100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value

8/8/2019 100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value

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2010 IIOM/DeSenaDurant AllRightsReserved

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100LeadingOutsourceCompanyMistakesandHowYouCanConvertThemtoPositiveBusinessValue

Mistakes,obviously,

show

us

what

needs

improving.

Without

mistakes,

how

wouldweknowwhatwehadtoworkon?

PeterMcWilliams,Life101

Companiesintheearlyformativestagesarepronetocreatingproblemsthatcauseirreparableharm. A

persononcesaidthatonemistakecan lastyouaneternitywhileyourmanyrightdeedsareexpected.

The following list of mistakes that outsource suppliers make is based on our extensive global

outsourcing experiences dealingwith someof the leadingproviders andbuyers. Keep inmind that

somemay

BE

interconnected

with

other

mistakes

or

can

be

asingle

lone

item.

Regardless,

mistakes

whilebeingapowerful learning toolshouldalsobeavoidedthroughbetterplanningandpreparation.WeknowyouwillfindthelistusefulinevaluatingYOURorganizationspathforrightbusinessconduct.

HowOrganized

Thelistofmistakesisdividedupintothree(3)foundationsections;

BusinessEnterprise,

Visibility/Marketing,and

Sales.

Eachlistedmistakeiselaboratedupontoprovideclarityanddirectionasdeemedappropriate.

HowtoUse

Essential to getting value from the list of 100 Top Mistakes that Outsourcing Companies Make is

honesty. Looking objectively and critically at your business, services and people while provide

invaluableopportunities tocorrectpresent issuesand toavoid those thatare lurkingon thehorizon.

Isolation, removaland correctionareonlya start to theprocessofmistakeavoidance. Regularand

vigilantattention isnecessary inorder to reduce thepotentialof trivialmistakeshaving catastrophic

impact. While it isdifficult toanticipatea levelof regularityapurposeful selfexamination shouldbe

conductedatleastannual(ormorefrequentlyifconditionswarrant).


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Stage1BusinessEnterpriseFoundation

1. WrongMotivationforStartingtheBusinessRegardlessofwhethertherearesoundbusinessreasonsorpersonalgoalsabusinessmusthave

asapart

of

its

motivation

the

care

and

support

of

customers.

If

the

motivates

are

selfish

and

failtoacknowledgeapartinthesocialnetworkwithotherbusinessesitwillbeatrisktofail.

2. LackofPlanninga. BusinessStrategicandTacticalPlans

b. MarketingPlans

c. SalesInitiativePlans

Planning deficiencies are often characterized by spare of themoment decisions rather than

evaluated,discussed

and

purposefully

executed

(and

measured)

events.

3. NoMarketableServicesHardtoimaginebuttherethosecompaniesthathavenothingtomarketexceptpossiblyanidea

orsomethingthattheyhaveneverdonebefore.Whileitspossibletoattractinterestthereal

situationwillsoonbecomeevidenttothebuyingpublic. Ifyouareintheformativestages


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promotetheunveilingratherthantoannouncetheservicebeforeitexists(andyouhavetimeto

developtheoperationalinfrastructurearoundit).

4. LackofprofessionalismThis canbeboth ata corporateand individual level. Included inprofessionalismare image,

conduct, critical decision making, values, customer obligations, peer obligations and social

responsibility. Remember,whatmightbe regionallyandculturallyacceptable toyoumaybe

offensivetoclientsthatyouareattemptingtowinover.

5. NotimeRather than addressing the problem each step that is suggested to win market and sales

opportunities as unnecessary. Sometimes considered unnecessary, other times aminimalist

viewistaken ifitisneededthencommandtheattentionthatitdeserves. Therearenoshort

cutstogainsuccess.

6. CashflowSincemanyoutsourcingstartupsrequire littlecapitalizationcompanieswilluseoperatingcash

flowtobuildthisbusiness. Unfortunatelythisbecomesastarvingprincipalforgrowth. Itrobs

thecompanyofthenecessarynutrientstogrowandflourish(i.e.newventuresorexpansion).

Inaddition,italsorobstheoperationandplacesexcessdemandsonsalesquotaswhichputthe

operationatrisk.

7. OverspendingWewould call this thedrunkenpirate syndrome, spendingmoneywhere you think itmakes

sensewithoutaplan forhowmuch shouldbe spentandwhat the results shouldbe. While

thereareuncertaintiesaboutresultsoneshouldfocusonthoseareaswhereaknowndegreeof

deliverycanbeseenasbeingproduced.

8. NobusinessplanAbusinessplan isnotreservedforonly largecompanies. Strategicallyabusinessplan ismore

essentialforafledgingnewbusinessthatitisforalargeprominentorganization. Itforcesyou

toaddresswhoyouareasabusiness,whatyouwishtoaccomplish,whatneedstooccurand

the resources required tomake it happen. Itmust be honest, specific, based on facts and

devoidof

wishes.

Business

plans

may

be

lacking

or

totally

inferior

and

these

can

be

as

catastrophic has having none at all. Bad plans fail to establish goals, provide operational

directionandformameanstomonitor/modifyprogressinfulfillingtheplan.

9. FuzzyandconflictingprioritiesSmallflatlyorganizedcompaniesarepronetoallotofpowerfulandinnovativeleadership. Asa

resultofthisalphabehaviorallotofconfusioncanoccuroverwhatneedstobedone,howitsto


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bedoneandinwhattimeframes. Tothosethathaveamoreright/wrongviewpointtheremay

bereservationtogiveadecisiveleadershipanswercausingfuzziness.

10.PoorqualityWhilequalityisdifficulttoquantifythelackthereofisnot. Itisdevoidofyouropinionandrich

in the opinions as viewed by your customer. This can range from how your company is

presented inpromotionalmaterialsto theupkeepofyourbusiness facilities. Alwaysstriveto

provide thebestpossible image foryourcompanyand insistupon thehighestquality for the

workthatyouprovide.

11.UnreliableServiceDeliveryYouwill fail if the services that areofferedareofpoorquality andunreliable. Likewise top

quality and services will fail if marketing and/or sales are poor in the discharge of their

respectiveduties. Aholisticviewmustbetakenwhereservice,promotion,andsalesarereliable

andwith

exceptional

quality.

Any

deficiency

should

be

decisively

dealt

with,

making

sure

its

beenresolvedattherootandnotjustattheobvioussymptomlevel.

12.ExpediencyThereisabalancebetweenfailingtofulfillexpectations,evenwithcause,anddeliveringtoofast

(and raising suspicions about the goodnessofwhat isproduced). Onnew relationships it is

absolutely essential that you deliver to stated expectations. Expectation control startswith

thoseearlydiscussionsandremainingincontrolofdeliverytimeframesisimport. Youmayfeel

pressured into commitments that are beyond your abilities be strong enough to advise and

proposesolutionstoaccommodateinarealisticandqualitymindedsense.

13.DistractionsTheworldisfullofdistractionsfrominternalandmarketpressures,toheavycustomerdemands

witheverychangingtechnologies. Tohelpminimizetheeffectsofdistractionsplanscanplayan

importantroletodetermineifitisINorOUTofscope. Additionallydistractionscancomefrom

toomanysocalledopportunitiespresentingthemselves. Theseneedtobecarefullyexamined

andviewedintermsofresourcecommitmentandlikelihoodofbecomeareality.

14.ProductdevelopmentThe

question

becomes

whether

work

produced,

or

elements

thereof,

are

owned

by

the

buyer

(funder) are determined contractually. These stipulations concerning intellectual ownership

rightsremaininthebalanceandareoftenweighedinasownedbythecustomer. However,are

yougivingawaywhatcouldbereusablecomponentsorproductelementsthathavecommercial

value if made generic? Consider all ramifications before leaping for the sale which by

comparisoncouldbeminimal.


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15.DoingtheminimumAsservicesuppliersthereisacertainamountofbuyerexpectationthatyouwillnotonlydeliver

butwillalsogoa littlebitbeyondwhat isexpected. Maybeoffersomeadvice,suggestionsor

even ideas that possibly havent been considered. When deliveringjustwhat is required it

leavesthe

client

experiencing

avoid

of

emotion

and

you

without

asolid

over

the

top

reference.

16.Optimism/PessimismItsok tohaveabitofeitheroptimismorpessimism itsonlywhen it isnotcouchedwithan

appropriatelevelofdetaildoesitcomeacrosstotheclientthatyoupreemptingthefuturewith

excuses. If there is reason for concern, in either instance, provide sufficient detail and

encourage an open dialog to put everyone on notice. Buyers like leaders who remain in

commanddespiteadversityorreasonsforbeingoptimistic.

17.MotivationIllfoundedmotivationcanleadtodesperatemeasures. Whetherunderpricing,overstaffing,or

simplyovermanagementofclientengagements. Ontheotherhandbeingsocomfortablewith

your message, delivery and command over control can leave the customer feeling a bit

concerned.Motivationisimportantwhendonewithanappropriatedegreeofbalance.

18.ManagementWhat can you say about them? Often small start ups have talented management from a

technicalperspectivebutunfortunatelyweek inmanagingabusiness. Eithertheskillsneedto

bedevelopedortalentneedstobeobtained inordertofillthisvoid. Managementthat istoo

closeto

the

action

can

often

side

track

asales

opportunity

by

discussing

outcomes

and

not

presentinganappropriatevalueargument.

19.LeadershipLeadership involves honesty, forwardlooking, competent, inspirational and intelligent. One

shouldexpectstrengthinallfiveareasbutnotalwaysatthesameorderofmagnitude. TheU.S.

Marinesevengosofarasdefining14leadershipqualitiesthattheyfeelarenecessary. Aservice

providermustexhibit leadership in theoutsourcingarenaandbestrongenough tocommand

positiveleadershipattentionfromclientorganizations. Unfortunatelymanycompanieschoseto

remainfollowersandnotleading.

20.EthicsWeallhaveanideaaswhatethicsis,oftenitcharacterizedasdoingtherightthingorbehaving

intherightway. Whatcanbecomeconfusing iswhenthe right isacceptable inoneregion

and isunacceptable inanother. It ismore thansimplyacceptingtheothersmodel. Changes


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cansometimescreatechallengesinyoursupplierbasedculture. Ethicsrelatedmattersneedto

bedefined,understood,adaptedandadopted.

21.Financing/CapitalizationAnewoutsourcingorganizationcanbestartedonashoestring. Investment in infrastructure

(computers,desks,chair)canconsumealargeamountofcapitalleavingthecompanyinafrail

fiscalstate. Theresultisathreatonviability,afoundationriskthatbuyingcompaniesexamine

andcaneasilyjeopardizeadeliverycapablecompanyfromobtainingsalesopportunities.

22.ValuesEstablish and understand the values that aremost important to the client. Thesemay be

includevaluedecisions relating to theoutsourcedengagementbutcanextendon tobusiness

decisions and the importance that it contributes to the company. Overlook client values

createsthepotentialofplacingeffortintoareasthatlackimportance.

23.PurposeToovague,toonarrow(athreatforlongtermviability),orattemptingtoeverythingtoeveryone

are suresigns formissing salesopportunities. Clearlydefinedpurposeandvision (next) item

givesbuyersachancetounderstand,acknowledgeandacceptyourreasonassomethingthey

canfeelcomfortablewithinthecontextoftheservicedrelationship.

24.VisionVision ismore thanmakingmoney vision creates the organizational purpose to accomplish

strategicgoalsthroughprecisetacticalobjectives. Thevisionisusedtohelpclientsunderstand

whywebehavethewaywedo.

25.ExcitementNoonelikesaburgeoningrelationshipthathasnospark. Oncetherelationshipgetsunderway

keeping the excitement alive is as important as deliver. This is what builds committed

customersandhelpscompaniestogrowrapidly.

26.LackofEngagementWinning a contract has all the potential of being lost if the players are not engaged. This

includesnot

just

delivery

personnel

but

senior

and

engagement

management

as

well.

Making

thesaleisonlythestarttoalongandongoingcommitmenttothecustomer.

27.UninspiredDesignCopyingthatothersdoistheeasiestwaytoselfimposeyouruniqueidentity. Studyingand

learningfromothersprovidesvaluableinsight. Butunderstandthattheirsuccessformulamight


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notbeyours. Numerousfactorscontributetotheinabilityofoneapproachnotworkingfor

another(e.g.timing,conditions,andaudiencebeingaddressedaresomeexamples).

28.CreativityBuyerswantinnovative,creativityandleadership. Ifyourcompanyviewsyourservicesasa

commoditybuyerswillexpecttopurchasetheseatalowercost. Yettheywillexpectallofthe

creativeelementsthatmightberequiredbythemandareavailableelsewhere. Viewevery

opportunityandyourpresentationtotheclientswithamindtowardcreativity.

29.RegulationsRegulationsaremeanttobeadheredto.Whethergovernmental,industryorevenorganization

policyregulationsrepresenttheboundariesthatmustbeoperatedwithin. Buyersunderstand

thisandchoselocationsandcompaniesbasedontheseregulatorymandates. Asasupplier

showingadherenceandawarenesscanservetopromoteyourbusiness. Silenceraisesquestions

aboutyour

regulatory

interests,

and

may

be

something

that

your

competition

has

been

quick

to

exploit.

30.InternationallawsLawsfallintotwocategoriesjurisdictional(withinyourcountry)andinternational. Asaprovider

ofserviceyoumustbealsoawareofjurisdictionallawsforyourbuyer. Forthisreasonitis

invaluabletoaddressthismatterbothintermsofinitialdiscussionsandfinalcontractdetails.

Mattersofrulingandarbitrationareimportantsellingpointstoprovidecomfortforthe

customerandtoalleviateunnecessaryriskconcerns.

31.ProcrastinationProcrastination(andpossiblyparanoia)killsdeals. Listening,puttingforthasoundbusiness

proposalthatisfairlypricedwinsdeals. Unnecessaryworryabouttheperfectproposal,excess

levelsofdetails,andinsomecasesdealingwithtoomanysolutionoptionsallleadto

procrastination. Buyerswhatresponsiveness,nottooquicklybutnotexcessiveeither. Eventhe

megadealsaddresstheissueofprocrastinationbyintroducingaroadmapfordiscussions,a

frameworkforthetopicofinterestandthenbreakitupintosmallpiecesthatcangivespeed

whiledeliveringtothepointresponses.

32.FalseandMisleadingTitlesWhatisinatitle? Doesitreflectthepersonordoesitsimplyservetopromotealevelof

importance. Falseandmisleadingtitlescreatebuyerconfusionthatleadtomistrust. Buyers

whattoknowwhotheyaredealingwith,whattheycandoforthem(andtheirneeds),andhow

thatpersonwillplayapivotalroleinservicedelivery. Thereisnothingworsethanworkingwith

aperson(suchasDirector)anddiscoverthattheyaretotallynave,lacksauthorityand

unfamiliarwiththeservicesthatthecompanyprovides.


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33.LackofStrategicVisionbeyondCurrent(possiblylimited)folio

Unlessyouaresellingprojectbasedservices(dotheworkanditsoverwith)astrategicvisionis

essentialforyouasabusiness. However,thebuyerisalsointerestinknowinghowyour

businesswillbegrowingandhowthiswillaffectthem. Isitgrowinginadirectionthatissimilar

orcounter

to

their

interests,

or

does

it

really

matter?

Beyond

the

details

of

the

strategic

vision

buyersfeelalevelofcomfortinknowingthattheretheirsuppliershavegoalsandplans. Inpart

thisinterestrepresentsfamiliaritytotheiroperationsandhowvisionsareinstrumentalintheir

organizations.

34.UseofGenericemailaccountsTheuseofgenericemailaccountsraisesconcernaboutthelegitimacyoftheorganization. Your

businessisaskingbuyerstoestablishtrustandyetthegenericemailaccountistheequivalentto

apostalboxasanaddress. Establishofficialcorporateemailaddressesandrestricttheuseof

genericaddressesforsupportingmessengerservices.

35.BiggerisBetterParadoxBiggerisnotalwaysbetter. Sizeisameasureofcapacitybutthisdoesnotinsurecompetency.

Supplierscontinuerepresentthemselvesintermsofsize,hopingthatthiswillpersuadeabuying

decision. Oftentheoppositeoccurs,sizethatlacksflexibility,capabilityandcompetitivepricing

drivesopportunitiesaway. Promoteabilityandcapacityasone.

36.PromotingaCommodityandNotaHostedService(usewhereapplicable)Unlessyouareofferingthesameexactservicetoeachcustomer,dontsellyourservicesasa

commodity.Commodity

services

are

packaged

and

used

many

times

to

reduce

cost.

Buyers

understandthisandwillexpectlowcostbutservicesuniquetotheirneeds. Packageand

promoteyourservicesbutdiscusshowitisdesignedtobecustomizedtothespecificneedsof

eachclient. Usetheserviceasthefoundationandnotthefinalofferingthatgetsofferedtothe

buyer.

37.LackofBusinessacumenOutsourcingstartupsrequireverylittleinvestmentandtheabilityofagroupofpeopletodoa

job. Forthisreasonbasicunderstandingofhowtooperate,marketandsellbusinessservices

areoftenlacking. Takethetimetodevelopbusinessacumen(knowledge/understanding)and

notwander

about

creating

an

embarrassment

for

your

company

to

overcome

for

years

into

the

future.

38.CopycattingtryingtoLookLikeSomeoneElse(notyourself)Asnotedearlier,followingwhatsomeoneelsehasdoneiseasy. However,auniqueidentity

(somethingtorememberfor)iskeytogainingbusinesssuccess. Thisiscommonlycalled


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brandingandgoesbeyondalogotoreflectwhoyourcompanyisandpossiblyenticebuyersto

takeafurtherinterestinyou. Copycattingcanincludemarketingliterature,serviceofferings,

andevenspecialpromotionsusedtomakesale. Itisbesttoleadandsetthepacethanto

copycatandtryandkeepup.

39.SingleProductOfferingsthatareNotaNicheTheriskyoufacewithsinglenonnicheproductsisthattheyarenotuniqueandiftheyfalteryou

putthebusinessatrisk. Whilefocusandserviceconcentrationisvaluableonemustnot

overlooktheneedtosustainabusinessandshowtothebuyingpublicthatyouhavemoreto

offerthanjustonething. Evenanicecreamparlorhasmorethanonflavor.

40.RelyingtoomuchonopinionsfromthegeneralpopulationOpinionsareimportantandessentialtodevelopingyourbusiness. However,allopinions

requirecarefulscrutinyandevaluationastotheirauthenticity. Generalpopulationcomments

mayresonate

concerns,

fears,

apprehensions

that

are

based

on

instincts

and

not

on

concrete

facts. Forthisreasonconsidergeneralopinionsassimplyonedatapointamongstmany.

41.BelievingininstantaneousresultsEveryoneonesthingsinstantaneouslywhetheritbepersonalgratificationorbusinesssuccess.

Theroutetothesegoalsiscomprisedofinternal(self controlled)andexternalforcesthatshape

theway,theamountandthespeedtowhichgoalsarerealized. Forexample,ifyouemploya

personoracompanytosellforyouitrequirestimetoestablishthecontacts,tofosterthe

relationship,toengageapurposefuldiscussion,presentanoffer(throughsometimesmany

cyclesofchange),closedandsecurethedeal,andultimatelydelivertheservice. Thisisnotan

instantaneousprocess

and

one

should

not

view

those

sales

that

are

made

in

short

times

as

repeatablesincetheyarebeingdrivenbythebuyerwhoyouhavenocontrolover.

42.Overlookingtheuseofinformationresourcesinthesesubjectareas.Thehigherthestakesthemoreimportantitistoengageadvice. Sometimesacompanyis

fortunatetohavethisexpertiseonboardandtheycanbeexploited. Eventhenaperiodiccheck

shouldbecarriedouttoinsureoptimumefficiency. Ifyoudonthavesubjectmatterknowledge

thenseekadvice. Thiswillavoidexcessivestepsandwastedtime.

43.Notconsideringtheuseordevelopmentofyourownproducttoadvanceyourbusiness(orspecific

marketing

or

sales

campaigns.

Identitywasdescribedearlierinthecontextofmarketpromotion. Uniqueidentityisalso

pertinenttotheproductsandservicesyouoffered. EspeciallyintheBPO(BusinessProcess

Outsourcing)realmwherenonvoiceorcallcenterservicesappearinsimilarwayshowcanyour

companyuniqueshowwhattheyhavetoofferthatisdifferent? Followthesimpleguideof


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HOW,WHAT,WHEN,WHYandVALUEwithspecificattentiononrisk. Buyersdonotwanttobe

thelaboratoryexperimentbehindnewproductsandservices.


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Stage2Visibility/MarketingFoundation

44.NomarketnicheThe

world

is

abig

place

and

especially

for

new

companies

focus

is

important

to

improve

the

balancebetweeninvestmentcostandsalesreturn. Beingageneralistinabigworldisthe

easiestwaytoshortenthelifeofyourbusiness. Focussmallandgrowyoursuccessstoryin

ordertousethetestimoniestogrownthemarketniche.Marketnichecanbeforaparticular

typeofserviceorthecommunitytowhichtheservicesarebeingprovided.

45.NodifferentiationIfyouhadyourchoicebetweenproductAandproductB,bothbeingthesamebutproductA

wascheaper,whichonewouldyouchoose?Whatthingswoulddeterminethatchoicebeyond

simplyprice? Thisisthesamedilemmathatbuyerfaceandyourcompanymaybetherecipient

oflost

sales,

not

as

aresult

of

superior

ability

but

purely

based

on

price

because

you

havent

beenabletobringoutthoseuniquevirtues(thatclearlyhavetobepresentedwithinthecontext

ofbusinessvaluetothebuyer).

46.NoNetworkingBeingconnectedwithothersisinvaluable. Therecentgrowthinsocialnetworkamplifieshow

importantitistoconnect,reconnectandhowtheycanbeusedtopromoteyoucompany.


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Withoutanetworkoffriends,colleagues,formerassociates,businessandcommunity

connectionsabusinessfacesgoingitalone. Itisobviousthatonepersonyellingthemessageis

lesseffectivethanthemasses. However,whilethenetworkisessentialtopromotingthe

positivemessageonemustalsobesensitivetonegativenewstravelingfasterinanetwork

environment.

47.ConfusingMarketingwithSalesTherolesofmarketandsalesgetconfused. Weseethisinroles,weseeitintheworkthatis

doneandthemessagethatisputforth. Thisconfusioncreatesexcessivebravadoindefenseof

theseroleswhichleadstopoorresults. Marketingisclearlyaboutpromotingthebusinessand

theservicesthatthebusinessoffers. Salestakesthisawarenessmessage(promotedmy

marketing)andmakescustomerfacingcontacttoengageadiscussionastohowatrust

relationshipcanbeestablishedandhowaworkingrelationshipcanbeformed. Divisionof

dutiesisimportantinordertoretainfocuseventhoughthatsomebelievethatasinglehatcan

bewornbybothroles.

48.SocialNetworksTheintroductionofsocialnetworks,beyondtheancientelectronicbulletinboard,hasherald

greatopportunitiesforbroadeningaglobalconnection(personallyandprofessionally).

Howevertheeasyandenticementofanewofferingcausesustojumpinwithbothfeetbefore

wehavefullydeterminedhowthesocialnetworkcanbeputtobestuse(andsafely).

a. OverusedImplementation,useandongoingmaintenancearecoststhatmustyieldbusinessvalue.

Itis

easy

to

say

that

visibility

has

value

but

even

visibility

yield

results.

This

also

involves

howmanyandwhichsocialnetworkswillbeutilized,whichwillservewhatbusiness

purposeandhowtoeffectivelykeepthemuptodate.

b. UnderusedYouvedecidedtojumpintosocialnetworksnowwhat? Isyourinvolvementaworkin

process,afinishedandpolished(static)exampleoritaliveandbreathing? Buyersare

guardedsuspiciousofcompanieswhoappeartobestaleorstagnantnotonlyonsocial

networksbutoncorporatewebsites.

c. MisusedSafetywasnotedearlierandthisreflectsthemessagethatisputforthasapartofthe

socialnetwork. Isittoopersonal,toorigidorsimplysendingaveryconfusingunofficial

andpossiblyunprofessionalmessage? Misuseisntalwaysintentionalandsometimes

growsoutofexcitementwiththetechnologies. Standbackandmakesurethatthisis

whatyouwantyourcompanytoappearas.


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d. LackofGovernanceSocialnetworksoftenevolvefromnondeliberategrassroots efforts,sometimesbya

personoragroupwithinyourorganization. Yourbusinesshassomecatchinguptodo

inmakingorreshapingthecommitmenttothesocialnetworkoutletinvolvement.

Beyondroutine

matters

of

ongoing

support

the

organization

must

establish

who

will

overseethecarryoutofthemissiontobeservedbytheoutlet.

49.NoonlinepresenceAsmuchasweknowthatwewillsellverylittleonlinewemusthaveawebpresence. Itsour

storefrontintotheworldthatwearetryingtosellinto.Withoutthisbuyersaresuspiciousof

ourexistence,motivesandabilitytodelivery. Withthiscomesaresponsibilitythatthewebsite

isprofessionalandnotaconglomerationoftoomuchinformation. Justenoughtoenticeand

invokefurtherquestionsthatallowyoutoengageadialog(andformabondedrelationship)

50.WebsitesthatdontworkorhaveelementsthattarnishyourreputationBrokenlinks,misspellings,badgrammar,claimsofgrandeur,staleinformation,lackofcurrent

updatesraisesnumerousquestions. Atthecoreisthequestionofdeliverycredibility. Your

website(andothervisibilityoutlets)isyourcallingcard. Oftenyouonlyhaveonechancethat

allowsyoutoproceedtothenextstageofclientdiscussions.

51.CollateralpoorlyconstructedDoesyourmarketingcollateral(print,nonprint,website,socialnetworks,other.)looklikeit

wasconstructedbyachild? Collateralmustintroduceandenticefurtherdialog,notbean

unabridgedaccount

of

every

facet

of

your

business.

There

is

ample

time

to

provide

those

detailsbutuntilyoucanestablishinterestextraneousdetailsareunnecessary.

52.InternationalizationIssuesThereisliteraltranslationandpropertranslations.Whatmightbetranslatedliterallycan

introducegrammaticalandsometimeinterestingphraseology. Afriendoncesaidthathe

wantedtohaveanIntimateAffairwithhiscustomer,wheninfacehesimplywantedtohavea

CloseRelationship.Whilehumorousitwasntexactlythemessagethathewasattemptingto

communicate.

53.Green/NonGreenFormatsChoosingtherightpresentationisimportant. Selectingwhethersomethingiselectronicornot

isnotsimplymakingaGreendecision. Suppliersmustchoosetherightformtoencourage

results. Presentingsomethingelectronicallythatismoreusableinprintedformdiminishes

effectiveness.


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54.ToomuchinformationPreviouslynoted toomuchinformationleadstoconfusionbutalsomakesthesellingeffort

moredifficult.Whyisthis?Moreinformationchallengescontroloverthesellingcycle.More

questions,oftenoutofcontext,requireresponseattentionthattakesawayfromlisteningtothe

customer.Keep

it

simple

and

remain

in

control

of

the

process

and

the

flow

of

information.

Less

isbetter.

55.FailingtoSeePurpose(toinitiateadialog)vs.BeingaCatalogWhatroledoesyourcompanyplay? Isitaservanttotheclientorapartnerinongoingsupport

forabusinessobjective. Oftenyourservicemessageissostrongthatyoufailtolistentothe

lamentofthebuyer. Rightorwrongthebuyerwillprovideinsightintotheirneeds,goalsand

timeframesbywhichtheservicedeliverywilltakeplace. Failingtopreparefor,listenanddialog

withtheprospectwillresultinproposalsthatfallshortofmeetingkeybusinessobjectives.

56.CollateralwithbadgrammarandmisspellingsFirstimpressionsleavelastingimagesofaboutthequalityconsciousnessofthesupplier. Evenif

thesepointsareminorandinfrequentbuyermayhaveheightenedconcernswhetherthiswill

spillovertotheworkyouaredoingontheirbehalf. Takethetimetoconductindepthcritical

reviewsinternally,byusingexternalqualificationorboth.

57.LackoffocusTheworldmaybeyouroysterbutifyouwishtomakewiseuseofyourmoneydontspread

yourselftoothin. Themoreareasandorganizationsyouaretryingtopromoteandsellintothe

higherthe

cost.

Limited

funds

result

in

less

money

being

spent

per

pursuit

which

jeopardizes

theeffectivenessformakingsales. Narrowyourscopebasedonyourcorecompetenciesand

theservicesthatyouaredeliveringto. Thiskeenunderstandofwhoyouareandwhatyouare

bestatwillhelptodrivewhich,

a. Regions,b. Industry,c. SizeofCompanyandd.

Services

Type

youaremostapttobesuccessfulinsellinginto.

58.Donotfalsifyfactsabout:a. CompanyHistoryb. CompanyHealth&Viability


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c. ClientsServicedd. ServicesOfferede. SkillCapabilities

Itwill

be

only

amatter

of

time

before

you

will

be

caught

in

your

lie.

Even

when

you

stretch

the

truthinactualityyouareattemptingtocoverupwhoyouare. Beingforthrightisthebestpolicy

toavoidunnecessaryexplainingandembarrassment.

59.Collateralthatistooselfpromoting(overusingsuperlatives)Wehaveallbeonthereceivingendofpromotionalmaterialsthatmakeclaimsthatwouldbe

hardtodefend. Best,WorldClass,StateoftheArt,Only.Areafewofthosecatchwordsthat

attempttoimpressbutcanwoefullyfallshortofreality. Letthefactsspeakforthemselves.

Overorimproperuseofsuperlativescanmakeyouoneofmanycompanies,thuslosingyour

brandidentity.

60.FocusonTechnologynotonValueContributionItsoktotalkabouttechnologyinpropercontextbutdontshowcaseitasthesolution. Behind

everygoodtechnologyisanablebodiedtechnicianthatcanplyitsuseproperly. Ultimatethe

useofanytechnologyistoefficientlysupportabusinessprocess. Technologywithoutpurpose

canresultincoststhatexceedperceivedbenefits.

61.InsufficientpublicityOrganizationscannotbuywhattheyareunawareof. Publicityisimportantandshouldbe

expansive.Today

the

use

of

social

networks,

working

partnership/collaborations

and

exposure

opportunitiesallowcompaniestobeseen. Wherepublicitycanfallshortiswheresuppliersget

promotion(marketing)andsalesconfused. Exposureisnecessarybutdifficulttodrawa

correlationtointermsofearnedsales. Sufficeitthatwithoutpromotionsalesarefarmore

difficulttomake.

62.FuzzyandConfusingTerminologyItiseasyforcompaniestobesuckedintousingtrendyterminology(likeinnovativeorcloud

services)toillustratetothebuyingcommunitytheircurrentandleadingserviceposition.

Misuse

and

out

of

context

use

of

such

terminology

can

discredit

what

might

be

positive

service

offerings. Keepitsimpleandwheneverpossibleavoidfollowingtheterminologypack. Leaders

setthepaceforotherstofollow.


16/35



63.RelianceonOneMarketingMediumBuyersareunique. Somebuybasedonwordofmouthreferrals,othersthroughindustrial

researchwhilesomerelyheavilyontradeshowsandotherreferenceresources. Supplierswho

relyinonlyonemarketingmediumrisknotbeingseenbyaportionofthebuyingcommunity.

64.PromotingProductwithoutCompanyIdentityYourproductcanandshouldbetheflagshipforrecognizingyourcompany. Evenwithoutvisible

brandingtheproduct/serviceshouldreflectyourcompany. Newsuppliercompaniestendto

relyheavilyoneithercompanyorproductpromotionbutnottogether. Thisweakenscompany

visibilityandproduct/servicevalue.

65.ShotgunMarketingwithoutPinpointFocusAsnotedpreviously,alackoffocusislikeshootingashotgunatawall. Youareapttohitthe

wallbutyouwillfailatplacingahitonaspecifictarget. Thecombinationoftargetmarketfocus

andtheuseofmultimediagreatlyimprovetheeffectivenessofyourpromotionalefforts.

66.WebsiteMarketingDependencyYourwebsiteisyourstorefront,itisaplacetointroduceyourbusiness,showyourservicesand

illustrateyourcapabilities. Howeverbuyersdontalwaysbuyfromthewebandmayrelyheavily

onprintmedia,tradeexpositionsandevenemailtobetterunderstandthebuyingsources.

Placingallofyoutrustinonesourcedeprivesyouofothervisibilityoutlets.

67.BeingontoomanyezinelistsEverything

in

moderation,

maintain

afine

balance

with

excessive

visibility

vs.

insufficient

exposure. Ifyouaretemptedtobewidelyexposed,lookforwaystomaketomakethe

exposureinteresting. Maybeitstheclevernessoftheadvertisementsorsimplytheyoffersome

entertainmentvaluethatmakespotentialprospectwanttokeepcomingback.


17/35



Stage3SalesFoundation

68.SolidifyingtheRelationshipintheFirst5MinutesPlanning,preparationandartfulexecutionofyourmessageinthefirst5minutesisessential.

Peoplelackpatienceandifyourmessagetakeshourstodeliver,youhavealreadylostthe

opportunitytoyourcompetition. Keyto5minutesolidificationisknowingyourcustomerand

beonkeytopofmakingthisknownquickly. Whileyoumaynothaveallthespecificsknow

enoughtoenticebuyerstoallowacontinuedinterchange.

69.ProductpitchingBeforeyoupitchyourproductallowthebuyertogofirstinpitchingtheirservicerequest. Allow

enoughtimetogainclarificationanddevelopanunderstandingabouttheopportunityandwhat

theywish

to

accomplish

(or

how

they

services

is

to

be

delivered).

Suppliers

who

are

all

about

whattheyhaveandfocusonmakingitfittheclientaregoingtomisstheneedsofthebuying

client.


18/35



70.PoorproductknowledgeThereisnothingworsethannotknowingyourproductcold. Ifyoulackthiscompetencyseek

thosethatdoandallowthemtoserveasthesubjectmatterexperts. Toooftensuppliersrush

torespondwhenitwouldhavebeenprudenttoaskfortimetoevaluatethesituationand

proposeamore

durable

solution.

Know

your

products

and

services,

understand

how

they

can

beapplied,whattheyproduceforvalueandwhatlevelofadaptioncanbeaccommodated.

71.InadequateLearningDevelopmentAnessentialpartofcompanygrowthistoaccommodatelearningdevelopment. Thisinvolves

notonlytheindividualbutalsothecompany. Companylearningdealswiththestrategic

interestofthebusinesswhiletheindividualslearningisofatacticalnature. Withoutlearning

companiescanlosemarketpositionanddieaslowagonizingdeath.

72.NosalesprocessAsalesprocessisnecessarytoinsureandorderlypursuitofasale.Withoutasalesapproach

thesupplycompanymustrelysolelyonthetalentsandexpertiseoftheindividual. Thisinhibits

thesharingofknowledgeinaconsistentandcontrolfashion. Forthebuyeralackofawareness

ofnextstepscreatesconfusionandadisconnectionwiththeprospectivesupplierthatisseeking

theworkcontract.

73.LackofcustomerfollowupBuyersliketoknowthatthesupplierisinterestedenoughtohaveafollowupplan. Whilethis

maybeingeneraltermsitservesasastartingpointforbuyerstointerjectwhattimeconstraints

thatmust

be

taken

into

account.

For

the

supplier

afollow

up

program

allow

for

maintaining

successprobabilities. Eachdaywithoutbuyercontactreducesthelikelihoodformakingthe

sale.

74.Notunderstandingcustomerneeds/notknowingthecustomerBuyersliketoknowthatasuppliertakesinterestinthem. Interestinvolvesknowledgeoftheir

industry,someofthechallengesthatarefaced,theoperationalmakeupofthespecific

organizationbeingdealtwith,andkeyplayersinvolved. Oneisnotexpectedtoknowindepth

historicalfactsbutenoughthatonecanbetterunderstandhowthiseffectscurrentservice

needs.

75.PricingAkeygoalforoutsourcingisarbitrage(takingadvantageofcountervailingpricesindifferent

markets). Althoughtheremaybeothergoalspricecanoftenmakeorbreakthedeal. Onemust

bekeenlyawareofpricingfromcompetitorsandbewillingtoretainpriceflexibilitywithout

jeopardizingthebusiness. Keypricingconsiderationinclude,


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a. NonCompetitivePricing,b. TooMuchPriceCompromise,c. ErraticandInconsistentPricing(acrossallbuyersandduringcontractprice

negotiations),

d. ThinorNoMargin,ande. TreatedasCommoditywhenItsServiceSale(diminishedcostbasedondiminished

valueofcommodityvs.customselling).

76.ProposalManagementIssuesAlackofproposalmanagement(development,constructionandpresentation)losessales

opportunities. Theartofproposaldevelopmentmusthittheneedsofthebuyerquickly,and

reflectprofessionalcareandattentionthatcanbeexpectedduringthedeliveryoftheservice

relationship.Proposal

should

also

give

consideration

to

not

such

the

leave

behind

document

butalsothepresentationthatismadetointroducetheproposalitself. Someproposal

managementissuesthatcankillthedealinclude,

a. LackofGovernance,b. AcceptingUnattainableConditions,c. DemandingTooMuch(EspeciallyPaymentTerms),andd. Ageneralfailuretoleadintheproposalandblindlyfollowwhatisrequested.

77.Inventory(akaSalesPipeline)Timehasbeentakentopursueandaccumulateleadsinthesalesinventory/pipeline. Failings

oftenoccurinfailingtoworktheinventory,addtoitonaregularongoingbasisandimproperly

classifyingtheinventory(statusandprobabilityofsuccess). Salespipelinemanagementis

crucialtoongoingrevenuegenerationaswellastakingappropriatepreparatorystepstoinsure

adequateresourceavailability.

78.Misjudgingpeople/customersOverconfidenceandassumptionscanleadtoimproperpreparation. Thisisoftenembarrassing

andincreasestheprobabilityoffailingtosecuresales. Themostcommonmisjudgments

involve,

a. FalseImpressions,b. BadBackgroundData(stale,poorlyassessed)andc. DrawingUninformedConclusions.


20/35



79.NotsayingthankyouAssimpleasthismightbeyouareatthemercyofthebuyer. Theyhaveopenedtheirdoorto

youandhavepatientlytoldyoutheirstoryandinreturnyouhaveshowedthemhowyoucanbe

ofassistance. Behumbleandcourteous,saythankyoufortheprivilegetoprovideinformation

usefulfortheirneeds.

80.NothavingfunTakingyourselfandyourworktooseriouslyreducestheopportunitytohavefun. Apositive

attitudeandenthusiasmiscontagiousandpeoplewanttobearoundpositivethings. Makeita

pointtohavefunintheworkthatyouaredoing.

81.BeingtheclownatthewrongtimeSometimes

humor

can

be

misinterpreted.

Its

best

to

refrain,

in

the

early

stages

of

the

relationshiptokeepyourhumortoyourself. Thiswillallowyoutobetterunderstandthe

playersanddeveloparelationshipwiththeclient. Sometimeshumorisonesnervousreaction

toanewengagementrelationshipbutkeepinginmindtheimpactofmisplacedhumorwillhelp

youtokeepyourfrivolitytoaminimum.

82.MisplacedangerItistemptingtolayblameandtakecheapshotsatyourcompetitionandeventheindustrythat

youareapartof. Onemustunderstandthatwhenyoupointafingeratsomeoneorsomething

thefingerisalsopointingbackatyouintermsofyourreaction. Whenupsetfindwaystovent

thisangerinconstructivewaysthatprovidevalueandraiseyouabovetheoccasion. Evenalost

customerisonethatcanstillprovidevaluetothebusiness.

83.Sellingtothewronglevel;notallCLevelsmakethecallEventhoughCLevelmanagementdirectsthebusinessandcontrolthepursestringsthey

seldomareinvolvedinthedaytodaydecisionmakingonoutsourcedengagement. Their

involvementisevenlessasitrelatestocriticalevaluationandassessmentofsuppliers. Doyour

homework,understandwhoarethepowerplayers,thosethatyouwillinteract,negotiateand

workwith. Alsoknowingwhotheapprovingpartiesarewillhelptofacilityandunderstandingof

theinternal

gauntlet

that

the

operational

decision

makers

must

traverse.

84.PoorpeopleskillsJustbecauseyouareinsalesdoesnotmeanthatyouareapeopleperson. Noteveryonethinks

likeyouandcertainlywhensellingtoaforeignaudiencethegapisevenlarger. Practicingwith

othersandbeingwilltoaskforcriticalpostsalesfeedbackarepositivewaystoovercomesome

ofthethingsonemightconcludeaspeoplerelatedskills.


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85.CommunicationskillsEnglishmay very well be your second language. On a positive note your accent is apt to

captivate and even cause your customer to listen intently. Butdont overplay this, rely on

supportingcollateralandadvancepreparedpresentations. Learntospeakup,speakslowlyand

carefullychoosethewordsyouaregoingtouse.

86.Alackofbelief(Credo)Acompanyisonlygoodastheconvictionofitsemployees. Lackingenthusiasm,commitment

andbeliefiseasilyseenbythebuyer. Ifyouarentconvinced youarethebestforthejobdont

expectbuyerstoseebeyondit. Companymanagementmustvigilantlysupportcommitmenton

thepartofallemployees,especiallysalespersonnel.

87.Notenoughdrive/TooMuchDriveEverythinginbalancetoolittleortoomuchenthusiasmcanturnabuyeroff. Bestcharacterized

assoftselling,suppliersmustadapttheirinteractiontothebuyingclimate. Toolittledrive

mightbeinterpretedasarrogance,lazinessorahiddenagenda. Toomuchdrivemayindicate

desperation.

88.PoorresultsThereisnoreasonforit. Poorresultsdontimmediatelyoccurtheymanifest,andalackofopen

attentionallowsfailuresittobecomeareality. Anyresultsbadorgoodrequirecarefulanalysis

andanalteringofapproach. External influencemaybethecauseofpoorperformanceresults

butourreactiontothem isthecatalystforresponsivechange.Poorresultsjeopardizeongoing

presentandfuturerelationships.

89.SellingservicesthatarepoorlydefinedbythecustomerUnlesseveryoneagreesthatitsanexploratoryprojectitisdangeroustoofferservicesaround

vagueorpoorlydevelopedcustomerexpectations. Beforemakingthedeepcommitmentand

spendtimethatcanbelaterviewedaswastefulworkwiththecustomertoacknowledgethis

vaguenessandgaincommitmentthatsomeeffortneedstobeexpendedtobetterunderstand

anddefinetheirneeds.

90.PursuingbrokeredbusinesswheredirectcustomercontactisnotallowedSalesarethenameofthegameandoutofdesperationsuppliersmayfallpreytobrokered

businessopportunities. Crediblebrokersallowfullaccesstobuyersandprotectthemselves

withcontractualprovisionsandupfrontmonetarycompensation. Therearehoweverbrokers

thateitherrepresentfictitiousopportunitiesorareincollusionwithbuyers(splitthefeedeals)


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wherebythesupplierisheldtodeliverythatisimpossibletoaccommodate. Ifyouare

prohibitedfrominteractingwiththecustomerBEWARE!

91.QuotadrivenstaffturnoverBuyersdrivehardbargainsonmanyfronts. Asidefrompricetheuseofquotedrivenstaff

turnover(holdingturnovertoanagreedanottoexceedlevel)isonewaybuyingcompaniescan

gainadditionalfiscalleverage. Realizingthatyoucannotforcenonturnoversuppliersmust

evaluatetheirhistoricalturnoverhistoryandthemeasuresthatarebeingusedtoretainstaff.

Basedonthesefactsaninformeddecisioncanbemaderelativetoaccommodatingthe

contractualprovision. Astemptingasitmightbetoconcedetoprovisionstogainsalesthe

consequencescanbedamaging.

92.WeakorfalsifiedforeignsalesoutletsItistemptingtolistaseriesofsales(andserviceoutlets)basedonacolleague,familymember

orfriend

who

can

answer

acall

or

attend

to

an

issue

on

your

behalf.

Unfortunately

this

is

often

perceivedasmisleadingbybuyers. Itsbesttostateyourrealityintermsoflocationsbutadd

thatyouhavebrokeredrepresentativesthatrepresentyourinterestsintheregion.

93.BrokersourcedengagementsthatlackadequatequalificationBrokersmayhaveopportunities,manyhavebeenpresentedbybuyerslookingforqualified

servicesuppliers. Verylittlemaybeknownabouttheengagementandthebuyerwhoyouare

dealingwith. Fundamentalslikecreditworthiness,paymenthistory/method,andengagement

managementmaybepoordefinedorunknown. Allengagements,regardlessofsourcerequire

deliberatecriticalevaluation.

94.Utilizingcommissiononlyagents(orattemptingtoengageonacommissiononlybasis)Duringthe1990s,whendemandexceeded,supplyitwaseasytofindWesternrepresentatives

whowouldworkonacommissiononlybasis. Timesweregoodandopportunitieswere

plentiful. Todaywefacelowereddemandandexcessivesupplythatmakesgettingjobsmuch

moredifficult. Thiscreatesaprotractedsalescycleandmoreeffortbeingexpended.

Commissiononlyagentsarebecomingscarcebecausefundingisnecessaryinordertosupport

theirefforts.

95.NopreparedsalesagendaSalesfallintovaryingtypes;thecoldcall,responsetoinquiries(alsoknownasrequestsfor

informationRFI)andattentionforrequestsforproposal(RFP). Whatisplannedapproachfor

eachofthesesalessituations? Noplanresultsinmissedtargetsandwastedtime.

96.StickingwithaScriptwhenConditionsdemandaChange


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Nothingworsethanstickingwithapresentationoralineofthinkingwhenconditionschange.

Beflexibleandadaptive,thingsthatyouwishyoucouldsayorshowcanbedoneatalaterdate.

Customerslikesupplierswhocanthinkandrespond,thisreflectsthewaytheircompanies

behave.

97.NotbeingDirect.Ifyouwantsomethingaskforitdirectly. Customersdontwanttowaltzaroundtryingtofigure

outwhatyouwant,needorareaskingfor. Comestraighttothepointorrisklosingthesale. Be

courteousandconsiderate,andpersonalenoughtohaveempathyforthesituation. Thesame

canholdtruefornotbeingdirectwiththosethatareprovidingservicestoyourcompany(like

salesagentsandbrokers).

98.RealCollaborationsThevastmajorityofsupplierssimplywantsomeonetokeepanearopentopotentialwork. In

returnamodest

fee

is

paid

for

referred

business.

This

is

not

collaboration

but

an

agreement.

Collaborationsinvolvedaformalanddefinedinteractionbetweenthesupplierandthe

collaborativeparty. Ininvolvessharingofstrategicplans,coordinationofeffortand

measurement/adjustmenttoaddressoutcomes. Suppliersneedtobedirectaspreviously

statedandbewillingtorecognizethatexternalrelationshipsneedtobehonestandproperly

formedtofacilitytheoutcomesthatyouwant.

99.Payola/Bribes/GreasePayments/KickbacksThenormsoftheWestandtheEastcansometimescomeintoconflictwhenattemptingtomake

sales.Whethertofacilitatethesaleanyformofspecialfeeorcompensatorybonusisstrictly

prohibited.Even

casual

suggestions

can

be

viewed

as

foul

behavior

and

will

quickly

put

you

out

ofcontention.

100. KeepitSimpleApproachsalesopportunitiesinastraightforwardandsimplefashion. Acomplexproblem

doesntalwaysrequirecomplexsolutions. Simplicitykeptinpropercontrasttotheproblemwill

allowaffordablepricingforbuyersandwindealsforyou.


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AFEWExtras!!!!101. DontCountYourChickensBeforetheHatch

Thedealisnotdoneuntiltheinkisdryonthecontract. Showrestraintinyourbehaviorand

youractions.

Slow

and

methodical

hardening

of

the

opportunity

keeps

enthusiasm

at

the

properlevel.

102. YouareonlyasGoodasyourDeliveryPartnerYoucantmakesaleswithoutacloserelationshipwiththedeliveryorganization. Failureto

properlyengagethemincriticaldecisions,likedeliverytimesandlevelofeffort,willputsalesat

risk. Inthelongtermitwillcriticallyinjurecustomer/vendorrelationships. Useateam

approachtodeliverproperorganizationalcommitment.

103. DoubleSpeakSayingorquotingonethingandfailingtodeliveraccordingtoyourcommitments. Thismaythe

resultofinternalcommunicationissues,dependencyinothersoroverlookingthecomplexityof

thetaskathand. Beforthrightandacknowledgeyourmistakeanddoitearlyenoughtoallow

forpropercustomerreactionandattention. Gettingcaughtinalieandtryingtocoveritup

(calledDoubleSpeak)willdamagethesuppliersrelationshipwithbuyers.

104. KnowwhentowalkNoteveryopportunityisrightforyou. Itcanbeissuesrelatingtothetype,amountandcriteria

thatyouwillbeheldtobythebuyer. Ontheotherhanditcanbeallaboutcultureand

personalities.Being

hungry

for

business

is

one

thing,

being

foolish

and

taking

on

opportunities

thatcouldkillyourbusinessisatotallydifferentmatter. Maybetheopportunityissuchthatyou

willonlyserveintheleadroleandyouwillsubcontract/outsourcetheengagementtoanother.

Ormaybeitsbettertosimplythankthebuyerfortheopportunitybuttowalkawaytofight

anotherday.

105. NeverstopevaluatinghowwellyouaredoingGettingtothetopofyourgamecanbegratifyingandrewarding,butstayingthereisa

challenge.Whethertheseassaultsarefromwithinthroughselfrighteousbehaviororfrom

outsidecompletionourlivelihoodwillbeconstantlyatrisk. Continuetoassesshowwellyouare

doing,what

mistakes

you

are

making

and

how

you

can

get

ahead

before

it

becomes

a

catastrophe. Sometimeslookingatwhatothersaredoingcanprovideinvaluableinsightinto

thingswewishtoavoid(amirrorisahandytool!).


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Conclusion

Noonemakesmistakesintentionally. Errorsinjudgment,misunderstandingaboutourcustomers,

culturaldifferencesandbadinformationfosterustomakebusinessmistakes. Asinglemistakemayor

maynotcauseyourbusinesstofail,butisitworththerisk? Manyofthepointsthathavebeenmade

arebased

on

many

years

of

experience

and

seeing

first

hand

how

buyers

react

to

them.

While

it

could

bearguedthattheseareopinions,itisopinionsthatwilldefineyoursuccessorfailure.

Wehopethatyouwillputthislisttogooduseandwillsharewithusyourexperienceinusingit. All

comments,questionsandsuggestionscanbedirectedto,

TheInternationalInstituteforOutsourceManagement(IIOM)

4200VanitaCt.,Suite200

WinterSprings,FL 32708 USA

www.IntIOM.org

[email protected]

ReproducedwithPermissionfromCartoonStock.com


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APPENDIXIndex

Appendix1 MistakeResolutionWorksheets

Appendix2 OtherSources

Appendix3 NeedFurtherHelp??


27/35



Appendix1

MistakeResolutionWorksheet: BusinessEnterpriseFoundationMISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE

1. WrongMotivationforStartingtheBusiness2. LackofPlanning3. NoMarketableServices4. LackofProfessionalism5. Notime6. Cashflow7. Overspending8. Nobusinessplan9. Fuzzyandconflictingpriorities10. PoorQuality11. UnreliableServiceDelivery12. Expediency13. Distractions14. Productdevelopment15. Doingtheminimum16. Optimism/Pessimism 17. Motivation18. Management19. Leadership20. Ethics21. Financing/Capitalization22. Values23. Purpose24. Vision25. Excitement26. LackofEngagement27. UninspiredDesign28. Creativity29. Regulations30. InternationalLaw31. Procrastination32. FalseandMisleadingTitles33. LackofStrategicVisionbeyondCurrent(possiblylimited)folio34. UseofGenericemailaccounts35. BiggerisBetterParadox36. PromotingaCommodityandNotaHostedService(usewhere

applicable)

37.Lack

of

Business

acumen

38. CopycattingtryingtoLookLikeSomeoneElse(notyourself)39. SingleProductOfferingsthatareNotaNiche40. Relyingtoomuchonopinionsfromthegeneralpopulation41. Believingininstantaneousresults42. Overlookingtheuseofinformationresourcesinthesesubject

areas.

43. Notconsideringtheuseordevelopmentofyourownproducttoadvanceyourbusiness(orspecificmarketingorsalescampaigns.


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Appendix1

MistakeResolutionWorksheet: Visibility/MarketingFoundationMISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE

44. Nomarketniche45. Nodifferentiation46. NoNetworking47. ConfusingMarketingwithSales48. SocialNetworks49. NoOnlinePresence50. Websitesthatdontworkorhaveelementsthat

tarnishyourreputation

51. Collateralpoorlyconstructed52. InternationalizationIssues53. Green/NonGreenFormats54. Toomuchinformation55. FailingtoSeePurpose(toinitiateadialog)vs.

BeingaCatalog56. Collateralwithbadgrammarandmisspellings57. Lackoffocus58. DoNotFalsifyfacts59. Collateralthatistooselfpromoting(overusing

superlatives)

60. FocusonTechnologynotonValueContribution61. Insufficientpublicity62. FuzzyandConfusingTerminology63. RelianceononeMarketingMedium64. PromotingProductwithoutCompanyIdentity65. ShotgunMarketingwithoutPinpointFocus66. WebsiteMarketingDependency67. Beingontoomanyezinelists


29/35



Appendix1

MistakeResolutionWorksheet: SalesFoundationMISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE

68. SolidifyingtheRelationshipintheFirst5Minutes69. Productpitching70. Poorproductknowledge71. InadequateLearningDevelopment72. Nosalesprocess73. Lackofcustomerfollowup74. Notunderstandingcustomerneeds/notknowingthe

customer

75. Pricing76. ProposalManagementIssues77. Inventory(akaSalesPipeline)78. MisjudgingPeople/Customers79. NotsayingThankYou80. Nothavingfun81. Beingtheclownatthewrongtime82. Misplacedanger83. Sellingtothewronglevel;notallCLevelsmakethecall84. Poorpeopleskills85. Communicationskills86. Alackofbelief(Credo)87. Notenoughdrive/TooMuchDrive88. Poorresults89. Sellingservicesthatarepoorlydefinedbythecustomer90. Pursuingbrokeredbusinesswheredirectcustomer

contactisnotallowed

91. Quotadrivenstaffturnover92. Weakorfalsifiedforeignsalesoutlets93. Brokersourcedengagementsthatlackadequate

qualification

94. Utilizingcommissiononlyagents(orattemptingtoengageonacommissiononlybasis)

95. Nopreparedsalesagenda96. StickingwithaScriptwhenConditionsdemandaChange97. NotbeingDirect98. RealCollaborations99. Payola/Bribes/GreasePayments/Kickbacks100. KeepitSimple


30/35



Appendix1

MistakeResolutionWorksheet: AFewEXTRAS!

MISTAKE/PROBLEMAREA DOESNTEXIST EXISTS RESOLUTIONTARGETDATE

101.DontcountyourchickensbeforetheyHatch 102.YouareonlyasGoodasyourDeliveryPartner 103.DoubleSpeak104.Knowwhentowalk105.Neverstopevaluatinghowwellyouaredoing


31/35



Appendix2ofOtherSourcesfor

CommonMistakesCompaniesMake

Source: http://www.businesswealth.com.au/business/starting/advice/failure.asp

TenCommonCausesofBusinessFailure

1. Goingintobusinessforthewrongreason.

2. Choosingabusinessthatisntveryprofitable.

3. Inadequatecashreserves.

4. Failuretoclearlydefineandunderstandyourmarket,customers,andyour

customersbuyinghabits.

5. Failuretopriceyourproductorservicecorrectly.

6. Failureto

adequately

anticipate

cash

flow.

7. Failuretoanticipateorreacttocompetition,technologyorortherchangesinthe

marketplace.

8. Overgeneralization.

9. Uncontrolledgrowth.

10.Believingyoucandoeverythingyourself.

Source: http://ezinearticles.com/?SevenCommonCausesofBusinessFailure&id=98787

SevenCommonCausesofBusinessFailure ByCraigDawber

1. Layingmoreemphasisonproduct,ratherthanmarketandmarketing

2. Layingmoreemphasisoncompanyimage.

3. GettingintoUndesirableorBadBusinessPartnership.

4. Attemptingtohaveaverycomplexbusinessmodel.

5. Attemptingtopioneeranewproductorindustry.

6. Gettinginvolvedinabusinesslawsuitandbankruptcy,

7. GettinginvolvedinmessyDivorceProceedings.


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Source:

http://www.nickjames.com/public/161.cfm?sd=2

TheTop7CausesofBusinessFailure ByNickJames

1. Puttingtheproductfirst,withmarketingsecond.

2. Overemphasisonimage.

3. Badbusinesspartnership.

4. Businessmodelistoocomplex.

5. Thebusinessattemptstopioneeranewproductorindustry.

6. Youand

the

business

are

driven

into

bankruptcy

by

alawsuit.

7. Divorce.

Source:

http://www.associatedcontent.com/article/57473/10_causes_of_small_business_failure.html

10CausesofSmallBusinessFailureandHowtoAvoidThem

ByMichelleKnudson1. Most

small

business

owners

don't

have

enough

money

saved

up.

2. Somecompaniesdon'thaveenoughadvertisementsthroughouttheyear.

3. Somecompaniesfailsincetheydon'tgenerateenoughsales.

4. Thecompanydoesn'thireenoughstaff.

5. Thecompanydoesn'thaveahighenoughbudget.

6. Thecompanycan'tsurviveduringtheslowseasonsotheyoftenfail.

7. Acompanydoesn'thaveenoughmoneytoexpandthebusinesseventhoughitneedstoo.

8. Thecompanydoesn'thaveenoughmoneytokeepaprofessionalimage.

9. Sometrytobecheaponproductsorservicethentheyoftenfail.

10.Sometrytoviolatecityrulesorstateregulations.


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Continued

Source:

http://www.businessknowhow.com/startup/businessfailure.htm

TheSevenPitfallsofBusinessFailure ByPatriciaSchaefer

1. Youstartyourbusinessforthewrongreasons.

2. PoorManagement

3. InsufficientCapital

4. Location,Location,Location

5. LackofPlanning

6. Overexpansion

7. NoWebsite

Source: http://mystrategicplan.com/resources/tencommoncausesofbusinessfailure/

TenCommonCausesofBusinessFailure

1. Failuretounderstandyourmarket,yourcustomers,andyourcustomersbuyinghabits.

2. Choosingabusinessthatisntveryprofitable.

3. Failuretounderstandandcommunicatewhatyouareselling.

4. Inadequatefinancing.

5. Failuretoanticipateorreacttocompetition,technology,orotherchangesinthe

marketplace.

6. Overdependenceonasinglecustomer.

7. Failuretodefineyourproduct/serviceoffering.

8. Keepingyourhouseinorder.

9. Poormanagement.

10.Noplanning.


34/35





Continued

Source:

http://www.fuelnet.com/daily/getting_new_customers/theugly

truth/

TheUglyTruth5CommonCausesofBusinessFailure byKenBeaulieu

1. Driftingandsquandering.

2. Wastingcash.

3. Operatingfromthehip.

4. Copyingthecompetition.

5. Seekingmeresatisfactionfromcustomers.


35/35

Appendix3

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100 Leading Outsource Company Mistakes and How You Can Convert Them to Positive Business Value