APRIL 2012 Issue 60
NZSALES Understanding Financial Reports
Getting Past <Del> Get Organised NZâ€™s e-mag for sales leaders 1 / www.nzsalesmanager.co.nz
THIS WEEK'S MUST READ Understanding Financial Reports The key numbers to look for
Getting past <Del> 3 reasons why prospects ignore your emails
BOOK REVIEW The Challenger Sale – Taking Control of the Customer Conversation
Quick Fix It’s not what you sell, it’s how you sell.
TWO MINUTE TOP-UP Get Organised It’s not an option
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ABOUT / Short and sharp, New Zealand Sales Manager is a free e-magazine delivering thought provoking and
FROM THE EDITOR
enlightening articles, and industry news and information to forwardthinking sales managers, business owners and sales professionals.
EDITOR / Paul Newsom ART DIRECTOR / Jodi Olsson GROUP EDITOR / Trudi Caffell
CONTENT ENQUIRIES /
ne of the most rewarding parts of my work with the Young Enterprise Trust is presenting the BusinessNZ Challenge. This three day programme is run in 45 High Schools around the country each year. On the final afternoon, the students present their business plans to a panel of judges who are local senior business people.
of their business, and above
Phone Paul on 04 586 4733 or email
all, they all have an influential
infectious enthusiasm which
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stands out to the judges. Teams
Phone Alastair on 09 551 0607 or email
with these people in always do
well. Some will undoubtedly be starting their own businesses in
ADDRESS / NZ Sales Manager, C/- Espire Media, PO Box 99758, Newmarket,
Auckland 1151, NZ
It leaves me feeling good that
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our country is in good hands with these young people who
have what it takes to undo the
The future sales stars always
mess the previous generations
stand out at. These 15 and 16
year old students are incredibly innovative, articulate, listen well,
some have a grasp off all aspects
NZ Sales Manager would like to acknowledge the support of our major partners Gold Customer Relationship Management Silver Independent Software Vendor (ISV) Silver Learning
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Understanding Financial Reports The key numbers to look for By Sue Hirst
Editors Introduction Good preparation is a vital part of any account entry campaign. For
here are many things to
This means, for every dollar of
look at in a client’s annual
current liabilities, this business has
report. Here are the top 4
$1.75 of current assets to cover it.
numbers you should be looking at:
A Ratio of less than one will be most undesirable in term of its ability to
your prospects who publish an
meets its short term obligation,
annual report, this document will
provide you with valuable insight.
This is a very simple indication of
Use the insight to position your
how healthy a business is and how
This result isn’t always found in
value proposition, develop your
able it is to meet its short term
the Annual Reports, but you can
questioning strategy, and give you
obligations. This ratio is calculated
generally find it somewhere on the
the confidence to establish your
by taking the current assets and
web if you’re dealing with a public
credibility with any senior manager
dividing them by the current
company, or you could calculate it
in the organisation. Use the insight
liabilities. Examples of current
yourself from the Balance Sheet.
too to do your risk analysis on
assets are accounts receivable,
whether this is a prospect that you
bank balance and inventories.
should be doing business with. For
Examples of current liabilities are
example, does their business strategy
accounts payable, bank overdraft
Look at the revenue over say the
indicate medium to long term
and current (12 month) loan
past 3 or 4 years to see how it’s
potential for you as a supplier, or are
repayments. Here’s an example:
trending. Is it going up or down
they financially in good health and able to pay their bills?
and why? Is the trend likely to
Current Assets Accounts Receivable
All annual reports include a financial
report, which you should take time
to review and interpret. If you want
to acquire and keep ‘A’ class clients, it pays to know a little about their financial position. But what exactly are you looking for, and what do the numbers mean?
Current loan repayments100,000 Total
www.nzsalesmanager.co.nz / 6
continue and are there external or environmental influences on the business. If the trend is upwards and you’re a supplier that’s great, but if it’s going down without good reason, you may want to look for healthier prospects. Or maybe your product/service might help the business grow
Current ratio calculation: 350,000/200,000
including paying your bill.
Net Profit % Trend Look at the net profit percentage over the past 3 or 4 years to see how it’s trending. Percentage is more important to look at than just dollars, as a percentage is relative i.e. you can have increased dollars of profit, but if the revenue required to create that profit needed to increase disproportionately, that could indicate poor management, price pressure or selling less profitable products. Here’s an example of dollars versus percentage view:
You can see above that the profit dollar figure is going up but the percentage is going down. This indicates that costs and overheads are not being managed in line with revenue growth, and possible pricing and product lines issues.
Total Assets & Total Liabilities and Equity This is actually two numbers and they are found on the Balance Sheet. These numbers show if the business is creating or
Costs & Overheads
Net Profit %
eroding value. If they are trending upwards it means the business is growing and managing its assets and liabilities well. Very importantly if the Equity is low or negative, there might be a risk of recovering your payment from the company if something goes wrong.
All of the above indicates the health of a business and healthy clients are what your company wants. A lot of resources go into developing, marketing, selling, operating and funding a product or service. If a client can’t pay, these resources are being wasted and too much waste is detrimental to your own company’s health. ■
Sue Hirst helps small and medium sized businesses to gather the crucial information that entrepreneurs, MDs and CEOs need to support their day-to-day and strategic decisions. You can find out more at www.cfooncall.com.au
7 / www.nzsalesmanager.co.nz
Getting past <Del> 3 reasons why prospects ignore By Kendra Lee your emails
n a perfect world, every email we send to a potential client would be read and responded
to right away. Unfortunately, many of our prospects are too busy to even look at all the messages they receive, much less act on them. By avoiding the most common mistakes other people make, savvy sellers like you can move their way to the top of the inbox, and fill their sales funnels with new leads. In fact, Sheila, one of our clients, recently reported that she got a response from a top prospect after only 20 seconds -- and this after sheâ€™d tried to reach him by cold calling for weeks! She was shocked by how only a few tweaks to her prospecting email got such a quick response. You can get the same results simply by remembering the three biggest reasons prospects ignore your emails â€“ and then avoiding them. www.nzsalesmanager.co.nz / 8
By avoiding the most common mistakes other people make, savvy sellers like you can move their way to the top of the inbox, and fill their sales funnels with new leads.
They never got your email in the first place. With the sheer number of unwanted email messages most of us receive, it’s no surprise that spam filters are becoming more and
You didn’t give prospects a
It seemed like too much to
strong enough reason to take
deal with at the moment. You
action. Hard as it is to believe, few
have three seconds -- or less -- to
people care that your company
convince a prospect that they want
has a long track record of success.
to read your email, and that it won’t
Prospects are too focused on their
take up more time than they’ve
own problems and issues to bother
got at the moment. Your goal is
more aggressive. Messages with
with any of that. Keep this in mind
to make your email not just sound
attachments (especially large ones),
and use your email message to
compelling, but also look easy to
lots of links, extensive marketing
emphasize common issues and
act on. The easier it is, the more
graphics, and other gimmicks aren’t
triggering events you can solve
likely your prospect will read the
likely to make it to the recipient’s
that really matter to your customers
inbox in the first place. Keep your
and prospects. Make them want
continue and respond to you.
prospecting emails simple and image
to engage with you! The point isn’t
If your email is more than three
free, even in your email signature.
to tell them more about you. It’s to
paragraphs long, asks your
They’ll have a lot easier time making
give them a strong enough reason
prospect to fill out a lengthy
it past SPAM traps and junk filters.
to begin a sales conversation.
registration form, or otherwise
first sentence, and then dive in to
9 / www.nzsalesmanager.co.nz
Your contacts are already too busy. Give them a clear specific call to action that you’d like them to take after they read your email. Reply. Call. Click here. Register. seems like something that’s going
them to do doesn’t take more
rate on his email lead generation
to take them away from what
than a moment or two.
campaign. In just a few days,
they were thinking about, then the chances are good they aren’t going to bother.
Even following these steps, you might never achieve a 100% response rate on your prospecting
his biggest problem went from needing more leads to finding the time to respond to all of them. Now that’s a problem many sales
Your contacts are already too busy.
email campaigns. If you can take
Give them a clear specific call to
the time to incorporate these
action that you’d like them to take
tips into what you do, however, I
after they read your email. Reply.
promise you’ll see an enormous
Call. Click here. Register.
improvement just like Sheila.
Tell them what you want them to
Derek, another seller who switched
significantly better results – both
do using a simple sentence. Then
up his email approach using
in your sales pipeline and your
make sure that what you’ve asked
these steps, got a 61% response
prospect’s attention. ■
reps would like to have! So take my advice and don’t fall for these three common email prospecting traps. Once you avoid them, you’ll start seeing
Kendra Lee is a top IT Seller, Prospect Attraction Expert and author of the award winning book Selling Against the Goal, and president of the KLA Group. To find out more visit www.klagroup.com
Generating consistent and qualified appointments can be a mundane and time consuming process... Let the experienced professionals at Ibex Marketing set them for you so you can spend more time meeting with prospects and helping them solve their problems! www.nzsalesmanager.co.nz / 10
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The Challenger Sale – Taking Control of the Customer Conversation
Authors: Matthew Dixon and Brent Adamson Publisher: Portfolio Price: $31.99 from www.fishpond.co.nz
he best sales people don’t
complex, large-scale solutions.
The authors’ research shows that
It turns out every sales rep in the
customers will reward suppliers
world falls into one of five distinct
who can deliver a new perspective
Based on a quantitative study
profiles: the hard worker, the
during the sales process and
of more than 6,000 sales reps
problem solver, the challenger, the
reframe their expectations. The
in multiple industries and
relationship builder, and the lone
book explains how to deliver a
geographies, “The Challenger
wolf. While most of these reps can
distinctive purchase experience
Sale” argues that classic
deliver average sales performance,
that drives higher levels of
relationship building isn’t enough,
only one-the challenger- consistently
customer loyalty and, ultimately,
especially when it comes to selling
outperforms the others.
greater growth. ■
www.nzsalesmanager.co.nz / 12
It’s not what you sell, it’s how you sell.
Disconnect to get things done
n this world of ubiquitous
and compromising your
it is easy to fall into
If you have some serious
the trap of being tethered
prospecting to do, follow ups
to technology – our smart
to make or a key proposal to
phones, ipads and email. The
complete in the next hour, then
temptation to immediately
focus on the task and don’t be
respond to communication,
distracted by technology. Turn
and the inferred expectation
your phone off and shutdown
that we will respond, is likely
your email, or at least turn off
to be consuming your time,
the annoying message alerts. ■
13 / www.nzsalesmanager.co.nz
2 Minute top-up
Get Organised It’s not an option By Ivo D’Silva
eing organised is
than forty hours. This is a whole
week spent looking for some
important in today’s
selling environment. It is the key to increased sales as it will help the sales team to be more efficient, effective and focused. Time is money and saving time by being more efficient will improve productivity and drive positive results. Consider this….If you spent just
By staying organised, sales professionals can get much more done in their business, and this is also seen by their customers who will return knowing they can depend on someone well organised and on top of their game to work with them for solutions.
ten minutes per day, five days a
Staying organised as a sales
week looking for some misplaced
professional varies from one person
information, this would add up to
to another. It is all in the mind and
fifty minutes per week and over
willpower to do well. Here are some
three hours per month. Over the
suggestions on how to remain
course of the year, that is more
organised in sales:
www.nzsalesmanager.co.nz / 14
2 Minute top-up
Get into a habit of setting
you can keep on top of your
performance. This could be a
specific goals for each day. This
daily activities. This helps in
subject for discussion during
will give you a much better
your motivation and progress
your one on one with your
focus on how you manage
through the day.
your time through the 8 hours you have in generating sales.
Remember to prioritise your goals. A simplified electronic flow chart may help. •
Create a schedule for the goals you have set. This will keep you on track of your sales activities. It is important to include breaks into your schedule for you to regain your enthusiasm and perhaps work on some administrative tasks.
Develop a usable checklist so
Keep all records of your existing
Finally and most important is
customers updated and handy
learn how to relax and enjoy
so you can assess them on a
the career you have chosen and
know this can take you a long
Keep a personal goal/ performance record, ideally electronically, so you can constantly gauge your personal performance and
way in your ambitions through life. Keep reminding yourself that you are a professional in your own right and you have what it takes to bring results.
work on areas you are lagging
Using the words of organisation
behind. It is recommended
guru Pam N Woods, “organisation
that you add any training
is not an option, it is a fundamental
needs that you feel will
survival skill and distinct
help improve your personal
“Using the words of organisation guru Pam N Woods, “organisation is not an option, it is a fundamental survival skill and distinct competitive advantage”.”
Ivo D’Silva is passionate about helping sales people be successful, and is the NZ Cargo Sales Manager for Malaysian Airlines & Delta Air Lines with GSA MCH Holding Australia Ltd.
15 / www.nzsalesmanager.co.nz
WHAT’S NEW NOTICEBOARD
NZ’s biggest online social media event
usiness software provider
weeks and cover everything from
Presenters from both New Zealand
MYOB and leading social
online branding to creating a
and the US will take part in the
series, including Mike Gingerich
and NZSM article contributor, Linda Coles of Blue Banana,
“Upskilling more New Zealand
from Tabsite, Richard Conway from Pure SEO, Glenn Edley from Spike
have gathered a panel of digital
business people in the use of a
marketing specialists for New
wide array of Internet business
Terabyte, and the Asia Pacific MD
Zealand’s biggest online event
tools and techniques will be
of LinkedIn, Cliff Rosenberg. Linda
covering the various tools available
transformational for the economy,
Coles will also be presenting.
for business owners looking to
so MYOB is very pleased to be
engage more with their clients.
The course begins on May 1. Go
supporting Blue Banana “20”,”
“20” will take place entirely online
says MYOB general manager
for more information or email
via twice weekly sessions for ten
Mail, Jane Melville-Allen from
Social Media Statistics
ocial media is a fast-
Zealand’s social media landscape.
Watch the full video here.
battleground. So to bring
you up to speed, the latest
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The stats are changing so fast,
YouTube video from Catalyst90
the guys at Catalyst90 say they
is hot off the press with the
will be updating the video every
most up-to-date data from New
3 months. ■
Tuesday 8 May
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And what to do
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Thursday 24 May
Forum - The Great NZ
Leadership Deficit Thursday 24 May -
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Published on Apr 23, 2012
Short and sharp, NZ Sales Manager is New Zealand’s e-Magazine for sales professionals and is read by thousands of high performing business p...