In today’s market, it’s more about creating a relationship and building trust; the customer experience, it’s called. It is not just price.

So here is a better path to take.

Try mailing out your circular, flier, coupon, but followed up with a telephone call. Now you have a reason to talk.

“I mailed you a letter. I wonder if you had a chance to consider what we are saying.”

“Oh you did not see it, I will mail again. What is the best way to contact you? I can email it to you right now.”

Then re-mail or email and call him as agreed. Best if you establish a ‘what by when’ as then you are more deeply involved. You have already created the beginnings of a relationship over the mailing, take it to conclusion.

Alternatively, or additionally, after speaking, bounce back with another mailer, email or other communication piece, thanking him, giving him more information, or somehow furthering the relationship. The sale will come as the relationship is deepened.

Mailing before the call sets it up; mailing after the call continues the development of the relationship. Combined, the mail-call-mail equation works.

Do not spend money on blind mailings unless you are prepared to back it up with calls. Do not mail more than you can call back within a week or you will lose the value of the mailer.

Mail, call, mail, call, mail, and call…until the sale is made. Repeat the equation until the prospect becomes a customer.

This works and is a valuable strategy.

Far too many small business borrowers wait too long to do the debt workouts necessary to save the business and reduce or eliminate the debt.

The best, most powerful moments you have to begin your workout is when you see the future and understand you cannot last in today’s down turned market with reduced revenues and increased overhead and yet with the same debt load you had when things were flourishing and revenue was much more than it is today.

It is a simple notion and even an easier equation. Figure out how rapidly you are reducing your available retained earnings, your cash reserves, now used to support the negative cash flow. That is when you are officially insolvent and ready to crash and burn.

So why wait until then when you are at your weakest?

Why not acknowledge what you now know that you will erode all your available income by that date, and begin your workout strategy now, while you still have some firing power, some ammo?

We call it a pre-emptive workout, it has its own challenges, but it s a powerful place to come from, and a place which preserves your opportunities while reducing your debt.

Even if your determination is to kill the business as it is no longer viable, better to prepare yourself before you crash and burn, than after.

A workout cannot be done without spending money. It is not free. The only time our strategies fail is when our clients business fails, unable to afford doing business even without debt or unable to afford the cost of the workout.

I talk to many defaulting borrowers, or soon to be defaulting borrowers who want to wait and see what will happen, preferring to walk the plank and ask for help when in the water rather than before they are forced over the edge.

Call us when you see the handwriting on the wall. It is never too early to plan and implement your debt workout but, frequently, it can be too late.

The fact remains you all need a thirty second or less, a carefully worded statement that clearly tells someone what you do and begs the next question from the listener which engages him in the process leading to hiring you or buying from you or being interested enough to inquire further.

So what does it look like and how does it work?

Must be mostly factual but inter-mingles with sales aspects and direction, leaving him with a direction to follow, with what to do, with questions that bear looking into.

It could end with an exchange of cards, a commitment to call, an exchange of email addresses or telephone numbers, some follow up action that you can follow up on.

Here is mine:

We focus on working out secured bank debt, SBA guaranteed debt, any debts a business may have that are preventing effective operations or possibly causing serious issues, frequently because of declining revenues in this down economy, but really the reason is irrelevant. We then eliminate the underlying personal guaranties, never a bankruptcy but purely a business strategy. Our work results in our clients experiencing a second chance to emerge once again, profitably and successfully. Give me a call so we can discuss how we can help you, or check out my web site, here is my card, Second Wind Consultants.com. You will find it very interesting. May I have yours? Can I call you to discuss this further?

Delivered within 30 seconds….

Memorize it, change it at will but be prepared with a specific statement that tells the person what you do, why it is beneficial to the listener, and possibly what should occur next and what action should take place.

It is the lifeblood of any non-branded, under advertised product or service business. Without a brand or an ad program to drive business to you, there is no magnet, no incoming pursuit, thus, no marketing and no growth; just a few, new sales.

The only remaining program that works then is the ‘go out and get them’ program. It’s pro-active. Go out and get them, bring them back alive.

What’s the problem with this? Why is it disliked and done as a last resort? There are lots of rejection and little acceptance. But realize that every new customer gained is new life blood and a customer you may have never gotten without such an effort. As well, if done effectively, the cost of acquisition is quite reasonable.

So clearly, business that comes to you via word of mouth is very valuable, but seldom enough. Business that comes from referrals is also very valuable but also seldom enough. Repeat business, a terrific source of revenue and a true indication of success is good but never enough. New business is the key to growth and development and direct cold calling is where the rubber meets the road. Old school, yes, but it works in the hands of the right salesperson.

First, it requires training. The 30-second lead in, the elevator speech, is critical for success as you have about that long to attract attention and get into the sales pitch. It must be developed and be delivered naturally and effectively. Create one; train your men to use it.

It is hard work, thus, there needs to be preparation, daily, before anyone launches into a cold call implementation:

1. It is best if there can be some profiling, information about the target that either arms you to know more about them and, thus, create a conversation that makes sense to the recipient or perhaps even qualifies them slightly so the hit rate increases.

However, a blind call works fine.

2. There is always something to be gained from every call. Even if the gate keeper prevents access to the bona fide decision maker, you may get the email address and, thus, be able to follow up; you may gain critical information to determine whether or not this may become a bona fide lead. Do not waste the time and effort, get what you can out of each call, store the information. It is true that it may require many passes before a potential client becomes a purchasing client, do not waste the effort, you are now one call closer to success. Gain as much information as you can even if not speaking with the decision maker. Use a sales data base program like Act.

3. Have a mailer, e-mailer, and faxed item ready and use them once you have made contact. Have a ‘thank you for your time” note for the person you spoke with as you may speak with him/her again. Make a positive impression, your next call will not be so cold.

4. Do not make stuff up, and tell the gatekeeper he was expecting the call, or wants this information. Be truthful always.

5. Call and call again. It’s a matter of numbers, make enough calls and you will get results, make too few calls and you will not get fewer results you may get no results at all.

6. Every person willing to continue the discussion is a sale waiting to happen; it is a gold nugget, waiting to be farmed. Your job is to cultivate and pick. Be patient, it takes many calls.

7. If you reach a decision maker set up specific actions, such as call backs, mailing of information, whatever is appropriate; do it precisely as committed. This creates credibility and reliability and, thus, improves your chance to close. Building trust is a pre-requisite to creating sales.

8. Every week’s schedule should include some meaningful cold calling. It creates new business, the lifeblood of growth, development and success.

9. There must be overview, and record keeping. Because of the challenge, a direct call program must be managed and watched over and information as to how many calls made and how many decision makers reached and how many responses, etc., and eventually how many sales or appointments. This information is critical for two reasons, it creates manageable benchmarks, key indicators to determine ongoing success, and it helps the men achieve personal success in a tough program, by helping them hold their edge.

Cold calls are the king of getting new business if done effectively and managed properly. The best part of it is that it does not require a superstar; an average sales person can achieve success in such a program.

Make cold calling a part of your marketing plan. In this down economy, it is a critical component.

Not everyone can do it, but then not everyone can be a salesman. It does not take skill; it only takes perseverance and follow through. It can be done successfully with guidance, direction, commitment and tenacity.

We have been doing workouts for many years and we have learned that the following principles work and are the basis of our success:

1. Complete disclosure of everything pertinent to the matter, the whole truth.

2. We are in it together and must resolve the workout together as a team, the bank and the defaulted borrower, not as enemies in battle.

3. Greed kills the deal.

4. Workouts require sacrifice, affordable losses, we call it.

5. It is not about all you can grab, steal, and plunder. It is what’s fair and right, for both sides, about 93% forgiveness works well.

6. There are rules of the game and they must be adhered too.

In the end this translates to our averaging 93% reduction of personal guaranties, preservation of business and personal assets, and release from impossible debt.

This works, we always succeed, so we must know what we are talking about.

Check your context when you enter into a debt workout. Adjust it if it is not in tune with the above standards. Looking back at what could have been is not productive, attempting to grab every possible dollar is not the objective but a fair and equitable result is. Could we have paid a little less? Sometimes, but in view of the massive forgiveness in the end, leaving a few extra dollars in the deal can be very productive to achieving the phenomenal results we accomplish in the end.

It is not over until the personal guaranties are released, requiring a give and take attitude along the way to support reaching the major goal, is the way we accomplish such incredible results.

While there are many reasons to consider the bank the enemy, remember they lent you money for you to develop your dream, and now that you are in default, it is not their fault, any more than it may be your fault, so we are in it together and must resolve it together.

Remember, you do not have a right to a workout. But if we approach it appropriately, we will achieve the results we want — a second chance, affordable losses and a new life, safe and secure from disaster. We average 93% debt forgiveness of the personal guaranty and that’s good. We must know what we are talking about.

Call Norm at 413-584-2581. He will arrange a no obligation teleconference for us to review your situation. Call him.

I, unfortunately, see this every now and then: A business that has been ruined by the down economy unable to continue and pay its debts, a business that for years has done well and allowed the business owner to pay off his mortgage, his presumed reward for hard work and success. Now he must confront his defaulted SBA guaranteed loan, as he does not have the business to support the debt service, and his house is vulnerable to attack. He cannot refinance it, cannot qualify, and is ready to retire, too old to work meaningfully in this very difficult economy. Wanting to enjoy retirement and the few dollars he has saved but that has all changed. He is confronting disaster.

What can we do to help this man?

The rules of the game, say, the home must be liquidated to pay off the defaulted loan.

The question is, will the bank and the SBA understand the circumstances and construct a payback plan that the man can afford and allow him to remain in the home indefinitely? The understanding is that eventually the home will be sold and the debt paid off, but still allowing the man to live out his days in his home, without a lien attached to it.

The answer is yes this can be done, with difficulty.

The tougher question is, will the SBA accept a short payoff, severely discounted, as a best effort to pay off a portion of the loan and then allow the man to remain in control of the home with equity yet not subject to liquidation and with a release of the debt?

This is new ground. This is asking the bank and the SBA for some compassion, accepting a short payoff, acknowledging there is equity, yet an inability to pay, and allowing a short payoff while keeping the home with equity.

We are working on this exact situation now. I cannot yet predict the results although I can say I have had many situations in which compassion, understanding and cooperation for specific living circumstances have been universally denied.

Second Wind lives, practices and believes in our mission, that there is a workout for every defaulted debt, and this issue presents a real challenge. We will report back our success.

The question is, will compassion and understanding be included in the workout evaluation? I hope so. We will see.

However, this does not mean slow growth works better, because in many instances slow growth can also be a slow death.

As in many matters, it is balance we must achieve to succeed, with the context being growth as fast as possible but in balance. In other words, sales, production and finances must be in sync and then rapid growth can be achieved. Typical stumbling blocks are closing a large customer that immediately pumps in significant growth without you having the ability to support it with manufacturing and service. The big order we all pray for comes and when it arrives it tanks our capability.

Alternatively, slow growth while comfortable and easier, allows competition to gain headway, and can eventually allow them to take a lead share of market and block your long term growth and success.

Complacency is the enemy, rapid growth is the objective, but in control and balance.

Cash flow is the issue, as today’s growth is paid for in thirty days and your receivables are based on last month’s smaller sales, thus, cash flow planning is the critical issue for survival in a growth curve. The more rapid the growth, the greater is the need for cash. Not enough cash and delays occur as you wait for your receivables to come in and the overhead eats you alive as you wait and your new client become unhappy… failure sets in.

Quality employees require training and training requires time and effort. Another cash requirement but critical, so do not leave this out of your balanced equation. You must plan and implement parts of your growth plan before it happens and prepare so when it arrives you are ready. But this must be balanced with the ability to afford it, before the new cash arrives.

Sales, cash flow, and production must grow together or at least in sync with the requirements of a growth curve. Slowing down is not the objective. Speeding up is but controlled growth is the requirement for success. It should be as rapid as possible but within a planned growth curve.

Not too fast, just fast enough.

I have two very powerful suggestions to truly make your ‘to do’ list a super powerful tool.

Add a ‘what by when’ to it and put in the allocated time to complete…Now you have a complete program ready to support your time management and business success.

Here is what I mean.

If every task on your ‘to do’ list carries the allotment of time you believe it will require to conclude, say an hour, 20 minutes, whatever, you will have a much greater time management success. A job can take whatever time you have to complete unless you put a time constraint on it. Without one it could take two hours or all day to do the task, put a time on it and it will take that amount of time.

The next power tool is the ‘what by when’. Determine when in the week the task has to be completed by, is it Wednesday, Friday or today? You have the task, the allocated time for completion and the when it has to be completed by. It is a complete time controlling tool

With this approach you will be far more successful, accomplished and powerful. This removes the stress and supports success. Life can be good, again.

Some confuse enrollment with sales or marketing. Not so, it’s a different beast, although related and it’s part of the process. But enrollment stands on its own as a skill which we all need to learn to better understand.

So what does enrollment mean? Enlistment….engagement…. invite…induct…

It is the act of demonstrating something so others will want to and be able to take action along the lines demonstrated.

It is making something inviting, enticing, and desirable so others will want to join, do or pursue.

It is not selling.

It may be demonstrating, it may be merely inviting or asking for participation. It may include demonstrating the benefits you received and asking if they want to also enjoy the same benefits.

Is it marketing? No. Close but not the same arena.

We are best off enrolling someone to accomplish or do something by supporting the person with adequate input, demonstration, information, so he/she wants to take the steps desired.

We all do this every day, but frankly we forget or do not understand the process very well. It is the act of setting the stage so a person steps into the arena of action, on his own.

Enrollment is supporting a person to make the desired decision or take the desired action, frequently explaining or demonstrating the reasons or benefits you may have experienced and inquiring if these benefits are something he/she would want to experience and then letting the person know what would be required for him/her to also enjoy the benefits discussed.

It is a subtle, pleasant, very successful method of getting people to do what you want them to do.

We order, require, insist, harass, harangue, yes sell, most of the time, when we want people to do something, but if we engage in the process of enrollment which supports an individual decision to do what we want done, we will be far more successful.

A tough concept, yes, because it takes patience and consideration for the person we are enrolling, it takes an understanding of what is required for a person to make an independent decision and then encouraging that person to take the steps required. Sounds like sales but it is much closer to an invitation than a sales presentation.

Try it. You will like it. It works.

The reality is that while most CEO’s are trapped in task oriented activity, there is a better plan…train, plan and review. Yes, this is the job of the leader.

Train

Constantly training, cross training and upgrading the skill level of your employees be it direct hands on training, hired training, or managing employee training by employees, is the first goal. Training is the lifeblood of a business and successful implementation of a growth plan. Further, this combined with a career path development process, will result in the first stages of supporting a successful business. Further this effort will support greater employee satisfaction, long term employment and higher quality goods and services.

Frequently, training is learned on the job without thought or purpose, usually based on learning as you go, with tips from the person closest to you. It’s inefficient, non-productive, less successful, uncontrolled, undisciplined, erratic and sometimes even dead wrong.

Training must be done with purpose and definition, focus and purpose, and designed to lift the skills of your employees, sharpening their abilities, building on their career path.

Plan

The second job of a senior leader is to plan: short term, medium term and long term. He needs to plan operations, plan fitness and plan sales and marketing on the short and medium term while plan growth and development for the long term. Planning is the lifeblood of growth and development. No plan and you remain flat and directionless, doing the same things you always do, plan and you will advance the mission, no plan, no advance.

Review

Once a plan has been established, there must be benchmarks and key indicators, ways of measuring productivity to determine where on the development path the program is, how successful the growth plan is being implemented. This will allow for accountability, a key requirement for successful growth.

How to manage your business on an operational level, the operational manager? Track, monitor and control.

Track

It’s all about checking the progress of the men, holding your men accountable for pre-determined goals and objectives and tracking their productivity. This completes the circle, setting goals and then measuring success and giving the men the appropriate feedback to support their success at their tasks and overall job. It’s a key requirement of the manager. Every employee must be tracked and managed by this review process.

Monitor

The actual act of paying attention to the key indicators that you are tracking and making certain that this is consistently being done as the employees are watching your follow through as well and if the monitoring is not done, tracking is irrelevant and controlling is impossible.

Control

This is all about making adjustments that are required and revealed from the tracking and monitoring efforts. Once tracked and monitored, then you must do something with the data and use it to sharpen the workforce, share with them the results and support their reaching greater heights, more success. The greater the job satisfaction for all means the greater the success for the business.

Six Words and it is all the guidance you need. Train, plan and review; track, monitor and control.