Archive for November, 2008

26
Nov
08

For those of us who missed this in high school history class

Do you remember the names William Brewster and John Robinson from high school? Tomorrow we celebrate one of the great holidays of our land.  These men had a vision of freedom back in 1608, setting off to Holland to create a new life, free from the restrictions of King James and the Church of England.  12 years later they set a new course for America – this time not to find freedom, but to separate from some of the society ills they experienced in Holland.

The leadership demonstrated by these men should be remembered as you enjoy your time away from work, gathering with family and friends.  Leaving behind wealth and possessions, the pilgrims set out on July 22, 1620 – 102 men, woman, and children.  Over half of these people died in the first winter, yet the remaining group was determined to make this work.  Building homes, meetings halls, and developing their first legal document, they agreed to work together to establish a society in the Northeastern part of the US. They faced unfriendly natives, their meeting house burned to the ground (filled with patients who all managed to escape), and severe weather nearly wiped them out; yet they persisted through that first winter.

Working through the summer, mentored by a friendly Indian named Squanto, the Pilgrims were able to establish crops, rebuild buildings, and prepare adequately for the coming winter.  It was that fall, with an abundant harvest, that the Pilgrims joined together in the first Thanksgiving meal.  The day began with a prayer of thanksgiving, led by William Brewster; to thank God for all that He had done for them and for their friendship with the Indians.  The feast lasted three days and continues on as a tradition for many of us.  Enjoy your Holiday – Blessings to you and your family all over the world.

  • - Dave
25
Nov
08

The important things in life

Remembering the important things in life

Remembering the important things in life

It’s a worrisome time out there for many.  Remember to take time out this week to enjoy the things that really matter in life.

24
Nov
08

Thoughts on the Market

Sound bite: President-Elect Obama’s phone records have been compromised – read by Verizon employees.  I understand they were fired, but so what.  Once digital assets are compromised there’s no way to recover.  Now that they’ve been terminated, whatever secrets were discovered will be made public.  Everything we do is being recorded; none of it is really secure.

Sound bite: Kaspersky has grown its retail sales of antivirus and computer-security software this year by 137%, to $15.5 million, through August.  Once again, security seems to be doing well despite mounting economic pressures.

What about your Business?

Is your fourth quarter strong?  If you’re tempted to envy those who are doing well, forget it; you’re wasting precious time.  Focus on your business; use this week to get your yearend battle plan together.  Consider what happens in Q1 09, and surround yourself with wise counsel, people who win regardless of adversity, and those who rise above circumstances.  This is the time to be marketing, demonstrating value to those you call on, and providing that trusted ADVISOR thing we’re always talking about.

Recession proofing your business – It’s been proven that slashing marketing budgets and efforts during a recession is a mistake!  One analyst puts it this way, “The larger your voice share compared to your actual market share, the more likely your company and brand will grow market share when the recession fizzles out; also share of mind remains for months uncontested among consumers.”  Remain strong, be proactive, and communicate more frequently with those you work with.  Everyone is looking for wise counsel.

21
Nov
08

The Anger Trap

First – don’t forget there is a new post at http://dstelzl.podbean.com/ on sales strategy!

This week I have been hosting a seminar on 7 Basic Principles of Success.   We have over 30 attendees meeting over 6 days; every night and all day Friday and Saturday.   I appreciate the investment these men and woman have made in self improvement and life balance, but selfishly I have to say, I learn more than anyone when I conduct these programs.  Last night I was reminded how important it is to consider factors more important than skills in achieving success. 

Anger and irritations are one of the most destructive forces in your business.  Clients may mistreat you, lie to you, or take advantage of you in this dismal economy.  Meanwhile you may face all kinds of political and unjust decisions made within your company.  If you experience none of these, count yourself blessed.  The problem is resulting anger doesn’t affect those you are angry with; instead it destroys you.  It takes your focus away from the work you are doing, tempts you to write self incriminating emails which will be retained and used against you at a later date, it affects your health, and inhibits your ability to think clearly. 

Anger is a trap. Make it your personal habit to consciously forgive those who offend you, recognizing that in the long run you will outperform those who behave unjustly.  The one who is free to think, learn, and explore without the weights of irritation and anger will ultimately win.

20
Nov
08

The Profit Program Model

Leading with product results in price being your differentiator; leading with managed services requires that there be a trust relationship already established, making new client acquisition nearly impossible.  True value differentiation comes through consultative offerings, generally in the form of analysis or strategy. 

Fluctuations in staffing utilization and consultant availability eat at profits as operational costs rise and fall, on the other hand, product gross profit (while admittedly low) and managed services revenues offer stability. 

Building a profitable business model is complicated.  Having the right mix of consultative offerings, followed by products and services, and finally managed services has the potential to create a very strong business model; both for the company as well as the individual sales person.  Tomorrow’s Podcast explores this in greater detail as I deliver Part III of Building the Profit ProgramTMMake sure you have the worksheet located at http://www.stelzl.us/training/003-Podcast-Talc.pdf

19
Nov
08

Where are the Podcast Handouts?

A few people have asked me where they can find the materials that I refer to in my podcast series – There is a separate blog post that comes out weekly with the podcast at http://dstelzl.podbean.com/ .  If you have subscribed to the podcast you have no need to go there since the audio portion is automatically downloaded to your iTunes or equivalent.  In the future, I will remember to put a link here for your convenience.  Follow the link above and you’ll see a link to the PDF files I am using in my weekly audio program.

18
Nov
08

Vision Development

I was working with a solution provider this week on establishing a base of recurring revenue.  Taking an existing client who spends $16,000/year on break-fix work, the reseller owner was able to turn this into a $2500/month recurring.  How did he do it?  The tendency is to look at what the client is spending and sell ROI – that means charging less than they paid over the past year and making up for it through efficiencies.  This strategy also begins a six month study on the part of the client to figure out how much they did spend and whether or not they got their money’s worth.

 Nickel and diming the client never works…you’ll always come up short.  Look at the value you provide, what its worth to the client, and where they stand to take big losses in the future.  Proactive service is always better than ROI; it’s a risk mitigation sale, not ROI. 

Over the next month I am scheduling Vision Development WorkshopsTM – I have only a few dates left.  It’s $6500, 1.5 days of solid strategy.  We will focus on the tactics of getting your business moving forward, generating new business, creating recurring revenue and financial stability, marketing strategy, and organizational optimization.  It’s a war-room type meeting so it requires all participants to be local. 

If you can’t fit it in or can’t quite afford this program I recommend signing up for the Podcast series – these are pragmatic ideas that will help align your business strategy with profit and provide you with ideas and skills you can apply immediately.

17
Nov
08

Lessons from Chemistry

Many of you who have attended my workshops or presentations have heard me talk about my homeschooling experiences.  Having completed the first half of high-school chemistry with my three oldest, here is what I have learned:

1. Age or tenure is not a measure of competency – I have three children taking this class.  Only one is officially in the “High-school” Chemistry age group.

2. Those who aren’t asking questions aren’t learning.

3. Memorizing without understanding results in short term recall at best.  This cannot be applied to real-life situations.

4. If the instructor isn’t learning more than the students, a new instructor is needed.

5. If the students are failing, a new tact of teaching is required.

6. Pontificating about any subject is of little value to anyone – rather it’s a demonstration of arrogance.

7. If the listeners appear to be bored…they are.

How can we learn from this when addressing those that we lead or sell to?

14
Nov
08

Avoid the 300 Billion Dollar Loss

First, don’t forget to tune into today’s podcast on building your profit program for 2009 – an essential step in making this coming year a year for growth.  Find out more at http://dstelzl.podbean.com/

There is good news.  IDC expects IT spending to continue growing in 2009; however, spending projections are down from nearly 5% to 1%.  That means a 300 Billion Dollar loss over the next four years, with a recovery expected by 2012!  Who will take that loss?  I expect resellers, with heavy competition and little notible differentiation, to be impacted the hardest.  Larger companies have significantly cut spending, according to recent conversations with sales people and business owners.  Expect 2009 budget increases to be minimal with large IT initiatives put on hold.  If you’re an account manager working in large named accounts you’ll likely have some level of run rate business.  If you’re a ”hunter”, you may find yourself working overtime to find qualified buyers. 

Smaller markets are being hit hard too; however those who have successfully built recurring revenue models seem to be holding steady.  New client acquisition on the other hand is slow.  These resellers may be OK as long as they control operational costs; however, without a strong value proposition, sales people dependent on monthly commission checks are going to find it hard to land new contracts.  One bright spot in all of this.  Those who have created offerings in the security space, with a consultative and assessment focus, seem to be busy.  Esculation in cybercrime (which I’ve included in recent posts) seems to be offsetting financial concerns as companies work to preserve their data.

As you start thinking about 2009, keep these things in mind.  Focus on value you bring to your clients, work on messaging appropriate for decision makers, and build solutions that offer cost advantages, risk protection and that lead to recurring revenue.  Consider using assessments to drive new business and focus your marketing efforts on risk and business transformation activites.

You can learn more about what IDC is saying at  http://www.usatoday.com/tech/news/2008-11-12-tech-spending_N.htm

13
Nov
08

Planning for 09

Stay tuned for Part II of Building Your Profit Program – you can still sign up at http://dstelzl.podbean.com/ and I’ve made last weeks Part I available to anyone joining this week.  There is still a two week “no obligation” trial on this through the end of the month.




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