are in your TOM.

Why is this important? Because when clients make a purchase decision you want them to think of your product first.  Are you considering buying an action sports video camera? Any name comes to your mind? Perhaps…GoPro, and your first reaction will be to search GoPro.  Then other mechanisms jump in to facilitate the ultimate goal, the sale.

The challenge is how to reach that state and be on your client’s TOM.  Several strategies include:

1. Advertisement.  Traditional channels, printed mail, radio, TV, internet ads, social media.

2. Written communications.  Newsletters, press releases, articles, blogs, direct email or mail.

3. Promotions and campaigns.  Discount coupons, bundled offers, free shipping.

4. Direct calls.  Good old fashioned “touch-base” phone call.

5. Person-to-person contact.  What is better than a letter, email, or phone call? Visit in person, discuss opportunities, goals, and any outstanding projects.

Social media has greatly improved the ability to stay on top of your client’s mind; new channels such as Facebook, Instagram, Pinterest, YouTube, and Twitter make it easier and more cost-effective to reach your clients.  The competition is tough though, too much and you may receive that dreaded “unsubscribe” click, too little and you might miss your objectives.

Back to our situation, the competitor clearly knew that they were not in our top of mind and periodically called to check how things were going.  Their efforts may pay off, we are now at least considering potential opportunities with them.  If we are unable to improve performance of our existing supplier that timely phone call may open a door…

As you prepare to close 2015 and consolidate your 2016 operating plan consider what actions you can take to improve your TOM metrics.   Also, take the opportunity to assess  your relationship with your existing clients, making sure that it is bulletproof and airtight.

After all, you don’t want a competitor’s call to open doors that you might not be able to close…

1. Check work orders and delivery forecast

Depending on GAAP rules for revenue recognition applicable to your business products must be delivered in order to be recognized as revenue.  A tuned up value chain, starting from your suppliers to your manufacturing operations and distribution will be fundamental to achieve this goal.  Make an in-depth review of your current work orders and delivery forecast and validate that there are no anticipated bottlenecks, then, evaluate options to accelerate production and delivery.

2. Make an exhaustive dive in Billings

Once items are delivered a simple step before recognizing revenue is to issue invoices.  In organizations with mature, automated systems this is straightforward.  If this is your case, please move to the next item.  If on the contrary your processes are not automated then add extra eyes to your billing process, make sure that all delivered items are promptly billed, and there is no back-up issuing or delivering bills.

3. Evaluate opportunities in Discretionary Spending

Discretionary spending includes items such as travel and entertainment, advertising and marketing, information systems, temporary labor, energy, and more.  With two full months before the end of the year this is the best time to tighten on expenses if your plan is at risk.  Savings in these and other categories can range between 5 and 50%, which depending on your industry may expand your margins by up to 1%.

4. Challenge your Sales team

While your sales team must have been working hard during the year, is there still opportunity to close the year with additional sales? are you fully leveraging all your sales incentives? are there still any undecided clients who may say “yes” with the right incentive? Find out sooner than later and take action!

5. Reach out to your suppliers

While it may be late to implement any cost-reduction engineering changes it is never too late to request straight price reduction.  Evaluate your supply chain for suppliers who have not delivered productivity this year and have your supply chain team contact them immediately.  Focus on suppliers whose costs have evidently come down this year, i.e.  products that are dependent on oil prices and commodities (metals, plastics, and others).  Set a goal, and just ask.

This list is not exhaustive and may not apply to all businesses and industries.  For additional recommendations or to request a rapid assessment please contact us.

Amid all this uncertainty, what can you do as a manager to prepare for a potential slowdown?

As mentioned in prior deliveries, anticipate!  On your financial equation there are two elements, one you can’t control: revenues, but there is another element that you can control: costs.

Cost are represented by several components: cost of goods or services sold, direct labor, sales, general and administrative (SG&A) costs, and other discretionary expenses.  Assuming that you are not planning to reduce headcount your focus will likely start on all other items.

A strong culture of continuous improvement and innovation will help you improve your production costs, reduce manufacturing floor-plan, increase up-time, shorten set-up times, minimize use of consumables, and achieve other factory-related productivity gains.

Next in your list will be your cost of goods sold.  Your commodity team will be instrumental in adjusting your COGS position.  In some cases, a candid conversation with your key suppliers will help you improve your cost base; in other situations, dual-sourcing and Request for Proposal events will be key levers that will help you achieve your goals.

Last to evaluate will be SG&A expenses (excluding labor).  In many industries this category will represent a significant opportunity and first in the list to reduce costs.  Categories such as travel, sales expenses, marketing expenses, consulting and other outside services, among other can be managed more quickly than any other spending buckets.

Where to start?

The answer is, it depends.  Rapid results are usually achieved in SG&A and other discretionary expenses.  Manufacturing and Production productivity initiatives may take longer to execute.  Naturally its always best to start with the biggest opportunity, which may vary by industry and by company.

For recommendations on how to start a cost reduction program you can review our summary presentation “Reduce expenses, five steps to implement a discretionary spending reduction program”  located in our Education Center.  You can also visit an abridged version in Slideshare.net.  For additional details please contact us at your convenience.

Part of the answer is in the hyper-connected nature of the world’s economies and financial markets.  In Greece situation, we are contemplating the potential default of €1.5 billion to the International Monetary Fund¹, which are due today June 30th.  An additional €25 billion to multiple creditors are due in the balance of 2015, mainly treasury bill holders, the European Central Bank, and the IMF.  A potential default by Greece would touch far more than just their economy.

Another element of the answer is described by the potential chain of events that would follow a default, which could include separation of Greece from the Eurozone, re-adoption and subsequent devaluation of the Drachma, inflation, and general unrest in the country.  Commerce with other nations would be affected, even tourism.  As these events unfold the investor confidence would significantly drop, not only in Greece’s financial market, but also in the European market and its ability to maintain an economically stable, integrated Union.

Yesterday’s market reaction was just an anticipation of the above.  The Dow Jones lost 348 points, S&P 500 lost 40. The investor confidence is impacted, risks increase and automatically adjust the value of financial instruments, including bonds, stocks, currency, even commodities.  The big question is, if Greece does indeed default, how would it affect your business?

Global corporations have, and are affected by international sales.  When foreign markets are affected US based corporations see this impact in their bottom line.  In meeting financial goals corporations will take measures to compensate for any negative impact, including cost reduction and discretionary spending rationalization.

If your business sells to global corporations it is possible that any cost reduction initiative may affect you directly, either through reduction or elimination of business, or just by generating pricing pressure.  If your business does not sell to corporations but to medium-size businesses you could still see an impact if your customers’ customers are large corporations.  Even if your business sells only to consumers a drop in our financial markets would affect you indirectly; your average consumer might reduce their spending and with that reduce your sales.  

What to do next?  anticipate!  In the same fashion as the investor community is anticipating the consequences of a Greece default you can anticipate the need for cost curtailment.  A few ideas include:

1. Evaluate your cost structure, assess where can costs be rationalized, what is optional, and what is critical for your business operations. Examine with detail your discretionary expenses.

2. Be ready to contact your key suppliers and request price concessions.  Describe the situation and seek support.

3. Explore alternative sources for your raw materials, goods, and services.  This may be a good opportunity to test the market for new suppliers.

4. Challenge your team to reduce operating costs.  If  you have manufacturing operations explore more efficient production methods.  If you deliver services, challenge the team to deliver more efficiently to your customers.

5. Diversify your customer base.  This may be a long-term project, but it is always a good business practice to have balanced sources of revenue.

6. Refresh your “What if” plan². 

In conclusion, could Greece affect your small business or start-up? the answer in many cases might be yes.  Can you prevent it? probably not, but you certainly can anticipate and proactively prepare for tough times.  Start today, develop a plan, and prioritize the actions that will best support the needs of your customers.

¹  WSJ.com

² “What if” plan is a set of scenarios describing risks, impact, mitigating actions, and contingencies.

This is certainly an excellent initiative.  From our own experience, it took us a few days to complete several basic steps including name search, registration at the State level, registration at the Federal level, obtain franchise tax contributor number, then register for sales and use tax, and more.  It sounds too good to be true; to be able to do all this in one day, in one website, but all seems to indicate that this will soon be a reality.  As of June 28 eleven cities have pledged to this initiative.

For more information visit the SBA website, Start-up in a Day

While this is in part true, investors will most of the times ask you for one, there is a different reason that highlights the importance of the business plan, which is to allow you to answer the following question: “should I do this?” or if you are an existing business: “Am I going in the right direction?…”

Indeed, the main reason to create and maintain your BP is to thoroughly evaluate all the areas responsible for the success of the idea or business, and confirm that given certain assumptions the business is feasible, and has reasonable probabilities of being sustainable.

Another question often made related to BPs is, once I do it what do I do with it? The answer is, keep it as a living document, maintain it, and review it periodically. A BP is not a one-time effort, and the full potential is achieved by monitoring the evolution of the business to the anticipated results shown in the BP, barring of course natural adjustments and sensitivities.

Over time, a BP evolves into an operating and financial plan. For existing businesses there will be an annual planning period, where the expectations for the following fiscal year will be set. The result will be a Plan which drives mainly the financial performance, but is closely related to separate plans: sales and marketing, operations, supply chain, manufacturing, etc.

In summary, when considering the creation of a business plan remember:

1. It is not just a document for investors, is for you as entrepreneur or business owner to validate the merit and probability of success of your idea. And helps you answer the question: should I do this?
2. A business plan is not a one-time effort, done and archived. A Business plan is a living document that helps you validate the evolution of the business to the anticipated performance.
3. As business grows, the business plan will evolve into an annual Plan, which will usually focus on the financial results, but will be closely tied to the individual plans for the different functional areas

If you have questions or would like help building your business plan please contact us