Sales and Growth Strategies
Life in a Start-Up
Ramblings about my experiences as I work with Talus and other start-ups.
How Big Have You Failed?
Dec 29th
Perhaps it’s also true of the rest of the world, but the celebration of failure is taboo in this country. However, failure is a part of success and a good indication – to me – of what kind of ‘kahunas’ you have for business.
Not long ago, I met a guy who built, and subsequently lost, a billion dollar company. When I heard about it I didn’t judge him or feel sorry for him like so many in our society would have done (mainstream media for instance). I was actually quite impressed. I mean… how many people have actually succeeded to that level and then fell all the way down? What are the odds? It’s almost like being hit by lightning – if it happens to you, you were CHOSEN!
In my mind’s eye, the ‘Success Club’ members are comprised of the first class passengers depicted in the movie Titanic. They are 2nd or 3rd generation wealth, born with the proverbial silver spoon, or they succeeded big on their first try, and to their demise, perhaps not really appreciating their accomplishments. They’re all stodgy old men dressed in tuxedos, holding their brandy snifters with cigars ablaze, scarves around their necks talking about their great accomplishments. "William, do you remember when we denied the Union?" "Why yes, Theo, that was spendid."
Then there is the ‘Holy Crap I Can’t Believe I Even Tried That’ club. Most of the members of this club ended up as financially successful as the aforementioned members, but they’re warm and humble people. The members of this club EARNED their success and they’re happy to help anybody else do the same. They went all the way and looked over the edge, perhaps even tumbled over a couple of times, and have the badges of honor that put them in a truly unique society.
So on your road to success, what kind of roadblocks have you run into? Have you played it safe? My recommendation: if you’re gonna fail on the way to success, get out there and FAIL BIG!!!
Be Committed
Dec 5th
"Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative and creation…
… there is an elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. All sorts of things occur to help one that would never have otherwise occurred. A whole stream of events issues from the decision, raising in one’s favor all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamed would have come his way.”
Mountain Climber Charles Murray
I am a co-founder of a startup company which is finally (wiping forehead ) gaining momentum after 3+ years of very hard work. Many, many hours making phone calls, meetings, lunches, trips all over the country. Many internal hurdles and differing personalities have had to be overcome. A serious investment of time? Yes, and of life. Oh, and there is no pay. Sorry. And when you seriously doubt you can keep going? Well, because you made the commitment and you’re sticking to it, a whole new circumstance happens that keeps you in the game, and why give up now? And you get right back to putting big skin in the game. And the cycle continues… until someday… you make it… or you don’t.
Take Advantage of a Recession: Renegotiate Contracts
Oct 5th
My business coach always told me there are only two things that are worthy of your time – increasing sales or decreasing expenses. Everything else is waste.
Not long ago I had lunch with a CEO friend and advisor, whom I’ll call Bill, who is currently in the process of building his second billion dollar company – and is well on his way I might add. I love meeting with Bill because he not only freely talks to me about his company and the initiatives he has underway, he actually seems eager to tell me about what is going on. In addition, he unemotionally details problems he’s working on solving, as well as explains how he is approaching it. Needless to say I always learn so much.
Bill’s current company is a high-end membership, luxury resort destination club for the wealthy. He owns palatial property all over the world that members use for vacations and/or business – everything from beachfront property to ski resorts to metropolitan destinations, such as Manhattan or Paris. So on one side the company is a real estate sales and management company, and on the other it is a membership sales and management company.
When Bill showed up for our lunch he told me how busy they are taking advantage of the recession – which took me by surprise and made me wonder how he was "taking advantage" of the recession. As he elaborated, he told me of one line item for a number of properties he owns in the Bahamas and how a particular vendor of propane – used merely for his hottubs and outdoor grills – was charging astronomical rates. During the downturn, contacting this vendor to renegotiate the contract is not only acceptable, it’s almost expected. How relenting do you think this vendor be with the alternative of a great customer needing to go elsewhere?
In another example, a bank where Bill has numerous loans for his properties had been charging a pre-recession interest rate. On initial contact, the bank simply refused to work on different terms, so Bill cautioned the bank that he may have no other alternative but to turn the properties over to the bank. Interestingly, the bank didn’t want those properties back in their management in this economy and was happy to renegotiate.
Use the state of the economy to your advantage. Renegotiate contracts so you can free up cash flow to use for business growth. Perhaps you should create a special project to have your salespeople making those calls. Perhaps you should hire a bulldog consultant that is good at negotiations (hint). Either way, it’s money in your pocket.
Beware the ‘Homework Givers’
Jun 18th
To get your start-up off the ground you need to meet a lot of people who could potentially help you. Partners, beta customers, investors, etc. are among the targets of people you should contact and meet. Many have great ideas and are helpful in the advice or referrals they give. There are also the people that have what you want, such as investment money or a partnership contract, and even lead you to believe that they’re willing to provide you what you need. Unfortunately, some of these people also come with strings attached and won’t “move forward” without you having to doing an infinite amount of work to satisfy them. I call them ‘homework givers’, and they are of the breed of people that take wind out of your sails.
Indeed there are legitimate reasons your contact should ask to provide initial research, or perhaps a key relationship in place before helping you further. But if you know you’ve done the necessary work to get your concept off the ground and walk out of a meeting feeling completely overwhelmed and behind the eightball, then you have just met with a ‘homework giver’.
Working with Talus, we met a gentleman several times who is very successful and had some great advice. However, he seemed to always give us information that either completely changed what we had going, or had ideas that would take some serious time, i.e. months, to complete. This led to doubting what we were doing, and with a feeling that we were way off track, which is the last thing we needed while pushing through all the crap necessary to get the darn business off the ground.
Don’t get derailed. Don’t even get sidetracked. Be cautious of the ‘homework givers’ and stay your course!
How to Get the NDA Signed
May 1st
An NDA can go a long way in protecting your intellectual property, and it is important to have your potential partners, vendors and investors agree to execute one prior to doing business if you have something worth protecting. When I first started pitching Talus’ health care exchange concept, getting an NDA signed by the 800 lb. gorilla Wall Street companies or investment firm used to seem like such a big deal. We were told by other startups, and even our advisors, that the companies we were approaching simply would not sign one. And while it is true that some companies have policies that keep them from entering into this agreement, most do not and will agree to sign one after some negotiating. Following is what I’ve learned to get an NDA executed every time.
Build Story Before Mentioning NDA
“What’s in it for me?” is what everybody wants to know. Well, you need to get your audience involved in what you’re doing. Formulate a story that doesn’t go into your IP (intellectual property) until they’ve bought into what you can accomplish for them. Then, when they want to know the secret sauce, you say “I’d be happy to… we just need to get a mutual NDA in place.” So much easier.
Always Add “Mutual”
You have NDA’s and you have Mutual NDA’s. Difference? The company you are talking to is protected too – and it is good to extend to protection to them regardless. By using the word “mutual”, it takes the attention off of you and makes them feel warm because you’re thinking of them… right?!
Blame Your Legal Council
There’s nothing like making somebody else look like the bad guy, especially lawyers. Well, the lawyer gets paid the big bucks for being the bad guy, so tell your contact that your hands are tied unless you get an NDA in place. Look to the floor like an ashamed child and say “sorry, I don’t have a choice.”
Be Prepared to Walk Away
How loyal do you look to your audience if they sense you’d compromise your own IP? Well, if you ask for an NDA and get push-back, you need to be prepared to move on to the next target. It may well be a test. In addition, you shouldn’t be compromising your IP. That is your asset!
Establish Your Professionalism
How eager do you think a major potential partner, vendor or investor will be to do business with you if you’re weak on the very first negotiation? Yes, this is most likely your first negotiation for this potential relationship and doing the negotiation for an NDA is a great way to establish a positive image in their minds about how professional you are. Do it well and get it done!
I stress to you in holding firm and getting what you want. You’re a professional and you have something they need! No need to compromise.
Nothing Like a Custom Suit
Apr 17th
NOTE: I admit up front I don’t know how to speak to the women about this topic.
Perhaps the same advice applies!
If you frequently wear a suit, I HIGHLY recommend investing in custom made suits and shirts. I’m not talking about the suits off the rack at Foley’s or Men’s Warehouse where the salesman says they your suite will be ‘custom tailored’. I’m talking about going into a reputable little boutique and going through the process with a professional haberdasher to get every little part of your body measured so that what you get fits perfectly and, most importantly, comfortably.
After you’ve done all the measurements (which stay on file for future purchases), it is time to discuss the type and color of the fabric of the suit. A good haberdasher will ask you good questions about what and who you’ll be talking too (almost sounds like a good salesperson doesn’t it?) and make the proper recommendations. After this you’ll do the same thing for shirts.
What you get is a perfect fitting wardrobe. The cuffs of your suit sleeves are perfectly aligned with the cuffs of your shirt, which is the perfect length of your arms. The shoulders of your suit matches the contours of your shoulders – likewise your back, your stomach, your butt, etc.
Now that you have a nice suit, don’t spoil it with lousy shoes! Invest in some Allen Edmonds or something like that. Pretty comfortable, affordable, and great looking.
Yes it will cost money, but trust me, it is one of the BEST investments I’ve made in myself. I’m so glad I took my friends advice about getting a custom suit. It truly has paid off.
Why Everybody In Your Organization Is a Salesperson
Mar 13th
I say it all the time – "LIFE IS SALES" – meaning that all of us is selling something whenever we communicate with somebody. That’s probably no new news to you. However, you’d be surprised by the CEO’s that I know that, in addition to hiring salespeople that can’t and/or won’t sell, hire their executives, customer support people, even their receptionists that have terrible sales skills – and I believe they are leaving tons of money on the table, among other things, because of this mistake!
Am I saying that everybody in your organization needs to be able to prospect, find pain, negotiate contracts/pricing, and close the deal? Well…. yes, but not at the same intensity level as the full-time salesperson. However, every person should be able to gently ask questions to get the real problem and carry that through to a solution, be it a customer, vendor or fellow employee. Every person should have great listening skills to make whoever they are dealing with feel important. Every person should be keeping their eyes and ears open and looking for ways to help.
Be Patient for Big Company
Mar 4th
Last week I submitted a due diligence questionnaire for Talus to a major potential Wall St. partner (can’t disclose the company name yet). I have no doubt that the deal will happen, but when this partnership is consummated, even when a letter of intent is in place, it will launch so many new levels of activity for Talus. It will lead to investment, solidified partnerships for the build-out of the online trading mechanism, etc. It will be an exciting domino effect for everyone involved… including me.
The whole partnership opportunity began in November ‘08, although I initiated the first call two and half years ago to the sales department, who then helped me get to the VP of Business Development. We’ve visited them numerous times and have had too many phone calls to count. It has been a slow process, but has it been worth it? If it works out as planned, and we’re almost there, absolutely!
I have to remind myself to be patient for Big Company. I am and have to be prepared for a long sales cycle with Big Company, because often decisions need to be made with the approval of other departments… legal, for instance. However, it is always always my goal to know the process and understand as best as possible what is happening and what is happening next. Unexpected turns and delays happen, so I like to try to understand why and what it looks like, including how long. The more I know these things, the less anxious I will be.
Abundance vs. Scarcity… which do you claim?
Feb 20th
You either think there is enough, or not enough… you get to decide!
When you believe in your heart that everything is in abundant supply, and that you and everybody else in this world is entitled to as much as they really want, and that nothing is in short supply, then you start behaving differently. You start living a life of less worry and actually start attracting LIFE to you. I’m not just talking about money, but personal happiness, health, relationships… you name it.
On the other hand, when you live with a scarcity mindset, you believe the world and its offerings are finite, and you believe you’re entitled to a little piece and that’s all you’ll ever get. You’ll tend to be very competitive. You’ll have a hard time being happy for other people’s success. You’ll not want to share recognition or profits or credit for success, even when you received help… and when don’t you? In fact, you’ll tend to not ask for help when needed, furthering your demise.
How to Overcome Scarcity
I used to have a scarcity mentality. I used to suffer from all the things above and it was a hard rut to get out of. My sales coach saw that I suffered from scarcity thinking and introduced me to SalesMind – short, subconscious affirmations that help you change your thoughts. It literally changed me! If you think you have a scarcity mentality, I recommend you run, don’t walk, to buy SalesMind … I promise it will change the way you think!
SalesMind can also help you with these negative sales scripts you may also have:
- Low money tolerance
- Fear of rejection
- Asking tough questions
- Talking about money
- Fear of the phone
- Fear about asking for the business
- Low self esteem
- Need for approval
- Control emotions
Along these lines I highly recommend reading Killing Sacred Cows: Overcoming the Financial Myths That Are Destroying Your Prosperity . It is a great book that speaks to these issues.
