March 2016 Office Technology by Business Technology Association

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CONTENTS Volume 22 • No. 9

FEATURE ARTICLES 10

Dedicated Scanners A great fit for some of your customers?

P R I N C I PA L I S S U E S ‘LinkedIn Doesn’t Work’ The most common excuses for this networking tool

by Larry Levine Social Sales Academy

by Brent Hoskins Office Technology Magazine

Office technology dealers recognize that many workers regularly use the office MFP to scan documents. But what about those environments where there is a need to scan hundreds, if not thousands, of documents on a regular basis into a document management system? Is your dealership providing these environments and their workers what they need to be more efficient?

Q&A: John Corley Addressing Xerox’s separation, dealer opportunities

by Brent Hoskins Office Technology Magazine

The ‘War for Talent’ How to avoid competitive poaching by Harry Hecht Business Coach

Are your best sales, service, administrative and operations employees about to be poached by competitors? Just when things in your business are running according to plan, your world changes. This exact scenario occurred while I was managing an eight-branch dealership — and it is not pretty. We may not talk about it openly, but employee poaching is an unpleasant reality.

REFLECTIONS ON 90 YEARS 20

Without developing the skill set, LinkedIn will not work. LinkedIn does not drive itself — you drive it.

90 Years & Going Strong Join us in Kansas City, Missouri, June 8-10

Recently, Office Technology magazine spoke to John Corley of Xerox about changes at the company and the dealer channel.

Adjacent Opportunities Ideas shared at Executive Connection Summit

by Brent Hoskins Office Technology Magazine

Rick Taylor was among the many presenters at the 2016 Executive Connection Summit, held Feb. 17-19 in Scottsdale, Arizona.

SELLING SOLUTIONS Networking Cold Calls Strategies for making sure they are successful

by Troy Harrison Troy Harrison & Associates

by Ron Hulett U.S. Business Systems Inc.

There are many pitfalls to making a cold call to network — and there is also a clear path to success. Let’s look at how to do it right.

It is difficult to imagine and duplicate a vertical industry association lasting for nearly a century. Congratulations to everyone involved in BTA.

COURTS AND CAPITOLS 23

Selling Your Business Price is not the only thing to take into consideration by Robert C. Goldberg BTA General Counsel

Over the years there has been a healthy marketplace for the sale of dealerships. Here are several factors to consider when selling a dealership.

D E PA R T M E N T S Business Technology Association

• BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

A Look at BTA’s Most Long-Term Members

n recent months, we’ve been talking a lot about the Business Technology Association’s (BTA’s) 90th anniversary. In thinking about our long history, an obvious question comes to mind: Which of our member dealerships have been members the longest? Given that “90” is the focal point this year, it is my privilege to recognize the association’s 90 most long-term member dealerships (continuous members, based on the BTA database). First on the list is Anderson Business Technology, a Pasadena, California, dealership that joined the association in 1930. The dealership’s president is David Anderson. He is the son of Don Anderson. Don’s father is the late C. Elmer Anderson, who founded the dealership in 1912. C. Elmer was president of what is now BTA from 1934 to 1936. Below are half of our 90 most long-term member dealerships, listed by the year they joined the association. The remaining dealerships will be recognized in our April issue. Join me in thanking and congratulating this special group of members. 1930: Anderson Business Technology, Pasadena, CA 1939: Capital Business Machines, Little Rock, AR 1941: Wagner Office Machines, Burr Ridge, IL 1942: Howard D. Happy Co., Mayfield, KY 1943: Enid Typewriter Co., Enid, OK 1945: Standley Systems, Chickasha, OK 1946: Phillips Office Solutions, Middletown, PA 1953: Widmer Time Recorder Co. Inc., Hackensack, NJ 1956: Waltz Business Solutions, Crestview Hills, KY

1957: Richardson Business Solutions, Grand Rapids, MI 1958: ABM Automation, Oklahoma City, OK; Bishop Business Equipment Co., Omaha, NE; Eakes Office Solutions, Grand Island, NE; Edwards Business Systems/ Virginia Business Systems, Bethlehem, PA; SBM, Sterling, IL 1959: Central Office Service & Supply Inc., Clay Center, KS; Hagan Business Machines Inc., Erie, PA 1964: MOEbiz, Monroe, LA 1966: Southeastern Business Machines Co., Huntsville, AL 1967: Roland’s Office Appliances Inc., Worcester, MA 1968: Enoch Office, Timonium, MD; M & M Sales Co., Urbandale, IA; MT Business Technologies Inc., Mansfield, OH 1969: A & A Office Systems Inc., Middletown, CT; Dakota Business Center, Rapid City, SD; Hoosier Business Machines, Jasper, IN; Loy’s Office Supplies, LaGrange, GA 1970: Dustin Office Machines, Gainesville, TX; OfficeNet Inc., Fremont, NE 1971: Buckmaster Imaging Systems, Sacramento, CA; Forbes Office Solutions Inc., Newton, IA; WJS Enterprises Inc., New Orleans, LA 1972: Adams Remco Inc., South Bend, IN; Boring Business Systems, Lakeland, FL; Eicholtz Co., New Oxford, PA; Office Equipment Co., Eugene, OR 1973: Advance — The Document Specialists, Cockeysville, MD; CopyPro Inc., Greenville, NC; Duplicator Sales & Service, Louisville, KY; Jim Gordon Inc., Columbus, IN; Stan’s Office Technologies, Woodstock, IL 1974: Allen Business Machines, Fort Wayne, IN; Data Business Equipment Inc., Des Moines, IA; Fraser Advanced Information Systems, West Reading, PA n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Harry Hecht, Business Coach harryhecht@gmail.com Ron Hulett, U.S. Business Systems Inc. www.usbus.com Larry Levine, Social Sales Academy www.socialsalesacademy.net

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE 2015-2016 Board of Directors

Plan to Attend ‘BTA at 90: A Celebration’

t seems so far removed from the present day, but on Jan. 22-23, 1926, a group of typewriter dealers met in Kansas City, Missouri, to form what is today the Business Technology Association (BTA). It was abundantly clear then — as it continues to be today — that there is strength in numbers. The move to unify dealers forever changed the course of our industry. For 90 years, thousands of dealers have benefited from the vision of our founding members. Through educational programs, countless networking opportunities and an unending stream of information and guidance, the association has helped to ensure that the independent dealer channel remains the premier source of office technology and services throughout the United States every day. These 90 years are cause for celebration. By now, you are likely aware that the association will be hosting BTA at 90: A Celebration, a special event to take place the evening of June 10 at the historic Kansas City Union Station in Kansas City, Missouri. The event will follow the 2016 BTA National Conference, which will take place June 8-10 at the InterContinental Kansas City at the Plaza. This special celebration will be a very memorable evening. In addition to providing plenty of time to network with the industry’s leading dealers, manufacturers and suppliers, BTA will recognize leading dealers with our new Channel Champion awards program and will also announce the first inductees into our new BTA Hall of Fame. In addition, the 2016 Channel’s Choice awards, recognizing vendors deemed to be the most supportive of the dealer channel, will be presented. We will

also be honoring many of our past national presidents and long-term members. In addition, we have some great entertainment planned. During the opening cocktail reception (sponsored by GreatAmerica Financial Services Corp.), attendees will enjoy the sounds of the Kansas City Lights Jazz Trio (sponsored by OKI Data Americas Inc.). Guitarist Gregory Hyde (sponsored by Sharp Imaging and Information Company of America) will perform over dinner. Our entertainment headliner that evening (sponsored by Konica Minolta Business Solutions U.S.A. Inc.) will be legendary political satirist Mark Russell, who will be poking some good fun at the 2016 presidential election. Following Russell’s performance, attendees will enjoy after-dinner drinks (sponsored by Toshiba America Business Solutions Inc.). We are grateful to the vendors that are partnering with the association to make this an extraordinary event. In addition to those sponsors noted above, Samsung Electronics America Inc. is sponsoring the transportation between the event and the InterContinental hotel. Plus, we have eight additional sponsoring vendors that have stepped forward to show support for BTA and the dealer channel by helping to ensure the grandeur of the evening: Clover Imaging Group, Continuum Managed Services, DocuWare Corp., Katun Corp., KYOCERA Document Solutions America Inc., Panasonic Corporation of North America, NA Trading & Technology and Wells Fargo Equipment Finance. I encourage you to register today to attend the BTA at 90: A Celebration event at www.bta.org/BTA90. Admittance is included with registration to the 2016 BTA National Conference (www.bta.org/BTA NationalEvent). I look forward to seeing you in Kansas City. n — Dave Quint

President Dave Quint Advanced Systems Inc. 2945 Airport Blvd. P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com President-Elect Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com Vice President Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA East Greg Gondek ACT Group 20 Commerce Drive Cromwell, CT 06416 greg@advancedcopy.com BTA Mid-America Bob Evans DigiTec Office Solutions Inc. 12560 Reed Road, Ste. 200 Sugar Land, TX 77478 bobevans@digiteconline.com BTA Southeast John Eckstrom Carolina Business Equipment Inc. 5123 Bush River Road Columbia, SC 29212 johne@cbesc.com BTA West Cathy Dimon Northern Business Systems 3526 International Fairbanks, AK 99701 cdimon@acsalaska.net Immediate Past President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Dedicated Scanners A great fit for some of your customers? by: Brent Hoskins, Office Technology Magazine

or many office technology dealers, scanning is simply associated with the functionality of the MFP. However, while they see printing and copying as the primary functions, they recognize that many workers regularly use the office MFP to scan documents. In fact, they welcome the fact that scanning on the MFP has become commonplace. But what about those environments where there is a need to scan hundreds, if not thousands, of documents on a regular basis into a document management system? And what about those environments where frequent document scanning throughout the day is the routine of workers? Is your dealership providing these environments and workers what they need to be more efficient? If not, perhaps you are missing the opportunity to be the single office technology and services provider for these customers — potentially opening the door for your competitors. The questions, of course, point to the dedicated scanner. And while these unassuming products have been around for many years and are certainly familiar to any dealer, in many cases the addition of scanners to a dealership’s product portfolio has never been seriously considered for a variety of reasons. They don’t consume toner. They are often low priced and associated with low margins. And they are too readily available on the Internet and elsewhere. Such objections quickly come to mind. Nevertheless, in today’s marketplace, it may be time for you to take another look. “I don’t view dedicated scanners as a competitive technology [to MFPs], but really more of a complimentary technology,” says Rob Turner, manager of strategic alliances for the Imaging Products Group of Fujitsu Computer Products of America. “There are a lot of business processes wrapped around ingesting paper into a system, such as the processes within a doctor’s office. Scanners can remove some of the abuse on the ADF or the hopper of the MFP, which are primarily

built to make prints and copies, and not for heavy scanning jobs.” Joe Odore, product manager of document and imaging products for Panasonic System Communications Company of North America, shares a similar observation. “An MFP is a ‘multifunction printer,’” he says. “It has a group of features that were added on to what is, essentially, a printer.” Beyond pointing to the print-centric nature of MFPs, Odore challenges dealers to consider the scanning functionality of the MFPs they sell. “Can your MFP perform multicolor drop out?” he asks. “Can it do double-feed or stapled document detection, or automatically crop or rotate your documents? Can it read bar codes or clean up those documents? Now, there are some MFP features and software that can manage some of those duties, but there is no way, in an environment where documents being scanned are of critical need, that an MFP can satisfy that need.” Turner likewise touts the benefits of scanning documents on a dedicated scanner as opposed to an MFP. “The document stack may be, for instance, mixed between color and black-and-white pages [and scanning all pages in a color mode is not desired] or there may be documents that have a block of gray and there’s data underneath that,” he explains. “Scanners do a great job of removing background color, of looking underneath those gray blocks to get the text, of removing ‘noise’ from a document, of automatically orienting the [image of the] page in the right direction and of automatically deleting blank pages.” Because of the number of end users with mission-critical needs for scanning large volumes and varied document types, traditional MFP dealers are increasingly recognizing the necessity of adding dedicated scanners, Turner says. “We find, in dealing with our larger MFP partners and a lot of independent BTA dealers, that any time there is a challenging, complex or high-frequency, paper-intensive business

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process, there is generally a gravparticularly easy for itation toward dedicated scanthe MFP dealer to add “Document management is ners,” he says, citing the example a scanner into a lease. growing and the market for of one dealer who initially leased “From a dealer standscanners is growing with it ... multiple MFPs to a customer point, the cost of adding we are seeing a shift from scanning “literally millions” of a scanner in an environlarger scanners ... to smallerdocuments into an archival sysment where an MFP is footprint ... scanners that tem; the dealer quickly began also in use is minimal on getting service calls for issues a lease — an extra $15 to are more readily available with the MFPs’ ADFs and hop$25 a month,” he says, for office workers to use at their desktops.” pers “since they were not built” noting that the scanner — Larry Trevarthen for that type of duty. also provides a welcome Epson America Inc. “The dealer shared his story backup for scanning with us at a show and we said, when an MFP is down. ‘You just need to place one or two of our scanners, which are “Quite literally, it becomes, ‘I’m going to throw in a scanner more than capable of handling that document volume, plus, just as a backup.’” we have software that’s going to help you make sure the As noted, despite any appeal of the dedicated scanner’s images look good,” Turner said, explaining that the dealer movement from the back office to the front office, there are a ultimately placed dedicated scanners in the customer loca- few factors that may be met with resistance by dealers. Pertion. “He later came back to me and said, ‘Just so you know, I haps primary among them is the prevalent availability of learned a lesson. When I have a customer with large-volume scanners, which many associate with having to sell on price, document jobs, I’m never going to place an MFP there be- resulting in low margins. Turner acknowledges the reality, cause it will just end up costing me money.’” but suggests that dealers emphasize their competitive edge. End users with large-volume jobs, as well as those with “Fujitsu scanners are available through distribution, so they employees needing scanning for their daily routines, are are available to a wide variety of channels,” he says. “So I not relegated to just a few industries or vertical niches, says would say yes, the dealer does compete with online retailLarry Trevarthen, director of commercial print and scan- ers. However, where we see success is when dealers combine ning for Epson America Inc. “Scanners are being placed in scanners with software and professional services, and add document management solutions across all verticals and service contracts. They do not face the same price pressure organizational sizes,” he says. “Document management is as the dealer who is just selling a one-off scanner.” increasingly being placed in SMB environments; this inOdore notes that Panasonic actively works to maintain cludes scanning solutions being available directly to the the profitability of its scanners. “Panasonic protects its end user to capture new documents over time.” street price,” he says, noting that the company uses a third Trevarthen emphasizes the trend toward the rise in the party to continually monitor online pricing. “We have a very usage of document management systems and the result- strict minimum advertised pricing [MAP] policy and we ing transition of the scanner’s placement in the workplace. require our resellers to be authorized to purchase. I don’t “Document management is growing and the market for mean they have to buy a certain amount every month, evscanners is growing with it,” he says. “Within the scanner ery quarter or every year; we do have a program tailored market, we are seeing a shift from larger scanners typically to the occasional buyer. However, if you want access to our placed in the back room to smaller-footprint — yet still ro- product, you have to abide by our MAP policy. Otherwise, bust — scanners that are more readily available for office because of that policy, we cut off non-complying resellers workers to use at their desktops.” pretty quickly.” Turner shares a similar observation. “There is still a need Identifying scanning opportunities is a relatively simple for very large centralized scanning in areas like health re- task for the dealership sales rep, Turner says. “You just ask cords and mortgage processing, but overall we’re finding a series of simple questions — the why, what, how, if, when, that the trend is putting scanners where people touch pa- etc. Ask your customer, ‘Do you scan?’ You pretty much per as part of a business process,” he says. “So, for us, we are know the answer is going to be ‘yes.’ By them just answerseeing that the distributed scanning space continues to get ing ‘yes,’ you have permission to ask the following questions: stronger as scanners get faster, and as software and scan- ‘What kind of documents are you scanning? 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reps — are particularly apto scan, but you don’t think pealing to Fujitsu. “They have you can because you’ve “Dealers ... understand how those customer relationscanned them before on an to take their whole portfolio ships,” he says. “Dealers have MFP and there were blocks of products and develop developed content manageof gray on the image; all you solutions that help customers ment, professional services, got were bad images.’” solve business issues ... managed print services and Such simple questions and streamline business managed IT services capacan help the sales rep deprocesses. We want to partner bilities. They understand how termine whether there is to take their whole portfolio an opportunity for a scanwith folks who understand their customers.” of products and develop soner placement, Turner says. — Rob Turner lutions that help customers “The rep can say, ‘It sounds Fujitsu Computer Products of America solve business issues, mainlike you have some intertain or achieve compliance, esting things going on and maybe you’ve got some bottlenecks or processes where you protect their information and streamline need some help. Let me bring in my scanning expert. Maybe business processes. We want to partner with he can help you make your scanning process better.’ We find folks who understand their customers.” n Brent Hoskins, executive director of the that this frequently leads to a conversation and then due Business Technology Association, is editor diligence. From there, it can scale up into a full-blown proof Office Technology magazine. He can be fessional services engagement.” reached at brent@bta.org or (816) 303-4040. Turner says that BTA Channel dealerships — and their sales

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The ‘War for Talent’ How to avoid competitive poaching by: Harry Hecht, Business Coach

re your best sales, service, administrative and operations employees about to be poached by competitors? Just when things in your business are running according to plan, your world changes. This exact scenario occurred while I was managing an eight-branch dealership — and it is not pretty. We may not talk about it openly, but employee poaching is an unpleasant reality. Take a look at many of today’s top companies and you will see them vying for the best and brightest workers. Some of today’s biggest and brightest companies were created when good people left one business and started another one in the same marketplace. When this occurs, it can be demoralizing and embarrassing, as it can reflect negatively on you, your company and maybe even your work environment. The luring away (or poaching) of top talent can hurt any company — but it is especially damaging for a small company. After investing time and energy into training high-performing employees and coming to rely on their performance, having them snatched away can be a devastating blow to the bottom line — and even the value of your business. Unfortunately, personnel poaching is on the rise. The competition for employees in America (despite higher-thanreported actual unemployment numbers) is about to get worse, not better, and the companies that will win this “war for talent” will be the companies that create relational values in the new world of work. It is a fact that employees worth retaining are always looking for new responsibilities, more income and want to know that there are next steps in place to further their career aspirations. Make them part of a thriving (not dying) company where they see that, as the company expands, loyal and performing employees are considered for new opportunities and positions as they arise.

For the independent BTA member dealership, it may not be feasible or practical to launch into a bidding war over an employee who is about to leave. Keep in mind that the reasons employees leave can be more involved than just a better paycheck. Engagement is what will allow you to cement relationships with your most valuable employees and this is what most of them desire. Employees want to feel valued and engaged. We all talk about doing this, but

few leaders do it well. Attracting and keeping employees can be a challenge on many levels. Consider offering the following perks/ benefits to your employees and they may be less likely to leave for your competitors when those calls come. Here are some steps to help you proactively retain your top talent and protect your business from competitive poaching. Promote Responsibility Give your employees permission to be creative in solving problems and allow them to make mistakes. Share the company’s challenges with them and ask for their ideas. Then, when they solve a problem, reduce costs or increase sales, acknowledge them publicly. Your team will have more respect for these employees and will want the same kind of acknowledgement themselves. Provide a Clear Career Path Identify the trajectory of each key job. Employees worth keeping are always looking for additional responsibilities. They want to know that there are next steps and that they are not in dead-end jobs. It makes sense to create an environment where they see that, as the company expands, existing employees take priority in getting these highly responsible roles. They will not be so eager to jump ship if they

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can see what is waiting for them on their path to continued success and rewards.

Employees want to be proud of their companies and what they stand for in their broader communities. Give them the feeling that they are making a difference ...

Pay for Results Do not pay everyone the same, no matter how they perform or how well the company does. When you pay your people correctly, non-performers cannot afford to stay and performers cannot afford to leave. Recognizing performers with salary and bonus differentials can send the message that they do not have to leave to get what they deserve.

Institute “Stay” Bonuses Match some portion of your key employees’ salaries in an account that is at risk if they leave the company before a set period of time. As that time approaches, offer to increase the contribution for a new, extended term of tenure with notes, stock options, cash or contributions to a tax-deferred retirement fund. This investment will be a fraction of the cost of losing one of your key players.

Flex Hours Do not let poachers lure your people away with the flexible hours they require for child care and personal needs. Wherever possible, consider using technology to allow remote work.

Adopt Work/Life Balance “A small business can differentiate itself by creating a balanced life for employees,” says Josh Davis, author of “Two Awesome Hours: Science-Based Strategies to Harness Your Best Time and Get Your Most Important Work Done.” He notes that while a balanced work life does mean less work, it can actually lead to higher productivity. As part of a balanced life, you can offer employees time off based on how long they have been with the company. Consider extending sabbaticals to key employees. Adequate time off can keep employees happy and encourage them to stay put.

Stand for Something In today’s world of increasing transparency, it may not be enough to have the best products or services. Employees want to be proud of their companies and what they stand for in their broader communities. Give them the feeling that they are making a difference and they will be more likely to stay for more than just the money. If you do lose an employee to poaching, you can treat the event as a learning experience. Determine what the other company offered in money, benefits and perks, and then ask the departing employee why those things are preferable to what your company has offered. This can help you take proactive measures to reduce the likelihood of this happening again. It can also be best to bow out gracefully. You can take the high road and wish the employee well, thus keeping the door open. The possibility of your paths crossing in our industry is very real and likely. It is all about relationships and preserving your reputation. n Harry Hecht, a business coach and consultant, has more than 34 years of office technology industry sales, marketing and finance experience. This includes a 22-year career as vice president of U.S. dealer sales for Konica Minolta Business Solutions and five years as vice president and general manager for Global Imaging Systems, a Xerox company. Hecht, a member of MPSA, has been involved for more than 12 years in the development, creation, implementation and growth of managed print services programs throughout the independent dealer channel. He can be reached at harryhecht@gmail.com or (609) 636-9893. Visit www.linkedin.com/in/harryhecht.

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Hecht Mar 16.indd 2

3/2/16 1:33 PM

ReBox ad Mar 16.indd 1

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REFLECTIONS ON 90 YEARS

90 Years & Going Strong Join us in Kansas City, Missouri, June 8-10 by: Ron Hulett, U.S. Business Systems Inc.

t is difficult to imagine and duplicate a vertical industry association lasting for nearly a century. Congratulations to everyone involved in the Business Technology Association (BTA) over this time — all of the staff members, the hundreds of volunteers, the dealer members and the business partners who have all worked together to make the association the most relevant and valued organization in the industry. No other entity has played as big a part in the successful education and evolution of the independent office technology dealer. Everyone involved in this industry — dealer or vendor/ manufacturer — has looked to BTA to provide the knowledge, insight, representation and network of people necessary to promote, sell and support the products and intellectual properties that have been central to our businesses over the years. The tenure of the association is a testament to the commitment to excellence from all involved. For me, one of the proudest moments of my career in this business — which has now spanned nearly 30 years — was the day I received the “President’s Pin” and was officially announced as the president of BTA. I remember that moment as if it were yesterday and, even though it was really only a few short years ago, it will stand out as a focal point for me for many years to come. I took the responsibility very seriously and I hope that I represented the entire dealer network in a positive way. The moment I became BTA president even outweighed the day my company was started and I began my personal evolution from a service technician to the eventual president of U.S. Business Systems Inc. While my role in the company has shifted, I continue to learn and change with the industry to improve personally and professionally. Over the years, BTA has always been there for my business and its members, providing guidance, affordable education from industry experts and legal representation, as well as serving as a liaison between dealers and manufacturers. Who can forget the days of the National Office Machine Dealers Association (NOMDA, now BTA) and the enormous conventions that were held in Las Vegas, Nevada? These conventions were really the only way to meet with manufacturers and form business relationships with them, as well as see what products were going to hit the market. Without the foresight of BTA leadership to arrange these conventions and

manage what was an enormous undertaking, all of our businesses would have had a much more difficult time comparing products, services and partnership agreements. I vividly remember walking onto that convention center floor for the first time and seeing all of the booths and people. Coming from a small rural area, that was my first introduction to “big business.” My fervor for knowledge and success was first fostered at these conventions. Unlike most dealerships in the business at that time, I was not a legacy business owner; we started the company from a dead stop and I was pretty fresh out of college. What an education the next several years were. One of the greatest things about this industry has been its ability to accept and embrace the changes that continue to drive our businesses. That has also been one of the greatest attributes of BTA as well — its ability to embrace the changes and adapt the education, benefits and the delivery of the information to the dealer community. BTA continues to be the forerunner in providing the dealer network with educational opportunities, relevant legal counsel and valuable insight provided by the leaders in our industry. It now delivers these benefits and more at a regional level at BTA events. With the big Las Vegas convention now gone (since all the manufacturers now host their own dealer meetings, guaranteeing that they have a captive audience), BTA has seen the need to adapt its strategy so it can still provide an independent perspective to products, services and strategies to success. Enter the era of BTA events, held throughout the year in BTA’s districts. These events allow a dealer to choose the one that best fits into his (or her) schedule and reduce his costs as, many times, there is an event right in his backyard, so to speak. These smaller, more personal meetings have been well received. The venues are fantastic, the content and education is on point, and the smaller format allows a dealer to make profitable connections with supplier partners and other dealers without feeling threatened or like he is just another face in a large crowd. I believe if you look at the recent decline in attendance at other very large industry events that traditionally have seen much larger numbers, the message is clear that dealers want smaller, more personal events and opportunities to network. Personally, my business has capitalized numerous times by attending these events. Each event we attend, we bring back

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everyone make plans to attend, as this is something we can use right away — marsure to be an event to remember. keting strategies or education for our core Each event we attend, In closing, I would just like to say: Conbusiness or an adjacent market like manwe bring back something gratulations BTA! You are the most respectaged IT services, a relationship with a new we can use right away ed organization in the industry and you have vendor partner, a renewed focus on man— marketing strategies earned that designation. Job well done. n aging to the benchmarks or a new relationor education for our Ron Hulett, 2014-15 BTA president, is ship with a fellow dealer who is willing to part-owner of U.S. Business Systems Inc., share ideas with us. These events have been core business or an Elkhart, Indiana. The company was formed invaluable in assisting us in staying ahead adjacent market ... in 1992. The dealership has since grown of the game, remaining relevant to our cliinto a $4-million-plus business with 30 ents and improving our profitability. employees, serving northern Indiana and southern Michigan. This year marks the 90th anniversary for BTA, so with such It was selected as a 2014 Elite Dealer by ENX Magazine. As a an enormous accomplishment, it only seemed fitting to put hybrid dealership, it represents Kyocera, Sharp and OKI in the on a celebratory event. The event is slated for June 10 in Kanprint space. It is a Lenovo and Microsoft partner sas City, Missouri, the home of the association and the city and provides managed IT services, as well as where it was founded in 1926. BTA at 90: A Celebration will be workflow and document imaging and held in conjunction with the 2016 BTA National Conference management applications. Hulett was named on June 8-10. Both events are 2016’s must-attend events for the BTA’s Volunteer of the Year in 2012. He can be BTA Channel. People from all over the country at all levels reached at (574) 264-3065, ext. 201 or will be there to celebrate the success of the office technology ron.hulett@usbus.com. Visit www.usbus.com. dealer and BTA over the years. I recommend that anyone and

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WorkflowOTG.com | TheImagingChannel.com 22 | w w w. o f f ic et ec hno lo g y m a g.c om | Ma r c h 2 0 1 6

Hulett Mar 16.indd 2

3/2/16 8:33 AM

COURTS & CAPITOLS

Selling Your Business Price is not the only thing to take into consideration by: Robert C. Goldberg, general counsel for the Business Technology Association

ver the years there has been a healthy marketplace for the sale of office technology dealerships. This is very fortunate, as many industries face exit strategies limited to family members, employees, liquidation or, simply, closure. However, sellers often concentrate solely on the sale price and fail to consider many other important factors. Here are several to consider. At least once or twice a year, a seller comes to me with a transaction where the parties have agreed to the major points, but have failed to consider the tax ramifications. Most dealerships are “C” corporations. Most of the “C” corporations have elected Subchapter S treatment from the Internal Revenue Service (IRS). Subchapter S election treats the business entity as an individual for tax purposes. All profits and losses are those of the shareholders directly and not taxed to the corporation. If you sell your business and it is a Subchapter S corporation, the proceeds from the sale are only taxed once — to an individual. If the business is a “C” corporation, then the gains to the corporation are taxed as well as the corporate distribution to the shareholders — double taxation. Double taxation can greatly reduce the amount of the purchase price the seller receives. The IRS does not allow one to elect Subchapter S status and then sell. There is a substantial waiting period. Thus, if the seller is a “C” corporation, it is best to negotiate a stock sale rather than a sale of assets. The proceeds to a shareholder from the sale of stock are treated as capital gains, which currently have the most attractive tax rate. Purchasers prefer asset sales since a stock sale includes both the assets and liabilities. A prudent seller will determine the tax ramifications and negotiate the proper structure. In a sale, all terms are negotiable. The buyer often will request a holdback of a portion of the purchase price. A holdback can range from 10 to 25 percent but, again, the amount is negotiable. The holdback is typically held in escrow by a bank or trusted third party. The holdback is designed to cover claims the buyer may have against the seller following the closing. If there are no claims, the proceeds are distributed to the seller at the conclusion of the holdback. A seller will also be required to provide the buyer with numerous warranties and representations. These statements are the seller’s commitments that information provided during

negotiations and due diligence are, in fact, true and correct. They include debts and receivables, commitments to employees, customer contracts and cancellability, accuracy of financial statements, tax compliance, legal claims (pending and threatened) and transaction authorization. Any misrepresentation in these warranties and representations may result in a claim against the holdback. The agreement to sell is likely to have several contingencies that must occur for the transaction to close. The contingencies may include the ability to obtain financing, approval of suppliers, government approval of very large transactions, satisfactory completion of due diligence, agreement from key employees to continue with the company and approval of lenders. The vast majority of industry transactions do not require government approval, however, the consent of suppliers is often critical to maintaining the value of the business. The seller will also be requested to provide certain indemnifications to the buyer. These indemnifications include claims that arise from business dealings prior to the sale. Among those could be claims for back taxes, wrongful termination of an employee, customer complaints and unpaid payables. An indemnification provision typically includes attorney fees and costs incurred in conjunction with the claim. In addition to an employment agreement for the seller, there may also be an earnout provision. An earnout is often used to bridge the gap between the price the seller seeks and what the buyer offers. An earnout can measure retained customers, sales, maintenance renewals and financial results. Earnouts can be for any period of time from one to three years. Many dealers have planned to sell their businesses with the sole question being: “When?” As can be seen, the sale of a business involves many factors and preparing your business for sale will result in a smoother transaction and, perhaps, more money in your pocket. BTA members can always call the Legal Hotline at (800) 869-6688 with any questions they may have. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com. www.offi cetechnol ogymag.c om | M a rc h 2016 | 23

Goldberg Mar 16.indd 1

3/2/16 8:42 AM

BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:

Dealer Members Aregood Technologies, Ridgeland, MS Austin Technology Group, Austin, TX Bayou Office Machines, Larose, LA Business Solutions International, Houston, TX Core Business Solutions, Pharr, TX Gem Office Technologies, Mahwah, NJ Governor Business Solutions, Dearborn, MI Illinois Paper & Copier Co., Bolingbrook, IL LSI Marketing, Lake Oswego, OR Managed Business Solutions, Bayonne, NJ MFD Business Solutions, Carrollton, TX TLC Office Systems, Houston, TX Service Associate Member Etactics, Stow, OH Vendor Associate Members Cartridge Warehouse International, Canoga Park, CA HMB IT Consulting, Westerville, OH For full contact information of these new members, visit www.bta.org.

Insurance Programs BTA members have the opportunity to enroll in a number of insurance programs. Each insurance program is specialized to fit the needs of office technology dealers. The programs span a wide variety of insurance coverage including health, business, disability, executive life, cancer programs, workers’ compensation, retirement and Section 125 plans. Visit www.bta.org/Insurance for more information and a free, no-obligation quote. For information on BTA member benefits, visit www.bta.org/MemberBenefits.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member HMB is a business technology services firm with 20-plus years of IT consulting, enterprise content management and system integration experience. Partners rely on HMB to create a complete system that turns their paper into perfectly managed and actionable digital data. HMB works with the world’s leading fax server (OpenText), network scanning (Fujitsu, Canon, Kodak) and document management (Kofax, M-Files) vendors to offer a wide range of imaging and enterprise content management products and technical support. www.hmbnet.com

BTA Service Associate member Etactics is a business services company committed to providing innovative, Web-based solutions that improve its clients’ cash management and customer relationships. Etactics’ services assist clients in improving business processes, boosting staff productivity, reducing expenses and accelerating payment. Established in 1999, Etactics began business in the healthcare industry, providing solutions to enhance revenue cycle management. Growing to meet expanding industry needs, Etactics has since broadened its services to provide Web-based solutions to the corporate and public sectors. www.etacticsinc.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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Highlights Mar 16.indd 1

3/2/16 1:32 PM

PRINCIPAL ISSUES

‘LinkedIn Doesn’t Work’ The most common excuses for this networking tool by: Larry Levine, Social Sales Academy

efore there was the Internet, smartphones and video games, kids had to find creative and innovative ways to entertain themselves. I may be dating myself, but kick the can, stick ball, over-the-line and hideand-seek once kept us busy. One of my favorite things we used to do was pile into my parents’ car and pretend we were driving — honking the horn, using the turn signals and windshield wipers, etc. However, we couldn’t actually drive the car because we did not have the skill set to figure it all out. I know what you are thinking: “What does this have to do with LinkedIn?” Recently, I was involved in a conversation with someone who said: “I tried this LinkedIn thing and it just doesn’t work.” Without developing the skill set, LinkedIn will not work. LinkedIn does not drive itself — you drive it. Imagine you have never driven a car and all of a sudden you were thrown the keys to drive. With no skill set and no mindset, you will come up with plenty of excuses not to drive. Here are the top LinkedIn excuses I hear: (1) “I don’t have time.” Well, neither do I, so just do it. We all have the same amount of time; it is all in how we choose to use it. Invest 15 minutes every day. (2) “It isn’t a priority for me.” Open your browser and make it a priority. How important is generating new sales to your business? Just do it and develop new relationships, which will lead to business opportunities. Yes, part of sales is developing new business. (3) “I am uncertain what to do with LinkedIn.” You have a LinkedIn profile and some connections, but if you are not really sure what to do next, get some training. It will save you countless hours and frustration. (4) “I am annoyed with LinkedIn. I receive countless, worthless emails from groups I’ve joined or from connections who blast me with things I don’t want to read.” Stop going to those networking events where you are continually sold to by eager chamber of commerce members or where you are bored by the lack of engaging conversation. (5) “I tried LinkedIn once and it didn’t work.” Trying it once rarely works for anything in life. It takes continuous practice with the right approach. Create the mindset and develop the skill set. Commit to making it a daily habit. (6) “I need proof that LinkedIn works.” You will only get proof that LinkedIn works if you actually use it. Cars cannot

effectively drive themselves — yet. You have to put the key in the ignition, start the car, take it out of park and away you go. The same holds true with LinkedIn. Start the engine (conversations), take it out of park (collaborate) and away you go (build relationships). (7) “I don’t want people to see what I am doing or let my competitors know who I am calling on.” LinkedIn has some of the most effective privacy settings. You just need to know how to manage them. I do not know a single salesperson who became successful by locking himself (or herself) in a closet. Join me in attending the LinkedIn professional business party. Besides, paranoia never gets you anywhere. Do not worry what your competitors are doing — focus on what you are doing. (8) “I already have great relationships with my clients.” Most successful sales professionals have great relationships. What happens when a relationship moves on or, better yet, new people get involved? LinkedIn provides the platform to build your brand and credibility, and position yourself as a subject-matter expert. Go deep and wide in your accounts to strengthen your connections. Connect with all executives and IT, administration, facilities, purchasing and finance employees. Ask for testimonials from all of them. Most importantly, mine their connections and ask for referrals. Today’s business world is fast-paced and ever changing. The first impression you make may not be face to face but, rather, online. What is your digital first impression? Your first handshake may be a digital one based on your professional business story. Adapt, adopt and make LinkedIn part of your daily sales strategy. Your sales funnel will appreciate it. n With 27 years of copier/MFP sales experience, Larry Levine coaches sales reps on using LinkedIn to build out their credibility, prospect for new business opportunities and protect their current account bases. In 2009, he started incorporating LinkedIn into his sales process and, using techniques he perfected, closed more than $650,000 in new business in 2014 in conjunction with $1.3 million in total revenue. Levine built a pipeline of $1.7 million through developing relationships and using connections made through LinkedIn. He can be reached at llevine@socialsalesacademy.net. Visit www.socialsalesacademy.net. www.offi cetechnol ogymag.c om | M a rc h 2016 | 25

Levine Mar 16.indd 1

3/2/16 8:46 AM

PRINCIPAL ISSUES

Q&A: John Corley Addressing Xerox’s separation, dealer opportunities by: Brent Hoskins, Office Technology Magazine

n Jan. 29, Xerox Corp. announced the results of its review of the company’s portfolio and capital allocation options announced in October 2015. The company’s board unanimously approved management’s plan to separate Xerox into two independent, publicly traded companies — one focused on document technology, the other on business process outsourcing (BPO). “It has become increasingly clear that the company’s document technology and BPO businesses serve distinct client needs, have different growth drivers, and require customized operating models and capital structures,” the company noted in a corpo- John Corley rate press release. “Thus, the separation of the two businesses will enhance their competitive positions and create significant value creation opportunities.” The company cited several “value creation opportunities.” They include: enhanced strategic and operational focus; the simplification of organizational structures and resources; distinct and clear financial profiles; and distinct investment propositions with differentiated financial profiles, growth drivers and business prospects. Recently, Office Technology magazine had the opportunity to conduct a brief telephone interview with John Corley, president of channel partner operations at Xerox. He was asked about Xerox’s separation into two companies, as well as his thoughts on the resulting opportunities for independent dealers. Following are the questions asked and Corley’s responses. OT: What is at the core of the decision to separate Xerox into two companies and how should independent office technology dealers expect to benefit? Corley: Every effort we make is to create value for all of our constituents — shareholders, customers, partners and employees. That is what ultimately led to the announcement of our intention to separate into two independent, publicly traded companies, both of which are going to be Fortune 500 scale. As you know, one company is going to include our document technology business, which will encompass document management and document outsourcing; the other company will comprise our business processes outsourcing. From a

doc-tech perspective, the document technology company will continue Xerox’s role as a global leader in document management and document outsourcing; it will continue to lead the market with superior technology solutions and innovations. In terms of what to expect, be assured that we’re going to continue to operate business as usual through this separation process and that, post-separation, we’re going to continue to deliver the same high-quality products, services and programs that we do now. On the offering side, this means we are going to continue our investment in technology, managed print services (MPS), solution apps and workflows that customers need to improve their flow of work. On the program side, I’d say we are going to continue the investments that make Xerox easier to do business with, making us more competitive and profitable for our partners. Throughout our history, we’ve continued to evolve our business to ensure that we’re well positioned to compete and deliver solutions for our partners’ and our clients’ needs and this is, candidly, the most recent example of our commitment. Today’s market realities require greater agility and flexibility. The separation into two companies will allow Xerox to return to focusing solely on the document technology business from R&D all the way to advertising. OT: How will the company separation affect the Xerox offerings available for resale through Xerox-authorized dealers? Corley: As I mentioned, we are going to continue to operate business as usual through this separation process. However, a key detail is that our document outsourcing business — managed print services, which has often been referred to as “services” — will firmly be in the document technology side of the business. On the offering side, this means continued investment in the technology, managed print services, solution apps and the workflows that customers need. And then, in addition and separate from the separation of Xerox, we’re going to continue to invest in key strength and market growth areas, such as in managed print services, but also in MFPs, production, color and workflow solutions.

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Xerox Mar 16.indd 1

3/2/16 10:32 AM

developed a simple architecture called App OT: What changes will dealers Studio, which enables partners to create their ... We’re committed to see that may cause them to begin own custom applications for basic common viewing Xerox — historically seen delivering the technology office workflows; partners can also become largely as a direct sales company — and solutions that create authorized developers for more complex more favorably than in the past, revalue for our partners apps. Both are pathways that offer partners sulting, perhaps, in their interest in and their customers the ability to customize apps for their cusselling Xerox products and services? tomers, become more relevant, and thereby by improving the way Corley: First of all, I’d say we are very maximize their account control and ability proud of our heritage. We’re also proud of that work gets done ... to monetize those apps and create a new reour ability to adapt our channel strategy to curring revenue stream. So, that’s exciting. drive partner value and shareholder value; that reflects our commitment to our global partner program, which includes several routes to market. As I’ve mentioned, we OT: What do you believe should be the top three need a portfolio of quality partners and this includes dealers. priorities in today’s market for office technology We’ve provided the right infrastructure and the right platform dealers seeking continued company growth? Corley: I think, candidly, everything revolves around valto grow our channel sales, particularly in this area. We’ve developed programs and have become a company that is easier ue creation. So, number one, they should prioritize managed to do business with. Specifically, we’re going to continue to print services and MPS efforts to expand their reach into drive growth through our dealer route to market. We’ve seen small and medium-sized businesses, because more than 70 tremendous growing revenue and new partners over the last percent of SMB customers do not have managed print providers today. So, the way to get at this is to increase the number of three years, so we’re very excited about this. assessments they’re doing to drive new account wins. Number two would be around benefiting from increasing OT: In the 2016 Industry Forecast you submitted to BTA’s Office Technology magazine, you heavily solutions workflow capabilities — learning how to build their emphasized the importance of dealers embracing own simple apps and learning how to unlock value in their managed print services opportunities. What is your customers. This will inevitably lead to an increased customer assessment in terms of how Xerox dealers are do- retention rate. Not only that, but it will also increase the wallet-share they receive from their customers. ing with MPS and how has Xerox assisted them? Third, they need to market their value. Too often I see partCorley: We’re pretty bullish on MPS and I think we have every right to be, based on all the independent research we’ve ners struggling for growth, relying on their current customers seen, whether it’s Gartner, through its Magic Quadrant work, for next year’s revenues. Partners need to find new customers. where we’re in the number-one position of the top right of vi- Marketing their brand and differentiators is critical to mainsion and execution, or even IDC MarketScapes, where we’re taining and growing their businesses. Partners can leverage in a leadership position. Currently, we are seeing significant free digital marketing tools that Xerox offers or they can even successes and strong growth from partners offering MPS and do it in-house, but it’s critical to devote time and resources to a number of devices under management, as well as revenues expanding their marketing reach. So, those would be the three and profits for partners. At Xerox, we’re supporting partners areas and they all revolve around value creation. with tools, know-how and programs. Of course, we see a continuum of partners who rely solely on Xerox MPS platforms OT: Are there any other thoughts on your mind and some that leverage platforms for some specific customers. that you would like to share? Corley: Just that we’re committed to delivering the technolBut, to get into some specifics, partners are benefiting from enablers like training seminars, webinars, intensive summits ogy and solutions that create value for our partners and their that we host, continuing education series, pricing flexibility, customers by improving the way that work gets done and by helping their customers grow. This is really the essence of bid-desk support and even help-desk operations. what we’re doing inside of channel partners’ operations. The OT: To the benefit of dealers who are authorized feedback we are receiving from our current portfolio partners Xerox dealers, what can you share about Xerox in is extremely positive around the tools and enablers that we terms of the area of opportunity formed by man- have out today and the direction we are headed. n Brent Hoskins, executive director of the Business Technology aging workflow, application development, etc.? Association, is editor of Office Technology magazine. Corley: This is an area of considerable focus for us at XeHe can be reached at brent@bta.org or (816) 303-4040. rox and it’s a huge opportunity for partners, I believe. We’ve www.offi cetechnol ogymag.c om | M a rc h 2016 | 27

Xerox Mar 16.indd 2

3/2/16 10:32 AM

PRINCIPAL ISSUES

Adjacent Opportunities Ideas shared at Executive Connection Summit by: Brent Hoskins, Office Technology Magazine

ather than focus on any concerns resulting from declining page volumes and the changing nature of the workforce and workplace, more dealers should look to new adjacent revenue-producing opportunities to grow their businesses, said Rick Taylor, president and COO of Konica Minolta Business Solutions U.S.A. Inc. “I am very optimistic about this industry and about this business,” he Rick Taylor said. “I believe, as a group, we have a chance to invent the future.” Taylor shared his comments as one of a number of presenters at the 2016 Executive Connection Summit, held Feb. 17-19 in Scottsdale, Arizona. The summit was hosted by the member companies of Technology United: BEI Services, Clover Imaging Group, EKM, ESP, GreatAmerica Financial Services, InMap, Intel, Intellinetics, LMI and MWA Intelligence (MWAi). Technology United was formed in 2009 with the goal of aligning a common commitment within each member company to drive intelligent, interconnected solutions and innovation. Founding Technology United member Mike Stramaglio, president and CEO of Scottsdale-based MWAi, served as the summit’s emcee. “Essentially, what we are trying to do is talk about innovation and how that innovation is basically being advanced and accelerated,” he said as the summit got underway. “We are trying to talk about things within the framework of this industry and how to take it forward in a very dramatic and, I think, transformational way.” Like the summit’s 10 other presentations, Taylor’s presentation focused on the transformation cited by Stramaglio. After first reminding dealers that there are still opportunities in the MFP market, particularly in production print (“If you want to go from a $4-million dealership to a $10-million dealership really quickly, get proficient in production print.”), he encouraged dealers to consider the managed IT services opportunity. “Everybody is talking about managed IT services and I’ll tell you that we have learned a lot,” he said, noting that All Covered, a $40-million company when acquired by Konica Minolta, is now at $220 million. “I don’t think we have a large dealer in the country who hasn’t made a purchase or started in the IT services business.” Taylor also mentioned dealer successes resulting from Konica Minolta’s development of very specific applications for vertical markets “that are good for the MFP business,” citing, in

particular, strides in the financial services industry and referencing one recent deal built on the usage of Konica Minolta apps that provided 300 MFP placements for dealers. In addition, he touted the company’s success in the ECM business. Konica Minolta entered the business three years ago, he said, increasing that business from $0 then to $50 million this year. “So, what’s next?” Taylor asked. “We have some ideas about what’s next. We think we’ve been ahead of the game in jumping into some of these adjacencies.” Taylor shared the story of his meeting with the president and CEO of a company in New York City who became more engaged upon hearing about Konica Minolta’s non-imaging-centric technology. “I started talking about some of the other products we are selling and the concept of the smart office, and what we could do to transition his employees into the future of how business is going to be done,” he said. “All of a sudden, I saw this change in demeanor and new guys got called into the room. That changed the relationship, because we talked about how business would be conducted in the future and how we could help them with a combination of technology and services.” In reference to its strides to address the workplace of the future, Taylor noted that Konica Minolta is currently involved with such companies as Robin Powered Inc., a software company that facilitates responsive conference rooms and simplifies scheduling meetings with easy calendar integration and usage analytics, and Knightscope Inc., the producer of robots that can see, hear, feel and smell, watching over corporate campuses, making them safer. Citing these technologies as well as the increasing focus on technologies related to mobility, cloud services, etc., Taylor imagined a new adjacent area of growth for the industry in serving evolving companies. “Can we help them design the workspace?” he asked. “Maybe we should think about partnering with companies that can actually design workspaces for companies.” How business will be conducted in the future will largely be impacted by the changing workplace, Taylor emphasized, pointing to the rise in the number of millennials entering the workforce and the number of remote workers. “Things are changing dramatically,” he said. “I think that if we can lead that change as an industry, there’s real revenue — real profit — for us, and it will also sustain the core business that we have today.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040.

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SELLING SOLUTIONS

Networking Cold Calls Strategies for making sure they are successful by: Troy Harrison, Troy Harrison & Associates

e have all been there before: There is a person out there you know you could benefit from knowing and who might be able to benefit from knowing you. You go to the functions he (or she) might attend and either he is not there or you do not get a chance to make a connection. You check LinkedIn and, at best, he is four degrees from you. So, how do you make that connection? You decide to take the bull by the horns and call him. Why not? You make cold calls all the time; how much different could this one be? Well, the answer is: a lot. There are many pitfalls to making a cold call to network — and there is also a clear path to success. I receive a lot of these calls and, unfortunately, too many of these people get it very, very wrong. Let’s look at how to do it right. Plan & Research This is the opposite of my approach to cold-call teleprospecting. I am not a big fan of extensive pre-call research in teleprospecting because teleprospecting is, at some level, a numbers-based approach. This type of call is different. You are targeting one specific person you would like to build a relationship with; it behooves you to have at least a basic understanding of who the person is, what he does, etc. For example, I receive calls all the time from people who do not do that research. They see one article I have written somewhere and want to connect with me. The problem is, they make all their assumptions based on one article, so if they see me in a magazine for the office technology industry, they assume I am an “office technology industry guy” — which I am not. I am a sales guy, and perhaps a bit more than that, but I am not an industry guy, so dropping names that are prominent within an industry probably will not be meaningful to me. At the very least, you should know what the person does, what his desired target market is and how he helps his clients. Build a Concise Approach This is one area where teleprospecting and telephone networking are similar. If you waste someone’s time, you will not get a second chance. You should build an approach to your target contact that includes who you are, what you do (stated in terms of the value you provide to your clients) and why you think the two of you should connect. Ideally, you should be able to articulate this in less than 30 seconds.

Drop the Fake Rapport I am from the Kansas City metro area. For many years, this has not been a fun place to be in terms of professional sports. At the moment it is very much a fun place, which causes people to think they can build rapport by calling and saying things like, “How about those Chiefs?” or “How about those Royals?” It does not work — with me or with anyone else. I am the most casual of football fans, so while I enjoy the Chiefs’ success, it is not meaningful to me. I do love the Royals — and I spent a lot of money to watch some pretty awful baseball for a lot of years — but cold calling me that way will not generate a win for you. And, in my experience, seldom does it work on anyone else. Articulate the Win In any good relationship, there is a win for both parties. You should be able to anticipate and plan to explain a meaningful win for the other person, preferably within the first 30 seconds (but beyond that, if necessary). Whoever you are calling for a networking relationship should be able to win by meeting and knowing you. If there is no win for the other person, you are just grasping for coattails. Think hard. There has to be a reason that both parties can win with this relationship. It Is Not About You One of the greatest pieces of advice ever given to me in my speaking career came from my good friend Darren LaCroix. www.offi cetechnol ogymag.c om | M a rc h 2016 | 29

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phone with him), etc. On three different ocHe said: “Remember Troy, it’s not about casions, I politely asked: “What can I do for you — it’s about the audience. Don’t worry Cold calls can work in you?” He even replied: “I know, you’re saying about looking good, powerful and like an networking just like they to get to the point.” He did not. Finally, with expert on stage. Worry about whether the do in teleprospecting, 10 minutes to go before my speech, I had to audience is getting what they need from the but you have to make let him go. I was not trying to be rude, but it program.” In a networking call situation, it sure that you are doing was time to move on. If he could not give me is easy to find yourself wanting to drop into a reason that we should talk within the first telling your entire professional life story. it correctly and creating a 10 minutes, I was willing to bet that anothDon’t. Instead, give a quick thumbnail to win for the other person. er 30 would not have made a difference. establish your bona fides as a person your Cold calls can work in networking just contact would want to know, and then like they do in teleprospecting, but you have to make sure that move on. It is about the person you are calling, not you. you are doing it correctly and creating a win for the other person. Do that and you can greatly expand your contact base. n Get to the Point Troy Harrison is the author of “Sell Like You Mean It!” and I had a call recently that violated all of these rules. My cell “The Pocket Sales Manager.” He is a speaker, consultant and phone rang about 20 minutes before I was to speak at a confersales navigator who helps companies build more profitable and ence in Las Vegas, Nevada, and I took the call. That is not a big deal — I was all set up, my technology worked and I do not get productive sales forces with his cutting-edge sales training and methodologies. For information on my game face on until about 10 minutes beforehand. So, I had booking speaking/training engagements, 10 minutes to talk to whoever was on the other end of the call. consulting or to sign up for Harrison’s weekly The person said he met me three years before and wanted to e-zine, call (913) 645-3603 or reconnect. He started rambling on about his professional hisemail troy@troyharrison.com. tory, what he did, that there are not many companies that do Visit www.troyharrison.com. what his does (which I still do not know, despite being on the

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The Year Ahead By Brad Roderick

MANAGED IT

How to Win Over a New Prospect By Dave Sobel

EXIT STRATEGY

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Nominate Your By Jim Zipursky Candidates

The 10 Biggest Mistakes Business Sellers Make – Part 1 of 3

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