Shark Tank Jump Start Your Business: How to Launch and Grow a Business from Concept to Cash (19 page)

Presentation:
Now that you’ve established a connection and assessed any specific needs, it’s time to pitch. Don’t waste your energy trying to sell the features. Instead focus on how your product or service can solve the customer’s specific problem(s). Going back to the landscaping business, the customer doesn’t care if you have high-powered, top-of-the-line equipment. That’s only interesting to you. However, superior equipment probably means you can perform the job faster and more efficiently than the competitor, which will ultimately save the customer money. Now,
that’s
interesting. Always frame the pitch around the consumer’s needs, not your own.

The close:
Of all the steps in the sales process, this is the one that’s most often botched. Although there are many famous closing “techniques,” closing a deal isn’t about trickery or
manipulation. If you’ve masterfully executed the previous steps and established a baseline of trust, the close should be seamless. When you have your customers’ best interest at heart, a good close goes back to the original goal of solving a problem. Perhaps they’re concerned about the financial investment or the timing. Maybe they have doubts about the product or service itself. During the closing process, it’s your job to honestly and accurately acknowledge any lingering concerns and work with your customers—not against them—to solve those problems. The days of closing at all costs are over. If you’ve effectively discovered the customer’s needs and laid out a viable solution, acquiring a commitment shouldn’t be difficult.

Follow-up:
Closing a deal isn’t the end of a relationship; it’s the beginning. Maintaining communication is crucial to the long-term success of any customer relationship. Once a sale is closed, it’s your job to make sure the customer has a pleasant experience and that all expectations are met with precision and care. Find creative ways to regularly follow up with customers and show that you’re genuinely interested in their satisfaction. Relationships are the heart of any business, and you want to make sure yours are strong and prosperous.

While the sales process is rarely linear, there are certain parts that will always remain constant, like the close. And no matter if you’re a veteran salesperson or new to the game, your ability to secure a lucrative deal comes down to how well you can negotiate.

The art of negotiation is a fine one, with many subtle intricacies. There are, however, a few helpful tips and tricks that anyone can use to instantly become a better negotiator.

As with many parts of running a business, the first step is always preparation. Before the negotiation process begins, it’s important to have as much information about the deal as possible. What exactly are you trying to sell? What is your absolute minimum selling price? Who is the decision maker who must be in the room for the deal to close? Once you have an answer to these questions, you’ll be able to frame the conversation in a more productive way.

Next, you must have a comprehensive understanding of the value you’re providing. Particularly in service businesses, people try to sell the value of their time, as opposed to the value of their impact. But if you’re helping a company bring in an extra $5 million, it doesn’t matter if it takes you ten days or ten weeks, you’re adding significant value to the operation and you have the right to capitalize on that.

You must also learn to listen carefully and respond only to the questions being asked. You’ve seen this happen all the time on
Shark Tank
: an entrepreneur is asked a question, and instead of really listening to what’s being said, he goes on a tangent and reveals something unsavory about the business or himself. Negotiation is a delicate process and requires laser focus. Above all else, stay concentrated on the goal.

Finally, whether you’re negotiating with a large corporation or a single individual, you must be willing to walk away. Even if you need the money, even if you’re hungry for the business, if a deal isn’t in your best interest you must not be afraid to turn it down. Being motivated to close a deal is great, but not if it ends up ultimately hurting your business.

Knowing how and when to initiate the right conversation is paramount, but you must also know with
whom
to initiate the conversation. Improving your networking skills is one of the best ways to become a better salesperson.

Similar to how some view sales, when most people think of “networking” they imagine some poorly lit conference room full of slick and sleazy businessmen hurriedly pacing about, shaking hands and exchanging cards with any poor soul who happens upon their path. But don’t let that outdated approach to networking turn you off from the activity.

Networking is about adding value. Period. It has nothing to do with how
they
can help
you
. Quite the opposite. It’s about how
you
can help
them
. How can you make someone else’s project that much better? How can you find a solution to a challenge that person has been stuck on?

The primary goal of networking is to position yourself as an
important and respected resource. Approaching networking this way not only makes the process more advantageous for both parties; it also builds goodwill and credibility, which isn’t an easy thing to do.

This idea may seem backwards if you’re used to viewing networking merely as an opportunity to self-promote. But if your goal is to build long-term, meaningful relationships, approaching networking from a place of generosity and authenticity is really your only choice.

Below you’ll find a handful of tips and tricks designed to help you improve your networking abilities. Try to apply some of these the next time you find yourself at an event.

Do some digging:
In the digital age there’s no excuse for being underprepared. Do preliminary research on some of the people who will be in attendance. Using a combination of social media and offline resources, there are usually plenty of ways to uncover who you may encounter. You won’t be able to have productive conversations with everyone, so choose three or four people to target and focus your research around them. Remember: it’s about the quality of the relationship, not the quantity. Find out where a person went to school, her work history, maybe even something about her personal life. You never want to come off as creepy, but being informed about a person’s work and life will make it that much easier to make the most of your time with her.

Talk less; listen more:
The next time you go to a conference, spend five minutes in the hotel bar, and you’re guaranteed to hear it: the gentle hums and murmurs of countless me, me, me’s and I, I, I’s. For whatever reason, most people think that good networking is about talking. But the best networkers know it’s really all about listening. In fact, the right ratio should be somewhere around 80/20—20 percent talking, 80
percent listening. When you listen, really listen, to what the other person is saying, you’re able to quickly deduce how you can best add value to the relationship. What’s more, you’re giving someone the opportunity to do what most people love best: talk about themselves. By asking smart questions and showing legitimate interest, you’re likely to come across as likeable and smart.

Follow up:
When it comes to networking, this is the place where most people fumble. After establishing a new connection, you should immediately follow up. In fact, you should do so within the first twelve to twenty-four hours. Depending on the specifics of your interaction, most often a simple email will suffice. In it, you should remind the contact where you met, touch on what you spoke about, and fulfill any promises you may have made. Again, you’re trying to establish yourself as a resource—nothing more. Here’s an example of what a typical follow-up note might look like:

Hi Bob,

It was great meeting you tonight at the
Shark Tank Jump Start Your Business
book launch event. I was excited to hear about all that you’ve achieved with your new business. It sounds like you’re really on the right track.

As promised, I’ll make sure to connect you tomorrow morning with my contact over at XYZ Beverage Company. I think he may be a really great person for you to know.

Good luck with everything, and please do stay in touch. Looking forward to connecting again soon. Good luck with everything, and please do stay in touch. Looking forward to conn

Best,

Michael Parrish DuDell

Keep detailed records:
Not only does a great networker spend more time listening than she does talking, she also knows the value of recording her insights and keeping detailed records. It’s important to keep track of whom you meet, when you meet them, and what you speak about. You may also wish to include any observations you make during the encounter. For instance, if you overhear your new contact tell the waiter she doesn’t drink, that would be something worth noting. This way, should you ever meet outside the office, you know to suggest coffee, not wine. It may sound small, but it’s often the little things that can make a big difference.