Feb 2007

 

Can you believe it's end of Feb already? Happy Chinese New Year of the PIG to you. I have great news to share: I turned 27, bought a very cool phone/pda Nokia E 61 that can hold my 5000 contacts, text msg, wifi, office, powerpoint, pic, video and music. I got my phone from Manny (Cell 778-898-7223 Email: gsmhookup@gmail.com, web: www.gsmhookup.com) who was super nice and trained me how to use it. Now I can truely do business anywhere in the world. I also bought a navy blue Ford Windstar MiniVan. I'll show you pictures of it as soon as I get logos stuck on them. My fiance and I will be going to Maui, Hawaii from March 16-23, staying at the Banana Bongalow Hostel and taking their all day tours to see the valcanos, snorkel with sea turtles, visit the rain forrest and enjoying the relaxing lifestyle of island living. If you have any tips on Hawaii, let us know.

Two weeks ago, I traveled to Conselleo’s Surrey office to attend a 2 day Sales Workshop. I met others from many diverse industries, most with experience but all of us lacking a system. Ian Selbie, a 30 years plus sales veteran, who has trained many companies large and small to help them achieve their sales targets, showed us the way.
1) Time is your most valuable asset, so don’t let others steal your time.
2) When a sale does not go through, it usually is not a closing problem, it’s a qualifying problem. Qualifying = getting the right information to the right decision maker.
3) Always present the proposal in person! Be firm, wait for the right audience.
4) If you have a bad sales process, no software can save you from it.
5) You need consistency to create the best sales process, because what the executive of a company, employees of a company, and customers of a company believe are their biggest asset might differ. So find out, before creating your marketing material. Always put your customer’s needs/wants first. Success in sales people is 88% people knowledge, 12% product knowledge.
6) Use Feel, Felt, Found to come over any objections. Ex: I know how you feel, one of my customer Jim felt the same way, and after using the product found out …
7) Become an expert listener, if you give it enough time, your clients will give you the goldmine, if you just listen. Listen to find the pain.
8) Use open ended questions to qualify your client. Ask about the budget beforehand on the phone. Don’t waste your time with tire kickers.
9) Pitch, Proof and Probe your way to record breaking sales. Proof is using your existing clients’ testimonials, probe is using killer questions.
10) Keep your professionalism at all times, sales people already have a bad reputation. Do not burn any bridges, and no loose lips. Always keep secrets, and maintain high standards.
11) Stages of sales cycle: Activity, Interested, Coached, Qualified, Selected, Closed, Reference. Always keep your pipeline full, but don’t plug it with one big elephant. Pick mid size clients, so they’re relatively easy to get and profitable.
12) V=B-C, Value = Benefit – Cost
13) Your biggest competition could be a client’s inaction. Find the pain, fill it.
14) Use white papers to establish your company’s knowledge and expertise. Put it in your marketing kit.
15) Proposal Content: Purpose, Pain, Positioning, Plan, People, Pricing, Proof.
16) Good way to get more people into the pipeline is to have complimentary executive breakfast 7:30-8:45am, where you give a small educational presentation, no strings attached.
17) Figure out what you’re looking for in a client. Qualify them to see if they’re worth pursuing first before taking action.
18) Follow your sales system. Vision without action is a daydream; action without vision is a nightmare.
19) Be prepared, don’t assume, respect others time, listen, establish credibility, show value, get the client to talk about their company, be flexible, become best friends with executive assistants.

If you’d like to find out more, Ian has several white papers on his website you may download. There is a ton more information I’ve learned that won’t fit into this article. So if you think your business needs a boost in sales, spend the $1500, and get the training.

Feb 17&18, 9am-5pm. A full blown seminar on Real Estate and Business success in the Pan Pacific with David Anderson. Here are some of the juiciest bits of information I’ve learned:
1) Gross Scheduled Income = add up all possible rent from property.
2) Gross Rent Multiplier (GRM) = Market Value divided by Annual Gross Scheduled Income = Gross Rent Multiplier
3) Gross Operating Income (GOI) or (EGI) Effective Gross Income: Gross Scheduled Income – Vacancy and Credit Loss = Gross Operating Income
4) Capitalization Rate (Cap Rate): this figure is very useful in estimating the value of an income producing property: Net Operating Income divided by Value = Cap Rate
5) Cash Flow: Net Operating Income – debt service, - capital improvements, + loan Proceeds, + interest earned = Cash Flow before Taxes.
6) Debt Coverage Ratio (DCR): Annual Net Operating Income (NOI) divided by Annual Debt Service = Debt Coverage Ratio. The bank will loan you mortgage if you have 1.2 DCR or better!
7) Options: You may have a written contract with property owners around your property to sell at a certain price, before you buy your actual property, in anticipation of future expansion. This contract is called an option! You don’t have to pay money to have option. Ex: Disney World in Florida.
8) USE other people’s money: Donald Trump at age 27, partnered up with a well connected real estate developer, hired an artist to create the vision, got Hyatt to sign a lease contract for the building, and got $30 million bank loan to buy and build the old hotel next to Grand Central Station into a modern conference centre.
9) Buy commercial real estate, as it is a business, it collects rent and pay taxes and has expenses. It might have equipment that’s worth money if sold. This does not rely on your own personal credit history, it’s based on the Debt Coverage Ratio.
10) Find investors for your investment project and conduct equity sharing. Ex: $400,000 Purchase price - $380,000 vendor financing= $20,000 needed for down payment. Investor pays the $20,000 to receive 50% of the equity at the end of 5 years. If the equity increases 6% in the first years ($400,000 x 6% = $24,000, $24,000 /2 = $12,000 each earned. That’s 60% return in one year for the investor.)
11) Government grants are available if you solve problems like low income housing, aids patients, etc… There are also funds available to restore heritage buildings. www.can-grants.com
12) 1 minute decision on buying commercial real estate: Gross income divided by 2 = Net Operating Income, NOI divided by price = Cap Rate If the cap rate is not within 7-11%, NEXT. Move quickly – know when to talk and when to walk.
13) Factors that can affect your decision: can we add value to the property? Rents too low or high? Highest and Best use accomplished? Could the expenses be lowered?
14) Refinancing your property means the bank will start the terms of repayment again, meaning you’re paying back pure interest in the beginning again!! Do NOT refinance unless you can pay it back quickly.
15) Conduct environmental audits before you buy any commercial property, the seller should have level 2 environmental report done.
16) Lawyers are worth every dime; get them to protect you and your investments. Don’t ever sign a contract with blank spaces.
17) You can buy and sell a business like real estate. If you’re good at seeing what it needs, do it. It can be very profitable. But know what you’re doing.
18) Donald Trump says, “when you owe the bank $9,000 YOU HAVE A PROBLEM! But when you owe them $9 billion THEY HAVE A PROBLEM!”
19) Don’t diversity your business too much, have a core strategy.
20) Value of Business= Estimated Annual net cash flow to owners divided by owner’s required return on investment
21) Negotiation strategies: it’s not about outwitting or taking advantage of the other party. It’s about reaching an agreement and sharing solutions for mutual benefit. Prepare, talk to the decision maker face to face. Look at the situation from the other person’s position, anticipate their moves, plan key statements and responses. Never let them see you sweat. Remember to look pleased no matter what happens, stand firm on key points. Mirror the personality types of those you’re dealing with, ask open ended questions, listen more, jot down notes. Keep the conversation on track, use negatives to negotiate price, find their motivation, let them feel that they have control.

This is the best business seminar I've ever attended, no motivation, just useful information. I highly recommand you check out their future seminars.

Jim Knight~ Sr. Dir of Training at Hard Rock Café
I went over to Victoria to attend the BC Tourism Conference this year and had the pleasure of hearing Jim’s keynote speech. Thought you might enjoy his take:
1) Hard Rock Café has 142 restaurants/ hotels with retail in 45 countries. It has the world’s largest collection of Rock and Roll memorabilia. They have the motto: Save the planet, and incorporate that by using recycled paper in everything they do, even using soy ink for their business cards. As a corporation, they sponsor soccer teams, and have an ambassador program at each branch which encourages staff to get involved volunteering/donating to a charity of choice. This helps with employee retention.
2) Do not hire people who don’t know, can’t do, or don’t care.
3) Have a daily mindset that is aligned with the corporate operating values. Hard Rock Café: Excellence is our standard, nothing else will do. Memorable experiences will be created for every guest, always err in favor of guests.
4) Hire people who are story tellers, musicians, tour guides, or performers. People come for the atmosphere, music and experience, so give them an experience that they won’t forget.
5) Today’s employee expectations: They want it all. They bail at the drop of a hat, because of their direct supervisor. They’re only loyal to those that inspire, provide development opportunities, and teach with compassion. Hire only rock stars and treat them like they’re volunteers.
6) Service that rock: consciously read every guest, searching for an opportunity to seize the moment, under promise and over deliver, treat people like they are your best friend or your President.
7) If people leave with a negative experience, ultimately 360 people will hear about it. If a guest says “It’s fine…” REACT right away to make it a better experience. “People expect bad goods and rude service.”
8) Most people can only remember the top 3 brands in each industry, so be in their mental shelf space through branding and incredible experience.
9) Values + method = culture, retain good staff by sharing and involving them in the Corporate values, recognition, attitude and create a fun atmosphere to work in.

If you’d like to hire Jim Knight, you can reach him at Email: Jim_Knight@hardrock.com

If you’d like to attend next year’s Tourism Conference and meet some of the incredible 600 power players in the BC Tourism industry, you may find more information at www.bctourismindustryconference.ca