Understanding The Importance Of Business Management Consulting Services

Businesses will oftentimes benefit from obtaining business management consulting services. These services are especially advantageous to those businesses that are new to the industry. From marketing strategy development to client management to brand marketing, the services are large in number and can be obtained from a wide range of business management consulting firms.

When partnering with such a firm, it is important to obtain services from one that has much experience. A business does not want to partner with a company that has not helped other businesses succeed. To make sure a firm has prior experience, it can be valuable to ask for references, including previous clients who have obtained the firm’s services.

Some business management consulting firms specialize in helping business start-ups. The services they provide tend to include assistance with start-up budgets as well as the development of extensive business management plans. After a business is up and running, the assistance from the firm may be ceased, or if a business prefers, it can continue to obtain services. The length of time that a business partners with a management firm is always determined by the business, never the firm.

If a business is having difficulty with its marketing strategies, it can be of the utmost assistance to obtain services from a business management consulting firm. The firm can help devise marketing techniques that will prove to be effective, with the techniques being based on the industry that the business is operating in as well as the business’s target market. These strategies will not only help to attract new customers but also to retain them.

For businesses that are creating a brand, business management consulting services will also be beneficial. The consulting firm can help a business choose a proper name, create an eye-catching logo, develop a slogan and much more. If a business already has an established brand, the firm can help to improve it. In many instances, obtaining services to help with brand development can be one of the most effective investments the businesses ever make.

Another way that a consulting firm can be of assistance is for businesses that distribute printed marketing materials. They can help develop effective magazines, fliers or whatever type of printed material a business wants to distribute. For companies that offer services and products through the Internet, it is very important for services to be obtained from such a firm. In doing so, the companies can rest assured their content will be displayed in an effective manner, helping to expand their offerings to a global audience.

For those businesses that are into sales, a business management consulting firm can help to generate leads. Many times, the services obtained from the firm prove to be one of the single most effective factors behind a successful sales business. The firm can show a business not only how to find leads but also how to close the deals. Much of the time, they will introduce a business to lead generation techniques that it had not initially thought of.

20 Reasons You Shouldn’t Use A Broker When You Sell Your Business

Nearly 80% of all business owners, even highly successful ones, admit that they don’t have a plan for exiting their businesses.

Owners often fail to make succession plans because they have assumptions about the future which may or may not be true.

For example, a business owner may believe that his business will naturally pass to his spouse or other family member. What happens, though, if that designated family member is unwilling or unable to take the reins?

Another common assumption owners make that causes them to avoid succession planning is the idea that they will be able to run the business until they die. They don’t put a plan in place because they don’t like to think about the possibility of having to leave the business sooner than planned, perhaps due to ill health or family problems.

What happens in the absence of proper exit planning is that am owner can find him or herself in the unanticipated position of having to sell quickly, perhaps for less money than they need in retirement.

Frustrated, tired, stressed, and sometimes ill, business owners who need to sell make what they feel is a logical decision and turn the process over to their local business broker.

Over the years, my partners and I have reviewed over 300 selling deals and have come to the conclusion that using a business broker might be the worst decision any seller can make.

We began to question the entire sales process, wondering why most businesses in America never sell, and those that do sell often do so under extremely unfavorable terms for the sellers.

Looking for common threads in those deals, we eventually came to the conclusion that a major culprit hindering the business selling process is the typical business broker.

This came as a surprise as we initially assumed the logical fallacy that someone with the title “broker” is sctuslly experienced in facilitating deals.

The vast majority of business brokers we have run across, however, have disproved this assumption time and again.

Here are just a few of the reasons that I believe you should NOT engage the services of a business broker if you are trying to sell your successful business.

  1. Most business brokers have never owned a business themselves.
  2. They are often more motivated by commissions than they are by doing what’s right for both buyer and seller.
  3. In most states, brokers are not required to have any training, licensing, or continuing education, unlike real estate or insurance brokers.
  4. Many of them are super at selling their services, but poor at actually providing those services once you’ve paid.
  5. They could care less if they get referrals, so they don’t care if clients complain about them to others.
  6. A lot of times they are simply lazy and don’t do much of anything to help the seller.
  7. Many brokers lack basic financial literacy, business intelligence, and organization that is essential to a successful outcome.
  8. They don’t know how to plan and excute a successful sales strategy.
  9. They try and cover their lack of knowledge and training with slick self-serving rhetoric that makes them look better than they really are.
  10. Many brokers get into business because they’ve failed at other ventures.
  11. They often have no clue of how to properly valuate a business, thus potentially cheating the seller out of thousands of dollars or causing the sale to drag on longer than necessary.
  12. They don’t understand risk.
  13. Often business brokers let sellers think a business is worth whatever the seller wants, however unrealistic that figure may be, just to get the listing. They then pass the buck to the potential buyer, who is made out to be the bad guy for showing the seller the business isn’t worth anywhere near that much.
  14. Business brokers often ignore confidentiality agreements.
  15. Many are willing to lie, as long as it serves their purposes.
  16. Commission-hungry business brokers are obsessed with getting mass listings because they know that without a listing there is NO possibility of getting a commission.
  17. Focusing on mass listings means they don’t have the time to push the listings they get, causing listings fall through the cracks.
  18. Many business brokers don’t understand due diligence.
  19. Most brokers will never tell a seller the truth about their success rates: 87% of listings NEVER sell at all, and of those that do, 3 out of 4 FAIL to meet the sellers initial goals. Sellers have less than a 4% chance of a successful exit.
  20. Brokers have been known to lie about their personal track records. Many brokers are lucky to complete just 2 successful deals in a year, much less the 10-20 about which they will brag to you.

These are only a few of the reasons why I urge potential sellers of businesses to avoid using business brokers.

Instead, it is much better to seek out the advice of a business acquisition specialist; someone who has experience in the process of buying and selling businesses, who thoroughly understands valuation, and who is not focused on getting as many listings as possible but rather on the needs of the seller and buyer.

Having such a mentor can assist you in developing a viable business exit plan. This means that you will not be forced into making hasty decisions if you are forced by circumstances to sell.

A good business acquisition expert does not work on commissions, and has the best interests of both buyer and seller in mind. He or she also has a tried and true process for selling and a verifiable record of success, along with references and client testimonials.

My suggestion is that before you ever need to sell, you should contact a business acquisition expert first. Most selling specialists are more than wiling to give you a free telephone or in-person consultation.

Prior to this meeting, be sure to write down all your questions, your goals for the sale, even your fears and apprehensions about the process. This will help you make the most of this initial consultation and get a gut feeling for how this particular business solutions provider operates.

If your primary reason for meeting is to ask for business succession planning assistance, discuss fees and expectations and ask for some professional references.

This will help you determine if this is the kind of person you want partnering with you on one of the most important changes you will ever experience in your life.

If you’d like to learn more about the selling process and how to be successful with it, please download the free resources on the website listed below or email me at [email protected]

Local Business Marketing Review Tip On How Your Employee Can Destroy Your Reputation

This was not an attempt to get the employee fired we need more people working these days. I stated in fact I would rather you keep him on, with my strategy I have a system that will train every single one of your employees on the importance of your reputation but that’s another message this message is about the report only, and I have no plans to put this businesses name on public display.

This is just something I think start-up business owners as well as seasoned businesses should keep an eye on when sections of their business deals directly with the public.

Also for businesses just in the planning stages the problem outlined below could happen in your business one day as well, especially if you are a start up business and plan to grow. The events described below are all true and could be present in whatever business you are in this statement applies to you.

There has been a major shift in marketing, you and every other consumer wants to do business with a reputable business, when you network, you want to do so with a reputable business, right.

People will search the internet and check out your reputation before ever visiting your website or your business and they are doing business with the most reputable business. If your reputation says you cannot be trusted the consumer will just find someone they can trust.

There are many ways to find out if you have a reputation problem, here is just one way. If you type into a Google search any business name and their city, what you will see are the directories and other places their reputation shows up. The person searching may have only your name and phone number and they want to know more about you or they may be simply searching just be looking for directions to your business.

Did you know that all they need to do is type in the business name and the phone number and your reputation is on display for the world to see?

Why is this important? There was a study done not long ago and what was discovered was that consumer opinions posted online are trusted more than businesses realize, and the consumers posting are your customers.

As posted on the ‘Nielsen: Global Consumers’ Trust in ‘Earned’ Advertising Grows in Importance says “Ninety-two percent of consumers around the world say they trust earned media, such as word-of-mouth and recommendations from friends and family, above all other forms of advertising.”

An Employee Destroying His Employers Reputation and Causing Massive Loss of Revenue With One Simple Act

I was allocating some freight for relocation at a local distribution center for a popular well know business which I shall keep their name private but the city was in Atlanta, Georgia recently and I filed this report with the CEO about the damage that could be done to the business reputation and after reading it what do you think the response was?

The Report

On yesterday 1-6-2014.

This should have been a 10 to 15 minute turn around but ended up being over 1 hr an 45 minutes because of an employee that was unaware that his actions can harm the company’s reputation and untimely cause the company to lose business.

I’ve been picking up freight here for years and have seen the 1st shift shipping clerk first hand do what is stated below to truck drivers and more time after time over the years.

For example if a person let’s say it was a “Truck Driver” that approaches the window he/she gets ignored until the clerk feels like it. The astounding thing about this is the clerk with his peripheral side vision he can see you and when he does decide to look at the driver it’s like what do you want?

You are bothering me, now consider this the owner does not know anything about this display of attitude being displayed. The shipping clerk forgot he represents the business owner, this is not his business to treat customers how he wants to and when he wants to.

I’m looking for businesses that want to make a change from within, businesses that want their employees to want to give great customer service and build a great 5 star reputation.

As you read this article please note how many people dropped what they were doing to deal with this problem.

Here are the facts as they happened on 1-6-2014.

I presented the clerk with the pickup number and immediately left the window to get out of his way because I did not want the same experience happening to me that I have seen happened to other drivers. The shipping clerk looked into his computer system for the load and calls me back to the window and says “that’s a bad number it’s not in my system”.

No argument from me, I asked for a recheck but did not get it, so I call my dispatcher the carrier and asks that he double checks his information, which he did, he calls the sales person who booked the load and they both check the website where the load was booked to confirm it was in fact a good pickup load number and it was. He calls me back and tells me it’s good and asks me to once again ask the shipping clerk to recheck.

I had already asked and the shipping clerk would not recheck but I asked again. The clerk says it’s not in my system and would not even attempt to look beyond that point.

I once again called and reported that to my dispatcher “the carrier” and from their end they called someone else at the shipper “XXXXX” that was shipping the load and located a second PO#, and the trailer the load was on and once again asked me to pass the information on to the clerk and ask for a recheck but he had already gone home.

Before I got that call, I was watching him leave and as soon as he left I asked the next shift shipping clerk to double check and he found the load within 2 min.

I got the 2nd shift supervisor involved and he did a lot of documentation to reprimand the employee with, another 20 minutes waiting and while he proceeded to get me checked out and said they would handle the problem on tomorrow.

He says this person knows all he had to do was to get up and ask another person just feet’s away that had an updated list that had not yet been updated into the system.

There is a dollar amount that is taken right from the bottom profit line for the businesses for every one that spent time on this problem all because one person forgot he works for someone else because they could have been working on other projects.

Let’s look at some of the time loss, the terminal yard that I was taking the load to was 20 minutes away, but I spent over 1-3/4 hrs here which should have been a 15 minute turn around.

1. Could not be dispatched on another load

2. Dispatcher spent his time and his assistant’s time researching and verifying the load.

3. The customer service for the shipper spent their time locating the load and relaying the information back to our dispatcher who called me back.

4. There was a 2nd clerk doing the same job that had already been entered.

5. The supervisor of the shipping clerk who was busy on another assignment until he was pulled away from that project to help get me going.

6. There was equipment (the truck) that was sitting not being used, just idle.

Imagine if this was your employee and your business that the shipping clerk worked for or a business that you know well.

Can you see how it could easily an employee could harm your business, just imagine it could be another business that you know very well that has an employee doing the same thing and causing your clients to lose money right from the bottom line?

I’m more interested in making a difference that will help businesses get more customers by ensuring every employee understands that this company’s reputation is on the line every time they interact with a customer.

Let’s switch positions just for a second. Let’s take the event a little further; you know how people exploit the bad information online of offline, right.

Some people could be angry enough at the shipping clerk to post this event as a review on the business directory listing, if it’s a bad review it’s not just going to go away, oh no. That bad review is going to hang around and may even be on the first page for years as the first thing people will see when they check this businesses reputation.

Would you agree with my point here that if this were a published review of the business on their Google + listing and you had no prior knowledge of how reliable this distribution center was that this employee’s actions reflects badly upon his employer’s reputation as a reputable and reliable distribution center?

This employee probably has already caused customers to find another distribution center that’s a given and could cause the company to lose this business and future business and it never crosses his mind that my employer is his customer.

In fact I heard my dispatcher say to the sales person who booked this load that we should drop the load if that’s the attitude they are going to have.

All the while it was not the attitude of the company shipping the product but rather one employee.

And if we went online as the carrier and left this experience for other to read, or if I as a driver without my employer’s knowledge or consent wanted to get back at the shipping clerk, if I went online and left a bad review about the entire incident, hoping that other businesses may read it and decide to use another distribution center for their business how do you think it would impact the shipper.

Can you feel the impact that could happen if this was your business, you as the business owner would never know anything about the review I left, and you cannot get it removed on your own if you were aware of my review. Information is shared all over the web so this review could also be posted on other directories, and on and on.

Very Important point here: In all of this the actual business owner who’s reputation is on the table as being a reliable distribution center does not know anything about what’s really going on or how many times it has happened before.

Keep in mind the years of hard work and many sacrifices the business owner and the CEO have made to get contracts and build the business up is on the table and they have no idea of what’s happening, one day they turn around and their customer is gone somewhere else.

I have a solution to the problem but here’s the rift, I cannot tell the solution to the supervisor he does not have the power to do anything with it. His focus is to deal with the employee, right.

The solution must be presented to the head of the company and come down from above, from the person who has the authority to do something with it down to the employee. It’s the person who’s reputation is on the table that has to be the one to make changes and those changes move down, the person at the bottom of the pile has no desire to want to make change that will improve the company, the sad truth is that they are only there to get a pay check and go home.

Another option for me is if the solution is mentioned to the customer service person hoping that it is passed along to the decision maker they may be the very one’s that are creating the problem and surely they have no desire to pass this information on to the top.

The problem is as I mentioned before in another example about the two truck drivers having a conversation about how to improve things as they are traveling down the road and they come up with some good points and ideas in the conversation but as soon as they part ways and go to their separate destinations everything said dies.

If you are a business owner reading this or you know of a business that has employees that run their departments as if they own the business the focus needs to be on changing the culture, to get the employee to understand that their future with the company depends on their contribution to help build up the reputation and not tear it down.