Marketing and Sales Archives - Kleriti Business Solutions

How To Disconnect From Business—To Better Your Business

by Sarah Krivel | Sep 17, 2019 | Accountability, Marketing and Sales, Personal Productivity, Priorities, Time

You own a business. Yes, you’re the keystone of operations. Yes, it’s critical to the success of your business that you take due responsibility. But if big bank CEOs can still go on vacation and switch their phones to “off,” why can’t you? Sure, they have enormous teams to take care of everything while they’re gone, however there’s a simpler reason why they’re able to disconnect: they have the processes in place to keep the engine running without them.

Let’s say you’re still many, many written processes away from feeling that kind of independence. That can be remedied (especially with the new online, self-paced course I’m offering that dives into all-things-process). And…the idea of disconnecting is something crucial you need to understand here and now.

Stop trying to maximize every second of the day with productive to-dos, savagely crossing tasks off your list. If you don’t prioritize downtime to disconnect, you’ll be sitting on the edge of overwhelm and burnout. I am speaking from experience here.

There are at least a few hours every day that must be “sacred,” those hours where no one should bother you and where you have NO obligation to view an email or take a phone call. And I’ll go further—it’s essential to your health and to the growth of your business that you make it your highest priority to find even longer windows to disconnect.

Let Me Tell You Where I’m Coming From…

I’ll be frank; this has been on my mind a lot lately thanks to a recent trip I took. It’s not that long ago that I came back from one and a half weeks overseas. I had a lot of things on my mind while I traveled—places to see, agendas to keep—and above all else, I had one primary focus: to be present.

I had this idea that “being present” would leave me open to whatever experiences happened upon my path. And in order to be more present, I had to disconnect.

It started on a bus where I simply disconnected from the WiFi. As I traveled between cities, I looked out the window or talked to the other travelers instead. I took time and (equally important) made a deliberate effort to immerse myself in the people, culture, history and stories that were quickly building what became a life-changing experience.

By giving myself space, disconnecting from the notifications and the rest, I found perspective.

Please answer honestly—when did you last break away? Do you actively cultivate a space for yourself?

No?

Here’s how.

Step 1: Accept Your “Productive Downfall”

productivity downfall am i too productive I’m included in this and so feel empowered to say it: business owners face many challenges, and one that continually rises to the top of the list is the need to always be productive. It can feel at times like business success rests squarely on your shoulders, and so there’s always more you could do—projects to finish, deals to close and services to launch out of the park.

Even downtime is filled with “to-dos.” Everything from doing the laundry to cleaning the house or taking care of the errands you haven’t had time to do. It’s a compulsion for most of us. We get that same rush after our “free time” that we do in the office, thinking with satisfaction of the list of things we just accomplished.

What you have to remember is that any amount of time devoted to relaxation—real relaxation, not running errands—is a profitable investment. It will make you a better businessperson and it will render you more equipped to do your job. Giving yourself room to introspect will directly impact your business in the most positive ways. Down time opens up space for creativity and to see things in a different way.

If you really want to be “at your best” for your business to grow, a healthy frame of mind is where that starts. Your best ideas come when you’re relaxed and recharged, not stressed. And what do businesses thrive on today, if not great ideas?

It’s critical that you accept the idea of disconnecting, relaxing, living in the moment…and that you build this time in without ever thinking twice about it. Whatever you want to call it, however you want to see it, you need to appreciate its value. Not coming naturally to you? Keep reading about the importance of time off to learn more.

Step 2: Draw A Line In The Sand

If you’re serious about disconnecting, you need to commit to it just like you do everything else on your agenda. And then, you need to draw a line in the sand to start classifying activities that promote relaxation and living in the moment versus those that don’t.

I’ll be the first to add something to column “B” for you—it does not count to be “in the moment” or disconnected from the noise of work and life if you’re on your phone, not even blowing time on social media. That’s why I shut the WiFi off on the bus that day. Our brains need a break from constant engagement, and the risk of notifications coming in and taking you a step away from dedicated time for introspection will be counterproductive to everything you’re trying to gain by it.

What You Need To Know About Your Phone

Even better than disconnecting from WiFi is shutting your phone or tablet off altogether. The buzzing or dinging, those endless vies for your attention, will steer you away from personal growth. Apple proudly announced in 2013 that more than 7.4 trillion push notifications had been sent through its servers. They haven’t spoken to that number since, but how much do you want to bet that number has doubled? Tripled?

By turning your phone off altogether, you’ll quickly discover that you don’t miss the stream of push notifications filling your lock screen. You’ll no longer allow just any app to interrupt your time for reflection.

Apple wants you to look at your iPhone, Gmail wants you to open your inbox, Facebook wants you to open Messenger and dozens of other apps and advertisers are competing every second for your attention. This will not change without your intervention, so make the call now to turn your notifications, WiFi or phone off. Leave it behind.

Step 3: Use Reflection Time

Know how to reflect What do you do with this down time? The short answer is: nothing productive. What I mean by that is to strike the idea of “maximizing” your time with things that “have to get done.” You can use your reflection time to walk somewhere, go to lunch, read a book or talk to your neighbor. The point is that it should leave you open to the moment and all the experiences, ideas and feelings that come organically with it.

Not sure which activities or experiences fall on the right side of that line in the sand? Look at this article by American Express to see which of these ideas resonate with you. Personally, I connect with quiet and creativity by getting out into nature, by doing yoga and by cooking.

It’s amazing what’s possible when you step out of the daily grind. Heck, it’s amazing what’s possible when you simply look up from your phone.

Block off time to disconnect starting today. Then increase that time little by little. And then, plan bigger windows of time (like a vacation) to support your “in the moment” experiences. What you find might surprise you in the best way.

Think slowing down is a luxury you don’t have? Think again.

“Breathe. Let go. And remind yourself that this very moment is the only one you know you have for sure.” – Oprah Winfrey

Three Business “Do Or Dies”

by Sarah Krivel | Sep 2, 2019 | Accountability, Finances, Marketing and Sales, Personal Productivity, Priorities, Team Management

The barrier to entry to start a business in this country is extremely low. Have an idea? Think you can do something better or different than others who are doing it? Than start a business! File some simple documents online, and you’re official.

But that doesn’t mean that you can run a successful business.

When it comes to running a business, there are three core functions that you absolutely must have. These apply across every business model and industry without exception. These are mission-critical, and without all three, failure is inevitable.

I talk about these functions seriously because they are that essential. You can develop these functions internally or you can outsource them, but you must have them covered one way or another.

So, without further ado, these three necessary skills for anyone running a business are:

Generate and convert leads.
Read and interpret financials.
Create and put processes in place.

These are each make-or-break, and it’s not just your business that’s at stake—it’s your life. Keep reading and I’ll show you not only why, but also how, to effectively master all three.

1: Generate And Convert Leads

Your business will fail if you don’t have leads coming in. Right? At least, that’s what all the digital marketing companies are telling you. And it’s the truth, but not the whole truth.

Lead lists and how important it is to convert You do have to be growing your lead list, that’s for sure. I’ll take it a step further, though, and say that your conversion rate on those leads is even more important. If you need nine new clients a month and are only generating a dozen leads, but converting nine of them, you’re right on track.

Your conversion rate will depend on a multitude of factors, and business-to-business those factors will vary a lot. Identifying the right KPIs will help give you direction on where your numbers should be.

Maybe you’ve already identified those KPIs. Maybe you already know where your numbers are, and you’re painfully aware that you desperately need more leads—and a much higher conversion rate. To get to the heart of this, I’ve outlined the steps to get going in the right direction. This is something you have to work on immediately, because without generating and converting the right number of leads, it’s just a matter of time until your business is toast.

Step 1 – Identify Where Your Ideal Clients “Live”

You’ve probably heard and read about this many, many times. Your ideal client, or avatar, is the profile of the client you best serve.

As much as you might know about your avatar (their gender and age, where they are located geographically, what they do for work), do you know where they hang out? Do you know what percent of that audience uses one social network versus another? Can you name a book that multiple people in your audience have read? Do you know what their favorite websites are? What magazines they read? Where they go for fun? What they really care about deep down?

You can get these answers through interviews of your ideal client. This will help you know where to go and what to talk about to attract and convert more leads.

Step 2 – Make A Valuable Offer

We’ve gone over how you’ll have a much easier time reaching your ideal client when you know where they “live.” You’ll also have a better understanding about what makes them happy, sad, scared, relieved—and make an offer to them that’s valuable and alleviates their concerns, helps them realize their dreams, etc. In essence, that takes care of what they care about. Anything that can bring real value to your avatar (while speaking to the “need” and emotional backdrop you know is there) will help position your offer as the solution.

Step 3 – Follow Up

Let’s say you’ve done all the work up to here. To tap the well and convert even more leads, you need a system in place to easily (and, ideally, automatically) follow-up.

Sometimes called “touch programs,” “top-of-mind awareness” and “drip campaigns,” this refers to the marketing and messaging you push out to warm leads who already contacted you but didn’t bite. This is the segment of your target audience that knows who you are and knows you provide a solution they need. Generally, two thirds of this segment learned about you before they were ready to buy, and following up is your ticket to staying in the picture until they are ready to make their decision. Without following up, it’s dangerously unlikely that decision will be made in your favor.

Building a system for following up also generates content that’s often sharable and repeatable, and helps bring new leads in—and thus the cycle continues.

Take these steps seriously, and remember that even a mammoth lead list won’t do anything unless you both generate and convert leads consistently.

2: Read And Interpret Financials

Your financial statements are commonly referred to as “the scorecards for business performance.” I love talking about the KPI scorecards I help Kleriti clients build, and financials are always a big part of those. This acumen is so essential to your business that, if you aren’t on solid footing in reading and interpreting financials, you truly need to solve that now.

Financials and how to read financial reports

The Balance Sheet

The balance sheet gives you a “snapshot in time” of:

Assets
Liabilities
Shareholder equity
Net worth

This sheet is the quick overview of the health of your business. It’s also used to calculate things like your business’s capital structure and rate of return.

The Income Statement

The income statement, also called the profit and loss statement (or P&L), reports the money in, out and owed over a specific time period (rather than the balance sheet, which is a snapshot at a specific point in time). The focus of the income statement includes the net balances of money in and out.

Cash Flow Statement

We all know what cash flow is, and the cash flow statement is an equally essential concept to understand. This reports the operating cash flow as well as the financing cash flow, and—if you have investors—also includes the investing cash flow. Knowing what cash you have on hand, where it’s coming from and at what cost, is essential for assessing any business’s liquidity.

After you know what these financial statements are (and how to read them), knowing how to use that information is the next crucial hurdle. The good news is that this essential, do-or-die task is one of the most practical to outsource. Or, who knows, maybe it’s time to upgrade to a CFO?

3: Create And Put Processes In Place

Processes know how to put process in place You know how your business works. In fact, you know it better than anyone. That knowledge transfer is fundamental when you bring more people onto your team—and having documented processes in place is how you transfer your knowledge (and your expectations) successfully.

Processes act to streamline and communicate recurring tasks, as well as to support improving them. So, how do you know what needs to be turned into a process? And how do you craft that process, document it and teach it to others? My new self-paced, online course DuplicateU teaches you how to do just that. And in the meantime, here are some basics to get started.

Step 1 – Determine Recurring Activities

Every business is comprised of predictable, recurring business activities. Since time is money, engaging in recurring tasks depletes your bottom line. The more you can automate, the more time and space you can free up to attend to more creative endeavors.

Step 2 – Document Everything

I can’t tell you how many owners say to me, “Don’t worry. It’s all right here,” as they point to their head. To which I respond, “That is precisely the problem!”

You see, our brains are not meant to keep track of mundane information. They’re meant for higher level functioning and problem solving. Yet, when we fill them with all these details, there’s no room for anything else. Do you ever feel like your brain is sometimes foggy? Or like it’s really hard to concentrate on one thing? This is why! Not to mention that brains are fallible.

Operating this way is not just risky…it’s reckless. Put everything on paper. This makes it shareable and teachable with others in an efficient, effective way. And it frees up your brain for more fun stuff!

Step 3 – Design Tools for Support

Every process has a set of elements (like templates, scripts and checklists) that support it. These are necessary to execute the process seamlessly and consistently every time. And these all need to be on paper so that anyone can follow/use them. The right tools allow you to automate the process, making each repeatable task easier to execute consistently every time.

Mission-Critical Means Immediate Action Needed

This article was a to-the-point description of the three do-or-die functions for business owners. As you can imagine, each of these is so important that I could devote not just a whole blog, but an entire course to it—like I did with DuplicateU, the course I designed to empower business owners to put the processes in place they need so their businesses can run without them.

There’s a lot of information out there on each of these concepts, and even some excellent tools to help you. For example, read what Lucid Chart has to say about process documentation, and you’ll see how their “idea board” SaaS is especially well-designed to help.

Whatever you do, don’t look at the end of this article as the end of the lesson. These three business tasks are non-discretionary for your business and for your own well-being. You need to generate and convert leads, you need to know how to read and take action on your financials and you need to have defined, documented processes in place—or your business will fail. Don’t wait until tomorrow. Start today, and check out DuplicateU. You’ll be happy you did.

How To Create And Use KPIs For Real Results

by Sarah Krivel | Aug 15, 2019 | Accountability, Finances, Goals, Marketing and Sales, Priorities, Team Management

Analytics today. How much data do we have available just a click away? It’s unreal.

Most of the data we can access today about our business, our clients and the market in general is downright fascinating. But the excitement of all that information quickly deflates when you find yourself neck-deep in data without any idea how to use it.

Not all data is created equal. You can end up with a ton of information that doesn’t inform you on your daily business functions and which quite frankly isn’t that useful.

Gain relevant and actionable insights by developing and using the right KPIs (Key Performance Indicators). Easier said than done, right? It’s true that this will require some development. Well-crafted KPIs are worth it, though, when you see them clearly outline your business’s road map to success.

First, I’d like to back up to one essential KPI “pre-step.” The following section is a must read before starting strategic KPI work, because ultimately your KPIs will be based off of this basic ingredient.

Start With The Right Goals

the best kpis start with the right goals Your KPIs, in essence, are the metrics to check your progress against your goals. So setting the right goals for your business is essential to later craft the KPIs that measure their status.

Here’s an example. Let’s say you just rebuilt your website. It seems obvious that increased traffic would be a goal, right? That means increased visibility, maybe even improved SEO or a better user experience bringing more people to each page. But is website traffic necessarily the right goal to know if your website is performing well?

Websites aren’t (or shouldn’t be) built solely to “get more traffic.” If the business’s goal is to get more business, then a more appropriate goal for the website would be to get more online conversions. Higher website traffic comes with more conversions sometimes (for sheer volume), but definitely not always. By looking at conversions instead, you’re encompassing all the other factors that ultimately lead you to your goal.

Specific website conversion goals might include when users:

Register for an event
Submit a question
Make a payment
Fill in a form or opt in to something

Did you catch it? These goals all have a direct and measurable effect on our number-one business goal: growth. And by making it measurable, you naturally identify the KPIs that are worth watching to get where you want to go.

For some businesses, KPIs around things like employee performance feel harder to quantify—at first. Let’s work with another example. Is it the number of calls your front-desk employees are making that you want to monitor and improve? Or the number of appointments set with potential clients? By identifying the right goal, your KPIs will be easier to pick out.

How about business strategy KPIs? Client retention KPIs? See more examples and tips on choosing your KPIs in this well-done Hubspot article. Right here and now, I’ve got some more ground to cover to make your KPIs usable and effective.

Lagging Vs. Leading Indicators

It’s important for me to take a moment and talk about lagging vs. leading indicators. This is one important and fundamental way that performance management is broken down in business, and it’s also something I talk about with Kleriti clients and in my new self-guided online course, DuplicateU.

Lagging indicators are usually “output” oriented, meaning they measure something you’re looking at in hindsight. Think about financial performance, profit and cost metrics. These indicators are very easy to measure, while being more challenging to influence.
Leading indicators are the “input” factors in your business’s performance, meaning they measure something that’s in your control now. Leading indicators are measurable in the context of today or the immediate future, making them harder to measure but easier to control.

Want another example? Imagine a business that has some form of tech user support, like a SaaS start-up. They might have internal policies stating how to resolve client issues. Let’s say they even sold their clients on a commitment that they resolve all help-desk issues within 48 hours.

The output or “lagging indicator” is easy to measure—how many tickets are closed within a 48-hour window?

And how do you influence that lagging indicator? If tickets aren’t getting closed out, what KPIs are in your control? Maybe you see that incidents not touched within two hours are those that don’t get closed within 48. Your “leading indicator” could be the percent of incidents not worked at least once in a two-hour window.

what are lagging versus leading indicators in business kpis

For more examples, you can check out this accounting-specific article on leading and lagging KPIs.

Crafting Your KPIs In A Usable Way

So you have your goals and you have your KPIs. You even know how lagging and leading indicators work.

How do you ensure your KPIs are not only insightful, but also actionable?

An actionable KPI is an effective KPI, because the whole point of these metrics is to make smarter business decisions.

To spur action, your KPIs are effective and useful once you set targets for them. And describing the desired performance of these metrics is how your data will be interpreted later. This step defines good performance and bad performance along with thresholds for upper and lower limits.

And here we are at another “how:” how do you measure against those targets?

Establishing KPI Scorecards

how to establish kpi scorecards to track kpi Once you have all these numbers clearly defined, the final steps are to set them up in a highly usable scorecard and establish a cadence for scorecard review.

The scorecard should include:

The KPI
The target
Who in the organization (team or individual) is responsible for driving it
How the metric is collected/measured (to ensure consistency)

Then establish a process where the scorecard is reviewed regularly (I recommend weekly) with a red light/green light report out so that corrective action can be taken as soon as possible to get metrics that have gone off track back on track.

For example, I work with the leadership teams of Kleriti clients to elect a set of 6-12 numbers that on their own give an absolute pulse on the business. These KPIs are formalized into a scorecard, data is collected and reviewed weekly by the leadership team and red light items are discussed with specific action items assigned to individuals to get them back in the green.

Ensure KPIs Are Understood And Used Across Your Organization

It’s essential that everyone on your team be aware of what you’re trying to achieve and how you’re measuring progress. KPIs form part of your business strategy decision-making across the board, and everyone should be clear on how their contributions affect major KPIs.

Communicating KPIs keeps your team on their toes and it also provides an opportunity to applaud success. People react to numbers, and meeting goals is something that can be shared and promoted company-wide when KPIs are hit out of the park.

Data and metrics are everywhere. For your business, only KPIs that are well designed and actionable will be effective in tracking progress to reaching your goals.

I spend a lot of time with Kleriti clients helping them define goals, identify KPIs and create the scorecards to assign responsibility and streamline the collection of usable data. If you have questions or want to know more about any part of this article, don’t hesitate to send me an email directly.

Make Q4 Count: 4 Plans to Jumpstart Your Company’s Year Ahead

by Sarah Krivel | Oct 16, 2018 | Finances, Goals, Marketing and Sales, Operations, Processes

How was your year? Of course, we still have a few months left. But it’s important to start reviewing what worked, what didn’t work, and why not, so that you can hit the ground running once January arrives.

Q4 is the perfect time to plan. And no matter what stage your business is at, these four essential plans are key to achieving your business goals and growing in the year ahead.

Operations Plan

An operations plan covers all of the things that are necessary to the day-to-day life of your business. They’re so necessary, in fact, that they might seem obvious to you. But writing them down helps you plan in advance, making sure that you have what you need before you need it.

Questions to get you started:

What do we need physically to get things done? (e.g., location, equipment)
What goals aren’t we achieving? How can we achieve them every day?
Which processes are inefficient or ineffective and need to be improved?
What kind of budget do we need to implement our operations plan?

Personnel Plan

A business is only as good as its people. Having a personnel plan in place ensures that you assemble the best team for your business. And if you already have an amazing team in place, knowing how you will support their development in the coming year is invaluable.

Questions to get you started:

What kind of team do we need to achieve our goals? What roles need to be filled and what do ideal employees bring to the company (education, background, skills, etc.)?
How can we further develop our current talent?
How do we recruit, onboard and train new employees? How can that be improved?
What do employees need from us when they start?
What kind of budget do we need to effectively recruit, onboard and retain star players?

Marketing/Sales Plan

We’ve talked a bit about sales in the past. Finding, qualifying and onboarding the right customers is just as important as finding, qualifying and onboarding the right employees. Sales and marketing go hand-in-hand, so it’s a good idea to plan for them together.

Questions to get you started:

Who is our target market?
What is our unique selling proposition?
What’s the current ROI on our marketing activities? How do we want that to change?
Are our services and prices fair and meeting the needs of our target market? How are we communicating that?
How can we generate qualified leads that result in sales?
What kind of budget do we need to achieve our sales and marketing goals?

Financial Plan

You might have noticed that each of the above sections ends with identifying a budget. Finances are important, and if you identify your company’s financial needs early on, it will help you invest in and take action on each of the plans you’ve created.

Questions to get you started:

What’s the profitability of our clients, service lines, etc.?
What are our monthly financial projections, based on anticipated income and expenses?
What’s the most optimistic financial scenario?
What’s the most pessimistic financial scenario?
What’s the most realistic financial scenario?
What are our financing needs for the year and how can we work toward achieving them?

Does your business struggle to create actionable plans that your team will follow through on? Contact Kleriti Business Solutions today. We’ll help get you on your way to your most successful year yet!

How to Price Your Services: 3 Keys to Knowing Your Worth

by Sarah Krivel | Nov 27, 2017 | Customer Management, Finances, Marketing and Sales, Operations, Systems

Have you ever felt the fear of losing a client if you didn’t price your services to meet their needs? You’re trying to grow your business. You want to receive referrals. You’re scared of turning them away because you have no idea when another potential client will walk through your door.

Sound familiar?

Waffling on price is a common occurrence among business owners, as a result of the fears mentioned above. The solution to tackling these issues is to create standardized prices for your services. For some, this can be an even scarier scenario because the fear of losing current clients or turning away new ones can be debilitating. However, in order to create a sustainable and successful business, standardized pricing is essential and can bring more benefits than you ever thought possible. When you’re in doubt, remember this:

Saying “yes” to the wrong customers, means you’re saying “no” to the right ones.

Having set prices for your services will create “buckets” for your customers to fit into. Let’s say a prospective client comes to you with a particular need. You will already have a short list of accurately priced services that COULD be a fit. Here’s the catch: you need to have a better understanding of your customer’s pain points and how you can solve them so you can offer the perfect package, product or service. This underscores the importance of having questionnaires or checklists to ensure you’re gathering all the information you need to offer a solution that speaks to them. What’s the bottom line? You should know the scope of the project ahead of time so you can serve clients appropriately and make money in the process.

So, how do you create standardized prices for your business? Below, we’ll go through three key factors to consider when creating your pricing structure. It is imperative that you move through this process with intentionality. In other words, when writing down these numbers, have a vision for how your new and existing clients will reap the benefits of your offerings, while keeping in mind the long-term goals of your business.

Know Your Margins — Just because you give an hour of your time to a client doesn’t necessarily mean that it only takes an hour to attract, nurture, and secure their business. Think about the time and materials required up-front, then quantify and incorporate it into the price of the service.

Know the Industry Standard — Knowing what other providers in your industry charge for their services can be a valuable benchmark for creating a standardized pricing model. Are you just starting out and need to build testimonials and a solid client base? Perhaps your prices will be just slightly lower than the industry standard. Does your unique value proposition set your services far apart from your competitors? Perhaps it’s time for higher prices that may set the bar for clients who can afford you. You could even “buck the system” and design a totally new model that differs from the industry standard. You never know, it may catch on. You’ve heard of Uber, right?

Know the PERCEIVED Benefits to Your Client — What does your client get from investing in your services? Hint: it’s not just the services themselves. If you’re a dentist, your client doesn’t just walk away with cleaner teeth and better breath. They may also have more confidence because of your work! What about your office environment? Have you spend a pretty penny on office space in a prime location? Have you made a solid investment in equipment or décor? Whether they realize it or not, your clients may develop a higher perceived value of your services because on some level, they “sense” you know your worth.

After you’ve taken the time to create firm pricing for your business, you’ll be able to speak with confidence about your offerings, knowing these prices are fair, reasonable and “worth it” to the customer.

Finally, once you’ve shown your prospective clients how your service can solve their pain points and have given them a price, be prepared for the “Yes.” Know the exact next steps that need to happen so you can get to work and get paid. Have a standardized agreement saved that you can access within minutes, a payment system to invoice your client immediately after services are rendered and a follow-up mechanism to capture feedback and testimonials to improve your business even more!

Have you ever been afraid to raise your prices? Now’s the day to change that. Share your experiences in the comments below!

Why You Need a Sales Funnel and 6 Essential Steps

by Sarah Krivel | Oct 9, 2017 | Marketing and Sales

The term “sales funnel” has been used by marketing and business gurus ad nauseam. There are multitudes of information on the Internet covering how to structure, optimize and automate sales funnels, all which vary greatly depending on your business model and sales structure.

While it’s imperative to create a sales funnel unique to your business, I’d like to show you WHY it is so important to create one as well as the core components each sales funnel should include.

Let’s start with the basics. What is a sales funnel?

A sales funnel is a system used to convert people who are interested in buying your product or service into paying customers. It’s the buying process you will guide customers through when they are considering purchasing from you.

Why is a sales funnel so important?

Time is a precious commodity for business owners, and business development can take a considerable amount of time. If most of the repetitive work of sales was off your plate, imagine how much more time you’d have. What if tasks such as writing follow-up emails, developing proposals or creating agreements took a few minutes versus several hours?

A streamlined sales funnel reduces the time and energy you need to expend on these functions and eliminates the need to recreate the wheel every time you get a new lead.

What are the core components of a sales funnel?

A) Lead Identification – It’s incredibly important to get to know the person you are selling to. Where do they live? Where do they work? What keeps them up at night? What do they do in their free time? Identify and document your ideal customer profile(s), complete with demographics and psychographics, and know what makes them tic so you can make it EASY for them to buy from you.

B) Lead Qualification – Even though a lead may look perfect on paper, you need to qualify them. In other words, do they exhibit a pain point that can be solved by your product or service? Can they afford to pay for the solution? Are they serious about making a purchase? Implement a standardized way to qualify a potential lead and follow it each and every time.

C) Sales Conversation(s) – After you qualify the lead, you can move on to influencing their decision to buy. Influence does not mean manipulate, cajole, or convince. It simply means you are going to openly share the benefits of your product or service in a way that specifically addresses their pain points. Depending on the price and complexity of your product or service, this process may take anywhere from one meeting/conversation to several months or even years. The key here is consistency and commitment to building a trusted relationship with the qualified lead.

Because this process will most likely include multiple points of contact, consistently using a CRM (customer relationship management) system will be invaluable to you. Read more about why you need a CRM here.

D) Proposal – You’ve qualified your lead and have ample evidence to prove this person is interested in purchasing your product or service. It’s now time to submit a proposal. This document should be standardized, so only minor adjustments are necessary before you send it to your potential customer. If a proposal is not necessary in your industry, skip this step.

E) Agreement — A standardized working agreement will help to protect you as a business owner and ensure both parties are clear on the details of the working relationship. Again, the less time needed to customize this document before sending it to your customer, the sooner you can get to work and get paid! Always have a licensed attorney review your working agreement before implementing it.

F) Onboarding – Think of customer onboarding as the steps following acceptance of the agreement. What do you need from them in order to begin work? What needs to be scheduled or planned to support your working relationship? Who will do what, when?

Finding, qualifying and onboarding the right customers for your business can take an immense amount of energy and effort. Defining the steps of your unique sales funnel and utilizing profiles, checklists, templates and a CRM system will ultimately preserve your energy.

Are you ready to work less and make more with your unique sales funnel? Our clients save an average of 200 hours per year!

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