Sound Principles Of Business

Meeting today with a group of entrepreneurs – some key points from this discussion group:

1. Most people charge too little…that’s right! Your client gives you the sob story about how they can’t afford it. In fact there’s a value disconnect and a natural tendency to want a discount. Hold your ground, you can’t afford not to.

2. Wrong metrics. People tend to watch the wrong metrics or none at all. What are you watching? If you’re in sales, forget about trying to equate number of calls leading to number of meetings etc. Improve you ability to communicate value, reduce the number of calls, and increase close ratios. The number you really need to watch is GP per deal, profit per project, and close ratios with an eye toward improvement.

3. Not every client is worth having. Some clients suck the life out of you. They will take up tons of time, nickel and dime you, and only buy on their terms. They don’t value your expertise and are wasting your time. Tell your story, look for synergy, and conduct business. If not, move on.

4. Make sure you are working on your mission. Deals outside of your focus waste your time. Move on with a focus on what matters and what contributes to your business long term.

5. Deliver quality. You can’t afford a bad reputation.