Archive for the 'Wise Counsel' Category



25
Aug
11

Discipline

Hudson Taylor wrote, “At first the task looks difficult, then it is impossible; then it is done.”  Disciplines of health, parenting, work…it takes discipline to get started, endurance keeps you going.  At the end of the day, the discipline of exercise, getting on my bike, followed by endurance to finish the race.  I do it to maintain health and life balance, and to spend time with my kids…not always easy, but necessary.

Coming into an office after weeks of unprofitable calls, there is a discipline in getting started again – endurance to continue to process.  How tempting it is to “fritter and waste the hours…” when the task looks impossible.  Reaching the goal requires more than skill – it requires discipline, endurance, determination.  Failure comes, not so much from a lack of skill, but more often by giving up…

© 2011, David Stelzl

23
Aug
11

Some of My Favorite Salesforce.com Comments

Taking copious notes has always been a discipline I’ve embraced.  Whether in school, a seminar, or even Church, I like taking notes – not everything that’s been said, but the ideas that come as a result of the speakers insights.  My CRM database, Salesforce.com is no exception!  I use the history section to keep notes on meetings, but the description field is where I keep the important insights!  Here are some favorites I come across as I call on people:

DON’T CALL

Requested free copy of The House & the Cloud

THIS PERSON IS NOT A DECISION MAKER

NOTHING EVER CLOSES WITH THIS ACCOUNT

Referred by ***** on ******

Gave exceptional feedback on my keynote at *******

Kids names are….

Spouses name….

Birthday….

Take notes, put them somewhere you’ll see them, and make them meaningful.  Remembering key details, whether they say “This person never buys anything,” or “Birthday on ….” provide important direction on how to engage when opportunities come up.  (Might be a perfect fit for carrying an iPad into your next sales meeting!)

© 2011, David Stelzl

17
Jun
11

David Stelzl Reflecting on Father’s Day

Photo Taken By Hannah Stelzl

On my bulletin board above my desk I have a card I received from one of the many home school conferences I’ve attended.  It lists a set of goals for fathers… in summary here are some helpful things to have in front of you if you are a father…

1. Respond lovingly and wisely to every situation and successfully fulfill  the purposes for with God created me.

2. Enjoy a loving relationship with my wife and quickly resolve any conflicts that arise

3. Make all the members in my family “best friends” with each other and help them clear up any offenses between each other

4. Train up sons and daughters to be wise

5. Help each child discover his or her purposes in life so that they will not fear the future or have self rejection

6. To serve those around us as a family – with family goals and vision to help others in need

7. Maintain proper health so that I can continue to meet the needs of my family

© 2011, David Stelzl

09
Jun
11

Technical Sales Should not be Technical

By David Stelzl

 

© 2011, David Stelzl

27
Apr
11

Raising Entrepreneurs – Non Traditional Routes to True Wealth

I’m just leaving Dallas this afternoon after a great meeting with over  2000  home school parents and young people.  This morning I presented ideas to help people develop entrepreneurial thinking and leadership – to be less risk averse and more innovative.  A few points are worth noting here:

  • Most of our schooling prepared us for corporate America, not high risk/ high reward positions like sales and small business entrepreneurship.  Think about it – when was the last time you received high grades for being creative?  Most of my instructors requested the work be done a certain way…where is innovation in all of this.  Imagine if the teachers told us computers had to stay in data centers.  Where would iPads and Smartphones be?
  • Creativity is the key to success. Coming up with new ways to do things and solving problems no one else can solve.  What are you doing to build creativity.  I listed several things that are known destroyers of creativity…Late night television and not enough sleep are low hanging fruit, but there are many things all of do that simply keep us from thinking outside of the box.
  • Wanting the safety of high bases and lower commissions is another lie – no position is safe, and those who aim to be high producers, and work at it, will be.  Be great and take the higher leveraged pay plan.

I also spoke to young people on starting businesses in the afternoon.  It’s easy to start one, hard to keep one.  One factor is learning the four things buyers buy – learning to discover critical needs within the companies you serve and then developing lasting answers for these companies.  If you can make a company more profitable, you’ll have customers.  Become a problem solver and stop selling commodity products at commodity discounts.  We explored areas of need, examples of young people producing, selling, and profiting in their teen years, and talked about the need to learn while you’re young.  Learning the hard lessons of business while supporting a family is not the best way…most of us know that.  Imagine if your kids could know what you know about business before they hit age 18?

© 2011, David Stelzl

13
Apr
11

Raising Entrepreneurs – Thinking Outside the Box

Photo taken by Hannah Stelzl

Last night I had the privilege of  presenting new material on Entrepreneurial Thinking to a group of fathers and young men (mostly college age).  I thought it might be helpful to post a few comments to keep the learning process going:

1. Andrew Carnegie (in the early 1900s) wrote: Capitalists need compliant workers…willing to work for less than the value their productivity creates – this is profit….The answer to worker unrest is to build an educational industry designed to teach workers just enough to get them to cooperate.  My comment – don’t accept average…don’t give into this kind of thinking.  Get out of the box and do something great today.

 

2. In 1908 Publisher Henry Holt said, “There is too much enterprise, excessive overproduction of brains is the root cause…we must emasculate man’s entrepreneurial energy.”  My comment; Don’t let this happen!  Let someone else lose their ambition, but don’t you do it.

3. I meet people all the time who are wondering what they want to be when they “Grow Up”.  Many of these people are well established in business, in their 50s, yet, and unfulfilled.  Why?  Don’t just go with the flow, sit down and think, how do I want to spend my life and what is my fulfilling purpose going to be?  This is especially true for young people just entering or leaving college.  Don’t just go to class, build a resume, and look for a job.  Consider what great things are out there to do, then set about doing it.

4. Seth Godin Wrote, in his recent book, Linchpin; “Unskilled people are interchangeable – we’ve been culturally brainwashed.” He’s right you know.

5. We are too risk adverse!  Our training has taught us never to try anything that isn’t already proven to succeed.  We learned this from our teachers who insisted on us doing things a certain way; their way.  The alternative was an “F” – failure.  Entrepreneurs don’t think that way.  Innovation is key – start being creative simply by creating.  Assume most of your ideas will not be good, so set them aside and come up with new ones.

© 2011, David Stelzl

05
Jan
11

The Aha from Yesterday’s Strategy Session

Photo by Hannah Stelzl

I returned from DC last night, having spent the day with a solution provider in the software space.  One thing  that stands out and is worth repeating here is the discovery of a profit multiplier.  According to Jim Collins, every company should have an economic engine, and most resellers can put more on the bottom line if they figure out what the multiplier are and where profits are leaking out.  The comment that triggered our direction should be understood by all resellers, “Thinking your sales  team will double sales this year simply by working harder is tempting by unrealistic.”  I would add, that setting strong financial goals and then hoping to acheive them without a significant change to the way you do business is foolish thinking.

Once identified, we were able to come up with twenty ways to stop the leak.  Not all 20 will prove to be do-able or realistic short term fixes, but 4 or 5 of them stood out clearly as ways to multiply bottom line profits over the next several months.

Isn’t it worth taking some time out of the field to study the business model, identify the levers that multiply the business, and formulate a strategy to get them in motion?  This is what it means to work on the business rather than always working in the business.

© 2011, David Stelzl

27
Oct
10

The Fixed Price Dilemma

After several posts on proposals and some words on pricing, people have responded with all sorts of reasons on why they can’t give a fixed price.  Believe me, I understand the dilemma.  If you just don’t know what it will take, you don’t want the risk…here are the common objections:

1. Client doesn’t want to pay more than the hours they see you onsite.

2. You always lose when you fix price

3. No one knows what it will take to complete the job

4. What about scope creep

and the list goes on – feel free to add some below and I will respond with my take…so what do we do?  First let’s understand the real issues:

  • When you do T&M the client sees it as T&M with a cap.  Even if you say, “there is no cap”, they expect one.  If someone quotes me $500 to fix something in my house and sends me a bill for $2000, we are going to have a problem.  Even if I pay it, it’s probably the last time I hire them.
  • When there’s a cap, I take all the risk.  If we come in early, I make less just because I was efficient.  In other words, I sold the $10,000 deal, got the approval, and perhaps a PO was issued for $10,000.  And I’ve even forecasted it!  But I only bill $7000, leaving 3K on the table.  I just lost commission on 3K and my company lost the balance right off the bottom line.
  • On the other side, if I go over, the PO is issued, the people I am dealing with have put the funding together, it’s all signed off and ready to go,  but three weeks later I am back in their office trying to get the PO increased.  What do we do?  Put everything on hold while we wait?  That will go over well with my clients!
  • Or I decide to keep going with no further approval.  Every dollar over is a loss in profit, and if my firm charges me a burden cost on services, which they should if they are smart, I really take a loss.  Before I know it, there is no GP left in the deal and my commission in zero.

So why do people continue to justify the T&M approach?  If you find you are losing on every deal, see if there is a trend.  I had one client who was losing about 25% on every deal.  Well, that was simple, start adding that amount to every new quote and you will be right on.  If the price is too high, the T&M quote is too high – another issue solved.  If the client only wants to pay for hours you can prove you spent, the deal was sold on price, not value, if you just don’t know, break it into phases and quote what can be quoted, estimate the rest for phase 2…stop quoting T&M prices!

26
Oct
10

Agreements are a Necessary Evil

Boundary stones have been used since the beginning of time as a way to identify property, whether private or when dealing with borders between countries and other local administrations.  Made of stone and often marked by owners, they stand as a reminder of past purchases, conquered land, and other formal agreements.  The old adage, “Remove not the ancient landmark” stands as a warning to those who would change the boundaries set up by constituents.

While most of us are not going to spend the money on lawsuits when dealing with smaller projects, formal agreements, like these boundary stones, must be put in place regardless company and deal size.  They should be placed in easy to see (read) locations, and agreed to by all parties involved, as pictured in this ancient land marker above.

More clients are lost over poor communication on agreements than I will ever be able to count; usually with regard to scope or price.  When deals are done without an agreement, two excuses are often raised:

1. The sales team fears putting it into writing, thinking it will slow down the sale or draw attention to elements of the agreement that may not sit well with management (on either side).

2. The client refuses to sign anything binding, usually because they don’t have the authority to do so, or don’t want to be locked into anything long term.

There may be other reasons, but these two pop up often, and as you can see, both spell trouble down the road.  It is definitely faster and easier to agree on a hand-shake and get started, vs. draw up a formal agreement and getting a signature.  But what happens after the project or service begins:

  • The client thought they were also getting ____________
  • The client expected the price to be _________

And notice, it is always in the client’s favor!  I can’t remember too many clients coming back and saying, “Oh, I think we owe you another $10,000.  We’ll send it over right away.”

So, if you’ve been reading the last several posts, proposals may be landfill, but agreements are boundary stones.  Without them, there is no proof of what you’ve agreed to and the client is always right.  Push the issue, and you are likely to be out of a client.

 

14
Oct
10

The Professional

There’s been a raging debate in one of the forums I follow – “Can anyone be a great sales person?”  It’s a loaded question with no clear answer, and the back-and-forth comments show a split among numerous contributors.  The problem with the question is, it leaves too much to the imagination.  There is no context; type of people, are they already  in sales, do they have trainers and coaches, and how much time do they have to become great? (The list could go on)

While reading some analogies given about athletes, it occurred to me that great athletes  do possess a genetic advantage, however, they also spend their life training.  The average high school varsity player (far from professional) spends all week training in order to play one two-hour game!  But in sales, the average player spends 1 day training to compete the other 364 days/year (minus whatever  weekends and holidays/vacations you actually completely disconnect from your Blackberry – which is rare these days).  How can sales managers expect their team to win with this kind of training regiment?

Am I missing something?  I’d love to hear your comments…

© 2010, David Stelzl




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