Be a Person, Not a Salesperson

What comes to mind when you think of a salesperson? Do you picture someone going door to door with a vacuum in hand, nudging their foot into the open space of the doorway of the poor soul who was unlucky enough to answer? While this strategy may have its time and place, it is often an outmoded sales tactic that leaves customers more dissatisfied than they were before the sale.

Can a sale be made the wrong way? They can, and we’ve all experienced it; the caricature “vacuum” salesperson. The one who is solely concerned with getting your money in their pocket. The one who doesn’t take time to listen to your concerns, but instead continually tells you how great their product is… and how great they are. It’s these encounters that leave you feeling used, dissatisfied, and like you were simply a means to an end. And all of these salesmen have the same thing in common. Bad breath, or to put it more accurately, “Commission breath.” You realize their only concern is selling to you so they can go home with more money in their pocket. They have no interest in finding out if what they’re selling will help you. That’s one example of sales the wrong way and unfortunately, it is way too common in our culture, across industries.

The caricature salesman might argue, “But I got the sale. That’s what matters.” And sure, they may be going home a little richer, but they miss out on the long-term benefits of the sale. That is, the customer is going home feeling defeated like they were broken down and pressured into saying yes. And what's more, these feelings have likely driven them to the decision that they’re never going back to that guy, or that company, and they’re certainly going to tell their friends how terrible of an experience it was. They might even decide to hop on Google and let the world know. Before long, that salesman’s company has a 2.4 average on Google Reviews, no repeat customers, and the Better Business Bureau is handling complaint after complaint. They wonder why no one knocks on their door anymore and shortly after, they close down shop. Unfortunately, for the rest of us, that guy is likely going to the next town to try again… but maybe, just maybe, he might try sales the right way.

What do sales the right way look like?

If there’s a wrong way to do sales, then there has to be a right way. Sure, there might be multiple right ways, but the true question is, is there a best way? In our humble opinion, there is, and it means truly caring enough for the customer that you do your best to find out if you can help them before trying to convince them that you can. It’s the antithesis of the caricature salesman from above.; someone who doesn’t wreak of commission breath. Someone who has decided that they are going to sell to people the way they prefer to be sold to. This doesn’t mean the sale is made with overenthusiasm or submission to the customers every whim, sales done the right way is much more meaningful.  

Sales done right is closing a sale with a customer that you know will benefit from the product or service. This means relinquishing your sales agenda and adopting the customer's agenda; to find out if the product/service they’re evaluating can help them. When the customer and the product are a fit, the stench of commission breath retreats because the consumer can fill their needs with a product/service they feel good about. Not only does this leave the consumer more satisfied with the immediate purchase, but it also creates a tie to the salesperson that will result in future business.

So how do you know if the sale is a good fit?

The simple answer is you listen. However, listening in this instance takes a more active role than just hearing what the other person is saying to you, it's listening with the intent to understand and to empathize with the other person. Sounds like a pretty basic concept, right? But in reality, it takes a significant degree of focus and awareness to execute throughout a conversation. During this process, the listener has to let go of the desire to respond so they are better equipped to process the information the speaker is providing and aren’t distracted by their thoughts. We often find ourselves thinking so much about how we are going to respond that we miss a lot of what the other person is saying, and we reach the “in one ear and out the other” construct. During the conversation, allow the customer to elaborate on their position then take a few seconds after they are finished to process your response. Not only will you be able to craft a response that more adequately addresses their concerns, but a short pause after they finish will register as a nonverbal cue that you were listening.

Even with the best active listening skills, it can be difficult to reach a potential customer, and more often than not, the customer will bring up an objection, i.e. “I’m not sure the timing is good for us right now.” In instances like this, learn to ask really good questions. Your response should not be, “Why? What’s wrong with the timing?”…nor “Timing will never be perfect.” Instead, it should be more like, “It sounds like you guys have more important projects you’re working on.” Who knows, maybe they’ll end up sharing something that helps you better understand their current situation…just make sure you are listening.

This approach that we’re preaching is not to manipulate and it’s not to convince. The moment you try to manipulate the buyer with an artificial connection, you've already lost because the foundation of the connection is built on deceit. Instead, what this approach is trying to accomplish is realizing that you should NOT try to convince. If the person doesn’t want your product or service, you more than likely can’t, (but definitely shouldn’t try), to convince them to buy it. Rather, become a problem solver, ask the right questions, and help them find out if your product/service can help them fill their needs. And if it can’t, be okay with that. You’re not for everyone, nor should you be.

Company Culture is Like a Mushroom

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Here at Axiom, we focus much of our attention with clients on company culture because it is the underlying foundation that all businesses stand on. Culture is to business as mycelia are to mushrooms (for all my biology buffs out there). For those of you who remember that “Mitochondria is the powerhouse of the cell” and not much else, mycelia are the expansive underground network of filaments that carries nutrients not only to the mushroom but also to the surrounding environment. Thus, without this unseen, but wildly important aspect, the entire ecosystem would suffer. The culture of a business functions in much of the same way; if culture is not the driving factor in your workforce, you are not soaking up all of the necessary nutrients for your business to thrive.  

However, having a culture is not the same as having a good culture. While it may seem more intuitive that high stake, high-pressure situations yield higher results, the opposite could not be more true, your culture should always embody a positive work environment. Studies have shown that the quality and the strength of workplace culture has a direct effect on an employee’s interpretation, attachment, and experience within the organization. Meaning that positive cultures directly affect the sense of purpose employees derive from their work. A study conducted by LinkedIn and Imperative has found that employees who feel their work is purposeful, have improved performance scores and report increased commitment to the company. These employees are also more likely to stay with the company, pursue additional professional growth opportunities, and assume leadership roles more quickly than those who lack a sense of purpose in their work.  

Companies that employ a high-pressure, cut-throat culture often see the negative effects and detrimental toll that stress takes on their employees. These companies generally expend nearly 50% more in health care than other organizations and it is estimated that 550 million workdays are lost annually due to overwhelming organizational demands. If that’s not enough, The American Psychological Association estimates that nearly 60-80% of all workplace accidents occur as a result of stress. Taking all of these factors into consideration, nearly $500 billion a year is liquidated from the U.S economy as a result of stress.  

So how can you build a positive culture? We believe that culture is either created or enabled from the top down. Leadership needs to take ownership of the company culture. 

One of the best ways to do this is by showing your care and concern for employees through consistent one-on-one’s. This is a strategy we employ with all of our clients (and employees), to set aside time for leaders and employees to talk. These meetings should be guided by employees, and we encourage leaders to begin with a simple, “how are you doing?” – but never let a simple “good” suffice as the answer. Sometimes it takes time for employees to open up, but these meetings are all about establishing trust so that your employees know you care for their well-being. A recent psychological study conducted by the Harvard Business School on cultural safety has found that leaders who prioritize an open line of communication see enhanced performance outcomes from their direct reports. Which strengthens our opinion that a great leader does not ask, “What can you do for me?” but instead asks “What can I do for you?” 

We also encourage all of our clients to invest in their values. Sometimes it’s not always what you do but how you do it, letting your values guide how you go about your work is a meaningful way to foster a positive company culture. It also sends a message that the company cares more about its work than it does making a sale, an act that will not go unnoticed by customers.  The words used for values are important, but even more important is how you define them. For example, at Axiom, we have the core value of truth. To you, truth might mean one thing, but to us, it means, “we speak the truth, even when it is hard to say and hard to hear.” We have carefully defined all four of our values: care, truth, diligence, and learning.  

Values become the “ten commandments” the company should live by. Every employee needs to willingly buy into them, and they should be one of the “non-negotiables” for having a seat at the company table. If they aren’t willing, you can’t force it – chances are they aren’t a cultural fit for your company, and that’s okay, not everyone will be. Once they are adopted company-wide, their purpose really becomes two-fold. Firstly, they are used to celebrate and encourage employees. When someone on our team goes out of their way to speak truth, we make sure and give them recognition. Secondly, they are used for accountability. When someone demonstrates the lack of one of your values in a situation, you can point back to it and discuss why that value wasn’t lived out. When an employee repeatedly goes against the company’s values, the company’s culture suffers.  

Remember employees respond to the overall wellbeing they feel at the company, an attribute that directly stems from a positive culture. Benefits like flextime, office gyms, and company parties are there to strengthen your culture, not replace it. A positive workplace is built over time and becomes successful because it improves the relationship between the company and its employees. It is also what attracts new talent, helps retain current talent, and brings out the best in the organization. Define your values, let them guide you, talk to your people, and remind them that you are always in their corner. Let your culture grow like a mushroom and let it spread throughout every aspect of your company. Your company “ecosystem” will be better because of it.   

What Business Can Learn From Sports

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In honor of Super Bowl LV this upcoming Sunday, we wanted to take a moment to explore and explain the dynamic relationship of teams and what makes teams like the Chiefs and the Buccaneers so successful. Group dynamics and the ability of athletes to function as a unit is just as important as the actual skill and athleticism of individual athletes. Without a strong understanding of the team goals and commitment to those goals, these organizations would not prosper. So while you sit at home, with your football-shaped pizza and team-colored utensils, screaming “DEFENSE” at your T.V., remember that the systems and conduct of the teams on the field are not unlike the ones that are happening at your own place of work.

 

While an organization's overarching success is largely based on its values, vision, why, and mission (What we at Axiom refer to as the VVWM), it’s simply not enough to just plaster these values on a wall somewhere. They must be there to guide the organizational processes and decision making in all parts of the business. Much like in the NFL, it is not enough for a business owner to just put together a playbook and then let the players play. Rather, effective coaching and successful teams are seen when coaches take the time to communicate what will NOT change even as the playbook is adapted each week to meet the next opponent. What doesn’t change are the Values that govern team behavior, the Vision focused on the season as a whole and beyond, the shared motivations that define the Why, and the shared Mission that defines that particular team’s overarching approach to the game.

 

These elements are a great tool for uniting a team, but there’s a limit to the progress that can be made from getting everyone on the same page. Research has shown that teams function most effectively under two conditions; the first is when each member has a  clearly defined role, and the second is with the development of group norms.

 

One of the most important aspects of group cooperation is that each member of the group has a clearly defined role, and with this role, specific expectations are attached to it. For example, the role of a quarterback is to be the leader of the offense. They are expected to know the playbook better than anyone and make decisions based not only on the knowledge of their own role but the knowledge of the responsibilities and roles of others. A quarterback must know the blocking assignments of their linemen and the routes of their receivers. They are responsible for the forward progression of play and hold those who are not contributing accountable. If Tom Brady were unaware of his role on the Tampa Bay Buccaneers, the team certainly wouldn’t be playing on Sunday.

 

However, even if all group members clearly understand, and accept their roles on the team, the second step in the overall success of a group is the development of group norms. Norms can be formally established or informally developed by the group, but the most important norm to set is the standard for productivity. This norm defines the level of effort and performance accepted by the team. Without it, groups run the risk of normalizing low outputs of work or the chance that members will ostracize others who are producing too much. To avoid this, the productivity norm should be set by the highest performer on the team, and it can be used to set standards for other team norms such as punctuality, attendance, and preparedness.

 

It is the coach’s job to challenge, exhort, encourage and understand the players wrestling to perform to their individual best so that the group norms escalate to higher and higher levels of excellence. The coach fights for the resources, provides the insights and clears the paths that allow the team collectively and the players individually to perform at their best. So, while you are eating pizza and screaming at your T.V on Sunday, remember that you are the coach of your own team, and Monday awaits. Play hard and Go Bucs!

Performance Compensation: Building Plans That are Simple, Sustainable and Strategic

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Most business owners want some kind of performance compensation plan, even if they have no idea what one looks like. In this recording of a live training we go over a framework for categorizing and understanding the plethora of performance comp plan types. We talk about the advantages and disadvantages as well as the mechanics of how to put one together.

There are also additional resources we recommend for those serious about adding this important tool to their strategic plan.

How Many Direct Reports Should I Have?

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This is a question relevant to any business leader. But it is particularly important for business owners. Why?

Because more times than not we see teams where the business owner has 4 or 5 direct reports and each one of those people have a handful of direct reports…except one. Invariably there is one poor soul charged with personally overseeing the activities of 12, 13, 16, 20 people.

In this recording of a live training session with clients and friends of the firm we talk about the practical side of managing people and how many you should oversee.

There is a full page or resources to help you.

PPP Loans: Do you know what you signed up for?

The PPP program was rushed into execution faster than any major legislation in my professional memory and it has been a roller coaster. Nothing about the process followed the normal roadmap for new laws being rolled out into the real world. By and large when a new law goes into effect there is a very measured and deliberate process to make sure that there are no retroactive consequences. In other words, people know what they are getting into and have a chance to govern themselves accordingly. THAT DIDN'T HAPPEN with the CARES Act.

If you took PPP loan funds you have signed up for whatever future regulations Treasury, SBA, DOL or any other executive branch may impose. Yes there will be court battles, count on it. But most small businesses are not going to duke it out with IRS all the way to the Supreme Court. They are going to be forced to comply with ...... well we simply don't know what they are going to be forced to do...yet.

I am indebted to Michael Horlick, a Sarasota attorney who continues to stay abreast of developments and send me valuable information. This morning Michael forwarded me this article written for Lexology by the law firm Womble Bond Dickinson, LLP. You need to read it and do the homework.

Answer the questions, document your responses, attach evidence if you have it. It will serve you well in the future. Watch the video for more information.

30, 60, 90 day plans during COVID-19

We recorded an open line call with Axiom clients and friends of the firm to highlight what businesses need to be doing to come out the other side of this stronger than they went in. It’s not easy, but with some intentionality and discipline many businesses will realize market share increases amid all the uncertainty.,

We are planning to continue these Monday, noon-time sessions as a service to clients and the business community. If you would like to receive invites, announcements and updates please subscribe to our email list using the blue box to the right of this post.


Is there a payroll tax Surprise buried in your payroll protection program loan?

Update on 4/18/20: I’m posting the same update here as on our other post related to this matter containing our debt forgiveness forecasting tool. The issue surrounding whether loan forgiveness will be based on Gross or Net payroll still looms. I had not been able to find anyone calling attention to this or talking about it besides myself until I came across this article by Forbes contributor Tony Nitti. See point #6. There is a snippet in the SBA FAQ that Nitti interprets to mean they are going to base loan forgiveness on gross pay. This seems like someone in DC is finally succumbing to common sense. But I agree with Nitti. It would have made a lot more sense to put this in the guidance rather than burying it in a footnote to an FAQ.

Earlier this week we put together a tool to help businesses, CPA’s and bankers calculate the maximum amount for new Payroll Protection Program loans under the CARES Act. It has evolved with our understanding of the Act and guidance released by SBA. We expect that to continue. You can download the tool at the bottom of this post and sign up to receive updates.

As businesses started to get help from industry groups and payroll companies the provision to exclude certain taxes is causing a lot of confusion. It reads…

taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period;

I don’t think this has as much to do with calculating the maximum loan amount as it does with determining how much of your loan is eligible to be forgiven. And the way I read it the employer and employee portions of FICA and the income tax withholding on an employee’s paycheck will not be eligible.

This means a business could use 100% of the funds for payroll costs and not have their loan forgiven.

I explain my take more fully in the video and go over some adjustments in the tool.

If you want to receive future updates to the tool provide your email address below and we will notify you of revisions.

To download the spreadsheet visit axiomstrategic.com/blog/ppldebt

C12 Business Owners Call

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The following are key points from the conference call today with business owners and leaders facilitated by C12 of Southwest Florida.

Immediate internal actions

  1. Determine your status as essential and capacity to service customers remote. Desantis is referencing the Homeland Security provisions embedded at the bottom of this post.

  2. Establish a communication rhythm with your team. You are going to need it in the days to come and it will be simpler to implement if you are already using it.

    • Daily check-in’s/updates with the entire company using video

    • Daily leadership team status and response meetings in addition to weekly operations meetings

    • A communications plan similar to that used during the aftermath of tropical storms and hurricanes to maintain contact with furloughed workers

  3. Get a handle on cash. How much do you have and how long will it last under three scenarios

    • Slow recovery beginning in 30 days

    • …in 60 days

    • …in 90-120 days

    • if you need a simple tool there is one here

  4. Put together 3 lists of furloughed employees coinciding with the cases above

External actions

  1. Cull A/R for essential businesses, municipalities, larger orgs and be diligent about keeping your A/R process tight with these key sources of cash

  2. Call your banker and get stimulus loans started. Here’s another tool

  3. Call landlords and bankers to defer payments on mortgages and rent for as long as possible

  4. Check on the integrity of your payroll provider. If you need a good one call me.

  5. Call insurance providers about business interruption provisions, the possibility of expanded coverage mandated by future legislation and altering coverage on general liability and workman’s comp since those are tied to revenues and payroll. Also consider auto coverage modifications if your fleet will be parked for an extended period

Plan for months, hope for weeks. Businesses will be divided into four categories:

  1. Essential, well run businesses that will stay open and do extraordinarily well.

  2. Essential, poorly run businesses that will stay open but give up market share and skilled labor to the well-run counterparts.

  3. Non-essential, unprepared businesses that will not make it because they had no margin, failed to act, or waited for the bailout to save them.

  4. Non-essential, prepared businesses that made tough decisions, used the time to re-wire internal processes, solidify their leadership team, and innovate and plan for the recovery. These businesses will gain extraordinary market share and recover like nothing we have ever seen over the next 2-3 years.

Let’s make sure we are in groups 1 and 4. Keep your head on straight. Keep your faith in God and the work of Jesus Christ. And call us if you need help.

Zoom - how not to use it and staggering teleworkers

Two weeks ago we started sending out emails to client business owners and GM's pertaining to COVID-19 response. Those were being shared and forwarded and we made the decision to make them all public at axiomstrategic.com/blog. If you haven't seen those emails you can review them there.

As clients settle into more employees working from home we have been inundated with questions about process, equipment, etc. Here are a few bullet points that most employers are not talking about.

  1. Zoom is best as an all or nothing platform. What I mean by this is if you are using Zoom for the meeting everyone should be dialing in to the meeting. Having three participants in the office conference room and three others dialing in from home is a recipe for disaster. It works fine for the people in the office. But for those at home the audio quality is often terrible unless you have invested in video conferencing gear. It is also inevitable that there will be two meetings happing at the same time: the virtual meeting with all six participants and the in-person meeting with the three people in the conference room. Again, it works fine for the people in the conference room, but terribly for those dialing in. Zoom meetings work very well when everyone has their own head in their own little box.

  2. If employees don't have laptops or webcams to dial-in separately they can use mobile devices. We created a short video showing just how easy this is.

  3. Schedule telework coverage. Employers are finding that telework and home schooling create for a challenging work environment. Do your employees a favor and stagger required availability times. It's OK to expect employees to work a full day. It's probably not OK to expect them to be instantly available all-day. If you have four CSR's working from home during an 8-5 day allow them to go 2 hours on, 1 hour off at staggered intervals so they can help the kids stay on track throughout the day. Providing a schedule gives them and their kids a realistic expectation of what the day will look like.

As we have developed tools to help clients and other business owners we have also been making those public. These include...

How to cashflow the required paid medical and child care leave that begins TODAY

How to apply for payroll protection act loans

Forecasting cash flow effects for the remainder of 2020

How to calculate debt forgiveness on payroll protection act loans

First look at the payroll protection act loan application forms

If you know others who want these resources as we send them out they can subscribe at our website.

How to Calculate Debt Forgiveness on Payroll Protection Program Loans

Update 5/19/20: The previous version of the tool has been superseded after the release of the loan forgiveness application. For the most recent version please visit the updated post here.

Update on 4/18/20: Sanity Prevails!…maybe. The issue surrounding whether loan forgiveness will be based on Gross or Net payroll still looms. I had not been able to find anyone calling attention to this or talking about it besides myself until I came across this article by Forbes contributor Tony Nitti. See point #6. There is a snippet in the SBA FAQ that Nitti interprets to mean they are going to base loan forgiveness on gross pay. This seems like someone in DC is finally succumbing to common sense. But I agree with Nitti. It would have made a lot more sense to put this in the guidance rather than burying it in a footnote to an FAQ. The tool has not been updated yet, nor has the explanatory video. At this point we are waiting to see if the guidance for calculating loan forgiveness based on FTE’s, wage reduction and the restoration of same prior to 6/30/20 becomes any less confusing before overhauling those sections of the tool.

Update on 4/10/20: A line was added to take into account the Treasury Secretary’s decision to limit use of funds to 25% for non-payroll cost purposes. The format of the loan forgiveness section was also changed to mirror the format of the section used to calculate the maximum loan amount.

Update on 4/3/20: A line was added to exclude wages of those whose principal place of residence is outside the US. This was always there, but it didn’t apply to situations we were dealing with. As use of this tool has become more widespread it made sense to add this important provision.

Update on 4/2/20: We eliminated the calculation of monthly payment that was predicated on language in the law specifying a maximum interest rate of 4% and a maximum maturity of 10 years. SBA has provided guidance that interest rates will be set at 1% interest rate and loans will mature in 2 years. You will need to calculate your own monthly payment based on principle amortization term assumptions.

This excel worksheet does three things:

  1. It walks businesses through the calculation of their eligible loan amount.

  2. It calculates the baseline FTE’s required to achieve zero reduction in loan forgiveness.

  3. It allows businesses to predict covered period FTE’s and re-instatement FTE’s in order to forecast loan forgiveness and monthly payments on unforgiven amounts.

This tool has changed multiple times since it’s release as new guidance becomes available. We expect it will change further, especially as pertains to the forgiveness aspect of the loans after funds are dispersed. If you want to be apprised of future changes provide your email below and we will notify you of revisions.

In an earlier version of the video above we referenced a triage assessment we use to help businesses forecast cash flow for the remainder of 2020 and necessary sales levels to preserve cash reserves. More information about that tool can be found at this link.

Previously we shared a video on how to apply for these loans,.

TOOL: FORECASTING CASH FLOW EFFECTS OF COVID-19

The video above is from on open-line call that I hosted with 2-3 dozen CPA’s from all over the country to collaborate and help each other help clients through the COVID-19 crisis affecting our business clients. During part of the call I introduced them to a tool we have been using to help businesses get some quick insights into how their cash flow will be affected for the remainder of 2020. A link to the Google Sheet containing the tool is available below.