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Bill Gibson – How To Raise Money Without Your Bank – Even In These Times

(With Ryan Gibson and Wessel Ebersohn)

Growing businesses need money continually. The owner of a growing business is forever running into costs, both planned for and unforeseen. The business owner may need cash to survive in tough times when something unforeseen strikes. When times are good the business owner will always need cash to build and grow the business.

Right now, going to your bank is not necessarily the best option. They were careful before the current economic downturn hit. They are even more careful now. Remember that they too are working with the money of investors. Like you, the bank cannot afford to be reckless.

This is not to say that there is no money available for entrepreneurs. There is less of it, but it is there. You have to find a way to get your share of it.

Investors

A good place to start is with your current investors, if you have any. If you do have investors you need to look after them in every possible way. Nurture a relationship based on openness. Be aware of their need for information. Share with them the challenges the business faces. Seek their advice on difficult issues. Above all, never cut them out. If you invested in someone else’s business, you would want to know exactly what was going on in the business. Treat them the same way.

Family and friends

If you have no current investors, the next best bet is your family and friends. Today loans from family and friends are an immense industry. Virgin Loans, operating in North America, does nothing but facilitate such loans. They supply the documentation and give the entire transaction a solid legal basis. According to their figures, some US$170 million was lent to entrepreneurs worldwide by family and friends in the last quarter of 2008. The fact that Virgin Loans has been successful is an indication that family members are more comfortable with lending a substantial sum if the loan is properly formalised. The lender will need that extra security. When approaching a family member make it clear that a formal contract will be drawn up by an attorney. If you are lucky enough to come from a business family, you may not only get the capital you need, but you may also receive good advice that in the long run may be more valuable than money.

But remember that even your closest family and dearest friends have to look after their interests. You may need to enter a deal in which the business repays the loan eventually and the investor still retains a minority shareholding in the business. The main effect this will have on your business is that when the day comes to sell it, your investor will receive his or her share of the proceeds. A major advantage of borrowing from those close to you is that usually no collateral is required.

Every prospective investor has to be treated with respect. And that includes family and friends. The same way that you need to do your homework for any other investor, so you must prepare your approach to family and friends too. You cannot expect people to hand over money blindly just because they know you well.

Honesty is the best policy

Above all, no matter who you are dealing with, always tell the absolute, unvarnished truth. If you are in mining, the investor needs to know if you are actually digging up the metal or if you are still just at the exploration stage. The same applies to any business. Tell your prospective investor if you are still developing the product or if it is actually on the market.

Better still, show them exactly where you are. Misleading them in the smallest detail is bound to have serious repercussions later. It is vital to keep investors and prospective investors as close to the action as you can. Treat them like board members, show them where the money is going, make it clear that their money is being used carefully. Then be sure that you use it very, very carefully. Under such circumstances investors, of any kind, feel more comfortable.

Don’t play games

Also make quite clear from the beginning what you are prepared to give up. In a recent case the writers of the article were involved with a young entrepreneur who needed an equity investment of R600 000, but he was so unclear about, or unwilling to discuss, the actual percentage of his business he was prepared to give up in exchange for the investment they lost interest in getting involved raising the money.

It is good to be cautious about how much information you give although it can backfire, especially with friends and associates, if you are too cautious with your information. They may be insulted that you don’t trust them and decide not to get involved.

Where to find investors

Many successful business people have started with a number of small investors. Raymond Ackerman started Pick ’n Pay with the help of 100 small investors, each coming in with a mixture of equity and loan finance. This divided the risk among the investors, making it easier for them to make the investment. Most investors like to have a small speculative investment that may show a really big return. A sound place to look for investors is in your own industry. People who work in your industry understand the business and know what you are trying to achieve. They believe in the industry and are therefore more likely to believe in you. If you can get a key investor, someone with a big reputation in your industry, even if he or she only comes in with one percent of the investment you need, others are likely to follow. A real leader will open doors for you.

Exhibit confidence

One absolute when dealing with any investor is not to come across as if you are fearful. No one is going to invest in someone who is afraid of the opposition. More than anything else, investors need to see that the business they are investing in is led by someone who has confidence. And there is a difference between confidence and bravado. Big talk is not going to impress anyone. With confidence comes courage. You have to be ready to accept refusals. You are certainly going to have those. If necessary, you must be ready to approach industry heavyweights and pitch your investment to them. One entrepreneur recently successfully sought investment from the boss of a major multinational. He had tried phoning him, but a solid wall of receptionists and PA’s kept him out. He could not even discover his target’s email address. So eventually he tried an email, using the man’s name @ the company’s name. He made contact that way and, after a few meetings, secured the investment. Business is not for the faint-hearted.

The most common ways for entrepreneurs to finance their companies in the early days are probably securing second, third, fourth of whatever bonds on their homes. Cashing in insurance policies is another. People do what they have to do to grow their businesses. There are many other ways of getting what you need without having to pay for it. This can be just as valuable as receiving the hard cash. Here are a few:

Barter

If the service or product you need is supplied by someone who uses what you have to offer, getting them to agree to bartering should not be difficult. Fundamentally, any agreement to barter must be in the interest of both parties. If not, it simply doesn’t work. This publication was once offered a barter deal by a sweet manufacturer. We could not imagine how we were going to consume that amount of sweets, so the deal fell through.

Negotiate no rent for the first six months

This will only work in an area in which office space is standing empty. In all such deals you need to look at things from the other party’s point of view. If their offices have been empty for a while, they may well be agreeable, but you will have to sign a long lease.

Offer discounts for upfront or COD payments

Getting money in fast is almost as good as capital. The discounts will have to be genuine, but businesses that are cash-flush may like the idea.

Seek investment in a product or project

Instead of giving away equity in your company you could seek an investor for a single product or project. This would have to be clearly defined and the investment would probably be smaller, but it could get a key part of your business off the ground. This option could be interesting to a company operating in broadly the same field as you are. In time you could either buy them out or sell them the entire product.

Pay a premium for extended credit

This may work if a major supplier to you can afford to carry you for a while. The downside will be that you will have to pay heavy interest. You will also have to persuade the supplier that you will be worth the risk in the long term.

Have someone stand surety for you with a major supplier

This publication was started that way, when Martin Dannheiser, the owner of the Springs Advertiser at the time, stood surety for our printing during our first year of operation. Your reputation is everything here. The person who stands surety must have great confidence in you. He or she also needs to be a real friend.

Trade equity for expertise, services or products

This sort of investor will only come from the companies that supply businesses like your own. A relationship with the supplier will be needed before they feel comfortable with this arrangement. How much they will have to supply before receiving the equity will be the main issue.

Return on investment of your personal assets

When searching for finance, remember that you do have assets that belong to you. First look at exploiting your own personal assets. You could minimise your needs simply by making best use of your skills. As a business owner who needs to prospect for new clients and mine your client base for opportunities, you need to consider the kind of return on investment you receive from investing your personal assets. This is, after all, what you possess. The better use you make of your personal assets, the more likely you are to be successful.

Your time: It is important that you invest your time with the right people and that you do the right things to get the best return on your time. It is your most valuable asset.

Your energy: If you have the time available, you must also have the energy. Some people give you energy and others drain it. Stay close to those who give you energy and avoid the others. Get them out of your life. Certain habits and activities invigorate you and give you energy. Other habits and activities take away your energy. It is important to value and invest this asset called energy wisely. When your energy is up, you will notice that your passion and motivation are up as well. Energy is a key ingredient to your success as an entrepreneur. Stay healthy and remember this quote. “If you don’t take care of your body then where are you going to live?” Your body is the only piece of real estate that you have from the time you are born to the time you exit this planet. Take care of it!

Your ability: Your expertise, ideas, knowledge, skills, and general “know how” are all valuable. You can waste these vital assets on some people, but working with others may give you great returns on your investment. Ability is an asset to develop continually and always use wisely.

Your money: In the beginning the business owner is usually short of money. You always need to invest what you have wisely. In the early days of your business this need is more intense. Consider carefully for whom you buy coffee or lunch. Some people over lunch will give a great return on investment in referrals, business and even personal motivation and support. Others may add no value whatsoever. An investment in new clothes, joining the right association, attending the right conference, eating at the right restaurant and buying personal development tapes may be a better investment than a night on the town with old friends. To build your business, you must invest these assets wisely.

Your reputation: Successful, experienced businesspeople get most of their new business from present clients and their network of business and personal associates. This is possible if you network and associate with people who enhance your credibility. Positive word of mouth is powerful and in time it becomes your biggest asset. Select carefully the places you frequent and those people you socialise and do business with. Your name is your future. You are a brand. Invest in it wisely…

The 6 Personal C’s that interest an investor or creditor

With input from Sibongiseni Ngundze, the Managing Director of Nedbank Small Business Services, the writers came up with the following six Cs that investors, lenders and creditors carefully look at before getting involved.

Concept

You must have a good concept, something that sets you apart from the herd. If you are in retail, it may be something as simple as being close to easy parking or being located in the centre of the clientèle you serve. In other industries it may be something more complex, but simple improvements often make a decisive difference. An extra element of service or a practical improvement of a product may make you top of the class.

Character

This goes way beyond personality. Character is the combination of qualities you possess that makes people trust you. Honesty, perseverance, dependability, reliability, supportive qualities, loyalty, enthusiasm: these are the sort of character aspects that make people interested in doing business with you.

Capacity

Do not attempt something for which you do not have the capacity. If you are trying to go beyond your abilities or the capacity of your business, investors are likely to see this and be frightened off. On the other hand, should an investor not understand that you have gone beyond your capacity and invests in your business anyway, the results could be disastrous.

Collateral

When banks talk about collateral, they usually mean fixed assets like property. Completely different collateral arrangements can sometimes be arranged with a private investor. For instance, the investor may be willing to take a percentage of your business as collateral. Or they may be satisfied with your character, concept and commitment and ignore collateral.

Contribution

A bank or an investor wants to see what your contribution to the venture is. This could be the amount of money you have or will invest. It may be in the form of intellectual capital, equipment, property or just good old hard work and expertise. Be prepared to show your level of contribution.

Commitment

Nothing is more important than commitment. Seeing that you are truly committed gives any investor great confidence in the undertaking. You need to be able to demonstrate to the investor that, for you, the business in which the investment is being made is a life and death matter.

The 5 Stages of building a relationship with an investor

If you want someone to invest in your business, you need to build a relationship with that person. Here are the five stages of building a relationship:

1. Attraction

Demonstrate your uniqueness. If you and your business are the same as all others, why should they be interested in you or even consider investing in you. Respect boundaries. You may be outgoing and extroverted, but you may be dealing with someone who is not. Do a lot of listening. You need to understand the other person’s needs and wants. Make contact frequently. You need to work on the relationship. Lunch and dinner meetings, family dates: such contact builds a relationship.

2. Exploration

At this stage you need to give outstanding service. Go the extra mile. The rule is to under-promise and over-deliver. You must keep every commitment, even the smallest ones. Consciously or unconsciously, the other person is testing you. Being innovative and resourceful will help to show that you are different. Do not let up on making frequent contact. It will help you move to the next stage.

3. Development

By this time you need to be proving your abilities and, above all, you must be seen to be keeping your promises. Your relationship with the investor should be moving to a personal level. You should by now be networking with those who surround the investor. Keep up the frequent contact, but do not be a nuisance.

4. Commitment

By now you should understand the investor’s decision-making process. Try to anticipate the investors’ needs before they know. By now you must also understand the politics surrounding the investor. Both sides should now be committed to the relationship. Continue the frequent meanings to strengthen the relationship.

5. Unity

At this point you should be leading the process to get the job done. You are now seen as a close associate of the investor. You are involved now, a member of the inner circle, so tread lightly. The investor is on your team now.

“If you have found this blog article to be valuable for you, I would be grateful if you “shared” it with your Social Media Networks. Also feel free to circulate it by e-mail or other means internally within your organization or externally to your clients, suppliers and personal and business network. Thank-you!” – Bill Gibson

Bill Gibson is a Canadian who is living in South Africa. He is an international speaker and author and a developer of sales, service, marketing, collecting, employee morale building, personal development and entrepreneurial training programs and systems. His blog is www.bill-gibson.com and his website is www.kbitraining.com. He can be reached at bill@kbitraining.com or phone +27-11-784-1720 in South Africa. You can follow Bill Gibson on Twitter: @billgibson1, connect on LinkedIn: http://www.linkedin.com/profile/view?id=143197191&trk=nav_responsive_tab_profile_pic or Knowledge Brokers International SA Pty Ltd Facebook Page: https://www.facebook.com/knowledgebrokers?ref=hl

Posted November 7th, 2012 in Economic & Community, Entrepreneurship & Business Ownership, Management & Leadership | Comments Off on Bill Gibson – How To Raise Money Without Your Bank – Even In These Times

Bill Gibson – Goal Setting: The First Step To Business Ownership

Succeed Magazine – www.succeed.co.za – December 2009

Owning a business is a potentially life-changing experience that can lead to a financially secure future. Unfortunately, many people who would excel as entrepreneurs or franchise owners never achieve this status because they are unable to take the first step and make money available to realise their dreams.

Of course, when we work daily to pay bills and do not have a cent left at the end of the month, this dream seems far away indeed. However, saving towards a new future can be a reality through setting goals and finding ways to achieve them.

Setting the goal

Because owning a business takes commitment and sacrifice, those who want to achieve it have to know exactly why they want to do it to make it all worthwhile. The end goal of a successful business and financial independence should never be forgotten. “The clearer the intent, the greater the emotional desire becomes to get what you want, and the sooner it becomes a reality,” says top business speaker and chairman of Knowledge Brokers International SA, Bill Gibson. “Goals have to be smart. Smart is an acronym for: specific, measurable, attainable, realistic and time-limited.”

Although this first step sounds blatantly obvious, it is vital. Research shows that only 4% of people actually write down their goals. Of those who write them down, 95% achieve these goals. Once the larger goal has been set, achieving it depends on breaking it down into smaller, manageable pieces.

For instance, let us say that you have set yourself the goal to save up your own contribution to a franchise of R240 000 in two years,” says Gibson. “You break it down into 24 months – which means you have to save R10 000 a month – although it would probably be somewhat less as you earn interest on the money you put away.

“It would be very hard to put away this amount from the start if you have not been able to save up to this point. Therefore, it is better to build up the amount you want to put away over time. For instance, set a goal of putting away R5 000 for the first six months, then R7 500 for the next six, R12 500 for the next six, and R15 000 a month for the last six as you near your goal.” This money has to be invested at the beginning of each month, as if it were a debit order. These forced savings ensure that achieving the goal is on track and that the budget is adjusted to include these savings.

Save on your expenses

Once the decision has been made to put the money away, the money has to come from somewhere. By paying themselves first, people are obliged to look closer at their expenditure to ensure that their phone bills or insurance debit orders do not bounce due to insufficient funds. “Let us assume your monthly disposable income is R20 000.

If your bond is R8 000, your car is R3 000, groceries R5 000 and other expenses come to R4 000, that means you spend R20 000 and you have no money left at the end of the month.

“Starting a business takes sacrifices and expenses have to be limited,” says Gibson. “You would have to look at things like eating out, clothing accounts, belonging to clubs and going to sporting events. Instead of trading in on a new car, rather hang on to the one you have.

“In the process, you are coaching yourself and your family to live leaner for a while, because that is what it takes to achieve your goal. Once you start your franchise, there is a good possibility that you are going to be earning a lot less than what you are earning on your present job for the first few months.” By making these sacrifices, it could be possible to drop expenditure to R17 000 a month on the aforementioned monthly income of R20 000. This saving of R3 000 comes to R72 000 over two years and puts a large dent into the goal of saving R240 000 in two years.

Find an extra source of income

In the end, only so much can be done to save on current expenses and an additional source of income has to be found, such as a weekend or part-time job.

If the example of R20 000 of disposable income is earned over a normal 160-hour working month, it would mean after-tax earnings of R125 per hour.

If additional employment could be found at R80 per hour, most people would turn it down because it is R45 an hour less than they earn at their day job. However, there is another way to look at the offer. Twenty hours of part-time work a week at this rate means R6 400 a month of discretionary income. This amounts to R153 600 over the two years.

“That is how the wealthy become wealthy,” says Gibson. “They do not mind doing things beyond the break-even point that are less than they earn now, because that money could turn into more money.”

Taking on extra work should be viewed as a learning curve, because 90-hour weeks for the first year are extremely likely when a new business is opened. Extending the normal working week from 40 to 60 hours will not only provide extra income, but also valuable time management experience.

Achieving the goal of owning one’s own business will not come without sacrifices, but biting the bullet for a short time is a necessary step towards owning that franchise and taking control of one’s financial future.

Posted November 7th, 2012 in Entrepreneurship & Business Ownership | Comments Off on Bill Gibson – Goal Setting: The First Step To Business Ownership

Bill Gibson – Getting Out Of A Cash Flow Crisis In A Hurry

Succeed Magazine – www.succeed.co.za – February 2008

If you have hit a cash flow crisis do not say, “I do not believe it.” While you are saying this you are in denial and valuable time is passing by. Rather face reality. “If it walks like a duck, and it talks like a duck, it is not an eagle,” says Bill Gibson, director of Knowledge Brokers International (KBI). Succeed asked how he would get out of a cash flow crisis:

Act immediately

Do not waste time and energy on trying to figure out how it happened or who is to blame. You can do that later. Focus all your resources on correcting the short-term cash flow problem.

Be proactive with your creditors

Visit or call them and explain your situation. Ask for a specific payment or non-payment plan over the next 60 to 90 days. It is simply a matter of scheduling payments that both you and the creditors can live with. Get the payments as low as possible with a commitment to increase the payments if things get better. Find out the minimum payments your creditors can accept. Perhaps you can even just pay interest. Tell them you will phone at the end of the month to inform them what you can pay. Ask them to not phone you in the first three weeks. That way you can devote all your time and energy to bringing in the cash, rather than handling calls from creditors which depletes your time and energy. I am not suggesting that you misuse your creditors, but facts are facts. If you owe a large amount of money to creditors it is not just your problem, it is also theirs. They want to see you stay afloat.

Swallow your pride and invite them to help. You will be surprised at the solutions with which they may come up.

Be proactive with your debtors

Sit down face-to-face with all clients who owe you money. Offer a discount of 10% to those who can pay much faster than normal Negotiate payment advances Ask for advances of 30% to 100% on jobs that you are doing. This could carry you through the tough period.

The last two months before year end large companies, parastatals and government departments often have budgets they have not spent. If they do not spend the money, it is not carried over to the next financial year and so they often pay in advance. Be sales oriented. Every single person who works for the company has to be sales oriented. Reg Wightman, the owner of a building supply dealership, one day accompanied his truck driver on a delivery. He walked around the site and talked to various people working on the job.

When he left the site he had a bigger order than when he arrived. It made him realise that the person doing the delivery is also really a salesperson, so he rearranged his whole operation. He delegated a lot of his responsibilities as manager to other employees so he could be on the delivery truck a lot more. His sales increased markedly.

Find innovative ways to sell

Terry Stalker is the owner of a bed company. He decided to place lamps, comforters and sheets in his delivery trucks so that his delivery people could sell them when doing deliveries. Installers were also trained to look around the house and report any needs they noted in terms of furniture. A few days later, one of the salespeople would give the client a call saying, “Well, our driver was at your home and he noticed you seemed to need…”

They got a lot of add-on sales that way. When you have a cash crisis you need to find innovative ways to sell.

Last resort moves

• Take your short–term debts, such as lines of credit, promissory notes, credit card balances, income tax and supplier balances, and try and get a consolidation loan. Spread the payments over three years. This frees up monthly capital and lowers your monthly overheads. It might cost more in terms of interest in the long run, but it could be the short term fix needed to get you out of trouble.

• Consider offering shares in your company to major creditors to wipe out all or part of the balance you owe. Have a good buyback clause.

• Sell your receivables at a discount to the company that buys receivables.

• Use equity in your home with a second bond to pay off some of the debts.

• Consider a financially sound co-signer for a large consolidation loan. In return, you could put that person on your payroll for an agreed amount until the debt is paid.

• Seek advice from business owners who survived cash flow problems.

Posted November 7th, 2012 in Economic & Community, Entrepreneurship & Business Ownership, Management & Leadership | Comments Off on Bill Gibson – Getting Out Of A Cash Flow Crisis In A Hurry

Bill Gibson – Gain Market Share In A Tough Economy

Succeed Magazine – www.succeed.co.za

Many years ago I was a top producing local radio advertising salesperson in the Twin Cities market of Halifax and Dartmouth, Nova Scotia, Canada. On the East Coast of Canada the harsh winters literally crippled automobile sales. In December, January and February it is not uncommon to have sub-zero temperatures and three snow storms in a month that range from a half metre to a metre and a half of snow. One early November day I called on John Gwynne-Timothy, the new owner of a small car dealership called Twin Cities Plymouth Chrysler. He told me that it did not make good sense to advertise in November, December or January because of the ferocious winters. Chrysler Canada had instructed him to put aside C$100 000 for each of the three winter months, strictly for losses. He was also told to cut back on advertising and save the money for peak season. I could understand their thinking – first you have to find the car under the snow before you can show it that time of year.

“The best time to gain market share is in a down economy” – Bill Gibson

My response to John was that with everyadversity there is an opportunity and the best time to gain market share is in a down economy. I added that most of the competitive dealerships would also be cutting back on advertising and the buying of inventory during that period. The advertising noise level in the market place was far less in the winter months. This would make it easier to dominate the market with less spending. The other dealers also were not buying cars at the auctions and it would be the best time to buy.

Here was the strategy:

• He went to the automobile auctions and bought at low, low prices. (If you buy right, you can sell right).

• On Friday afternoons at 4 pm we cleaned out his huge service department and decorated it with colourful streamers, balloons and so on.

• We then brought into the service department many of the especially low-price used cars and new ones.

• On the Friday morning we hit with newspaper and radio advertising – all day Friday and all day Saturday. In the weekly and monthly magazines we advertised the Winter Sale Bonanza Friday and Saturday at Twin Cities Plymouth Chrysler.

• We had live onsite radio announcers and upbeat music playing in the service department on the weekends and we sold cars until 9 pm on Friday and Saturday.

The final result was that Gwynne- Timothy profited C$100 000 per month in December, January and February. He budgeted for a C$300 000 loss and instead made C$300 000. In actuality, he was C$600 000 ahead.

In February, the competition eventually tried to counter attack – after laughing at him for what they thought was a waste of advertising money in December and January – but it was too late. He already had momentum. This momentum carried over to peak months from March to October with astronomical sales. He had gained huge market share in the down months that positively impacted the best months.

Within a year Gwynne-Timothy sold his small dealership for a huge profit and bought the largest Ford dealership in Atlantic Canada. Today he is a multimillionaire, simply by being innovative and proactive in a down economy – in Canada during the winter months.

The following graph shows that 20% of a smaller market can be larger than 10% of a big market. It is easier to gain market share in a down economy.

A few years later, as a consultant in Canada, I had another client named Terry Straker. At the top of the economy he was grossing C$200 000 a month with his bedding and bedroom furniture stores in Calgary, Alberta. The country went into a recession and competition got stiffer. Eighteen months later, at the bottom of the economy, Terry grossed over C$1 million in one month – a 400% increase.

How did he do it? He got innovative and aggressive. He knew cash was king so he negotiated hard when buying. He then increased his advertising in the right mediums that targeted his market. Through research he knew the best days and best weeks to advertise. He increased sales training to twice a week. He tied in with charities and ran innovative promotions.

Straker once ran a promotion called Mr Money, where he dressed his brother up in a Mr Money outfit, and on Friday he announced to the media that Mr Money was dropping C$5 000 from the roof of his biggest store on Saturday. The plan was to drop C$500 an hour in small bills for 10 hours.

Ten thousand people showed up and he got massive publicity. He had the biggest day ever. The reason is that in a down economy people want money. He used endless creative traffic building ideas. Among them was a promotion with Salvatore (Sal) Stallone, Sylvester Stallone’s brother. Rocky II had just opened in the theatres. Even though the economy was down, Terry increased his sales by 400%.

The solution is to believe you can gain market share in a tough economy if you take control of your own economy and get creative, innovative and pro-active. Do not wait for others or external factors to do it for you. Take control.

Posted November 7th, 2012 in Economic & Community, Entrepreneurship & Business Ownership, Management & Leadership, Sales & Key Account Management | Comments Off on Bill Gibson – Gain Market Share In A Tough Economy

Bill Gibson – Complex Selling Is About Getting To The Right People. Every Sale Is A Negotiation!

(Interview with Succeed Magazine)

Succeed Magazine – www.succeed.co.za – May/June 2005

Let us get one thing straight. Complex selling does not involve getting over-anxious baby boomers to buy overpriced clusters. It also does not involve selling feel-good tapes to those with inferiority complexes. No, you are already great, you are already wonderful and everybody likes you. Your problem is closing the bigger deals.

Every ambitious person lives for that one, big business deal. Unfortunately, too often that deal turns out to be the Titanic. No matter how fancy you think your offer is, no matter how big the enthusiasm with which you are received – there is no deal until the necessary signatures are on the dotted line and the fat lady is ready to start her serenade.

In a complex sale more often than not you find two or more individuals involved in the purchasing decision. Sometimes it can even take an entire board of directors or a specially appointed task team. Complex selling also occurs when the deal requires a large financial commitment, if the purchased product has a major influence on company-wide operating procedures or when the company is experiencing financial difficulty and a purchase needs approval from several people. Regardless of all these factors, one constant remains – you must identify and deliver your message to the right people. With complex selling it is mainly about getting “buy-in” to reach the eventual “buying stage”.

“There are typically six power players that can influence a potential deal,” says Bill Gibson. “Identifying and managing your business relationship with these players effectively and efficiently is the key to turning any pumpkin into a gold-plated carriage.”

These six players are the Navigator, the Ruler, the User(s), the Protector, the Opposer and the Contributor. It is possible one person could wear the hat for two or three of these power players. Bill Gibson on each of these power players:

1. Navigators are those people who can point you in the right direction. They need personally to see some value in the service or product that you are offering, whether it is for their specific department, its general business value, political value or maybe because they just believe in you and the product. The navigator must be a well-respected individual who can influence other decision makers or at least highlight which people in the decision-making process swing the heaviest clubs and what their personal stance regarding your product might be. “Always remember that a navigator does not sell for you but merely assists you with important insights so you can present the right information to the right people,” says Gibson. “Always respect their reputation, always value their need for anonymity and always remember that no one is going to help you unless they like you and trust you.”

2. The Ruler is the CEO, chairman, president or person of equal status. He or she can veto any decision made, but can also give the green light when other senior managers say no. The Ruler can be an appointed group of people who jointly make the final decision, but usually there will be one person whose opinion outweighs and can sway that of others. Generally, Rulers do not like being bothered with the finer details of what is offered. A Ruler wants to know if the product or service fits in with the bigger picture of what the company is trying to accomplish. What is the bottom line cost involved in its implementation? What sort of return on investment can be expected and how long will it take to see real returns? Does the product have an acceptable tool to measure its effectiveness and what are the ultimate benefits of implementation? “Rulers are results-orientated, strategic thinkers and acute visionaries,” says Gibson. “But do not make the mistake of thinking they are dreamless or lack creativity. It is a Ruler’s job to take calculated risks to improve the business and often they are privy to information other employees are not. A certain product or service may fit in perfectly with strategies or changes in policy that others on the decision influencing team don’t know about yet – so never dismiss the possibility that the Ruler may exercise his or her authority by implementing a previously rejected offering.” Never talk down to Rulers. Value their opinions and listen to what they have to say. The best way to meet the Ruler is through personal introduction, maybe through a Navigator, at VIP functions, at group presentations to the Ruler’s team, coincidental encounters and, of course, when the time comes to deliver your final proposal. There are certain key factors to keep in mind when considering at what level you will find the Ruler’s position in reference to your specific offer:

• Tighter company spending may require higher purchase clearance which could mean having to deal with a different Ruler who is higher up

• If the numbers, both in costs or volume, of the purchase is high, then you may have to deal with a different, or more than one Ruler, often further up the organisation

• If the company has no experience in dealing with you, or any knowledge of your product or service, the level of clearance may be higher because the risk is higher. They “pass the buck” higher up the ladder

• If the organisation is autocratic, most of the decisions will be made by a high ranking Ruler(s) who likes to have his or her fingers on everything.

“You may only get one chance to meet the Ruler, so you better make it stick,” says Gibson. “Know your product, know the Ruler’s business and personal agendas, likes and dislikes and, above all, know your place.”

3. Users are the people who actually use the product and, even if they have no power to decide on a purchase, they often have the power and credibility to influence those who do. “This is where the rubber meets the road,” says Gibson. “Users could be Navigators or even Rulers, but in general the User will be someone, or a group of individuals who will work with the prospective product the most.” Show the Users the respect they deserve. Do not think you have to make them feel important – they ARE important and will test your product knowledge to the full. They will ask the nitty-gritty How to? and What If? questions Rulers do not have the time for. Listen to their suggestions, objections and queries. If they support you, chances are they will punt your product to management which will weigh in your favour when a final decision is made. They can also sabotage your product, process or service even after the purchase is made. They have to work with it and can make sure you don’t get repeat business. “Users are generally operatives, administrative staff, trainers, sales people, department managers and the like,” says Gibson.

4. Protectors are individuals whose job it is to make sure any and all purchases comply with company specifications, criteria and standards. A human resource manager, for example, will dismiss any training modules that do not comply with national qualification standards or modules that are not accredited. Protectors separate emotion from the purchasing decision. They are in charge of quality control and are therefore highly analytical individuals, well educated, informed and are excellent negotiators. They may not have the power to say “yes” to a purchase, but they can certainly say “no” or eliminate you from the short list.

“Protectors are often procurement managers, chief financial officers, senior officers in the company’s legal department, other financial controllers and even PA’s,” says Gibson. “Identify with their needs, ask how you can make their job easier, in which format they require information be presented and have all necessary data they might want readily available.”

5. Every proposal has a balance and just as there will be people who are pro your product, there will be others who oppose it. “Do not get upset about it,” says Gibson. “All you have to do is make it impossible for an Opposer to deny the benefits of your product without looking selfish and not acting in the best interests of the company.” An Opposer may have a political reason for his or her actions. They may support another supplier or may be fearful that their department’s budget will be cut to implement your product. “Opposers sometimes act illogically, but you ignore them at your own peril,” says Gibson. “Show them a great level of acceptance and receptivity for their suggestions and concerns, but stick to the value the company will enjoy by implementing your product. Stack the cards so high that the Opposer will eventually have to concede and recognise the validity of the facts presented.”

6. Lastly, but not least – find out who the Contributors are. Make use of the Navigator and find out who has the decision maker’s ear. It could be a spouse, a close associate, a valued consultant or anyone who has access to key power players and whose opinion is held in high regard. Look for ways to influence the Contributors’ values but make sure you do not come across as over-bearing or abusive. You are already great, you are already wonderful and everybody likes you. Now that you have a framework pointing out most of the known icebergs, it is up to you to stand up and be counted. The pens are ready, the dotted lines are empty and the fat lady is waiting with bated breath.

For more information on KBI’s Managing Complex Business Relationships System sales training process, or to contact Bill Gibson, call (011) 784 1720 or e-mail bill@kbitraining.com

Posted November 7th, 2012 in Economic & Community, Entrepreneurship & Business Ownership, Sales & Key Account Management | Comments Off on Bill Gibson – Complex Selling Is About Getting To The Right People. Every Sale Is A Negotiation!

Bill Gibson – Sales Strategies To Buck The Trend

Succeed Magazine – www.succeed.co.za – April 2009

With the downturn in the economy an increasing number of businesses are looking for ways to buck the trend. According to Bill Gibson, chairman of Knowledge Brokers International, the first place to start a turnaround is in sales. “It is difficult to raise capital when your business is struggling,” he says. “Really, the first place to start turning the business around is in sales.” He explains that the more short-term capital you bring in the more time it buys you to turn the company around.

“The smaller deals will maintain the cash flow while you are waiting for the bigger deals which will ultimately bail you out.” In start-up businesses cash flow is everything. “You will not survive with a long-term plan to turn around the business. You have to think short term,” he says. “Short-term income will give you the necessary cash flow to sustain you until your long-term income can be achieved.” This leads to the question, what does it take to bring money in?

Gibson highlights the following:

If you are going to turn your business around you must increase the number of people you contact. It is the law of averages – the more contacts you make, the higher your ratio of success will be.
You must increase the number of ‘right’ people that you contact – there is no point contacting people who have no money.
You need to increase your closure ratio. For example, if on an average your team closes 30% of their contacts. Set a goal to go up to 35% during a turnaround phase.
You must increase the size of your individual sales. Often you do not need more clients, but rather more business from existing clients. This means taking the time to ask these clients the right questions to maximise your cross- and up-selling opportunities.
The frequency of purchases per client needs to be increased. They must buy more often. If you give good service, and you are unique about what you do, you may increase your market share.
The frequency of times you contact the same clients must be increased. One study showed that eighty percent of sales are not closed before the fifth call to the same client, so do not give up.

These are the important areas that need to be focused on. There should also be a fundamental shift in the way a business is run. “If you are trying to turn your business around, you may need to work up to 90 hours a week and more – you cannot do a turnaround on the same hours that you have been working. Even if your business has been comfortable you must now treat it as a start-up.”

You need to look at how to increase the number of hours that salespeople are in contact with clients as well. All sales administration and writing up of orders must be done after hours. “Do not fool yourself,” he says, “you may find that salespeople are only in contact with clients two hours a day, and the rest of the day they are tied up with administration.” When you are trying to turn a company around, you must be in front of clients more often. “Salespeople should have at least three early morning appointments a week during these times. These could be at 6:30am or 7am. By the time 9am arrives you have had a period of productive time already, and have gained momentum.” Sometimes it is about working smarter. “Seventy percent of all sales appointments for the upcoming week should be booked in advance by the Thursday before. This way salespeople end that week with direction, and start the following week with momentum.”

He believes that during hard times everyone in the organisation needs to be sales orientated. “Some companies insist that all the people in the company, even if they are not salespeople, have to handle accounts whether they help with admin or setting up appointments. This creates a culture of sales in the workplace. It is about pulling your whole team together towards one goal.” He points out that this may result in a situation where every single staff member has to phone up a list of clients every day, and thank them for their business, ask them if they need any assistance, and then make a few offers.

“Shopping centres wait all day for passing trade and 60% of the time they are not doing anything. They should allocate time each day to phoning clients.” Focus on what is important. “Your accounting and marketing department are suddenly less important than sales, so focus on what is important,” he says. “If you have savings, ignore it and sell like you need to pay the salaries that month. This will create a sense of urgency.”

When you are turning a business around the owner should be one of the top salespeople. “The management need to be out there selling. They have business presence, and this is much more powerful than a sales pitch. It is one of the key characteristics of top producers.” Business presence can be acquired. “Salespeople can associate with businessmen and businesswomen, attend business presentations, and study what is going on in the industry that they are targeting. If their client is selling merchandise, they should go and study merchandising before they make contact.”

These are the fundamentals of turning your business around through sales. It involves a change in the culture of the company and starts at the top. There is still money to be made, but you need to make sure that you are the one making it.

Posted November 7th, 2012 in Entrepreneurship & Business Ownership, Management & Leadership, Sales & Key Account Management | Comments Off on Bill Gibson – Sales Strategies To Buck The Trend

Bill Gibson – Putting “Sizzle” Into Your Sales Meetings

Article for “Sales Guru” Magazine

”One of the biggest challenges for a sales manager is to keep his/her sales meetings exciting and productive week after week.

Try these proven ideas to put a “sizzle” into your meetings.

Rotate Who is in Charge

“To give meetings a lift every second week have a different salesperson take charge of the sales meeting. As the sales manager you may cover a few key issues and then turn it over to the salesperson or to two people if necessary. When the meeting is over ask the salesperson:

1. What went well?

2. Where could you have improved?

3. What potential problems, hurdles or challenges do you see for the future?

4. What opportunities do you see for the future?

Unique and Different Venues

What if once a month you had a unique and different venue for your meetings? Word would get out and your style of management would be seen as innovative and unique. These things attract good salespeople plus they impress the clients as well and above all change the state of mind of your people. How about a meeting…

On someone’s boat parked at the lake or harbour?
At someone’s home and have breakfast at the same time?
In a unique place. E.g. a ride up a gondola to the restaurant at the top of Table Mountain?
In a passenger train (moving or parked)?
At a go-cart track (tie in racing)?
At an upscale pool hall – include pool?
In the ‘Sports Box’ – 2 hours before the game?

Why not consider a theme song and play it at the start of each meeting. When you hit budget, bring some hats, horns, decorations, refreshments and have some fun at the meeting.

Have a couple of your people do a “skit” to introduce a new product. You could even bring in a couple of amateur actors or actresses as a surprise. The possibilities are unlimited. We do these things at conferences so why not do it at your meeting.

Sales People Visit Other Sales Meetings

Have your sales people attend an associate’s meetings, and be willing to reciprocate. Then have that person bring back the positives unless the negative is something that also happens at your meetings and they can use the example to help eliminate or reduce the problem in your meetings. A team member’s observations and suggestions is much more powerful than you suggesting it as a sales manager.

One “Quick Tool” Per Meeting

At every meeting start a tradition of focusing on “one good sales tool” or “skill of the week”. That way you are continually reinforcing winning principles.

I “Shopped The Competition” Report

Every 60 days you could have a couple of your people “shop the competition” “in person or on the telephone” and give the team feedback and make suggestions how your team can take advantage of that information.

We Were Shopped Report

Consider once a quarter, having someone “shop your business and your team” and give feedback. You could in advance agree with the team what would qualify as good service or what skilfully handling enquiries looks like. You could set up incentives based on the results.

Bill Gibson is the author/developer of The Complete Sales Action System, The Managing Complex Business Relationship System and a host of other sales and sales management programs. He has spoken to over one million people would wide. He is a Canadian living in South Africa. For more tips on Putting “Sizzle” Into Your Sales Meetings view Bill speaking on the subject a few years ago, Part 1: Running A Productive Sales Meetinghttp://www.youtube.com/watch?v=eR4YiLoi10w and Part 2: 11 Tips For Sales Meetingshttp://www.youtube.com/watch?v=632OA_TFdW0. Bill can be contacted at +27-11-784-1720 or bill@kbitraining.com, www.kbitraining.com

Posted November 7th, 2012 in Management & Leadership, Sales & Key Account Management | Comments Off on Bill Gibson – Putting “Sizzle” Into Your Sales Meetings

Bill Gibson – Becoming A Professional Salesperson Is All About Focus

(Interview with Succeed Magazine)

Succeed Magazine – www.succeed.co.za – March/April 2005

So, you are a salesperson. You have been told you have the gift of the gab, can sell snow to an Eskimo and no-name brand clothing to Paris Hilton. Yet, your bank account reflects a different story altogether. You talk, you present, you represent and criss-cross the country, huffing and puffing from one rejection to the next. You are the proverbial pork-chop at a bar mitzvah – rejected, dejected, wanted by no-one but the scruffy dog in the corner. Not all is lost though, you can make the transition from meagre pork-chop to a magnifique offering of the finest cuisine – Master Chef Bill Gibson shows the way.

“Successful selling is all about focus,” says Gibson. “Without focus you are left bouncing off the walls, from one client to the next with no clear strategy which will lead to mediocre sales results.” There are six main areas of focus every company and every sales person should incorporate in their modus operandi. Focus on the right clients and prospects, with the right frequency, working from the right database, using the right data base selling tools, offering the right solutions, at the right time and making the right presentations. Sounds simple enough, but then there are still some people who believe the world is flat – a simple concept does not necessarily mean that people understand its fundamentals or how to execute its intended actions properly.

Focussing on the right clients also involves speaking to the right people when dealing with a company. “Make sure that you talk to the decision maker as quickly as possible, you do not want a situation where, after months of dealing with middle management, your proposal is eventually rejected by the powers that be. Long-sell need not be a feature of your work.” Criteria to classify existing and prospective clients need to be developed and are two tiered, namely for selling to individuals and selling to businesses. Individual criteria involve aspects such as age groups, hobbies, household income, disposable income, purchasing habits and whether or not the person is a natural fit. Natural fit basically means that the selling and buying entities have much in common, like race, religion or some other common influence.

“The 12% of sales people who carry on communicating, regardless of how many times they are shown the door, are responsible for 80% of total sales”– Bill Gibson

Business criteria concerns matters such as monthly or annual turnover, by industry, number of employees, nature or type of business, number of outlets, roll-out possibilities to other businesses, procurement procedures and political influence such as Black Economic Empowerment policies. “The criteria is then used to classify clients in AAA, AA, A, B and C categories,” says Gibson. “This does not mean that you give type-C clients bad service when it is necessary, it merely means that you focus your pro-active time, energy and resources on the A and B categories where possible. Focus on those clients that you want to retain, develop, regain and gain – all top performers make use of this process.”

Focussing with the right frequency is about repeating your contact with a client without stepping on their toes. The National Dry Goods Association of America conducted research on the effects of frequency and made the following startling discovery – 45% of all sales people stop contact after the first negative response, 25% stop after the second solid, No, 15% call it a day after the third denial and 12% carry on communicating regardless of how many times they are shown the door. The interesting revelation of this study, is that the 12% who hang in there are responsible for 80% of the total sales achieved, a rather revealing statistic, isn’t it? “Contact can be maintained through any number of ways, some more personal than others,” says Gibson. “The key is building a relationship and being unique in the way you do it. Never follow a routine your contact person has seen or heard a million times before, aim to be different – it shows an innovative nature and sparks interest from the client.” Working off the right database ties in with focussing on the right people as it is of no use contacting a list of clients who have no need for your product or service. Make sure that the information you are working from is correct, up to date and relevant to your business. Using the right data base selling tools are about making and maintaining contact through various methods. Primary tools are more personal contact methods such as visits to the client, inviting the client to functions and events, personal lunches and social meetings and, of course, telephone calls between you and the prospect. Secondary tools involve things like contact by your P.A., third-party deliveries of corporate gifts or information, and things like specific personal promises sent by e-mail or faxes. Other data-base selling tools are things like greeting cards, press-releases and other forms of less personal contact. “All three types of data base selling tools must be combined in building a business relationship, know the client, what he or she likes or dislikes and then work according to a strategy that allows you frequent contact, without coming across as overbearing.”

There is, of course, no point in maintaining excellent customer relations and identifying the right customers, but being unable to offer the product or solution the client needs. Know your products, what you can offer and know what questions to ask. A successful sales philosophy is solutions based. “In bigger, long-term deals and major negotiations you must remember that it is not about selling, or buying – but buying into the solution(s) you are, and can offer the client,” says Gibson. “Do a need analysis based on the company’s unique requirements and then offer the solution.”

Approaching clients at the right time goes a very long way on the road to making a sale. If you offer a consulting service on increasing sales and market share, it is obviously in your interest to approach a role player in a market when it is faced with a new competitor. “Work the situation and the circumstance,” says Gibson. “Knowing that a hot spell is predicted for a month or two will help an air-conditioning sales person for example – knowledge is power, know the situation that surrounds prospective clients.” Do the right presentations when you get the opportunity. There is no point in presenting CEOs and others in top management with just a colourful story about you and your company. They want to know what you can do for them. What do you offer? “Get to the bottom line as quickly as possible,” says Gibson. “Thereafter you can elaborate on the history of your company and such if asked to do so.”

Follow these steps and you may succeed where others have failed, prosper where so many have slipped and be labelled the bar mitzvah pork chop never more. Decline – and all will not be lost, after all, there is always that scruffy dog in the corner to keep you company.

“Always talk to the decision maker as quickly as possible”

Posted November 6th, 2012 in Sales & Key Account Management | Comments Off on Bill Gibson – Becoming A Professional Salesperson Is All About Focus

Bill Gibson – Building A High-Performance Sales Team

(Interview with Succeed Magazine)

Succeed Magazine – www.succeed.co.za – Jan/Feb 2005

“The power of an individual top producer is the ‘special talent’ called a positive attitude. Companies should hire for ‘special talents’ and train for skills and knowledge. Skills and knowledge can be transferred through training, talent cannot” – Bill Gibson

Building a high performance sales team is all about hiring the right people, says Bill Gibson. To hire the right people, you need to know exactly what a top performer looks and talks like.

While this may sound like a simple task, profiles differ from job to job, and so do individual requirements. “The profile for somebody working three or four nights a week as a top financial advisor would be very different from that of a Coca-Cola rep who oversees stock levels in retail stores. The rep for Coke would need to be someone who can build and cultivate relationships, so that they can manoeuvre the product into the right place,” says Gibson. “The financial advisor needs to be an altogether different kind of person.”

Gibson advises companies to brainstorm necessary attitudinal characteristics and write down a clear job description for each sales position. Instead of waiting until it is absolutely necessary to hire another sales person, companies should be on a constant lookout for the right staff. “Remember that you’re always hiring,” says Gibson, who believes that the best time to hire somebody is before they know you are thinking of hiring them. “This gives you the chance to see the person’s true colours. You get to see if they’re professional, how they respond to people, how patient they are and how they behave even under the influence of alcohol, at a social function.”

Ego drive and empathy are two characteristics to look out for in top performers, says Gibson. Ego drive relates to how quickly a person gets up after they have been knocked down.

“Somebody with a high ego drive will get up fast, but somebody with a low ego drive won’t handle rejection well, and will typically have a low success rate in sales.” A high ego drive should be combined with empathy. However, sales people need to be able to project themselves into somebody else’s shoes. These are natural talents and can’t be trained.

The toughest way to hire is through advertising and a recruitment agency. You don’t know the people and it is difficult to get to know them in such a short time. Sales managers should instead focus on building a network of contacts, and drawing up a list of prospective salespeople. “Birds of a feather flock together,” says Gibson. “Companies will often find good people by asking their top performers, as they’ll usually hang out with other successful people.” Companies can also incentivise staff by offering the same commission to staff members as they would to a recruitment agency. Gibson believes that the ability to attract top people can give companies an indication of how successfully they are managing the business as a whole. “If you are running a good operation, good people will line up to work for you.”

Gibson’s five pointers to follow:

• Look for people who have a positive take on life. Choose people who naturally look forsolutions instead of looking for problems (a talent not a skill).

• The ability to communicate is important. Sales people should listen to understand, not just respond. “Choose people who talk so that others will want to listen, and listen so that others will want to talk.”

• Look at a person’s ability to be organised. “Some people are unstructured – their desks may be a mess – but they can handle five things at a time… they are organised”

• Only then, look for knowledge and experience. “It’s in fourth position because if somebody has the right attitude, they’ll learn quickly.”

• A person’s physical appearance comes in at the bottom of the list. “Top performers come in all sizes and shapes.”

About Bill Gibson

Bill Gibson has immense experience in the fields of sales and marketing. He is one of the top business trainers currently operating in the country. His formula is based on following the tried and proven processes that top performers employ, having management and staff focus on using them well. Gibson’s company, Knowledge Brokers International is best known for the business-building products, processes and systems that they have developed. Among their business systems is the Business Success Series for small business, that they developed in conjunction with the Ntsika Enterprise Promotions Agency (now SEDA). Their other products include The Complete Sales Action System, a 15-day programme, and two shorter programmes, Managing Complex Business Relationships and The Map for Success Profit and Income Builder Implementation Process. His company’s clients include ABSA, Nedbank, BMW, Siemens, Sanlam, Santam, Old Mutual, Adcock Ingram and Acer.

Bill Gibson can be reached on (011) 784 1720 or through bill@kbitraining.com

Posted November 6th, 2012 in Entrepreneurship & Business Ownership, Management & Leadership, Sales & Key Account Management | Comments Off on Bill Gibson – Building A High-Performance Sales Team

Bill Gibson – How to sell – What a great salesperson needs?

Succeed Magazine – www.succeed.co.za – October 2006

What are the most important qualities that top sales producers possess? This is a frequent question asked in South Africa and internationally by business owners, salespeople and executives. Psychologists and assessment tool experts have identified a number of qualities that top producers must possess.

I personally believe the two most important qualities are empathy and ego drive. You must differentiate between empathy and sympathy however. Empathy is not feeling sorry for someone. It is putting yourself in the other person’s shoes, and being instinctively able to see, hear and feel where that person is coming from. It does not mean you agree with the other person, it means you have an understanding of that person’s perspective, and that you can adjust your approach and feedback to that person instantly.

Ego drive, on the other hand, is the measurement of how fast you recover when you get knocked down, or after you have been rejected. If you immediately dust yourself off and get back up then you have a high level of ego drive. A salesperson with a high level of ego drive possesses an inherent focus and drive to make the sale, reach the goal, finish the task or conquer a difficult situation, and this is imperative. The need to accomplish, conquer and win keeps them motivated and focused on achieving results. The fact is that salespeople fail more often than they succeed. High ego-driven people are usually not shattered by failure, in fact they find that a failure or setback to them is just a challenge and handling challenges are what makes them happy. They live for the challenge and they live for the conquering, so when that one in 10 clients says ‘yes’, the path of rejections is justified.

The two main qualities of empathy and ego drive must be balanced. If a salesperson is high on empathy and low on ego drive, clients will think he is a great person, and really like that individual. But they may end up buying from the competitor, because the salesperson got so engulfed in seeing and accepting the client’s point of view that he did not present the best solution, and did not close the sale. A salesperson with high ego drive, but no empathy will often be so focused on driving through to the close of the sale he will not take into consideration or demonstrate respect for the client’s real needs, views and wants. This type of salesperson often loses the sale and does not understand why. She can also negatively affect her reputation and that of the company she works for. In essence you need a high level of empathy and a high ego drive to be a top producer. A salesperson with only one of these traits can still be a salesperson, and may achieve a sufficient level of sales. But if he is low in either empathy or ego drive, and makes a commitment to developing the right attitudes, skills and habits, he may become a top achiever. As a business owner or sales director make sure you are hiring people with a high level of empathy and ego drive if you want results. For the salesperson, do what you can to improve in both of these qualities, and it will pay.

Empathy and ego drive are inherent natural talents or abilities, although with a major focus and effort they can be improved. Here are a few quick tips that can help raise your ability in these two areas.

With empathy try the following:

Use the following statement in the following ways. “I listen to understand not just to respond.” Repeat this 20 times a day as an affirmation. Use it as a screen saver on your laptop and post the statement where you can see it. Put it on your fridge, in your car, on a card or on your cell phone screen. This will continuously keep the importance of understanding other people’s point of view front and centre of your mind. Remember, awareness precedes action and action precedes change. Make a list of ‘soft openers’ and commit to utilising them when dealing with friends, family, associates and clients. These ‘soft openers’ will force you to listen to and empathise with the other person’s situation. Try a few of these ‘soft openers’:

• “May I ask…”

• “Could you share with me…”

• “I’d be interested to know…”

• “You obviously have a good reason for saying that…,share with me…”

• “It would help me if you explained…”

• “Help me understand how you came to that conclusion.”

• “Help me get a handle on what you are up against …”

• “Please give me your view.”

• “What advice or suggestions do you have…”

• “I need your direction on this… how do you…”

• “Obviously you have your own view. Could you share your view with me?”

• “I’d like to hear more about what happened…”

• “That question tells me you still have some concerns…”

• “Maybe there are some things I can learn. Could you expand on that point?”

• “I’d like to hear more about your views on that.”

• “You know I have not shut up. I have been doing all the talking. I’d be interested to know what made you decide to take this route.”

• “Possibly I can serve you better if you could give me more information on what you expect from us.”

Take a course, read a book, listen to a CD or watch a DVD on effective communication skills. This should include active listening and talking so others will want to listen and understanding the non-verbal cues of body language. Interview associates, friends and family members that are known to be people that quickly see other people’s points of view. Ask them how they do it. It probably comes naturally to them so you may have to dig deep so they can explain it to you. Study personality types and take a course on how to deal with each type. Then start recognising the different types and consciously shift your approach to dealing with the different types. The four basic foundation types are: controller driver, expressive promoter, supportive amiable and the analytical.

A few suggestions to off-set a low level of ego drive could include:

Draw a parallel between rejection and the weather. Some people are affected by the weather and some are not. Even if it is raining or it is really cold or extremely hot, you know you still have to drive to work or go see a client and you always do that no matter what your weather mood is. Think of selling like you do the weather. See the rejection as a passing weather change. Just drive on anyway. Keep your eye on the destination. In certain weather you will move slower but you will still move forward. Take the rejection and still move forward … even if it is slowly. Make a list of the adversities you have experienced and recovered from and how you have recovered from them. Keep that list handy and review it after you’ve had a ‘no’. This will help you see that you can and will overcome this adversity.

For the next several weeks keep track of how many ‘no’s’ it takes before you get a ‘yes’. Draw up an average for yourself. Then start counting the ‘no’s’ and with each ‘no’ you will know how close you are to a ‘yes’. Calculate how many ‘no’s’ it takes to get a ‘yes’ and then take the average size of your orders/sales and divide that by the number of ‘no’s’.

E.g. R10 000 ÷ 10 ‘no’s’ = R1 000 per no. You now know that every ‘no’ you get is worth R1 000 Rejections and ‘no’s’ are often situational rather than personal. Make a list of situational circumstances that could cause a client to say ‘no’ or ‘seem to reject you’ in reference to a meeting or a proposal you have made. These could include:

• They are unhappy with their present job

• Do not have the decision-making power

• Dislikes salespeople in general

• Just committed to someone else

• No need for your offering

• Have personal pressures at this time

• The timing is not right

Caution: Do not use these as excuses if it has something to do with your lack of skill or flaw in your product or service you offer. Use it as a reality check to let yourself know that it is not necessarily you that is the problem… it could be a number of factors. Interview associates, friends and family members with high ego drive and find out what techniques they use to overcome the ‘no’s’, handling rejection and recovering quickly from adversity.

Posted November 6th, 2012 in Sales & Key Account Management | Comments Off on Bill Gibson – How to sell – What a great salesperson needs?

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