Generating sales is the key to a successful business. Often companies offering mediocre products and services are successful simply because they are good at converting leads into sales.

Investing in your sales force is one of the most important aspects of any business, and could well be the difference between a good and a successful company.

This is not always easy for a small or struggling business, as sales staff can be expensive the long term commitment associated with employing staff may well not be the right strategic solution for the company. Employing part time or contract sales staff may well be a viable alternative, but beware, it is not that straight forward….

Any company’s sales force must fulfill some basic criteria:

• Product knowledge -Know what you are selling and know your company. Being unable to answer basic questions about your product, service or company will turn a potential customer into a critic in no time at all, and bad news spreads fast. Part time staff needs to receive proper training to ensure they can cover all the basics. They need to know about the company as well, as often the customer needs to be sold on the company as well as the product.
• Enthusiasm – If your sales rep is not exited about your product then how will customers be motivated into buying? It is said that some people can sell ice to Eskimos. This age old saying simply means that enthusiasm and energy can go a long way towards making a poor product seem very attractive.
• Professionalism – Sales reps are walking billboards for your company. Their behavior when selling is as important as their sale pitch. Often even when not on duty they are associated with your product, so choose carefully, as their behavior will often be the key to a customer buying into your company’s credibility.

The pitfalls when employing part time sales reps are plentiful. Some of these are:

• Making the quick sale – Sales reps are driven by commission, so for them the bottom line is making sales. It will come as no surprise then that part time or contract staff will be more interested in hooking customers on sales by making promises that may not be realistic – anything to get that quick sale, at any cost. This could cost your company significantly in the long term, as you reputation is being eroded.

• Loyalties and Priorities -Part time staff are loyal only to themselves, and need to prioritize their life according to multiple jobs. This often results in conflict, with clashing priorities and agendas. If you appoint part time sales reps then make sure you understand what their other commitments are and how this will impact on their ability to perform for you.
• Motivation - How do you motivate part time staff? Money alone will not do it. They need to feel a sense of pride in the product and company they are promoting, and it needs to show.
• Empowerment - Give your part time reps the tools to do what they do best. Train them on the products and services, and make sure they understand your company, its ethos and strategy. They will have to sell the company as well as the products.

Remember, part time reps may not be loyal, dedicated or motivated. This will show and will damage your reputation, so make sure you get the right people and give them the right tools to do their job.

Contact Imel Rautenbach at imel@OfficeReliance.co.za should you wish to know more about the pitfalls of part time staff.  To see all the letters in this series visit Imel’s blog at imel.co.za

Next week’s topic: 10 small business marketing tips (by guest blogger and web 2.0 entrepeneur FeistyFemale)

Having a product or service offering is one thing. Getting it out to distant consumers is quite another.

Products without borders are those items that have universal appeal and could be sold almost anywhere.

A common evolutionary step for small businesses is to expand  their marketing channel to include distance customers, either by way of web, mail order catalog or door to door selling.  Easier said than done I hear you say. Correct, but if you following some basic principles it is not only possible, but also relatively painless.

Three components are key to making your product or service grow wings:

• Marketing - Make sure your product can travel. An in-house consulting service cannot be sold to customers in another town, let alone in another country.  Your marketing message should not be location specific, but rather should focus on the product appeal and your unique differentiation value add-ons. Make sure the potential new consumers see your product as a breath of fresh air, now available in their area for there benefit as well. In the same breath it goes without saying that you need to do market research. There is no point trying to penetrate a new market already saturated by others, at a lower price you are able to offer.
• Delivery -Get your logistics right. Making a remote sale is one thing, but getting the product to the customer is quite another. If you are shipping then make sure you use only the most reliable shipping agents, and keep the customer in the loop all the time.
• Customer Service -Trust is key to long distance selling. You cannot meet your customer face to face, so convincing them that you are real is a must. If you fail to live up to your promises then your venture is doomed from the start. Building an online reputation is key to winning the trust and confidence of potential customers that have never heard of your business.

Going online with a e-commerce website is obviously one of the easiest way to give your products wings, but make sure you do it right. Cutting corners here will simply cost you later on, as you will find it hard to convince new customers of your credibility as a retailer to be taken seriously.

Also bear in mind that the moment you start trading on a wider scale your competition increases just as much as your new customer base. Do your homework, and only target those markets where you can penetrate, by competing on price and value add. Competing in locations where local manufacturing cost is higher is key, but make sure your shipping costs do not eat into your hard earned margins.

Remember, who is going to buy from someone out of town if they can buy from a local for the same price. You have to add real value and make it easy for the customer to make the long distance purchase.

Contact Imel Rautenbach at imel@OfficeReliance.co.za should you wish to know more about giving your product wings.  To see all the letters in this series visit Imel’s blog at imel.co.za

Next week’s topic: Dynamic salesforce – appointing part time reps

Often new (or even experienced) entrepreneurs would come up with a brilliant concept or product, wondering why no-one has ever thought of it before. Chances are (and more often than not) than many others have thought of the same thing, but has discounted it due to the lack of some of the essential ingredients.

Just like a good recipe, a business idea also needs the right mix of components in order to be a success.

For me the essentials of any new idea or product are the following:

• Demand – There is no point bringing something to market if there is no-one out there that wants it.
• Availability - Having a great product means nothing if your market cannot get to it. Price it right and make it possible for people to purchase it.
• Awareness - If no-one knows about your great innovation then it may as well not exist. Market, market and market.
• Value and Service – Yes, often overstated but there is nothing that inspires word of mouth marketing like value for money and good service.
• Admin - Yuck, who cares about admin? I am here to sell my product. Wrong!. If you do not stay on top of your admin your business will soon come apart at the seams.
• Think Ahead - Long term planning is a must for any business. Think about how your customers’ needs will change, how competitors may alter the playing field and how your supply chain could pull the rug out from under your feet.
• Research- Doing competitor analysis and product research is just the beginning. a SWOT analysis can safe you a fortune down the line, so do your homework.
• Network – No business operates in a vacuum. Join the local business chamber and other similar organizations. Networking works, and the recommendation of a peer carries far more weight than an anonymous advert.
• Finance – My products are selling, why should I care? Are you on top of your production costs? Do you know exactly what it costs to make each product? How does the rise in fuel prices affect your business? How many items do you need to sell a month to break even? Financial ratios are the crux of determining the health of any business. You should have yours on the tips of your fingers.
• Deep Pockets – Starting a business or bringing a new product to market is not easy or cheap. It takes time, patience and change. Be prepared to burn a lot of money before seeing any real returns.

Once you are on top of the above list you are ready to compete. Remember though that the business landscape changes continuously. Be prepared to change your tactics, products, offerings accordingly.

Contact Imel Rautenbach at imel@OfficeReliance.co.za should you wish to know more about taking care of business.

Next week’s topic: Products without borders

How often have you paged through the newspaper or yellow pages looking for a company offering a specific product, only to become suspicious when you see only a cell phone number or P.O. Box address?

Unfortunately the reality is that for many small businesses having a land line and office address is a luxury they cannot afford. It does not just cost money having a land line, it also needs to be manned, from 8am to 5pm every day.

There are few things less professional than having potential customers leaving messages on an answering machine. They simply don’t. So how do you get around this problem without bankrupting your business?

The answer lies in Virtual Offices. These service centers provides you with a physical business address you can put on your business cards, ads, etc. They also answer your landline in your company name, in a professional manner. Never miss a business call, never make the wrong impression. All for a fraction of the real cost. Suddenly you appear as corporate as the long established larger companies in town.

Great for when it comes to pithing for those larger until now unobtainable government and corporate contracts. Combine it with a professional looking business card and letter head and you get to play with the big boys.

Bear in mind though that sound business principles and a real market for your product is the make or break of any business, not just presentability.

Contact Imel Rautenbach at imel@OfficeReliance.co.za should you wish to know how to empower your business through a professional business image.

Next week’s topic: Getting the fundamentals right so the rest falls in place easier.

Tough times call for creative solutions

With the economy now in a negative cycle it is clear to all small business owners that it is time to take care of the basics.

This includes clamping down on any non-essential expenses and focusing on key strengths. It is not the time to introduce new products or innovations to the market. Well, is there any obvious ways left to shave off excess costs? Yes, there are, but you need to think a bit laterally.

Traditionally business operates out of an office, with reception and admin staff to take care of day to day things whilst the other staff take care of the essentials, sales, manufacturing, support, etc.

The key thing a business needs to do is to focus on its strengths, the things it does that brings in money. Doing admin and answering phones is not business critical. “If it does not add value, let those that do it for a living take care of it”.

But how? Simple, outsource your non-essential services to those that do it for a living. Get a professional call answering service to handle your phones, professionally. Get a professional admin company to do your books, payroll, invoicing, etc. Even consider giving up your permanent office space for flexible professional space. IF it makes sense, get a manufacturing outfit to make or sub-assemble your products.

Bottom line, focus on what you do best, which should be closing the sale and servicing your customers.

Outsourcing is a viable way of saving costs. It is not a last resort, it is a competitive advantage. In modern and challenging times the key to a successful business is the ability to adapt.

Contact Imel Rautenbach at imel@OfficeReliance.co.za should you wish to know how to empower your business through outsourcing.

Next week’s topic: How to make your business stand out. Become a big fish in a small pond in no time at all.