Top Ten Reasons for using an Interim Manager

Russam GMS Ltd undertook their latest Interim Management Survey with the help of over 1100 interim managers who are registered both with Russam GMS and with other providers. The results represent the latest assignment work that these Interim Managers had undertaken.

A full list of the Top Ten reasons for using Interim Managers is set out below and its findings have already set in train a number of management re-thinks about the best way of tackling some current business issues.

1/ Supplying specialist skills and expertise – 21%
2/ Implementation of a new strategy – 17%
3/ Special projects – 15%
4/ Business restructuring – 14%
5/ Mentoring and/or coaching – 12%
6/ Business turnaround – 7%
7/ During recruitment – 4%
8/ Merger & Acquisition – 4%
9/ Setting up a new division – 3%
10/ Covering a temporary absence – 2%

Read more: http://www.russam-gms.co.uk/market_research.html

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governenmt Changes on Credit Guarantees

A major problem for small businesses during the recession has been the withdrawal of trade credit insurance, which protects companies against a buyer defaulting on payments for goods and services.

"The extension will give small and medium-sized businesses flexibility to respond to a reduction in their credit insurance cover," said business secretary Lord Mandelson.

The scheme will run until the end of the year and will allow businesses to buy government-backed insurance to either restore cover to its original level or double the value they can obtain from the private sector, up to the value of £1m. www.ukba.co.uk

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The simple Sales rules of Negotiation

How many Sales people really understand NEGOTIATION? Sadly too few.

Many enter the negotiation cycle without realising they are in a critical part of the Sales Process. Indeed negotiation is not always related to Sales situations. For example we have all had the discussions with our siblings along the line of: "Can you take me to the pictures tomorrow?", responding with: "Only if you tidy your bedroom". Indeed a primitive, but often effective negotiation, and indeed one (if carried out) can lead to a ‘win - win’ outcome!

It is vitally important to recognise when the sales process enters the ‘negotiation phase’. Failure to recognise this may be detrimental to your desired outcome, and do the salesman a disservice.

So, what is negotiation?

I have over the years heard many definitions, but the simple ones are always the best:

"The exchange of tradables to facilitate an agreement".

Simple!

And what are tradables? And more importantly, how many sales men can list them?

Tradables are the areas where a Salesman or a Buyer can ‘give a little’. The obvious one is price, or more accurately, cost of goods/service. But there are many others too. They can include aspects such as product/service specification, payment terms, delivery and quantity.

Let us look at some sales examples.

The buyer says "Yes, I like the look of your resistors, and if you can get the price down by 10% then we can do business."

The inexperienced salesman, who does not realise that the negotiation phase has just been entered is inclined to say "Yes" in great haste to close a deal. However, the more experienced salesman who has a clear understanding of his tradables may respond in one of the following ways:

"Of course, but I will need you to commit to a 12 month agreement for me to guarantee this price"

or

"We can meet this price, but we will have to provide the product without the wired connectors"

　

Another example would be:

Buyer - "If you can guarantee delivery by the end of the month then we can place an order now".

Again, the inexperienced may jump at the offer, but the more measured approach would be "Of course, but we will need to engage our team in overtime to meet the deadline, therefore it will attract a 10% price premium".

Salesmen naturally believe that the Buyer has a the upper hand, particularly as he may have a choice of suppliers. However, if you have reached the negotiation phase, it can be assumed you are winning the competitive battle. At this point the sales man should never underestimate the strength of his proposition.

It is not unknown for a negotiation to break down irretrievably, although with thorough preparation by both sides, this is an unlikely outcome.

The outcome of a negotiation and subsequent business deal fall into three categories. The first, a ‘win - win’ is the most desirable, both sides feel good about what has been achieved, and it is a great foundation for further business between the two parties.

A ‘win - lose’ is where one company is delighted with the deal, and the other is regretting the agreement, and feeling ‘stitched up’. Frequently the ‘delighted party’ is oblivious of the thoughts of the ‘aggrieved party’. In this case, unless some remedial work can be done on the relationship, it is highly unlikely that the parties will do business together.

The final outcome is a "lose - lose" outcome. Both parties feel the deal was poor, and such outcomes should be avoided at all costs. However, they do happen due to business pressures, expediency and other compelling issues. Indeed it is highly unlikely that these parties will do business again with each other.

So how do we ensure that outcomes are ‘win - win’.

Simple - preparation is key. A salesman MUST know and understand his tradables. A buyer may have different tradables depending on what he is buying. Both parties must accept that transaction value can be talked up as well as down.

Typical tradables for a salesman would be (and these can be traded up and down):

Delivery time

Order value

Quantity

Contract duration

Product finish (specification)

Packaging

Packing and delivery costs

Insurance cover

Delivery frequency

Payment terms

In summary, the best salesmen recognise their tradables, they can recite them at a moments notice, and they recognise the simple signs of negotiation. Furthermore, they have an empathy to the needs of their customer in order that all outcomes are ‘win - win’.

Happy Selling.

Ian Thomas FInstIB
ian.thomas@sgba.co.uk
T: +44 (0) 870 787 7590

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The internet will help companies survive the recession

One in five small and medium-sized companies believe that the internet will be the most important tool in helping them beat the recession, according to research conducted by Easynet Connect.

The survey of 225 SME IT managers also revealed that 74% of small businesses use the web to grow their company profile and over 50% believe that the web would put them on a level playing field with bigger companies.

"The critical difference between now and the recession of the early 90s is the internet, which could easily be the most important tool in helping small businesses through the current down turn," said Chris Stening, managing director of Easynet Connect.

"The internet has meant that businesses are much better equipped this time around. In the early 90s we were a world away from e-commerce, online marketing, or having a mobile workforce, let alone using cloud computing or holding video conferences with customers on the other side of the world."

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Small firms 'losing money' by not selling on the internet

60% of small firms are losing out on money by not using their company website to sell their products and services, according to a new study published by BT.

The BT Voice of Small Business report surveyed more than 400 firms that employ a maximum of 50 staff and found that despite 80% of SMEs having a company website only half of these firms use the site to generate business.

The latest figures showed that over £20bn was spent online last year- meaning that small businesses are missing out on potential sales.

"The number of firms using the internet to sell their goods is too low, especially in a recession," said Stephen Alambritis, chief spokesman for the Federation of Small Businesses.

"There is clearly an opportunity to create sales online, not least because people are increasingly preferring to stay at home and shop rather than go out."

How much does a business advisor cost?

What does it cost to engage a business advisor to support your business?

Find out by region, sector and specialism: click here for a report on consultancy fees in 2008. (Courtesy of Skillfair).

To contribute to this year's survey, please click here

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