NZ Entrepreneur - January 2017 Vol 1

NEW ZEALAND’S E-MAG FOR ENTREPRENEURS AND BUSINESS OWNERS 1

JANUARY 2017 VOL 1

Why Entrepreneurs must be Generalists Why Your ‘About Us’ Page is Broken Information Management - Fixing your Filing Startup List: Ohuddle

ARE SALESPEOPLE STILL RELEVANT? PART ONE

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CONTENTS 4

Are Salespeople Still Relevant? Part One

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Why Entrepreneurs Must Be Generalists

12

Lets Talk About ‘Us’

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How To Create A More Efficient Filing System for Your Digital Documents

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Startup Watch: OHUDDLE

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Teen Businesses Keen to Innovate

CONTACT US

w: www.nzentrepreneur.co.nz

ABOUT / Short and sharp, New Zealand Entrepreneur is a free e-magazine delivering thought provoking and enlightening articles, industry news and information to forwardthinking entrepreneurs.

f: www.facebook.com/nzentrepreneur

EDITOR / Richard Liew ART DIRECTOR / Jodi Olsson GROUP EDITOR / Colin Kennedy CHIEF FINANCIAL OFFICER / Alastair Noble

linkedIn: NZ Entrepreneur t: @NZpreneur

CONTENT ENQUIRIES / Phone Richard on 021 994 136 or email richardl@espiremedia.com ADVERTISING ENQUIRIES / Jennifer on 0274 398 100 or email jenniferl@espiremedia.com WEBSITE / nzentrepreneur.co.nz

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Sales

ARE SALESPEOPLE STILL RELEVANT? PART ONE

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BY Mary Crampton

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SALES & MARKETING ROLES HAVE CHANGED Then...

Now...

Awareness

Marketing Interest Consideration

Marketing

Intent Sales

Evaluation Purchase

H

ow have sales and marketing changed due to the Internet and technology?

What is the current role of the salesperson? Do we still need salespeople – or has marketing taken over?

I’ve been reflecting on these questions, ever since I saw this Slideshare infographic

by Kevin Krason which shows how the salesperson’s role has changed.

On the left of the infographic, we can look back to ‘the good old days’. Back ‘then’, marketing was simply about building awareness and interest. Sales performed the next steps in the process of acquiring more customers – consideration, intent, evaluation and purchase.

On the right, the infographic says that ‘now’, marketing has taken over half of what the sales function used to be – that it

Sales

now covers awareness, interest, and also a consideration, intent and part of evaluation.

Sales appears just to be left with part of evaluation and purchase.

The infographic hints that sales has become an ‘order-taker’ function - and some of the online comments said exactly that. So it got me thinking: How have sales and marketing changed? What is the role of the salesperson in 2017? Also, where are sales going?

These are huge questions, and to do them justice, this article is in two parts. Here in part one, I’ll discuss how sales and marketing have changed. In part two I will discuss the role of the salesperson and the ways we now need salespeople.

First, let’s clarify the six steps shown in the ‘new business development’ process infographic. www.nzentrepreneur.co.nz

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Sales

AWARENESS

CLARIFYING SALES BACK ‘THEN.’

This is where the potential customer first becomes aware of your business and the products and services you offer. Branding is key for this step. This is where you first tell your customer the story of who you are and how you can help them to achieve their goals.

Back ‘then’, before the Internet, businesses had fairly defined places to start building awareness with customers. You could advertise in newspapers, or use radio or TV; you could sponsor a sports team.

INTEREST In this second step, you are building up the potential customer’s interest in your brand.

You make sure that you appear where your ideal customer is likely to be.

Billboards and signs were important too. A lot of this awareness-building happened with tangible items - business cards, flyers, or complimentary calendars.

The places to build interest were also mostly physical. You could have a stand at trade shows, or advertise as described above. And if your budget stretched, sponsorship of events or ‘people of CONSIDERATION This is a crucial phase. The client has become interest’ was another great way to build aware of the need they have, and your business your potential customers’ interest. is now a contender to meet that need.

The next parts of the process were quite clearly the sales domain. In the consideration step, the salesperson started the process of INTENT bringing onboard new clients. Cold calling Now customers are actively looking for a was huge. And it was literally cold calling. solution to their problem. They know they I remember my first sales job – telemarketing want to make a buying decision, they may even have a deadline by which they want the for a membership card. Our role was to complete all six steps of the new business solution in place for their business. development process, with one three-minute telephone call. Around 14 telemarketers were EVALUATION jam-packed into a small room. It was hot, noisy At this stage, the customer is evaluating and crazy! Some stood up, gesturing wildly. the options which could provide Others crouched under the table, hands cupped the solution to their problem. over the telephone to minimise noise. Each of us had a telephone and some pre-printed data.

PURCHASE Hand-written sales results were faxed The customer has finished researching and dialoguing with possible providers. The solution is chosen, the contract signed, and the purchase is completed. www.nzentrepreneur.co.nz

through to Head Office. Back ‘then’, by the time you reached the intent phase, a fledgeling relationship had most likely formed with your new customer.

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You probably had some telephone conversations, a couple of coffees. By now, the new client was probably talking with you quite deeply about their goals and challenges. As a salesperson, you had gained a real insight into what they wanted and had probably already highlighted to them the parts of your products or services that would best meet their needs.

the customer’s thinking at this stage of their journey. As a salesperson, it is very important to keep dialoguing with the customer, so that you can answer any lastminute questions.

During evaluation, the customer is fully committed to finding solutions to problems.

If you first approach a prospective client at this stage of their purchasing journey, they often aren’t interested in dialoguing – they have gone through all the other steps, and have narrowed their focus down to three or maybe four options.

Customers would have pretty close relationships with the salespeople from each of the companies they are seriously considering.

You need to have something truly outstanding to get a chance at the sale, assuming your business enters

Back ‘then’, the customer would now be looking at some fairly detailed proposals, and considering which one they would choose.

‘Then’ at the purchase stage, one option emerges as a clear winner, and the client says ‘yes’. They sign a contract and journey forward with their chosen supplier. The contract was a physical piece of paper.

If you weren’t able to meet the client, the contract would be faxed, completed and filed into a large filing cabinet. www.nzentrepreneur.co.nz

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Sales

SALES IS VERY DIFFERENT ‘NOW’ There are currently so many more options for the awareness phase. Everything from back ‘then’ is still available, but now the Internet has spawned a multitude of choices - websites, blogs, customer focus groups, social media – such as Facebook, Twitter, and LinkedIn – and that’s just some of them.

With the rise of the Internet, we’ve seen a decline in the role of traditional media.

Internet news – not the 6pm television news or newspapers - is now ‘breaking’ news.

Customers are on the Internet - where they often first hear of your business.

The Internet is now often where customers grow their interest in your company. Our future customers are looking at websites, in chatrooms, asking for referrals from their friends on facebook. They’re on LinkedIn gaining industry information. Twitter often reaches them first. Content is the new king.

‘Now’, even at the consideration phase, you still may not have encountered your customers. But they’re learning all about you. They are building an idea about what they need, where it is available, and how much it costs. They’re learning which suppliers are the best to deal with, along with some helpful tips about your industry.

The intent stage ‘now’ usually involves more intense research on the customers’ part, as they study your website and offerings.

Perhaps the client has downloaded some free information from your company’s website or social media channel. www.nzentrepreneur.co.nz

The Internet is now often where customers grow their interest in your company. Our future customers are looking at websites, in chatrooms, asking for referrals from their friends on facebook. They’re on LinkedIn gaining industry information.

Twitter often reaches them first. Content is the new king.

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THE HUNTER HAS BECOME THE HUNTED Where salespeople used to ‘hunt’ for new business, now the new business is hunting for us.

Yes, that’s right - your customer is hunting for you. When they find you, they study you.

Then they close in for the purchase.

Before you read any further, stop and ask yourself some hard questions: • How does my company look to customers who are currently hunting?

• Do we look like the sort of business they would like to deal with?

• How does our content set us apart from our competitors?

In the evaluation phase, marketing ‘now’ plays a key role. Back ‘then’, customers needed to engage with someone from your sales team and receive a proposal, before they could evaluate and then purchase.

‘Now’, much of this evaluation can be done via the Internet, at all hours.

This is the moment when your new customer may finally emerge from the shadows of

the Internet, to speak with or perhaps meet someone from your company for the very first time. They will often approach you through your website, sending an enquiry. If your telephone number is listed, they might call.

For some sales ‘now’, you may not have physically met your customer even when they make their purchase. Perhaps you have Skyped them or had a Google Hangout meeting. It’s not uncommon for this final stage of the customer journey to be conducted solely via email and telephone.

Yes, there’s been a very big change. Some call it disruption. What professions aren’t to be disrupted? We have Uber for taxis and driverless cars.

Disruption is here, and it’s already impacting the way we view sales and marketing. What does this disruption mean for the future of sales, and for the future of marketing?

In part two of this series, I will be covering these questions, and discussing the role of the salesperson ‘now’. I will also consider what we ‘now’ need salespeople for, and how salespeople can excel in this new world. •

Mary Crampton is a sales advisor and consultant specialising in helping clients to boost sales of big ticket products and services. She provides business development solutions at Magnify Consulting. www.nzentrepreneur.co.nz

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Entrepreneurship

WHY ENTREPRENEURS MUST BE GENERALISTS Employees are specialists,entrepreneurs must be generalists BY Richard Liew

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• Customer service • Accounting, Tax & Cashflow Management • IT • HR & Recruitment • Management • Leadership • Systems & Processes • Marketing • Sales • Commercial Law • Invoicing & Debt Collection • Social Media • Inventory Management & Logistics Aside from being able to deliver a product or service that the market wants, at a profitable price point, these are just some of the things an entrepreneur must learn about to build a business, as a weakness or failure in any of these areas can be enough to bring a business down. As an entrepreneur, you don’t need to be an expert in all of them, but you need to know enough about each of them for you to: a. get your business started and b. to be able to delegate, monitor and enforce accountability in each area as your business grows.

As employees we usually specialise in just one skill and our value to employers increases with our expertise in that skill e.g., sales, accounting, management, logistics.

But as entrepreneurs, we need to be generalists. We don’t necessarily need to be experts in every area but if you’re not prepared to become sufficiently knowledgeable in all spheres of business, then maybe entrepreneurship is not for you.

As at the end of the day, even though you may delegate responsibility for each area to other team members, you as the leader are still accountable for the successful execution of each area by your team.

Your sales manager failed to deliver on their annual sales target? You should have been on top of that before it became a problem.

Your accountant lets debtors get to 90 days, and now you can’t pay your bills? You should have been on top of that before it became a problem. Your GM says team morale is flagging and people are leaving left, right and centre? You should have been on top of that before it became a problem.

Handing responsibility for an area of your business blindly over to another team member and then pointing the finger at them when it goes wrong is called management by abdication. And there’s a world of difference between abdication and delegation! •

Richard Liew is the founder and editor of NZ Entrepreneur and Espire Media. www.nzentrepreneur.co.nz

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Marketing

LETS TALK ABOUT ‘US’ How you could be losing opportunities online

BY Lucy Smith

E

very page on your website has a purpose. The homepage hooks the visitor and keeps their mouse off the ‘back’ button. The services page shows them what you do and how it helps them.

But there’s one page that’s often overlooked – and it’s the one that does the most work in convincing people to buy from you.

IT’S YOUR ABOUT US PAGE Your ‘About Us’ page needs to show your visitors who you are and help them understand what makes your business different. If it doesn’t, they’ll probably choose the lowest price.

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SO HOW COULD YOU BE MISSING OPPORTUNITIES HERE? It’s all about you.

It’s got no personality.

It’s tempting to make your About Us page a blow- by-blow account of the company’s history, covering every year from 1974 to the present day.

People do business with people they like.

Have some fun, and show your human side.

Your goal is to be as approachable as if you were meeting your customers in person.

The harsh reality is this: nobody’s that interested. What your customers care about is how you make their lives better, make them more money, make them healthier. This is a page about them, not you. It’s a mistake that most companies make - but if you get this one right, you’re standing out already.

For small businesses, names and photos are particularly important. It’s disconcerting for your customers to be considering a purchase, but not knowing who they’ll be talking to. Show them who you really are.

It’s generic.

You conquered the back button and held their interest as far as your About Us page – good one! Now you need to keep up that momentum. What’s next for your visitor?

Should they contact you directly? Sign up for a free trial? Request a quote?

“We’re passionate about customer service.”

“We specialise in providing innovative solutions.” “We’re experts in our field”.

These statements can – or, at least, should – apply to any business. So don’t waste time telling your customers these things. Show them and be specific. Give testimonials about your amazing service. Talk about why your solution is so innovative – what makes it different? Explain what makes your expertise important.

There’s no call to action.

Don’t leave it up to them to decide what to do next – tell them what to do with a big shiny call to action.

Copywriting is called ‘salesmanship in print’ for a reason – and your ‘About’ page is your site’s smiling, friendly face. It’s got real power to convert a visitor into a customer. So the It waffles. next time you’re working on your About Us Choose your messages carefully, and your page, put yourself in your customer’s position, words even more carefully. Make it only as and really think about what they might want long as it needs to be – say your piece, make it to know about you. You might just come away relevant to your audience, and get off the stage. with a whole new perspective. •

Lucy Smith is a copywriter and director of Percolate, which provides commercial writing services to businesses. www.nzentrepreneur.co.nz

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Sponsored

HOW TO CREATE A MORE EFFICIENT FILING SYSTEM FOR YOUR DIGITAL DOCUMENTS

I

f you create a standardised file naming system today, whether you are a large or small business, you will set yourself up to better manage and organise that digital information in a way that makes it easy, convenient and quick to access even years later.

To begin with, a good file name should be quick and easy to reference, particularly if you can’t be bothered with (and don’t have

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the time) to dig through countless folders and subfolders.

There’s nothing wrong with folders and this is most likely a best solution for large organisations, but colourful file names (and folder names) in a clearly defined system will save you a lot of time looking for documents – as well as making the job easier for your desktop search software.

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While desktop search is a good tool, even search software needs specific keywords. A consistent file naming system will give you that.

AVOID CODE, ADJECTIVES AND ABBREVIATIONS WHERE YOU CAN Most especially, stay away from adjectives like ‘final’, ‘first’ and ‘interim’. They’re too generic and mean nothing to no one in the long run. Creating versions of a file is a better tactic.

With everything digital, there are files you make, like the Microsoft Word document you just created, and those you collect from other people. The same system should apply ONCE YOU SETTLE ON A FILE NAMING to all of them – rename the files you collect SYSTEM, KEEP IT to fit with your system.

Here are some do’s and don’t’s for naming your files (and folders), to help you manage and organise your growing mountain of digital information better.

Make sure it’s a good system and easy to understand. You’re going to want to keep it forever and a day, not just until something better comes along, because that will be very confusing in the long run.

DON’T BE TOO CLEVER Avoid spaces, and special characters like @!$. Keep your file names short to ensure you retain compatibility with various systems.

BE SPECIFIC, COLOURFUL AND DESCRIPTIVE Ensure the names you give your documents are easy to understand – something you can recognise instantly, even before you’ve had that first coffee.

Camel Case is a useful tool for naming files. Camel Case refers to making the first letter of each word a capital letter e.g. CamelCase. Some people suggest lowercase for everything is best. Dashes and underscores are acceptable too.

APPLY A UNIVERSAL SYSTEM ACROSS ALL YOUR DEVICES AND APPS Use a system that makes sure a file is always sorted in the same way no matter where it ends up.

Starting with a client, project name or activity may be the quickest to reference e.g. all of XYZLtds work will be found at the bottom of the page, under X. Files that begin with Sales will be found under S. PUTTING DATES AT THE BEGINNING OF YOUR FILE NAME IS USEFUL Using dates is one way to make sure that your latest documents — the stuff you’re working on now – are always at the top of the pile. www.nzentrepreneur.co.nz

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IMPORTANT NOTICE

Here’s a simple formula you may want to follow:

Most cloud platforms, including Microsoft, will use the ISO 8601 form of dating, where the month precedes the day — here in New Zealand we will recognise this as the American system. But putting the month first is the international standard.

• Start with the project name, activity name or company name e.g. XYZ, Sales or XYZLtd

This means that if you are going to be dating your files, you need to use the dating system that most software will be more likely to recognise, which is the ISO 8601 standard.

This means, put the first four digits of the year first, followed by the month, followed by the date – and hyphenate them e.g. 201603-17 (2016 March 17)

• Followed by a description e.g.

PhoneRoster • Then the date e.g. 2016-03-17 • And finally the version e.g. V2 According to that formula, a well named file could look something like this: XYZLtd-PhoneRoster-2016-03-17_V2 Or alternatively

USE VERSION NUMBERING

2016-03-17-XYZLtd-PhoneRoster_V2

V1, V2, V3 etc. can be a useful way to order various draft versions so you can go back and reference content that may have been deleted in previous versions. Dating can help with this, but if you’re creating multiple versions over the course of one day, things can get a bit complicated – even with the time stamp each file will have.

The reality is that volumes of electronic files (documents, videos, photos, pdf’s etc.) are increasing year-on-year. Cloud based storage systems offer incredible security, back-up and convenience, but putting in place an easy to understand, organised filing system can save you a lot of headaches further down the line.•

Check out the Microsoft NZ SMB business blog for inspiring articles, tips and information for business owners.

With articles from business heroes like Richard Branson and leading New Zealand business experts you can also keep up with our latest insights on cloud based computing and Microsoft products www.nzentrepreneur.co.nz

W: www.blogs.business.microsoft.com F: www.facebook.com/microsoftnz T: @MicrosoftNZ

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Our proven sales and customer service helps your business thrive by fostering deeper connections between people and brands.

We work behind the scenes to make our partners’ brands shine.

Find out how your sales channel can work better and smarter.

Visit: LeadingEdgeGroup.co.nz

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STARTUP WATCH NEW ZEALAND IS A HOTBED OF ENTREPRENEURIAL GOODNESS EACH WEEK WE PROFILE A STARTUP WE’RE WATCHING ACROSS A RANGE OF INDUSTRIES

OHUDDLE FOUNDER: Kristen Wonch HQ: Auckland

NZE: Tell us a bit about OHUDDLE - what problems to find affordable & quality local professional do you solve and what products, services or services. We vet and interview lawyers, solutions do you provide? accountants, web designers and graphic We believe in making life easier for designers and then find the best-suited pros entrepreneurs starting out. OHUDDLE is an for entrepreneurs when they visit the site. We online matchmaker for New Zealand startups have a 48-hour turnaround and it’s free to use. www.nzentrepreneur.co.nz

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NZE: Who and where are your target customers?

The little business with big ambitions.

Switched-on NZ entrepreneurs looking for professional services they have high standards but don’t have time or money to waste.

NZE: How and when did you first come up with the idea for your business?

I interviewed many an entrepreneur when I was starting out. It was clear that most business owners know their core product or service well but have a limited understanding of the other areas of their business needed to be successful.

Coupled with my own experience of overpriced local experts and being let down time and time again by overseas freelancers, I realised I wasn’t alone here. Most businesses are cost conscious and go through a lot of trial and error searching for good professional services. It’s not the only thing that needs fixing but it seemed like a good place to start.

NZE: Biggest entrepreneur lesson you would like to share with other Kiwis thinking of starting their own business?

Know yourself really, really well. You don’t have to have it all figured out from day one but spend some serious time digging into what is motivates you. Having a deep understanding of what drives you and your business will make it easier to communicate with your customers in a compelling way and also make internal decisions easier.

If you haven’t watched Simon Sinek’s TED Talk (Know your Why), it will be the best 18 mins you’ve ever spent.

It took me a while to realize that every investor, advisor, mentor and regular human will have a different view on where your company needs to go. Everyone. Often these pieces of advice conflict with one another NZE: What are your three biggest unique selling points? and it’s easy to fall down a rabbit hole trying 1. Personalised matchmaking - The professionals to decide a clear path forward. Trust yourself we connect you with are a good fit for your and you’ll know whether to love it or leave it. business, budget, and expertise.

Two good questions to use as filters are: 1) Does 2. Rigorous screening - We invest a lot of time this person have expertise in the relevant area? screening the professionals on the site 2) Is this person close enough to me and my and everyone is someone we would want business (i.e. do they get it)? • to work with. If they don’t meet that bar, they don’t make the cut.

3. Tailor-made for startups - Creating visibility into which professionals fit into that niche of reasonably priced and high quality.

W: www.ohuddle.co.nz F: www.facebook.com/OHUDDLENZ www.nzentrepreneur.co.nz

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Ecosystem

TEEN BUSINESSES KEEN TO INNOVATE Young Enterprise CEO Terry Shubkin highlights some of the innovative business being created through The Lion Foundation Young Enterprise Scheme.

Y

oung Enterprise CEO Terry Shubkin highlights some of the innovative business being created through The Lion Foundation Young Enterprise Scheme.

Each year, more than 600 new startups are formed through The Lion Foundation Young Enterprise Scheme. Their challenge is to create a new product or service and bring it to life within a single school year. We see some amazing innovations each year, where students come up with completely new product ideas or build on existing products in creative ways. Here are just a couple of highlights from our Class of 2016.

www.nzentrepreneur.co.nz

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IMPROVING THE TESTING OF DRINKING WATER H2O-o-YES has created a solar- powered water testing unit so people can test their water for bacteria.

Dallas Kete, the founder and CEO of the company, says the idea for the solar-powered water tester came from personal experience with contracting giardia from tap water in Hong Kong while on a student exchange.

The small palm-sized unit tests look for total dissolved solids, PH level, and temperature.

These results will give the user an indication of whether or not the water contains bacteria. A one-hour solar charge provides the unit with 24 hours of power.

TUTORCORP Matching secondary students with expert tutors Tutor Corp is a student-made website which aims to provide students with the best educational help outside of school. The company matches students with tutors who can help them pass a subject, achieve excellence in NCEA, get university entrance or finish an assignment on time.

Although there are lots of water testing units are on the market, next to none are convenient for a traveller. Having the unit palm-sized and solar powered gives it a competitive edge, making it perfect for Students can refine their searches with trampers, tourists and travellers on the move. options like price, location, age of the tutor, qualifications and subject specialities.

The solar powered water-testing unit comes with a handbook about water-borne bacteria, water-borne illness symptoms and treatments for those illnesses.

Kete has decided to put her system to good use, and for every 100 units sold, she will donate five units to the Red Cross.

“I’ve received so much support from the community and family and friends, so I thought it’s important to give back.”

Tutor Corp say that as they are a student-run business they know the teenage demographic better than their competitors and have a better understanding of the struggles students face regarding NCEA and school.

They’ve positioned themselves as the ‘Uber of high-school tutoring’, said Gavin Miller, Wellington Regional Coordinator for Young Enterprise. www.nzentrepreneur.co.nz

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Young Enterprise caught up with Hung Tien Ly Vo from Keeping it Natural, who are selling Kawa Kirimi; an old Maori home remedy healing ointment made with the Kawakawa plant.

How did you decide on your final product?

We wanted to make a product that could help with skin conditions such as dry skin, eczema, acne, rashes and cracked skin. We wanted to stick to something natural. We began to conduct some research and found out that Kawakawa ointment was not widely known but is really effective.

What has it been like setting up a business while at school?

Having school and other programs does make it harder for us to work together as often as we should. This was particularly difficult at the beginning stages of our product as we needed to put in a lot more of our time into getting things done.

What are your customers saying?

Has doing YES and creating a business changed your plans for the future?

The feedback so far has been very positive.

Many consumers say that our product had worked for them.

It has opened our minds up to wanting to be future entrepreneurs and taking the business path for a successful future. •

Young Enterprise Trust works with schools throughout the country, encouraging young New Zealanders to develop their entrepreneurial talents. www.nzentrepreneur.co.nz

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“The number one thing was timing. Timing accounted for 42% of the difference between success and failure.”

Bill Gross, Ted Talk WATCH IT HERE: ‘The single biggest reason why startups succeed’

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