ireland’s best young entrepreneur...

Ireland’s Best Young Entrepreneur (IBYE)

Noel Davidson

Phil Kildea

Muireann Fitzmaurice

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3

Introduction & Ice Breaker

You are the Driver of your Business

SALES AND

NEGOTIATION

To examine Sales and Negotiation as two distinct processes. !

To look at the steps involved in being successful in each. !

Consider through discussion how to implement these steps for your business.

Objectives of this Training Session

Common perceptions……. ! What are the key attributes that make sales people SUCCESSFUL?…

Sales People Nature or Nurture?

Starting with....

!

Why

How

What

Why

What is Customer Centered selling?

n Customer being the most important thing in business, selling process must be centered around the customer.

n A seller must, therefore, first study the decision-making process the customers go through.

1. Prospecting !2. Pre-approach !3. Approach !4. Presentation !5. Handling objections !6. Closing !7. Follow up

Steps of a Sale

The Customer Centered Selling Cycle

Customer

Satisfaction

Acknowledgment

Decision

CriteriaMeasurement

Investigation

Selection

Reconsideration

SellerResearch

Analysis

Confirmation

RequirementSpecification

Solution

Close

Maintenance

Start with the end in mind … !Do first things first… !Seek a WIN WIN no deal !Seek first to understand then to be understood…

Principles Underlying the Steps of a Sale

No 1: Prospecting ! “A prospect is some one who is in the market to buy our offering, they have the money & authority to make the purchase within an acceptable timescale”

Steps of a Sale

Steps of a Sale!

No 2: Pre approach !• Set call objectives…what do we want to achieve? • Gatekeepers…can you help me please? !No 3: Approach (through to decision maker) !• Introductions… self /company/purpose of call

No 4 : Presentation !• Canned approach …..Working from script • Formulated approach… • Problem solution … !!NB • Questioning technique Listening

Steps of a Sale

!No 5: Handling Objections !• Welcome them !• Ask questions for understanding !• Agree with customer !• Answer or outweigh !• Check satisfaction !• Close

Steps of a Sale

No 6 : Closing … • Direct • Choice… which & when • Assume !NB • Listening…to customers verbal buying signals …Listen out LOUD

Steps of a Sale

No 7: Follow up !

• Customer satisfaction !• Repeat business & referrals

Steps of a Sale

For Want of a Nail !For want of a nail, a shoe was lost For want of a shoe, a horse was lost For want of a horse, a rider was lost For want of a rider, a message was lost For want of a message, a battle was lost For want of a battle, a war was lost And all that for want of a nail….. - Ben Franklin

n The benefit is your opportunity to tell your customer why you have chosen this feature.

n The next step is to provide the explanation to the customer of the solution you are recommending.

What is Customer Centered Selling Cycle?

n At the solution stage, you must tie your product/service recommendation carefully to customer’s needs.

n This can be done in an effective manner through the use of the concept of FABEC – feature, advan tage , bene f i t , exp lana t ion , and confirmation.


Focus of Sales Presentation Example

Features and Advantages Our machine runs twice as fast as your current equipment.

Benefits Our machine will allow you to increase your production output over current levels.

Worth By increasing your production output, our machine will enable your firm to increase annual revenue by Rs.500,000.

FABEC

n Start with feature or features that address the customer’s most important criteria and stay in that prioritized order.

n Bring out the advantage of each of the feature. n The benefit is the specific value to the customer.

The benefits, and not the feature, are what your customer is using to base a decision on.


n The benefit is your opportunity to tell your customer why you have chosen this feature.

n The next step is to provide the explanation to the customer of the solution you are recommending.


“It's not hard to make decisions when you know what your values are.” Roy Disney

Knowing your Target Market

YOUR AUDIENCE

- finding YOU online.

!

YOU finding

- your Audience

81%of internet users enter websites via a search engine

Source: Forrester Research Inc., “UK Internet User Monitor”

Search is the gateway

Objective

Consumer

Business

Solution

Irish Individuals now spend

19.4 hours online weekly

Source: Comscore & February 2010 European Interactive Advertising Association (EIAA) "EIAA Mediascope Europe 2010 & BARB (Q4 2009)

Irish Consumers have moved online...

Objective

Consumer

Business

Solution

Consumers trust people they know

68%

believe search engines help find relevant sellers of a product

they are looking to buy.

75%

believe search engines help find information they wouldn’t find

any other way.

…and are looking for information & purchases

Source: Consumer Commerce Barometer / TNS Infratest, Fieldwork March 22-April 11, 2010 / base: n = 2,009

Content & Copy

SEO - Search Engine Optimisation

•Say what you do! (ibuildkennels.com)

•Regular Updated Content

•Links in and out

Small Business Website

“Green Screen” your Business

Don’t set up a business just because you can or because

you like it.Look for needs, watch trends, listen for complaints, problems

or pains. Then get creative about building a business

around them.

There are 100s of ideas out there – we know what makes a

good one, where do we find them?

Trends?

Back to… CLARITY & FOCUS1. Does the idea meet what I am

looking for in a business? What does success look like to you – your goals? !2. Do the numbers add up? !3. Is the idea in line with the basics !

If “no” to any above, start over.

Coffees………100 day……

…500 per week… …€2.50 per coffee… … €1,250 per week… … €5,000 per month… … €60,000 per year... …before overheads…

…is it enough?

Cakes… ……20 day……

…100 per week… …€5.00 per cake… … €500 per week…

… €2,000 per month… … €24,000 per year... …before overheads…

…is it enough?

Margin

Price

!

Costs

THE BASICS

Is the company profitable enough? Is the company liquid? – do you have and are you generaOng enough cash?

Does the company have too much debt – how much is too much?

!When we have answered the first 3, the fourth quesOon is WHY?

DEMAND

MARGIN

Where is your idea?

When you have an idea that solves a problem (or meets a need), the next

steps are……..

Business Plan

Why is one needed?

52

Coffee Break

Back to… CLARITY & FOCUS1. Does the idea meet what I am

looking for in a business? What does success look like to you – your goals? !2. Do the numbers add up? !3. Is the idea in line with the basics !

If “no” to any above, start over.

Is the company profitable enough? Is the company liquid? – do you have and are you generaOng enough cash?

Does the company have too much debt – how much is too much?

!When we have answered the first 3, the fourth quesOon is WHY?

DEMAND

MARGIN

Where is your idea?

When you have an idea that solves a problem (or meets a need), the next

steps are……..

Business Plan

Why is one needed?

Managing Risk

“The common question that gets asked in business is, 'why?' That's a good question, but an equally valid question is, 'why not?” !

Jeff Bezos

Ireland’s Best Young Entrepreneur (IBYE)

Promoter or Company Profile• Relevant business experience? • Relevant qualifications? • Evidence of knowledge / understanding of business? • Evidence of knowledge / understanding of running their

own business? • Is there a team or other means of supporting development

proposed or in place? • Have weaknesses in the team / promoter been identified

and addressed? • Industry / sector experience & contacts?

Service Innovation / Opportunity• What is innovative about the proposed product / service? • Is there any evidence of previous innovation in terms of products or processes (if existing business) or

previous ideas? • Is there any evidence of Intellectual Property or any evidence of research into IP? • To what extent has market research been carried out? • What evidence is there that the proposed product / service meets a need? • What evidence of identifying customers? • What evidence of size of potential market? • Evidence of intelligence backed pricing? • Evidence of identification of routes to market? • Evidence of competitor analysis and analysis of the competitive landscape? • Clear and credible identification of competitive advantage? • What is the addressable target market i.e. viable / crowded / empty / big enough / future potential? • Does the promoter understand the market? • What is the business proposition?

Potential to deliver economic impacts• What will the business look like in 2 / 5 years time? • How many jobs are likely to be created? • Does the business have realistic export potential &/or evidence of intention to target

an export market? • Does the business have a realistic financial plan in place? • Has the business identified sources of finance? • How much has been / will be invested in the business by the promoter? • If already trading – what does the track record indicate? • What is the market opportunity? • Is the proposed structure of the business capable of delivering the stated targets? • Is the investment requirement clearly outlined and is it clear what the investment will

be used for and what the impact will be?

Ability to deliver key commercial and development milestones over the next 12 months

Has the business set out clear objectives, goals and targets that are timed, measurable and realistic? What does a SWOT or Risk assessment indicate of: • Promoter / Team • Market opportunity • Finance • Technology / Technical • Is there a Management Team In place • What is the Development Status • What is the Business Model • Customer Validation • Funding Requirements/ Options

Quality of Application & Business Proposal

• Video content, relevance, quality, purpose? • Information provided in the Business Proposal is

sufficient, relevant and clear? • Business plan including financial plan adequately

covers the essential information required by a potential investor, is clear and convincing and backed up by credible assumptions / information?

PITCH & INTERVIEW• The pitch is well thought out, addresses the key issues of interest to

a potential investor, is credible and concise? • The pitch & interview demonstrate the promoters capacity,

commitment to the business and commitment to using the investment to achieve credible goals as set out.

• The pitch and the interview is the opportunity for the judges to challenge the promoter on the key areas listed in sections 1 – 5 above.

Pitch Perfect

Customer pitch – not VCs or banks

Purpose Outcomes

Quick Practice

30sec Pitch to your neighbor

Quick Practice

30sec Pitch to your neighbor !

Feedback what you as the listener took away

Score your own Pitch out of ten

How do we improve it?


• Who • What • When • What • Benefits • Close


!!!!

Flip the structure


1) Grab opening 2) Benefit 3) Why 4) It’s like… 5) How & What 6) Open


1) Grab opening 2) Benefit 3) Why 4) It’s like… 5) How & What 6) Open✓


1) Grab opening 2) Benefit 3) Why 4) It’s like… 5) How & What 6) Open

1) Grab opening

A statement or question: Grab their attention and focus it on your offering !

Did you ever dream of challenging yourself to start a new business? !

84% of retail theft is by employees !

What’s the biggest cost of running your home?

2) Benefit

Tell them a specific benefit a specific client might expect !!Wiifm !95% of our graduates report being vastly more motivated, more equipped and more likely to succeed in starting their new business !Our intelligent tills reduce that theft to X !Switching to gas will cut your heating bills by Y

3) Why

• Make ‘em wait. Don’t tell them how… yet !

• Show them you care… you’re a hero - on a mission: Something human, real & mutual

!• We believe… • It’s so important that… • Can you imagine if…

4) It’s like…

!– It’s like a mini MBA for

entrepreneurs! !

– We’re like the NCT for Cranes !!

– We’re like the Monica of Construction

!– We’re like the Body Shop

for Ink Cartridges

5) What and/or How

Only now do you explain what you do and how you accomplish the benefits. !

“Our flagship is a 10 week SYOB programme that covers each vital aspect from helping you come up with the big idea, right through to a solid business plan.”

6) Open

Don’t close a pitch – open it up for discussion !

“How great would it be if… !“What would a solution mean for you & your business?”

Tips

Appeal to every sense logic, emotion, ego, greed, physical, auditory, visual !!

Cliché 1 mouth, 2 ears Ask, Listen and only then…. Tell !!People will tolerate your advice, but

they’ll only follow their own

Use props, photos and samples

Specifically what could you use? !

A) !!B) !!C)

!!!1) Grab opening !!

!!!!!!

2) Benefit !!!!!!!!

!!3) Why !!!!4) It’s Like !!!5) What and/or How !!!6) =>

!!!1) Grab opening Amazing how expensive it is to keep kids clothed: Shoes in particular – the cost! – they grow out of them way before they’re worn out! !!2) Benefit We’ve developed shoes that expand as your kid’s feet get bigger !!!!!

!!3) Why Times are tough. Wasting money is serious !!4) It’s Like They’re like the X of shoes! !!5) What and/or How Show it !!6) => How many kids have you got?

!“Did you ever dream of challenging yourself to start a new business?” !“95% of our graduates report that they are vastly more motivated, more equipped and more likely to succeed in starting their new business” “Small business makes up 50% of our economy. I believe training and mentoring really works…at its best it catapults people’s lives and livelihoods.” !“It’s like a mini MBA” !”Our flagship is a 10 week SYOB programme that covers each vital aspect from helping you come up with the big idea, right through to a solid business plan” !“How cool would it be to explore your own “big idea” ☺?

Quick Practice

30sec Pitch to your neighbor

How do you share your message ?

For ME !

“FEEDBACK is the breakfast of champions”.

Ken Blanchard

Q&A ?

Thank you

ireland’s best young entrepreneur...

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