Level Three Business

Top 3 Business Lessons:

Lesson One:  The fundamental model and map that 95+% of business owners follow to build their business is simply flawed.

Time and time again I’ve seen thousands of business owners who have invested so much of their time, energy, passion, and money to build a business, but their model for how to build that business was simply wrong.

They used a model that both limited the business, and left it vulnerable to “SBD” – Sudden Business Death (a term I created to describe the numerous businesses that seem stable, but after one of the key team members leaves the business dies in less than 90 days.)

That’s why here at the Maui company we work so hard to define, map, and clarify the Level Three Road Map™ so that clients get a concrete road map through the entire lifecycle of their business, from launch to exit.  This way you know the specific focus, key milestones, core systems, critical controls, and necessary team at every step and stage along this powerful map.

This way you start off with the proven road map to go straight to the end state of a Level Three business.

Lesson Two:  Don’t build your business in isolation.

Very few business owners can successfully scale their company without having a core community of other business owners with whom they can associate, share ideas, get candid feedback, and soak up new ideas.

Your employees can’t fill this role – it just creates problems of its own.

Often your significant other can’t fill (or fully fill) this role, or the business becomes too consuming in your life.

You need an upgraded peer group of other DOERS.

Lesson Three:  You cannot build your business based solely on the backs of a strong team.

If you haven’t yet learned this, you will–people’s lives are complicated.  They will come and go in your business.  The one thing you can count on is that given enough time, you will have turnover of key team members.

If you build y our business so that all the key “know how” and design of the business is based on great people just knowing what to do your business is incredibly vulnerable.

Instead you’ve got to build your business on the strong foundation of three cornerstones:  solid business systems, intelligent business controls, and a talented team.

Yes your team matters and is an essential ingredient.  It’s just that they are one of three critical elements.

Investing Lessons

Lesson Four:  Investing from a place of ignorance may work when you are in a bubble market, but it is the kiss of death when that bubble bursts!

In fact, it is the false confidence that so many of us (yes I include myself in this category… I have learned my lesson!) generated from years of succeeding with our investing due to the rapidly appreciating bubble market that caused us to under invest (or reinvest) in our Advantages (of skill, expertise, knowledge, experience, contacts, etc.)

This lead me directly to the next lesson.

Lesson Five:  The major risk you take is NOT a factor of your choice of investment niche or specific investment itself, but rather it is a result of YOU!

Hard as this is to accept, you are the greatest risk variable in your investment portfolio.

Learning to manage YOU… continually reinvesting in YOU… is the very best way to manage risk.

Lesson Six:  You must have a sound, clear, financial plan that you build based on your future, not on your past.

I share from personal example.  From 2002 through 2006 I had massive growth in most of my investments and my main businesses.  When I sold off my two main companies I had a big cash position.

I spent 2006 deciding how best to invest this liquid cash and I made the MAJOR mistake of not re-evaluating my investment plan from scratch.  My needs had changed (I now had the net worth I need to retire if I chose), my risk profile had changed, my strategy SHOULD have changed… but I didn’t.  I invested based on my past successes and as a result my total portfolio was totally out of whack.  And when the market melt-down happened I had the joy of learning this lesson up close and personal.  Granted we still had a large net worth relative to the average person, but we lost close to 60% of our investable assets.  While I can’t change that fact, I sure did learn something of enduring value from it, and I want you to learn it to:

Your wealth plan has to reflect your current starting point and build FORWARD, not be based on how and who you were in the past.

Whole Life Wealth

Lesson 7: Focus more of you on what matters most.

For me that meant simplifying my life.  Heather and the boys and I moved out full time to Jackson Hole Wyoming and to a smaller community.

I cut back on many of the commitments I had so that I could spend more time with my family, and doing things with a smaller group of friends and family.

Lesson 8:  Life is sweet, life is good, and life is FLEET.

It all seems to happen faster and faster every year you get older.  The kids grow up… you get older… and before you know it you’re at one of those “zero” birthdays looking back and saying to yourself, “It all seems to have gone by so fast.”

Savor it now… enjoy it now… share it now.

Lesson 9:  To be happy we’ve got to get over ourselves and focus on what we can give and do to make the world better.

I know these last few lessons are a bit corny, but they are so significant in my book.

Have a great day,

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First, a little background:

• Handle means dealing with an objection once it comes up… Commonly referred to as “overcoming” the objection.

• Harnessing the objection relates to using the objection to provide the emotional juice and momentum that you can redirect to close the sale.

• Reframing means putting their objection in a new context. How can you reframe their objection (either before it comes up or after they raise it) in such a light that the logical and emotional conclusion is to buy? (Or at the very least so that the objection melts away or is significantly diminished?)

• Preempting an objection means you proactively design it out of the sales conversation so that it never comes up to begin with.

Here are 7 proven tactics to apply this knowledge to close more sales. This list is not meant to be exhaustive, but rather to get your brain warmed up and thinking of the best solutions to sell more of your product or service!

1. Feel, Felt, Found (A classic, and my least favorite!)
   “I can understand you feel like the timing just isn’t right at this moment. In fact, you remind me of William Smith on of our customers. William was just like you when we talked with him…he had so much going on and felt like his plate was so full that he ended up delaying coming on board with us for 6 months… you want to know what William told me about that decision to decision to delay–it’s a shocker… In fact, let me SHOW you what he said in his words… let’s see, where is that letter, oh yeah here it is… ‘My decision to delay 6 months literally cost my company $72,000 in lost sales… To anyone thinking about working with Acme Direct Mail all I can say is do it now. My delay cost me the equivalent of 5 years of working with them!’”

1. Restate and Shift the Objection
   Prospect: “It would just cost us too much to change.”

   You: “I understand Mr. Prospect… it’s important to keep an accurate eye on the real cost of any solution you use and there is a real cost to change that you’d have to factor in to make sure you make the soundest decision for your company. I both respect that view and echo it. May I ask you a few questions just so we can get clear on all the cost factors, both of switching over and the short term and long term costs of staying with your past provider?”

1. Probe with the Objection

   “Tell me more about that Mr. Prospect… You mentioned that you feel like you’re tied in with your current vendor, may I ask you a few questions to better understand your dilemma…”

2. Close on the Objection

   “I understand that you can’t do anything that doesn’t fit your budget. Let me ask you Mr. Prospect, if we were able to find a way to solve that challenge and make this fit your budget, is there anything else that would stand in your way of owning this widget today? Are you sure? Great. Let’s put our heads together and see if we can work together to solve this challenge…”

3. Reframe the Objection

   Prospect: “I can’t afford your product.”

   You: “I understand Mr. Prospect that right now it would be very hard for you to afford our product. Quite frankly, that’s why it’s so critical for you to own this product Mr. Prospect, you literally can’t afford NOT to have it… Imagine for a moment Mr. Prospect what it would cost you if you had an accident out in the middle of no where and had to pay to have your car towed for 100 miles at $20 a mile, what do you think that would cost you? That’s right $2,000! Doesn’t it make sense that $95 a year of “insurance” for your membership would be a lifesaver in that situation?”

4. Script and Control the Conversation (Better script the interaction so the objection rarely gets raised)
5. Preempt the Objection

   E.g. Credibility Issues
   –Build in credibility boosters into your pre-selling process
   –Improve your scripting to insert Marquee Client stories
   –Upgrade your sales collateral to show REAL USERS and their satisfaction
   –Set the sales stage better (upgrade your office, dress more appropriately, etc)
   –Leverage referrals and introductions for the “Halo Effect”

   E.g. Pricing Issues – Your product is more expensive UP FRONT then your competitor(s)
   –You introduce the term of “Real Cost of Operations Over 5 Years” so that you have a better frame to show how your product is MUCH less expensive over 5 years
   –Have a scripted “Question Cascade™” designed to help them reach this conclusion step-by-step themselves with you restating their discovery (vs you telling them)
   –Have a compelling VISUAL way to reinforce this frame of reference
   –KEY: YOU bring up the price issue BEFORE they do!

I hope that today’s ideas on how to use these 7 sales tactics helps you increase your sales.

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One of the unique benefits we get by working with so many business owners is to see the common patterns and “fatal flaws” that catch so many business owners unaware in the key areas of their business.

Now in case you’re wondering, below is a short, simple 7-question true/false quiz to see which of these all too common sales/marketing mistakes you’re currently making (I’m willing to wager that you’re likely making at least 3 or more of them!)

Take 2 minutes and go through the questions yourself (WRITE DOWN YOUR ANSWERS AS YOU GO!)

Mini Quiz: True or False?

1. True or False: To increase your lead flow you need to increase your “fishing lines” in the water (i.e. come up with more marketing tactics you implement to increase your lead flow.)
2. True or False: The best leads are fresh leads.
3. True or False: Getting a majority of leads from “word of mouth” is one of the best signs that you are operating your business the right way.
4. True or False: No one will ever be able to sell your product or service as well as you the owner can.
5. True or False: To grow your sales, grow your target market.
6. True or False: The best marketing decision tool is the owner’s gut instinct / honed intuition as to what actually works best in the real world.
7. True or False: Ultimately, effectively managing sales people comes down to aligning rewards to encourage the right behaviors.

In just a moment I’ll give you the correct answers to the quiz questions

Question One: True or False: To increase your lead flow you need to increase your “fishing lines” in the water (i.e. come up with more marketing tactics to increase your lead flow.)

Answer: FALSE. (On Thursday night you’ll learn why trying too many different marketing tactics can be the kiss of death and a powerful strategic principle you need to follow as your plan out which marketing tactics to apply.)

Question Two: True or False: The best leads are fresh leads.

Answer: False. (On Thursday night you’ll learn why fresh leads are NOT the best lead source, and specifically what is. What’s more, I’ll share 3 quick tactics you can implement to immediately boost your sales.)

Question Three: True or False: Getting a majority of leads from “word of mouth” is a sign that you are operating your business the right way.

Answer: False. (On Thursday night you’ll learn why if you rely on word of mouth for the majority of your leads that means that you’re vulnerable, and why you desperately need FORMALIZED referral systems versus passive word of mouth.)

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I hope you had a great holiday weekend (can you call it that for Columbus Day?)

This week I had several client calls with business owners who are working to scale their sales teams and grow sales. It can be a scary and intimidating process if you’ve never done it before.

Today I wanted to share with you 8 “controls” to use to help you protect your business as you scale your sales team.

1. List negotiating parameters your sales team can work within out in the field. Examples might be pre-approved concessions your sales team can use to close a sale, discounts or credits your front-line staff are authorized to give when dealing with a purchasing customer in your store, and so on.
2. Establish an approval process for sales exceptions. For example, if a concession is worth less than $x, the sales manager must verbally approve it; if a concession exceeds that amount, the sales manager must physically sign off on it.
3. Require standardized sales paperwork and contracts.
4. Provide sales team with formalized sales scripting.
5. Require employment contracts that protect the proprietary nature of your client list. Possibly parcel out access to that database among the sales people so that they never have access to more of that list than they actually need.
6. Require sales people to use only company-controlled contact phone numbers, emails, fax numbers, etc. with clients. They should never be expected or allowed to give out personal contact information.
7. Provide a direct line for client feedback that doesn’t allow sales people to filter out negative messages.
8. Record clear and accurate sales metrics. These would include closing ratios, retention rates, return rates, net referral score, and so on.

Have a great week everyone.

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