2010 | Sales Aerobics for Engineers ® Blog

The time has never been better to do a Competitive Analysis…

December 27, 2010 By Babette Ten Haken 2 Comments

As we skip merrily through the areas of focus for a real live Business Plan we land on Competitive Analysis. This subject can separate fantasy from reality very quickly.

If you ask your boss (who may be yourself) who your competition is, typically one rattles off the names of three or four firms who always seem to be bidding on the same projects you are. Hint: those aren’t necessarily your competition. They may be companies who are stuck in the same rut you are.

If you ask your COO or CFO who your competition is, they may provide a list of three or four – or more – companies with some degree of overlap from the CEO’s list. However, their list will be based on their professional context. Perhaps these are the companies who produce the most efficient and cost effective, profitable solutions compared with the slickest, edgy and trendy ones.

If you ask a middle manager the same question and even the business development/sales folks, guess what? The list of perceived competitors grows.

While you may know the names of the big and little guys and gals who dominate your industry, they may not be your actual competition. Some of these “competitors” are simply too big – or too small – to handle projects of a certain size. Which means they need companies like you as collaborators. So there’s a niche for you.

Take a look at your gross annual revenue and profitability. Those numbers are your company’s pulse. Take a look at the typical size of a project and it’s duration. You will begin to get an idea of the size of your realistic playground.

You know, there’s nothing wrong with being a niche player within the small to mid-sized competitive arena. It’s just that most companies are so hung up competing – in their own minds – against the “big boys” that they don’t recalibrate, realistically, and understand their true competitive reach.

Who are the best-in-class among the players in your market space? In your engineering space? As defined by the true competitive playing field in which your company operates.

Yes, I know you feel you can go toe-to-toe with the giants. However, if you had to put together a team to provide all of the resources a giant can provide, what type of management, financing,coordination, efficiency and profitability would actually result?

A Competitive Analysis, first and foremost, involves looking at your strengths and weaknesses as a company and deciding how to capitalize on your strengths within a realistic marketplace you have defined. You start by looking inward at yourself, not outward to a blurry horizon where the nebulous “competition” lives.

Understanding what your company does very, very well, consistently, provides you with your competitive arsenal. This understanding also allows you to evaluate what and how to present to new and existing clients. This information is your Competitive Advantage. Hint: your competitive advantage does not involve providing excellent customer service and responsiveness and on-time, cost-effective delivery (soft advantages) unless you can dollarize just how these catch phrases translate into positively impacting your customers’ bottom line. It takes more than just being identified as the feel-good company. Or the Little Engine That Could.

Armed with these insights, I can guarantee it will be time to decide who your competitors really are: both direct competitors and indirect. Your list may change, allowing your company to become more successful competing in the right engineering space against the right types of competitors. And success will allow your company to move to the next level, because you will understand the factors – and barriers – impacting your success. Not theirs. Yours.

Because sometimes, your greatest competitor is yourself.

Time to get your company on the same page?

Think about it.

Filed Under: Angels, Venture Capital, Private Equity, Entrepreneurs and StartUps, Sales, Pitching & Business Development Tagged With: business development, business plan, competitive analysis, entrepreneurs, start-ups

Done a Customer Analysis lately?

December 15, 2010 By Babette Ten Haken Leave a Comment

It gets pretty interesting when I work on a Business Plan with my clients, whether they are entrepreneurs or mature businesses. We get to the part where I ask them who are their customers, what industry segments do they work in, and what are the customer needs within each segment.

You know, Voice of the Customer kinds of questions.

I haven’t met anyone yet who could rattle off succinct answers. It’s not easy and a lot of us take longevity in the marketplace as a sign of “success.” Well, we’ve survived, but that’s hardly a rationale for not knowing your Customers.

And again, engineers, IT professionals and technical folks, I am talking to you. Just because the guy or gal you are talking to also is an engineer, like you, doesn’t mean they think the same way that you do. You might be incredibly far from being on the same page and never know it. Never make that assumption.

I don’t need to tell you that the business development process is changing. Solutions selling without adequate knowledge of the offline factors influencing the decision making process at your prospect’s company will not shorten your sales cycle. So why would you ignore understanding what makes customers “tick” in the industrial spaces in which your company plays?

Think of it as taking your clients’ pulse every year. I do. Right after the start of the new year. And that includes a) current clients, b) former clients, and c) non-clients.

Why speak with all three types of clients and not just your current client base? Well, for one, only speaking with your current clients is like wearing blinders and looking at yourself from the inside-out. You are preaching to the choir. Did it ever occur to you that your current client base may not reflect the Voice of the Industry Segment you are trying to capture and possibly own? You may just tend to attract a certain type of client for a particular reason. You need to determine what attracts your current client base to you and be prepared for answers that potentially are not what you want to hear. Or are not where you really want your business to be.

While it really seems daunting to approach former clients, I find these usually are the most insightful conversations. You may feel that you are going to get blasted with criticism. Most of the time my former clients have apologized for not being able to continue their contracts with me due to the economy. They perceive their inability to manage their business to include this line item investment as their fault. I don’t need to tell you how this type of conversation has led to renewed business. Especially when I am talking to them about industry trending and reinforcing my role to their business as a thought leader, rather than crawling to them, hat in hand, mea culpa.

Then there are those customers who, well, never became customers in the first place. There’s a reason and they certainly don’t expect you to want to discuss the matter with them. While you are not exactly calling them out about it, these discussions can be amazingly fruitful in determining the offline factors that impacted your non-customers’ reasons for not making the decision to do business with you. And yes, be prepared for some rejection. Again, however, they really may not have been the decision maker in the first place or they have been acquired, etc. You need to determine why you or your company does not appeal to the non-customer. There are a number of reasons and these factors are important for you to understand when acquiring future business.

The ultimate result of talking to your customers is to generate a list of Customer Needs for each type of customer: current, former and non. What are the areas of overlap across all three customer segments? What are critical areas of juncture between them? Can you or your company be all things to all customer types or is the barrier to entry not worth the time to acquire certain types of customers?

Finally, look at your Top 10 Customers. Determine what criteria make them your Top 10 Customers. These criteria should include consideration of a) total gross revenue generated, b) total profitability, c) total number of projects/year, d) number of years they have done business with your company, e) risk factors associated with this client (Do they make your life miserable during each project? Are they on shaky financial ground? Are they a pleasure to work with and extremely collaborative? Etc.). How do the needs of your Top 10 Customers compare with the Voices of the three customer types you have been researching?

Taking a two-week time period to have these types of data-gathering exercises can contribute to a solid Business Plan that is based on knowledge rather than conjecture and assumption.

Wouldn’t you like to point yourself and your staff in the right direction from the git-go each year?

Think about it.

Have you done an Industry Analysis lately?

December 6, 2010 By Babette Ten Haken Leave a Comment

If someone asked you what was your take on your industry, would you know what they were talking about? There’s something called “industry analysis” which is an important component to any business plan. And basically, it should be the reason why you are in business… or are working for a company who feels it is competitive within your industry.

Otherwise your business development efforts may resemble, well, er, a crap shoot.

In other words, you shouldn’t be in business based on what you – and perhaps nobody else – thinks is a great idea.

Have you ever heard anyone in your company talking about the latest industry trends? Hint: the marketing and sales departments, aka “business development folks”, might be a great place to find this type of information. And if you are in the engineering, IT or other technical departments, wouldn’t you like to know that you are pointed in the “right” direction? So yes, even you need to read this stuff.

Oh, you are just a two person firm (or less)? Surviving on outsourced contracts from your former employer or perhaps your local network? I hope you don’t think this is a valid excuse for not knowing the trends and issues for your industry’s marketplace.

Understanding what makes your industry “tick” is critical to your professional development as well as establishing your value to your company and your clients. It’s up to you to find out these issues. No one’s going to hand this information to you on a silver platter.

What astounds me is the number of small to mid-sized businesses with whom I work that really don’t have their hands on this type of information. These companies have been “successful” by anyone’s definition: they’ve survived the recession and have a stable customer base who sustain them from year to year within usually single digit, occasionally low double-digit, growth.

Think about what a little insight into industry dynamics might mean to your company’s bottom line. This information may be just what it takes to move your company into double digit growth as the new status quo. If you are thinking about resting on your laurels, your competition isn’t. And your competition may be on another continent.

OK. I’ve made my point. You need to understand the market overview and your particular niche market’s size. Otherwise, how do you know which types of customers to target? Without this type of information, business development may feel like Ready-Fire-Aim each year. Wishin-and-a-hopin’ will not cut it if you are targeting double digit growth, let alone survival.

Now where to find this information. For starters:

Professional associations will have annual reports about the state of the industry in which they operate and behavioral, technological and professional patterns within their membership. Start asking your local and national associations about this information.
Your local, and national, government offers reporting on industry trends.
Industry magazines often hire third party entities to conduct research and issue various reports on a number of subjects which provide historical, as well as current, trending.
Google what you are looking for. There are a number of reports – for purchase – issued by various data banks which offer an extremely granular analysis of data for your industry. Some of these reports run over $3000. (Yes, you read that correctly.) Some of these reports are more modestly priced and offer a lot of relevant information without becoming info overkill. Depending on what your goals are, these reports may be worth the investment.
Participate in webinars and seminars on these subjects to get your ear on the rail and determine what is going on in your industry. These venues offer books, resources, references and individuals who walk the talk and are approachable and quite willing to point you in the right direction.
Ask your LinkedIn network for information, references and resources. That’s what your Network is there for. It’s not just about networking for a job search.

Even if you are working for an established firm (aka “we’ve always done business this way and everyone knows who we are”), maintaining the status quo is not an option if you are targeting stability and growth.

Determining a) what makes your industry tick; b) what the marketplace looks like in terms of overall dollars generated per year and various market segment opportunities; and c) what the relevant size of the marketplace is for your company provides insight on where to place your time, efforts and resources for business and talent development.

Your company may be trying to be all things to all people. In fact, your company may be capable of offering all things to all people. And if you are a small firm, you may be desperate to drum up business, any type of business.

Take a step back and a deep breath and put some method into this madness. Focused talent, resource and business development initiatives require discipline and a knowledge of your industry.

Think about it. This doesn’t have to be a crap shoot at all.

Filed Under: Angels, Venture Capital, Private Equity, Entrepreneurs and StartUps, Sales & Engineering Collaboration, Sales, Pitching & Business Development Tagged With: business development, business plan, entrepreneurs, industry analysis, start-ups

Is Entrepreneurship for you? An interview with Amy Cell, Ann Arbor SPARK Business Incubator

November 28, 2010 By Babette Ten Haken Leave a Comment

Amy Cell joined Ann Arbor SPARK in 2006 and is currently Vice President, Talent Enhancement & Entrepreneurial Education, where she assists organizations with their talent needs, provides oversight for a variety of entrepreneurial education programs and manages the SPARK East incubator. Helping support economic and workforce growth in the region is her dream job, since she was born and raised in Michigan and earned a BA and MBA from U-Michigan. In addition to working as a CPA for Plante & Moran, and launching an Office of Student Life for the Ross School of Business at the University of Michigan, she has spent 10 years in a variety of human resources roles at Ford Motor Company, the Stanford Research Institute, Applied Biosystems and co-founded the consulting partnership HR Drivers. Current and past board memberships include the Center for Entrepreneurship at the U-M College of Engineering, Women’s Council for Washtenaw Community College, Huron Musical Association, Women’s Exchange of Washtenaw, Ross School of Business SE Michigan Alumni Club, Kingcare, King PTO and the Junior League of Ann Arbor.

BTH: Amy, what does your position involve?
AC: I connect talent and opportunity for entrepreneurs in the Greater Ann Arbor area and throughout Michigan. Ann Arbor SPARK works with innovative businesses and start-ups to launch and grow. I provide the talent components as each venture identifies gaps or needs.

BTH: Just what exactly is “talent?”
AC: Talent is a very unique component to any entrepreneurial endeavor. We rarely recognize how important talent is at each phase of business development. For start-ups, I align entrepreneurs with consultants with expertise in various fields such as accounting, marketing, financial / business planning, lean / Six Sigma, sales, prototyping, etc. so that entrepreneurs can move forward from idea to implementation.
SPARK has a suite of everything an entrepreneur needs. We have physical space so that the inventors / entrepreneurs can come to a place to work that is separate from their existing workplace or home environment, for example. We provide educational space as well and have weekly seminars on how to start your own business, as well as other topics such as marketing roundtables, biotech roundtables, etc.

SPARK also is a business accelerator and is a funding resource for entrepreneurs. We have competitions for innovation and conduct a Business Boot Camp twice a year for entrepreneurs who are selected to participate. Really, when you think about it, we offer a complete toolkit for the entrepreneur and a venue in which to network and connect with the business community.

BTH: Many communities have some form of business incubator / accelerator. How does Ann Arbor SPARK compare / contrast, not only locally but with models used in other states?
AC: Every community does economic development in a different way. We focus on the three major areas (business attraction, business retention and entrepreneurship) rather than in one or two areas. One of my responsibilities involves working with startups, local companies, and companies from out of state who want to relocate or open a division elsewhere in the US. I promote the advantages of what Michigan brings to the table. We approach business development with a broad brush stroke.

BTH: What are the greatest obstacles to entrepreneurship facing engineers, IT professionals and other technical individuals?
AC: I work with about 500 entrepreneurial companies each year who are looking for talent to assist them in moving to the next level. Oftentimes, I am working with the technical founder who is looking for talented consultants and mentors with business skills. You can have a brilliant technical team that has a patent or patents. I put them together with an equally talented business team.

One person can’t grow a company themselves. If someone is the technical founder, they usually have difficulties communicating and selling their idea, product or service to investors. The Executive Team should be able to sell. If the Founder / Inventor / CEO can’t sell, that’s an issue. Often the inventor doesn’t have solid business acumen. If there is no business development side then they will have trouble developing sales. That’s why what happens at SPARK is so important in moving the technology out from the drawing board into the daylight.
Sometimes I do see serial entrepreneurs who are inventors. They have the complete toolkit. But that’s rare.

BTH: What are the major reasons start-up companies thrive or get stuck and fail?
AC: Investors won’t take a chance on an unproven idea. Investors will invest in a “B” idea with an “A” team vs. and “A” idea with a “B” team. If you want to get funding you need to do what will attract investors. If the inventor/CEO is unwilling to relinquish the reins or work with a team, things can derail.

Successful start-ups have an understanding of the market and their customers. They clearly understand pain points and develop a solution. They develop a painkiller instead of a vitamin. Some people think they are going to get a lot of money for an idea or have a great idea but have no customers. They haven’t done their homework. However, they feel people will intuitively understand their idea, embrace it, fund it and move it into the marketplace for them. That’s not how entrepreneurship works. Lots of inventors don’t get out to the customer. If you don’t know who your customer is, investors will perceive risk in your idea and potential failure.

BTH: If you had one piece of advice for any engineering, IT or other technical professional thinking of leaving their current place of employment and starting their own business, what would it be?
AC: Creating a compelling a business case for a product or service – growing your own business – requires persuasion and communication skills. I’ve seen many PhD’s who call themselves “former” introverts who have learned how to get out in a crowd and sell things. This can be learned if you really want to.

SPARK Boot Camp gives entrepreneurs the environment in which to practice how they communicate their business to others. Our mentors and consultants provide feedback on how to give a presentation as well as a pitch.
There are organizations such as Toastmasters International and various business organizations these entrepreneurs can join which will give them additional experience getting up in front of others and talking about who they are and what their company is all about. Consider this process improvement to changing one’s aversion to business communication. Practice. That’s really what’s at hand here.

BTH: Do technical professionals make good business people?
AC: Technical people really are business people. They understand the technical aspect of their product or service. Being an entrepreneur, or head of your own company, requires leadership skills. Leadership, requires a different set of skills and attributes from being an engineer or a sales person in someone else’s company.
Some of the best leaders I know are technical people. They have greater credibility with investors and the marketplace because they understand the technical side of their business. They understand their product. They know how to work in teams and how to select the teams. And their teams respect them.

BTH: What should entrepreneurs be doing to gain experience with the business community?
AC: There are a lot of resources out there within which to develop a network of support for your ideas. In Ann Arbor, we have the New Enterprise Forum which meets monthly. Entrepreneurs give business pitches to potential investors. There is an entrepreneurial panel which presents on a specific topic. There is networking and a warm, inviting community.

BTH: Thank you Amy for your insights. In wrapping up, I mentor at Ann Arbor SPARK judging business competitions and meeting with entrepreneurs on a volunteer basis each month. It’s a privilege working with Amy and the talented folks within this organization.

I find that many times, entrepreneurs have great ideas but don’t understand what’s involved in business development. They don’t understand what it takes to get customers. The toolkit Ann Arbor SPARK provides is invaluable in connecting these dots. As an entrepreneur, you need to talk to potential customers early in the idea or product development process to make sure you have a viable concept. And not just your family or friends or one or two customers. Sometimes entrepreneurs get shot down by this type of interaction and become discouraged . You need to reach out into the entrepreneurial community for support. You need to go out into your marketplace and get feedback. It’s those experiences which grow your passion and leadership for your innovation.

Filed Under: Angels, Venture Capital, Private Equity, Entrepreneurs and StartUps Tagged With: business development, entrepreneurs, start-ups

What’s your Business Plan? Do you even have one?

November 15, 2010 By Babette Ten Haken Leave a Comment

Have any of your clients ever asked you whether you had a business plan? And whether you could provide them with that business plan?

What did you say? What did you do?

Having a business plan, and re-visiting it every year, is one of the most important aspects of running your business efficiently and effectively. And I don’t mean the annual strategic planning exercise where everyone sets goals and expectations with wiggle room that either a) are met or b) have to be revised.

I’m talking about a Business Plan.

A business plan lets you know where the money is coming from and where it goes each year, based on prior years’ activity and performance. A business plan helps you quantify what you qualify to your customers day in and day out. It’s the basis for why your doors remain open and why customers should want to work with your company. It’s more than a business plan. It’s a business platform.

You use it for obtaining financing and you use it for being acquired, if that’s your plan. Your Business Plan is your credibility.

For all you engineers, IT professionals and technology folks who bemoan what they didn’t teach you in engineering school, or wonder whether to get an MBA or an MEng or PhD, here’s a clue: understand what it takes to produce a business plan.

Whether you are an inventor, a start-up, a newly funded company with venture capital and state funding or a mature business who wonders why you can’t move to the next level, a lot of your future has to do with how you view the data from the past. And your ability to combine that knowledge into a solid Business Plan.

You can Google the term “business plan” and find templates all over the internet. So this information is available to you. What usually isn’t available is the expertise on how to craft the business plan effectively and convincingly so that you, your employees and perhaps potential investors understand who you are and where your company is going. In essence, your business plan is a road map for everyone to confidently follow. So get yourself a coach or a consultant to assist you in producing this important document.

The elements of a Business Plan include:

Business Overview (Executive Summary)
Marketing opportunities and drivers
Competitive analysis
Business Model
Management Team
Financials (or the pace of getting things done, including your exit strategy)

If your organization already has a business plan, ask to see it. Your career development hinges on being able to understand a business plan and potentially write one. You need to understand where you fit into the organization and what makes your organization “tick” within the competitive marketplace. If you understand your company’s business plan, you can determine where your skill sets best fit in as you take the steps to develop your career.

What’s your Career Plan? And how does it fit into your organization’s Business Plan?

Think about it.

Filed Under: Angels, Venture Capital, Private Equity, Entrepreneurs and StartUps Tagged With: business plan, entrepreneurs, startups

When the best solution is no solution at all.

November 2, 2010 By Babette Ten Haken Leave a Comment

When’s the last time you sat with a prospective or current client who was looking for a solution… and you recommended they pursue no solution at all?

Oh, no! Thumbs down on Rule #1 of sales: if they want to buy, sell???? How can this be?

I mean, your boss is on your case for producing more revenue for the company. You have sales quotas to meet, if you currently serve a sales function. And if you are in an engineering role, you certainly want to keep getting problems to solve. So what’s not to sell??? There are a lot of hungry mouths to feed. Get them to sign to contract, already! Get that project going!!

Except that it may be the wrong project at the wrong time. Or at least not the best solution because the problem hasn’t been fully defined. Or it’s a short-sighted solution to a problem with lots of peripheral issues that impact not only the project outcome but the strategic implications of the project, over the long haul.

In other words, someone didn’t do their homework very well. And that just might mean your client doesn’t know what they want or need. Are you willing to enlighten them, even if it means tabling the project for a while, or perhaps eliminating it as an option?

Let’s look at this situation another way.

Have you ever been in a situation where you feel you have hit a slam dunk with the prospective or current client? It’s just a matter of time before they sign the contract. They’ve already assured you that your solution is the front runner. They’ve got their funding allocated. They indicate to you that they have a key meeting coming up later that month and after that meeting, they will move forward with your solution. And you never hear back from them after the meeting.

They may have been doing their homework. In fact, the homework they were doing is exactly the type of homework you needed to be doing all along when you are going after the close, in order to win the project. When your client or prospect goes offline into the black hole of that “final meeting” phase in the decision making process, you are completely out of control of the situation. And if you haven’t taken the steps to define the variables and personalities truly impacting their decision making process, you will be left in the dark again and again. Because your prospects may be looking forward to going into that meeting and having their decision taken out of their hands. Because they never really intended to make a decision in the first place.

Because it could be that you really never had a slam dunk at all. Not even close. Perhaps they used you to provide them with a lot of information that they needed to make their decision….to select another vendor. In your over eagerness to participate in the sales process (and engineers, pay close attention to this) you engaged in peer level discussions rather than defined what criteria were critical for their corporate hierarchy in the vendor selection process.

Did you really think that these prospective or current clients were going to go into their “meeting” and advocate on your behalf and “sell” your project to their upper level management? Do these prospective or current clients work for you? I don’t think so.

So why create a situation for yourself where the prospective or current clients have all the cards and you still don’t understand the rules of engagement for their vendor selection process? And this vendor selection process may actually be dysfunctional at best. Which is why they end of making no decision at all or prolonging making a decision.

If you do your homework during the sales and project definition process, you can identify the issues and personalities that may ultimately derail your company as a potential vendor. You may also identify issues and personalities which make your working with this company less than a win-win situation (which means profitability is eaten up with a lot of chasing folks around to make a decision).

So sometimes, the best decision is to let your prospects not make a decision at all. You may have lost the opportunity for the project but may be saved an unprofitable long-winded drama in the long run.

And believe it or not, you may become more savvy regarding business development.

Think about it.

Filed Under: Entrepreneurs and StartUps, Sales, Pitching & Business Development Tagged With: business development, decision-making, engineering, sales

Are you thinking outside a Completely Different Box?

October 18, 2010 By Babette Ten Haken Leave a Comment

We’ve all heard this phrase. The Wikipedia definition is to “think differently, unconventionally, or from a new perspective…This phrase refers to novel, creative and smart thinking.”

Whatever that’s all about.

The Box is Context. Your context. Your personal paradigm. The Box is populated with All The Stuff You Know. With relationships between ideas, concepts, knowledge and applications based on your experience. Based on the context of your experience.

So what if you woke up one morning and started thinking outside of The Box. And realized you were thinking outside of a Completely Different Box than the one you were thinking outside of the day before?

It’s sort of like taking a commuter train one morning and getting off at a different stop than you normally do. Not the wrong train stop. But a new and different one. And you realize that you are OK with this. You may not be familiar with your surroundings but you are comfortable operating within them because you know you will get your bearings quite soon and get to where you are going.

At times, all of the information, applications, interpretation and just plain thinking and analyses that we do ends up rearranging itself in our brain. And we really don’t even notice this situation until the information is rearranged. We find we cannot go back to how we used to think about things because the ideas aren’t where we/our brain put them.

Because we are in a different context. And our New Context is responsible for The New Box within which we are thinking. And a new personal paradigm to be discovered.

Now walk into your current workplace with that concept.

It’s not even going to be a matter of being on the same page as everyone else. Because you still will be. Except that your page now has a lot more going on. And it’s a page out of a different book – your book, not theirs. Your page has a relational context to your workplace, but it no longer has a contextual dependence on your workplace. Because the former page you were on and the context from which you were operating are now History.

That’s when things really become interesting within the workplace. And within your career. You listen differently, you hear differently, you ask different questions because your informational needs are different. And your output is, well, different. You may not stress over minutiae as you used to because you have a different context for evaluating tactical solutions. In fact, you may realize that strategic, rather than tactical, solutions are easier to understand. That idea in itself is innovative.

It’s as if you have reinvented yourself. Because you have.

You may find conversations with peers are easier. You may seek out different conversations with a different peer group within the workplace. You may see different solutions as options rather than the status-quo from The Old Box. You may assume more risk in your professional career because you see a completely different road map emerging.

Has this happened to you? Recently? What did you do? Go searching for the security of The Old Box? Or continue to see where The New Box was leading you?

It’s unsettling. But it’s amusing as well. Like being in two places at once. Because only You know The Box where You currently Are. Although you will try to describe your situation to others.

Where are you headed in your professional development and your career? Because you can fill The New Box with lots of different tools, contexts, applications and insights.

How will you fill The New Box? What toolkit will you choose?

Filed Under: Angels, Venture Capital, Private Equity, Entrepreneurs and StartUps Tagged With: professional development, status-quo mindset, think outside the box

Did you ever learn how to develop business?

October 12, 2010 By Babette Ten Haken 1 Comment

Regardless of where you sit around the table, your “function” may involve more than what you think you were hired to do. All of us struggle to define our value to ourselves, our companies and our customers. And if you are finding yourself worrying the least bit about retaining your customers, then you are engaged in business development and sales. Yes, that’s right. Even if you are an engineer, IT professional or technical staff member.

Ah. Sales. Business development. What “loaded” words carrying such responsibility! Well, they should be. These words, and the actions we devote towards them, fund our jobs and our careers. How else to you think those invoices get paid?

When did you learn to develop business? When did you learn to sell?

Because, when you think about it, you’ve been “developing” and “selling” yourself for years. How else did you get into college or technical training school? That letter of acceptance didn’t just arrive in the mail on its own. You “heard” (aka, “prospected”) about an institution or training facility, you researched that facility (e.g., performed business intelligence research), you took the entrance exams and “applied” (aka, you marketed your credentials) and you were accepted (e.g., you “closed” the deal or consummated the sale). So you developed yourself. That institution or technical school “invested” in you. And they expected a return on their investment. And you graduated and you delivered.

What makes you think that the business development and sales process within your company isn’t simply an extension of this scenario? It’s not some mystical club that only the sales guys and gals or the technical guys and gals can join. No secret handshakes. Developing business should be an extension of who you are and what you offer to the marketplace.

And once again, you need to do your homework and determine what that marketplace may be. The marketplace involves being comfortable walking the walk and talking the talk with individuals who are just like you and, then again, NOT just like you.

If you have a compelling story to tell, who wouldn’t want to hear what you have to say? Because a compelling story has meaning and significance to the listener.

So where in your technical or sales training did you lose the ability to tell a compelling story that “speaks” to your targeted constituents and decision makers? Where in your technical or sales training did you become dependent on techno-spiel or sales jargon? Nobody likes to listen to gobbly-gook. However, everyone enjoys a well-told story that speaks to them, their needs, their mindset and their context.

You know, there’s an anthropology to business development and the sales cycle that can be fascinating, engaging and a complete learning exercise for everyone involved. Establishing context of the decision, and the historical and cultural factors influencing decision making, makes all the difference in the world in terms of getting your point across and “connecting.” That’s all it takes. The time to research and establish the context for your discussion. And tell your story in plain language.

And I don’t feel the sales guys and gals have a leg up on this one. Engineers, IT professionals and technical staff pay so much attention to details that you should be all over this approach.

But you aren’t. And business development is perceived as being right up there with root canal.

We simply make this discussion with our customers and prospects far more complicated than it needs to be. They want a story they can relate to and we give them some overblown features and benefits presentation. They want a message that underscores we “understand” their context and we provide facts and figures and far too many details.

We have lost the ability to be succinct and simple and to the point – with anyone regardless of their training or mindset. Even though these folks are the guys and gals who Own the companies we are prospecting or currently working with.

It’s just a story. Well told. To an engaged and empathetic ear.

Think about it.

Filed Under: Angels, Venture Capital, Private Equity, Entrepreneurs and StartUps, Sales & Engineering Collaboration, Sales, Pitching & Business Development Tagged With: business development, engineer, sales, sales jargon, technical staff, techno-spiel

Are there ever enough hours in the day for business development?

October 7, 2010 By Babette Ten Haken 1 Comment

How many of us call prospective engineering and technology clients on scheduled conference calls, only to find they are not there? How many of us have driven to see a prospective, and even current, manufacturing client only to find out they are AWOL? A no-show?

And this is not a behavior pattern only reserved for “pesky salespeople.” It’s happening to engineering and technically intensive manufacturers, distributors and service companies as well.

Hey, don’t take it personally. There are only so many hours in the day. And our clients are busy with scheduled – and often unscheduled – fires that need to be attended to. And their priorities may not align with their company priorities, from time to time. (Hint: if your drive is more than 45 minutes to see a customer, call ahead to reconfirm).

Considering the business development process, and how long it typically takes to work yourself on to a prospective customer’s dance card, it’s difficult not to get yourself pumped up in anticipation of the meeting. You’ve done your due diligence, I hope. At least you were not planning on winging it, were you? Studied their website, pulled up their business information from various internet resources, spoken to internal staff to determine their history and persona if they are an existing customer, taken a look at the upstream and downstream data and informational economic and industrial trending factors that influence their decision-making?

Oh, and if you do not understand what I just wrote, then you and I need to talk.

Any preparatory work that you do for customer calls never goes to waste. These folks simply do not have time to do their jobs. And that’s another piece of information that you need to add to what you know about your potential customer. Because, in essence, you are profiling them in your memory for a future conversation. You are getting a sense of what it is like to be them and work for their company, which is trying (I hope) to do business with you.

And when you do eventually connect, there is no apology needed on their part for a missed meeting. Jill Konrath, in SNAP Selling, relates there are about 60 MINUTES in each 60 hour work week which are available for face-time (in person) appointments, let alone conference calls.

So your business development strategy better include the following elements as well as enough time to accommodate about 10 customer touchpoints to finally establish rapport with your prospective customers. And this also goes for current customers. Sometimes it’s like herding cats. You have to be patient.

Plan on establishing a great email relationship. That’s going to be your main venue of communication. And customers won’t necessarily have time to read the text of your email either. So:

Make sure your email heading clearly states what it is you are wanting from them (e.g., Babette Ten Haken – Reschedule conference call from this morning?)
Make sure your email “From” includes your phone number; make it easy for them to communicate with you, especially if they are accessing this info via mobile phone
Make sure your digital signature includes your name, repeats your phone number, email address, company name, and perhaps a distinguishing tag line that describes your company’s services and capabilities (reinforce why they need to be working with you)
In the body of your email, IF they even read it, include the reason why you need to reconnect. Include an ROI deliverable implied in the solutions your company provides.

Just some food for thought. How many of us generate well-crafted, thought-out emails especially after seemingly getting blown off a conference call or appointment?

And never, never write a return email in the heat of any moment. Because your customer doesn’t understand what it is to be you, and work for your company. And they don’t care. So they aren’t aware of all the factors contributing to the significance of your being able to connect with them for this missed conference call or in-person meeting.

Be patient. It all works out. When you eventually get to meet the prospective customer, these “ships passing in the night” missed opportunities are seen as just that – missed opportunities. And you both can share a chuckle about it. And move forward to a productive and rewarding working relationship.

Think about it.

Filed Under: Entrepreneurs and StartUps, Sales, Pitching & Business Development Tagged With: business development, customers, engineering, Jill Konrath, manufacturing, sales, SNAP Selling

Do you know who your customers are… really?

September 30, 2010 By Babette Ten Haken Leave a Comment

I worked with entrepreneurs yesterday at the I3M Event: Igniting Innovation in Michigan, sponsored by the Detroit radio station and CBS affiliate, WWJ.950. It was an excellent event. And since I have a high regard for stewardship, I try to give back to the local community in which I live. So there you have it.

And the most provocative question I asked, resulting in a jaw-dropping silence, was “Who are your customers?” Because marketing and selling and engineering to anyone and everyone is complete chaos, regardless of whether you are an entrepreneur or not.

However, as I told these talented entrepreneurs, there are so many mature businesses who have succeeded to the $2.5M gross annual revenue mark (and even to the $90M mark) who are undisciplined in terms of their marketing and sales program.

Now, you and your company are not going to turn down a “gift” project that seems to fall from the sky. However, when and if that happens, do you ask yourself what redeeming traits you and your company have that contributed to being awarded that project? Because this new customer didn’t choose you or your company simply because you were the prettiest face. They researched your company, trust me on that one. The Internet provides a great deal of business intelligence that is available to everyone. And Owners are making sure they know with whom they are doing business.

There tends to be a difference between who you and your company does business with and who you and your company are best suited to work with. And your ability to define your target market (the folks you could do your best work for and cultivate) becomes critical to sustaining growth in this economy.

There also tends to be a difference between diversifying your customer base and having an open-door, y’all come policy to business development. The latter typically results in having lots and lots of customers who tie up your engineering and production time with lots and lots of walk-in or scheduled small-scale projects that need to be slotted in between the larger-scale, longer term, more profitable projects. And these smaller projects can make up as much as 50-75% of your revenue stream in a heartbeat.

Does this sound like your company?

Diversifying your customer base is a disciplined approach based on analysis of your customer base and your deliverables. When’s the last time you or your company undertook this type of analysis? When I asked my entrepreneurs, and even business owners of matured companies, again there was silence. And I don’t think I was asking such a difficult question. But it’s the one area that so many businesses “don’t have time for” because they are busy meeting meeting payroll or creating three-year strategic plans.

Yup, it’s the end of Q3 2010. Wow. And how time flies.

It may be a good time to revisit who you are working for and where your marketing and engineering efforts are focused. This exercise just may round out your perspective.

Think about it.