Getting VC's interested in your business

A simple formula to getting VC's interested in your business.

http://bit.ly/13BSvU1

For all my startup friends

This series is so on target!

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http://bit.ly/Mpxctq

http://bit.ly/OCTSW2

Winners of the Women in LAVA Pitching Event

Women in LAVA worked with 12 candidates on their pitches for VC, Angels and private equity investors. Five were chosen to present at the final event held March 8th competition. 

Women in LAVA will be holding this event on an annual basis and offering free classes to members during the course of the year.

I am pleased to announce that three of the candidates I coached were picked as one finalist (Caroline Hall of Loyaltopia) and two alternates, (Yael Benamour of Your Music Corporation and Grace Chang of Event Sorbet). 

Here are the results. http://bit.ly/xRYlrw

Thank you for spreading the word.

The Why of Pitching for Investors

http://www.youtube.com/watch?v=DQsCXrfth90

Speech given on February 8th of 2012.  The audience was a group of women we are preparing for a pitching contest hosted by Women in LAVA.

PERSISTENCE!

If at first you don't succeed, try try again.

Consolidate your base revenue with a
‘cradle to grave’ client retention program

A 5% reduction in customer defection rates can increase
profitability by 25-125%

Clients are challenged to maintain their profitability. They want
consistent, trustworthy vendor relationships that become an extension of
their infrastructure.

At Strategies for Growth we work one-on-one with your Business
Development Team members to create strong client relationships with
their clients to

• Create and implement a client-centered road map that gives your clients a strong sense of trust and the knowledge that you understand their business almost better than they do.
• Work with your team members to solidify and stabilize existing high yield accounts for maximum sales and profitability
• Customize a process that accommodates the individual sales style of each Business Development Team member. It becomes organic and part of ‘just the way we do business.’ We reinforce what works best, creating the best-in-breed business development team talent. 

E-mail us or call us at (818) 512 6477 and share your biggest client challenge: We will give you one immediate idea on how to handle it and convert the client to your biggest fan.

The Spaghetti Strategy

"Let's see what sticks." said my client during our most recent coaching call.  I lost my professional demeanor and burst out laughing.  Images of clients being thrown up against a wall like a string of spaghetti danced through my head. 

The Spaghetti Strategy is where a company attacks the marketplace, addressing all types of clients with one message point and sees 'what sticks'.  I remember that strategy well. The corporation I had worked for used this strategy over and over again.  And I remember how costly it was and how little ROI it produced.

Strategies for Growth understands how to assess and create the best strategy for clients as we have deployed them all - including The Spaghetti Strategy.  What we have learned over the years is:  the strategy is set by the client.

When deciding which strategy you want to deploy for your sales efforts, work backwards.

• High end clients need high touch 
• Middle market with growth opportunities need continued touch.  As they grow, you grow.
• High visibility clients need upper management touch

My client decided against the Spaghetti Strategy.  She is now deploying a much more high touch approach that will yield 'her 5 dripping roasts' of clients.

What strategies do you use with your high end clients? Comments welcome.

Is Your Baby Ugly?

Sounds mean doesn't it?  An idea is born, nurtured and launched to the world with great expectations. And then someone calls it ugly.  Do you curl up and die?

"Get used to having your baby called ugly," says Frank Mastronuzzi of OneGoodLove.com, a dating website for same sex couples.  Frank was helping Regina Lark of  Q2D Speed Dating Service (Q2Dspeeddating.com) map out the growth of her company.  I laughed at that very apt phrase.

I call it Iron Underwear.  The need to have a thick skin and know, beyond knowing, that your 'baby' is beautiful, no matter what. 

Raising two children in today's times, I know how the world dishes out the 'your baby is ugly' message.  Parents react in two ways: Mama Lion or Meek Mouse?

Entrepreneurs are no different.  I've seen the guy get wrung out over a comment on improving his business model.  I've seen business owners fold quickly when the going gets rough.

I like Franks' attitude:  My baby is not ugly,  IT ROCKS!    I am making this my new mantra: My baby is not ugly,  my idea rocks. my business is not ugly, my business rocks.

What do you do when someone calls your baby ugly?  Comments welcome.

Yes! There are five key ways to keep your clients

I have been reading and reading about how customers in today's business environment move from vendor to vendor with a drop of a hat.  No one seems to have a clear idea, but my theory is:  buyers mirror their dating habits. And the younger generation is into 'hook ups' not relationships.. 

But the truth is the truth:  humans are unpredictable.  One day it's the Beatles the next it's The Rolling Stones.  What is a service provider to do? 

I ran across and article by Jim Billington in The Harvard Management Update.  Although written in 1996, it still holds some tried and true ideas that still work today. 

So break out your CRM files and: 

1.  Identify Core Clients: who loves your service and why?
2.  Measure what matters:  Measure your individual customer's satisfaction not  the 'market satisfaction
3. Analyze defections: Why did they leave - only the truth please
4. Mass customize: How can you service each client according to their specific needs 
5. Learn to meet unspoken needs: Need to understand what makes the relationship tick

 At Strategies for Growth we work to consolidate core clients, train and support our clients in the development of client relationships to insure steady revenue streams for company growth and profitability,

There is only one boss!

Keeping the Good client Good.

"There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else." - Sam Walton

Customers are fickle, fickle, fickle.  They jump ship at the drop of cell phone and never look back. Which begs the question, how do you keep your customers loyal?





Answer number one: keep the value of your services foremost in the mind of your clients.

How do I do that you ask?  Here is an example:

During a review of their client list, the managing partner of the law firm, pointed out an account he decided to 'forgive' the outstanding invoice.  It was $6K worth of legal work for the wife of a top client.

I suggested that instead of writing it off quietly and feeling frustrated by loss of the fee,  he could contact the client/husband and let him know the law firm was forgiving the debt.  It would buy good will and show the customer the value of a strong relationship between top client and the law firm.

The managing partner's eyes lit up at the prospect of  the 'miles of good will' he would earn and strengthen the exiting relationship with this client.

Two weeks later, the managing partner relayed that his top client was extremely touched by the gesture and handed the firm another $250k in legal work.

How do you reinforce the value of your services to your best clients?

Tech Coast Angels 6th Annual LA Fast Pitch Competition

 6th Annual Fast Pitch LA 2011

The Tech Coast Angels 6th Annual LA Fast Pitch Competition is February 24th at UCLA Anderson School of Business. CEOs of 8-10 start ups, selected from more than 100 applicants, will have 90 seconds to pitch their companies to a panel of judges. The winner will be invited to present their company and business plan at a Tech Coast Angels deal-screening session.

CEOs of Southern California-based companies who want to apply to be a Fast Pitch competitor should submit an application now at www.pitchtheangels.com. The deadline for applications is February 5th. Applications are already being screened by members of Tech Coast Angels, so apply today. More than 20 CEOs will be invited to participate in pre-event coaching sessions in February where TCA members and other coaches will provide them with tips and guidance on their pitches. The coaches will select the best companies to appear onstage at Fast Pitch on February 24th.

The 6th annual event will include presentations from CEOs and venture capitalists on funding and starting a company, and the Fast Pitch competition. A light dinner and refreshments will be served after the program at a networking event that will be attended by investors, entrepreneurs and other industry experts.

In the meantime, startup CEOs, please submit your application now. The sooner you get your application in the better.


I have been a coach to the start ups for the last 5 years and I encourage all my entrepreneur friends to apply.  If anything, it gives you visibility and ACCESS to investors.  Go for it!!!

What is your best sales coaching story?

Coaching to success

Every sales team has a wide variety of performers, from excellent to laggards.  But the challenge is how to keep your bottom line humming the tune of profitability with non-performers on board. 

I was delighted to hear this story of success from a Director of Sales at Microsoft. She had a non-performer on board that she could no longer 'carry.'

She brought him in to have frank conversation on his performance. It sucked, she shared.  He was at risk of being let go within the month. Was this really what he wanted for himself?

He stated he had no intention of being let go from Microsoft. He was ready to accept her help.

She agreed to coach him weekly, help him with the challenges he faced and get his numbers up above the 'yellow line.'  He agreed.   They met weekly for an hour.  He had accountability, he had goals and most importantly he had the investment of management in his success.  He took her up on her suggestions and started to thrive. His numbers improved greatly and he ENDED UP AS NUMBER ONE on the team.

Finding and hiring the right salesperson is tricky, but once hired, companies need to invest TIME and SUPPORT their sales personnel with the right mix of coaching and accountability.

What type of support do you give your sales personnel to help them bring in the sales and the profits?

Screaming Mimis and Chatty Cathys

Do you give nicknames to your most difficult clients?   I have a client who does.  She assigns names to her clients as it tends to relieve her stress. Monikers such Tweedledee and Tweedledum, Clueless, Obi (obnoxious) and Nobi (knows nothing) and the list goes on.

With the Good, the Bad and the Ugly clients, it's all about relieving the stress.

I use Screaming Mimi to describe the client who always likes to complain at the top of their lungs.  They tend to be a bit elusive, irrational and it usually has nothing do to with you or your company.

I use Chatty Cathy to describe clients who have nothing better to do but take up your time with meaningless chatter.  All designed to torture you slowly, word by word, with a monologue that has nothing to do with the service or product you have provided to them.

So how do you get them off the phone and minimize the flotsam of feelings they leave behind?  Aside from just plain hanging up, gently interrupting them with a request to 'continue the conversation' at another time usually works. They are going to feel privileged to now have an appointment to complain versus just an impulse call.

What do you do to get them off the phone?  Comments most welcome. 

What type of sales person do you need?

Collaboration with clients is key

Successful entrepreneurs seem to repeat the same statement over and over again in their 'how-I-did-it' speech: "I was so lucky I hired the right person for..."  Hiring the right people is the biggest challenge of any business, but more so for start-ups.

I ran across this article on hiring the right sales person at the right stage of growth. It describes not only the dilemmas of a start up, but every business who has a need for professional sales personnel.  Bottom line, listen to your clients. They are your best guide for hiring to their needs. 

Enjoy the article. 


bit.ly/aWVOir

Breaking Up Is Hard To Do

'Breaking up' with a toxic client is hard to do.  You have resolved to get them off your 'books,' they are not worth the emotional stress, time or money, but you just can't seem to cut the cord.  

"How do I actually do it?" is the question most often asked by my Client Retention Program clients.  There are no pat answer, but there are effective ways to politely break off the relationship.

Prepare for the conversation by scripting the main points you want to make, be seconded on the phone or in person with someone who is on your side and stick to the facts.

In preparation:

1) Review the contract:  Were the terms and conditions met by both parties?  If there is a discrepancy on your side, can you fix it quickly to meet the terms of the contract? Prepare your conversation by stating how you met the terms of the contract.

Ex: Deadline request was met on such and such date as stated in statement of work.

2) Know your facts:  During difficult conversations with difficult clients, nothing speaks louder than facts.  What are the relevant facts that can be discussed to bring the relationship to positive closure?

Ex: Client was non-responsive to phone calls or emails.  State directly the dates of those phone calls and emails to show the lapse in response from their point of contact or other personnel. 

3) What business result do you want by terminating the relationship? Determining the outcome that is aligned with your business objectives helps keep you on a steady course.  Ugly clients often throw you off to give them a form of control, especially if they begin to realize their culpability.

Ex: Objective is to recoup lost revenues, but client refuses to pay anything as they don't see how your services helped them.

What gives you strength during these conversations is being 'seconded' by someone on your side.  A semi-neutral person who understands your business, is briefed on the facts and can interject reason in the discussion should it get heated.

Top 3 Ways to Fire the Client From Hell*

A large part of my practice is creating strategies to help professional service firms fire their "Ugly" clients. When seeking the payment of an outstanding invoice, it is better to be "two on one." It keeps the focus on getting a check versus a disintegration of the conversation. Having played the role of the 'second' for my clients, I find these tips dead on.

Re-printed from an article at InsideCRM.com*

1) The one who's never satisfied: Even if you come in under budget and over-deliver, this client just isn't happy with your work. He may have something in his mind that he just can't communicate to you, and when you don't deliver this idea that lives in his head, he's disappointed.

How to get out: Ask the client to clearly describe or sketch out what he's looking for, or even send you an example. He may want a product that looks like his friend's, but he's afraid to say so. If you're already done with the project and you've done a great job, don't sweat it. Make it clear to the client, citing any agreements that you've made, that you conformed to the scope of the project and delivered exactly what he asked for.

2) The client who wants you to be something you're not: Some clients have a clear idea in their heads of what they’d like to see from your work. Often, this is good news, but if their specifics don’t line up with the way you like to operate, you may end up butting heads.

How to get out: To reason with this client, you can explain why you prefer to do things the way you do. After all, you're the expert. If he simply doesn't understand or refuses to accept your methods, it's time to cut ties. Explain to him the problems that his requests create for you and let him down easy.

3) The know-it-all: The know-it-all thinks he understands how to do your job because last weekend, his cousin showed him the basics of the computer program you use. Of course, he doesn't realize that he needs your expert skills to use this tool to do the things he really wants to do. He'll tell you exactly what to do and how to do it, turning you into a production house instead of letting you do what you do best.

How to get out: First of all, do your best to remove any references to your name or company on work you've done for this client. Why? Because he'll probably try to tinker around on his own and completely mess up your work in the process. Then, stop the project, get caught up on invoices and give him whatever you've done so far. He'll probably hand it off to his cousin to see if he can finish it.

Strategies for Growth works with service companies on creating Client Retention Programs designed to convert Bad clients to Good and fire the Ugly with an eye on increasing the bottom line. 

*pending reprint approval from InsideCRM.com from their article "Top 10 Ways to Fire the Client from Hell."

The Price of Bad Service

"For two years, FreshDirect stopped soliciting new customers to work on better serving its existing patrons. That strategy seems to have paid off: A loyal core of repeat customers — about 45,000 to 50,000 in all — now generates two-thirds of the company’s revenue. Richard S. Braddock, chief executive, reports that the company had its first profitable year in 2009 on revenue of $250 million and he expects the company’s 2010 revenues will rise to $300 million."

Reprinted from the New York Times, Thursday August 19, 2010 by Jessica Bruder

I am constantly reminding my clients that revenues primarily come from their existing client base.  How they treat and service those clients who opted to work with them in the first place is key to that magic in business called "repeat revenue."

This is why Strategies for Growth exists. I wish to beat our own drum a bit here. We create Client Retention Programs designed to keep your good clients repeat customers, convert the bad to good and fire the ugly. Our success rate has been an overall up-tic in revenues of over 250%!

It is more cost-effective to maintain and resell your existing client base than to constantly try to acquire new customers.   For a review of how Strategies for Growth can help increase revenues from your existing clients, give us a call at 818-512-6477.

Off on vacation!

We all know the value of vacation time  We dream about where we are going, we make plans, book hotels, and meet up with family and friends.

The Europeans know the value of vacations as they have a government-mandated, paid 5 weeks time off a year.

It means time to slow down, let the body relax and mind think on stuff other than our daily lives. When it comes to an end, we pick up, with more energy, our lives as we know it.

One of my coaching clients just returned from a month's vacation and sounds completely different. She has a lightness to her voice from having regained her sense of self and has a new perspective on how to move forward in her life and business. Plus her great sense of humor has returned full force.
 
So before I return from vacation, rested and renewed, I wonder what the rest of the world does to  maintain the sense of renewal and carry it forward until the next vacation?

Quicknote:  "No Touch Monkey" by Ayun Halliday is the funniest travel adventure book I have read in a very long while.  High recommend reading it.

How would you do it?  Comments most welcome.

3 Reasons to Fire Toxic Clients - Part II

No more Toxic Clients!

Many times relationships start out OK, but then sour. Sometimes it’s easiest to just keep trudging along. If a profitable client is hard to work with it can be tough to say good bye to their revenues. But let me share why I think it’s good riddance:

1. They drain you emotionally. People who are mean, disrespectful, full of negative energy, etc. just eat away at our own personal happiness. Even if you like the work, or like the money, don’t overlook the drain of positive energy from your own heart and soul.
2. They are NOT generating as much revenue as you think. You may assume it’s clear, you worked 10 hours and got paid for 10 hours. But because of the emotional drain, you generally spend a lot of un-billable time doing things like: complaining about them, questioning your own skills, protecting yourself with excessive paper trails and backups, defending invoices, etc. All of this is taking you away from revenue earning projects.
3. They can ruin your confidence.  A toxic client can question your actions and tear down your self-esteem. You can start to question the quality of your work, your pricing, your behaviors. An entrepreneur, freelancer or business owner cannot spend time at this pity party.
4. You’ll be more productive without them. This is real reason to let them go. Spend the time finding better clients to work with. Clients and customers who respect you.

 Emily's post ended here with a personal note.  I wanted to weigh in here and encourage all business, small and large to look into their client base and make the difficult decision to identify and fire your toxic clients.

A bit about our guest blogger: Emily Brackett is president of Visible Logic, Inc. Established in 2001, Visible Logic is a graphic design firm that works across all media—including web sites, logos, print materials, annual reports and book design. Based in Portland, Maine, Visible Logic builds complete
branding systems and designs individual projects for clients across the U.S. You may reach Emily or learn more at: www.visiblelogic.com

Toxic Clients: 3 Reasons to Fire Them

I ran across a fantastic blog that said it all so well that I rushed to gain permission to re-blog.  I have cut the article in two parts for easier reading. Here is Part 1.

A bit about our guest blogger: Emily Brackett is president of Visible Logic, Inc. Established in 2001, Visible Logic is a graphic design firm that works across all media—including web sites, logos, print materials, annual reports and book design. Based in Portland, Maine, Visible Logic builds complete
branding systems and designs individual projects for clients across the U.S. You may reach Emily or learn more at: www.visiblelogic.com

Unfortunately, I am currently in the midst of “separating” myself from a toxic client. And while this blog post is not about design, it is about being a small business owner, and I had to write it.
First of all, what makes a toxic client? There can be many variations and each is unique but there are usually early red flag warnings, followed by one or more of the following:

• Disrespectful behavior. Any client relationship should be a partnership, not a stomping ground.
• Pays late, disputes bills. If you are providing a professional service you should be paid. Someone who constantly questions your bills are questioning the quality of your work or your honesty in billing them.
• Questions your skills and expertise. If you are providing a service you are getting paid to help someone using your specialized experience. If a client continually questions your decisions, they don’t feel comfortable about your level of expertise.
• Undermines projects. When working with a  client, there should be a mutual goal of creating something together. For us, that means a web site, a logo, an ad, etc. We should be helping each other. When a client becomes an obstacle rather than a resource, there is a problem.

The first question I always ask my clients is:  How many toxic clients do you currently have and what are they costing you in time and revenue?
 It takes guts and courage to fire a toxic client.  How do you do it? Think about finding a colleague or consultant to 'second' you in your decision and communication with the client.

Second Part of blog next week.  Stay tuned. 

Laurelle Johnson
Strategies For Growth
The Good The Bad and The Ugly
Client Retention Program
laurelle@laurellejohnson.com