Posts Tagged 'Business Consulting'

5 Negotiating Tactics – Number Four: Take the High Road

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5 Negotiating Tactics – Number Four: Take the High Road

In a previous post, What is Negotiation?, we discussed the Five Negotiating Tactics. This is the fourth installment of  going in-depth with an explanation of each of them. This post covers why it is important in negotiations, as in life in general, to be trustworthy and honest.

Take the High Road

 

If the other negotiator becomes argumentative, the best approach is to let them talk themselves out and simply take notes. This will keep you from getting emotionally involved and will give you time to gather your thoughts. Listen carefully and verify that you understand their position. Sometimes just this simple verification brings the negotiations closer to your position, just because you listened. Sometimes that’s all people want to know — that you’ve listened to their side of the story. It’s a powerful feeling to know that you’ve really been heard.

 

On the other hand, the argumentative negotiator may be using this as a tactic to get you to bend. Don’t. Let them talk themselves out and actively respond through verification of your notes. This reiteration of their side disarms them.

 

Remember, you’re looking for a long-term relationship here; that means finding ground where both parties can come out winners. If you sense hard feelings of any kind, attempts to break the ice and smooth the process will work in your favor.

 

Negotiations include a series of turns until finally both parties come to an agreement. Most importantly, trust must not be broken within negotiations. Things may feel strained if they’re not handled properly. That is why doing your homework and understanding both sides of the negotiations will eliminate most, if not all, of the issues.

 

Give to Get

 

Be trustworthy and honest in your negotiations. Be fair. If others are unfair to you, let them know. Don’t allow unfair treatment. This will break down the relationship, so confront the issue immediately. Generosity begets generosity. Fairness begets fairness. Unfairness brings about a lack of trust and a break down in the relationship.

 

When negotiating, if you give something away once, don’t give away anything else until the other negotiator gives you something in return. Sometimes we get nervous and think we need to keep talking, when in actuality you already gave and already talked plenty.

 

Always take turns. After you make a move, wait until the other party reciprocates before you move again.

 

Look for the next post on the Five Negotiating Tactics which will cover Closure: Putting it all Together.

 

Learn more at Entrepreneur You

 

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What is Negotiation?

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What is Negotiation?

 

How to Negotiate Like a Pro

 

At some point in owning your business, you’re going to have to negotiate for something. Whether it’s over the salary you want to pay a new hire or for the best price from a vendor, negotiating skillfully will be important to the success of your business. But negotiating can be extremely nerve-wracking to many of us… and even to seasoned pros! Most of us simply don’t know how to negotiate well because we never learned. Negotiating skills are not usually taught in school and probably not something you picked up at home or during your childhood, either. And there’s often a healthy amount of fear holding us back, too. But remember, fear is typically caused by not knowing all the facts. You must clearly understand both your side and their side of the story before you can negotiate from a position of power. There are many ways to look at any situation, so let’s discuss how to figure this out. As long as you know the whole story, I promise you, there are no surprises in negotiations.

 

Negotiators are generally happy people. Once you get used to negotiating well, you’ll notice that you can ask for things you never thought you would ask for — and that you’ll get them, too! Soon you’ll find that you’re obtaining things you never thought you could have…when all along, all you needed to do was to ask. The more you open yourself to opportunities, the more you’ll find that negotiating can be your best friend.

 

But there are times when poor negotiating skills can prevent you from achieving what you desire. Have you ever been in an argument where you got defensive and immediately became weak in doing so? Did you back yourself into a corner with no ability to win? Did you become angry, or did you react in the opposite way and just give in? Did you become emotional and lose focus on the end result you wanted to achieve? If any of this sounds like you, then it’s time to strategically build your negotiating skills into the effective machine you need.

 

Negotiation comes into play when two or more parties have a difference in opinion on the ultimate outcome of any given situation. Winning a negotiation means that all parties are in agreement and, in some way, everyone wins in the final outcome.

 

Your role in assuring the negotiation is favorable to you is to use the following
Five Negotiating Tactics:

 

  • PREPARE: Know your position, their position, and every position in between
  • PORTRAY: A positive attitude and body language
  • LISTEN: Keep communications open
  • TAKE THE HIGH ROAD: Always be honest
  • PUT IT IN WRITING: Never leave the table without a written agreement

 

Stay Tuned for an in-depth explanation of each of the Five Negotiating Tactics. 

 

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HealthCare – What Small Businesses Can Do

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HealthCare – What Small Businesses Can Do

 

In the midst of the ever-changing healthcare environment I find that small business employers are having a more difficult time keeping standard healthcare plans in place. The definition of a small business employer is 50 employees down to 2 employees. What I have found is that small business employers are continuing to increase deductibles and out-of-pocket costs for their employees. This is all well and good due to the fact that the rising cost of healthcare is something that small business employers cannot afford but keeping strong health plans intact is important.

 

While Health Savings Accounts (HSA) are something the small employer can take into account for their businesses I find that many employers could pay more for an HSA than a standard healthcare plan. The reason is HSA’s can actually end up being more expensive in the long run if their employees happen to have a catastrophic or chronic illness or the premiums are high because the insurance company prices the plan high due to their liability after the deductible is met.

 

I recommend that employers put into place a $1000, $1500 or $2000 deductible with an out of pocket maximum anywhere from $4-$6000 on an in-network basis and keep the office visit and prescription drug co-pays in place.

 

I do like the utilization of a Health Reimbursement Account (HRA) as well. You could implement an HSA or a high deductible plan and put in place an HRA, but I would recommend this only if you have 25 or more employees, otherwise the employer loses money if the HRA is used to often by the employees.

 

Healthcare reform has helped employees recognize the importance of wellness visits by implementing no-copay for wellness visits. Also there are no maximum lifetime limits and the benefit increasing the age for child and military coverage.

 

I do not see that healthcare reform will be the way of the future. Why? Because it takes away the free enterprise of insurance. I say the government needs to back away from the involvement and let the insurance companies do what they do best (but implement further guidance) which is manage healthcare and provide healthcare benefits for the population. This overplay by the government does not lead to a democratic society, it is our responsibility as citizens to manage our own healthcare and to utilize the system that may be slightly broken at this time, but with improvements definitely can be beneficial for the long term. Keep healthcare reform at bay and let free enterprise continue.

 

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Customer Service – 7 Things Not to Do!

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Customer Service – 7 Things Not to Do!

What is Customer Service? - Creating Long Term Clients

I can’t state enough how important customer service is to your business. This customer-focused approach should permeate everything that everyone in your company does! Consider the difference that outstanding service makes to you when you are a customer. Think of a recent time where you called a company help line but you didn’t receive the help you had expected. Think of those things that the person said on the other end of the line that almost immediately led you to lose trust in the company. Well, reverse this role and remember how you wanted to be treated, so that you can treat your client the same way.

 

7 Things Not to Do:

1. Allow Interruptions

Stay focused on the call. Don’t let other calls or other people around you interrupt the call. It’s important to stay focused.

2. Make up Answers

Don’t be afraid of not having the answers on the spot. If you don’t have the answer, don’t make it up. Even little white lies will come back to haunt you. Always tell the client you’ll get back to them — don’t guess.

3. Act Like you Know More than the Client

This will cause you to interrupt or dismiss or even resolve the call before you have completely heard the issue. Wait until you have heard the issue in its entirety before you talk. This will allow the client to get it off of their chest and will clear the path for you to provide the solution.

4. Interrupt a Client

Unless the client is completely out of control (never take abuse from a client), stay focused and write down your interpretation of the problem. Don’t internalize the complaint; keep it business related.

5. Over-React

A client may hit your “hot buttons,” but don’t let them push you out of control. Any time you lose control, you lose. Remember, this is a business. Your reaction must be of the highest caliber of profes- sionalism. If it’s not, you lose in a big way — not only the client, but your trust and credibility. These are not easy things to get back.

6. Pseudo-Listen

If you’re not listening with all your senses, then you’re not listening. Trust me, the client can tell if you’re slumped in your chair or thinking about something else or typing an email to a friend while they are on the phone. The client is very intuitive, just like you. Focus.

7. Assume Something Can’t Be Done

Always take the extra time to think outside the box. If an issue has come up once, it will probably come up again. So come up with a new solution, and make sure to document your solution so people who are new to your company will know how to handle the situation in the future.

 

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Business Administration – The Gatekeeper

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Business Administration – The Gatekeeper

Getting Through the Front Door

 

We are interviewing Patricia Pollmann from Office Max today. Patricia has been an Administrative Professional for more than 40 years. Why? Because she loves it. Her ability to connect with people and establish trust is one-of-a-kind. Over a nice piece of apple pie and many other tasty treats we discussed everything from learning how to type on a manual Royal Typewriter to the power an Administrative Professional has in an organization. Why? Because her job is “The Gatekeeper” both inside and outside the organization. She is the go-to person. If anyone needs something or wants to know something, they know where to go – Pat. But don’t let this fool you. Her job is also to protect. Did you know that the word “secretary” (the outdated term for Administrative Professional) came from “the keeper of secrets”? It is her job to ensure her boss is protected and she will only provide that information necessary for you to get your job done.

 

Pat shared some great insights with her stories:

The Gatekeeper from the Outside

A fellow called the office one day and pretended to be my boss’s best friend. He said “Is Jim in? I’m a good friend of his”. Pat said, “Can I tell him what it’s in regard to?” He said, “No that’s o.k. just put me right through, he’ll know who I am.” We went back and forth until I finally put him on hold and went in and asked my boss if he knew this guy. My boss picked up the phone and said, “If you can’t tell Pat what you want then you sure can’t tell me and hung up.” 

Most of the time the front person controls the boss’s appointment book. He or she has just as much power and, in fact, more over the boss’s appointment book than the boss. If you want to see the boss, you need to treat the front office person like the boss or you will never get in the door.

The Gatekeeper from the Inside

Pat shared another story about inside the office. All communication to her boss from others came through Pat. Her boss let everyone know that if you don’t get the reports in to Pat on time, then you will be speaking to me (and I’m sure you would rather talk with her – she’s nicer than I am) – which was not a good thing. Having a gatekeeper helped enforce the rules and the necessity for timeliness and focused decisions. Everyone in that company knew that their story would not be heard unless Pat screened it. This gave her boss the strategic time he needed to build the company.

 

Pat and I discussed how joining an Association had increased so many of her skills. Pat has been a member of the International Association of Administrative Professionals for almost 25 years. This organization has more than 21,000 members across the world. Pat has served as President of her local chapter for 3 terms and many other positions along the way. Pat mentioned how running an association was like running a business. There are budgets and Parliamentary procedure to learn. In fact, she is one of the few people who have read most of the Robert’s Rules of Order! Through her dealings with the Association she learned fiduciary responsibility and how to effectively manage groups.

 

Pat states, “One of the most important things I have learned, and stand by still today, is to listen and implement new ideas from all members. Even if the idea doesn’t work – so be it. Do not criticize; instead learn from what didn’t work and help build up the person and move forward in recreating the idea. Recognize the person for their hard work and help them create the next great idea.”

 

Just like in running your own business. Always be optimistic and build others up; don’t tear down. You will get much more done in the long run with the same players instead of having to find new ones.

 

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Business – Three Questions to Ask Yourself about Your Passion?

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Business – Three Questions to Ask Yourself about Your Passion?

Management of time and space can be very difficult. Many times I find myself still sitting at my desk still working or writing well before or after the so-called normal business workday. So what’s wrong with this picture … or maybe the question is what’s right with this picture?
 

When you think of all the greats in the world and the accomplishments they have made. Do you hear that they shut off their minds at 5:00 and stopped working on their passion? No you don’t. Do you hear that while Michelangelo was painting the Sistine Chapel he said – Well, it looks like it’s time to take lunch or go home and stop painting – no you don’t.

 

Do you think Hemmingway or Albert Einstein packed up their bags and said – ok it’s 5:00 let’s go home? No. If you have a passion for what you are doing… If you truly believe in your heart of hearts that you need to get your message out to the masses no matter what time of the day – then you are in the zone – then you are living your passion.

 

Here are three questions to ask yourself:

  • Is what I am doing fulfilling my dreams?
  • Is getting this task accomplished important to my passion?
  • Will taking these steps help someone?

Answering other than yes to these questions tells you that you need to find the passion in what you do. But until then – you are simply living a mundane life from day-to-day. Stop and look at every day of your life. Are you fulfilling your dream or simply following a path because it’s easy? It may be easy now, but as the years pass and you find yourself with your nose pushed against the window and looking for a way back into a life of greatness you may start to feel – it’s too late.

 

Let me tell you this — it is never, never too late. Your path may look a little different, but taking action off the beaten path you have made can reignite your dreams. Do it and do it now.

 

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Six Rules for Customer Service

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These six rules for customer service are critical to maintaining a high level of
customer service satisfaction. Holly Katko discusses what it takes to establish
strong client relationships.

 

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4 Types of Employees to Hire as an Entrepreneur

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4 Types of Employees to Hire as an Entrepreneur

Entrepreneurship – Hire the Right Employees

 
As quickly as economically possible, expand your staff. You can’t do it all by yourself. Make sure you hire the right number of people; too few is just as bad as too many. For example, if one employee is responsible for a big portion of your success, realize that if that person leaves, your company could be in jeopardy. You might consider breaking the critical parts of that single position into two separate positions, to minimize the risks of relying solely on one person. But whatever you do, don’t take on that extra responsibility yourself so that you’re doing the work. You’ll never expand your business that way.

 

Here are 4 Choices of Who to Hire:

Hire Someone who Complements You

Don’t hire someone who is exactly like you. You need to hire people who provide different levels of expertise than you do. And yet when hiring anyone, regardless of their expertise, you’ll find that it’s still important to make sure that they fit within the culture of your company. If they don’t, you won’t be happy, they won’t be happy and production will suffer.

Hire a Product Development Expert

Your employees must be committed to growing the revenue of your company. The first step to revenue growth is making sure you have a high quality product or hiring someone who has the expertise to improve your product. If your product isn’t of high quality, you’ll lose clients quickly and gain a poor reputation in the community and market place. Word spreads quickly!

Hire a Rainmaker

Thirdly, hire someone to help you sell. Especially if you don’t like to sell, this person will be extremely critical to getting your company off the ground quickly. In fact, I highly recommend that you hire someone who can service and sell — with an emphasis on sales. Many times it’s hard to find one person with both of these skills, but I’m telling you from experience, you don’t want someone who services and refuses to sell. In my opinion, even when you start to build out your firm and you have more service people, you’ll still want your service people to sell — this criterion is essential for the continued growth of your company. Your service people must also understand how to upsell products as much as possible.

Keep in mind that any employee you hire, especially in the beginning, must be able to bring in revenue to the company. Every employee needs to understand that the success of the company depends on earning more clients. Even the person in charge of product development is selling. Without that individual making your product better, you have nothing to sell.

Hire Administrative Help

The fourth person you should hire is an administrative person who can perform a multitude of tasks. He or she becomes your support. If this hire also happens to bring you someone with a talent or even a liking for sales, that would be great as well! You might find someone just starting out or just getting back into the workforce who would like to be in sales but doesn’t have the sales skills yet, and that’s fine. You or your salesperson can teach them the skills that will help grow your company.
 

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Management – Empowerment

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In this video, Holly Katko discusses one of the important points of Management.
How to become a more effective leader and earn empowerment. How to earn empowerment: provide respect to others, helping others, and guiding others.

 

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Sales – Selling and Understanding Personalities

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Sales – Selling and Understanding Personalities

Understanding Two of the Important Personalities
You are Selling To

 

While these important players may have different titles or no title at all, it is critical to establish the relationships to solve their issues or problems. This is why you are there.
 

The Driver: The Business Owner or CEO

 

This person is like the lighthouse, guiding their company through the rocky shores of the business world. The Driver wants to know how your solution fits into the big picture of the company. They’ll make their decision based on bullet points of information, so don’t bother them with the details. Usually they’ll have someone else analyze the fine points of your product anyway. When you’re working with the Driver, give them your concept, your value proposition, and why your product or service will alleviate their pain. If you can show the Driver why you can solve their problem, then you’ll have a sale. But that means observing their personality type.

 

If you walk in that door with the wrong approach — say you’re all chatty or making too much small talk about things that have nothing to do with their business or him or her personally, then you might as well stay home. Do your homework before you walk in the door. If you don’t feel that you know what the Driver is looking for, then be prepared to ask high gain questions that will make the difference in your ability to close the deal. These high gain questions will give you the credibility you need to make the sale.

 

The Analytic: CFO, Accountants, Engineers, IT

 

The description alone pretty much explains this person. The Analytic wants all the details. Again, when you walk in the door, no messing around. Of course in all situations you want to develop rapport, but not too much small talk. The Analytic wants to know why you’re there. Can you increase their bottom line? Can you decrease their cost? Do you offer a higher quality product than what they already use? Their job is to analyze all the options, so be prepared and have ALL your facts ready.

 

Your high gain questions may well be the same with any of the personalities, but the difference will be in how you approach each conversation. Like the Driver, the Analytic isn’t one for small talk. You’ll gain immediate credibility by providing a lot of facts, figures and information that isn’t fluff.

 
 
It is critical in sales to understand and study who you are establishing relationships with. This information is all about helping them solve problems whether it is a small business, a corporation, or an entrepreneur just getting started.

 

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