February 7, 2010 by Robin Dickinson | 661 views | Comments (27)
BLACK CHAIR: Business Mentoring TV
EPISODE 1: Getting commercially focused will help you build your business. This episode of Black Chair focuses on the commercial mindset and answers the questions: what’s the one thing that needs to be in the back of your mind in every new business development call and why?
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27 Responses to this post
February 7, 2010 at 9:25 pm |
Thanks Robin. You got me quickly to “I’m listening. Tell me more”. Look forward to the next post.
February 8, 2010 at 10:20 am |
how excellent is this Robin? I love it… !
It is so timely on me as I’m putting together information preparing me for these calls and I’m seriously considering what will be my requirements for a client to become a ‘best-fit’ with ‘budget’ being paramount. Thanks and look forward to more black chair sessions.
February 8, 2010 at 8:32 pm |
Hi Robin,
This is well done. You make the point clearly and give me just enough time to think about the issue. I like it
I take a different perspective, though. For me, the thing to have front of mind is ‘what are the needs here?’ Budget is important, and we must charge a reasonable fee for the outcome we deliver, but I think client needs come first. Understanding that, plus budget constraints (which are often less of a constraint than we think), means we really can get a win-win as we can flex solutions to the circumstances … or refer elsewhere if we are not the right partner.
Listening from this position opens the door to more possibility, in my view. It reduces the chance that we tell ourselves a story about what the client can or can’t afford, before we get to offering a solution.
Having said that, I understand the importance of the commercial perspective — which really is important. Afterall, we’re in business to serve clients and make money (and have fun!).
Congrats on another thought-provoking post.
Best,
Kate/ @kategroom
February 8, 2010 at 8:49 pm |
Spot on Robin!
Reminds me of my good old days of solution selling. I read a great book on the subject called “Hope is Not a Strategy” which is now available as a free e-book from Google. See http://bit.ly/HopeIsNotAStrategy
My point is that one thing I’ve learnt about a sales meeting with a prospective client is the tendency to never actually ask for the business! It’s often overlooked by sales people who could have saved a lot of time by confirming that their prospect was actually interested in doing business with them (don’t assume it is)
Perhaps this is due to a “fear of failure” – it’s important to overcome this. You may not always get the deal, but I can tell you the feeling you get when the client says yes is, of course, thrilling!
Thanks for sharing this!
Tony Hollingsworth
February 9, 2010 at 6:01 am |
Thnx. Quick and Dirty but very helpful !
February 9, 2010 at 7:28 am |
Hi Robin
I work on losts of music videos and when I meet people and I ask them what there buget is they always get this look in there eyes like im about to shoot them. When I ask them what there budget is its not to see how much money I can get out of them but to see if there budget and there idea are on the same level.
What do you think is a good way to ask a person what thre budget is with out them thinking Im trying to get as much money out of them as possible?
February 9, 2010 at 8:28 am |
Great presentation and interesting perspective Robin. I would agree entirely with the budget focused approach in some business situations. i.e. we have a building company specialising in upmarket custom designed and built houses. To avoid time wasting for both parties, budget is our first question. However in my franchising consultancy role, I find that the need to develop a relationship with the client is more crucial than talking money. In my experience, if the relationship’s right, the trust is there, the money will come.
February 9, 2010 at 8:02 pm |
Hi Robin,
Thank you so much for this post. This is fantastic advice! I always focus on the prospect/customer: understanding their needs, their current situation, their objectives, etc. However, the “commercial mindset” that you mentioned is definitely a very important point that normally I always leave for the end. As a result, well, I had many great meetings, where I got tons of information, a clear understanding of the customer … but that ended up not getting the engagement because of money issues.
And I totally agree with you. The commercial mindset and the focus on the prospect/customer complement each other.
I will definitely implement your advice right away. Thanks!
By the way, congratulations on this new website. It looks great and very informative!
Have a great day
Ivan
February 10, 2010 at 9:27 am |
Knowing the budget up front in my industry is vital. If the budget is low, the brief can be adjusted to fit within those constraints. If the budget is too low then I simply won’t undertake the project. Many times I’ve witnessed and continue to witness situations where the budget wasn’t discussed up-front and the project ended taking far longer than expected, with no further renumeration for the designer – just less sleep and more stress. Best wishes, John.
February 10, 2010 at 11:32 am |
Thanks for the great advice Robin.
I’ve just come out of a meeting with a potential client and after we quickly scoped out his goals i asked “So what is your budget?”.
Straight away he said “It’s around 3k – 4k” .. and that immediately gave me an idea of what I could produce for him and where we could go.
Not only that, it made the whole process much more “real”. I noticed both of our body languages change and the conversation became more focused. It became much more engaging when we both new that there was a budget to work to and it gave some clear indications as to what was achievable and what would need to be scaled back. It also made the client focus on what was really important to them.
That’s not to say there would never be any ‘scope creep’ etc but as a starting point, being upfront about budgets really made a difference to the process.
Thanks for the tip and the new site is great
Cheers
Mark
February 10, 2010 at 1:33 pm |
Hey Robin,
This has been one of the single most frustrating issues in the IT Consulting industry. Especially for big ticket, complex architecture solutions.
Usually there’s a competitive tender, with an enterprise organisation looking to get the “best price” from suppliers. More often than not, crucial components of a successful solution – e.g. Training, documentation, even testing – are struck from the project plan to get the bid in under the competition prices.
This is where the “80% of IT projects fail” comes from. It also leads to trust eroding behaviour: Once a supplier has won the gig, they subsequently add in these critical elements as a “change requests.” This behaviour leads to a culture of “I can’t ask for anything” between the client and the project team. It also adds expense because you need iron clad contracts enforced by resolute, experienced project managers.
Contrast this to a situation where the client mentions their budget up front. Now the suppliers have to compete on elegance of design, value of solution. The competition is just as tough, but everyone knows the playing field. Their motivation is value provision rather than cost reduction. Also clients learn exactly what features the budget can sustain (e.g. Rolls Royce vs Holden). Trust building behaviour ensues.
It never ceases to amaze me that in every service profession – medicine, construction, accounting, law – costs for services are published and budgets for projects are discussed up-front. Yet in IT this is rarely the case.
Cheers
Rog42
February 8, 2010 at 7:08 pm |
Hi Helen,
It’s so great to have your encouragement and support. A big part of my motivation to do these Black Chair sessions is to support you and the many other courageous business people I have worked with and mentored over the years.
There’s plenty to come!
Best, Robin
February 9, 2010 at 5:42 pm |
Thanks, Kate. I really value your feedback.
Yes, client needs – front-of-mind, and budget – back-of-mind. It’s a balance of the two.
So many people I’ve worked with got so bogged in ‘understanding and meeting the needs of the client’ that commercial considerations barely got a look in.
This is often a way of avoiding the budget issues upfront. It’s a mindset that says, ‘Surely, if we create enough value, they will pay what we’re worth.’
There is a certain merit in that logic, but why not do both i.e. fully understand the budget situation AND deliver services and products that delight customers?
Once you understand the ‘what’, ‘who’, ‘when’ of the budget, it’s easier to navigate a solution that delivers above and beyond it, if that is the goal.
I’d rather that situation than flying blind and being completely out of the ballpark on budget, or worse still, have missed the budget cycle altogether.
Great to have your input, Kate.
Best, Robin
February 9, 2010 at 5:59 pm |
Hi Tony, it’s great to get this valuable contribution from a man of your business experience. Thank you.
In my experience, getting the numbers on the table early on in the discussion rarely limits the business building opportunities. If anything, it’s the opposite.
There is often a great respect, relief even that finances are part of the initial conversation. This is relevant from low cost sales to big ticket selling.
Think about it. When you by a car or house, or even vegetables at the local store, don’t you want to clearly understand the price and whether it fits your budget – upfront?
One of the biggest frustrations I have dealing with business service suppliers is trying to understand whether or not what they are offering fits my budget.
If only they would ask upfront what my budget is!
Thanks, Tony.
Best, Robin
February 9, 2010 at 6:03 pm |
Thanks, Peter. Plenty more sessions are on they way.
Best, Robin
February 9, 2010 at 6:09 pm |
Hi David,
You make a great point. ‘How to ask about budget’ is something I will be covering in future.
The key is your intention. If your intention is genuine and firmly in the interests of building mutually fair value for you and the client, then that will show in your words and actions.
That said, there are buyers who are well trained in making you feel like you’re a money grabber, just because you’re upfront about finances. It’s a negotiating tactic designed to keep you on the back foot, and keep your prices low.
Thanks for your input and participation. David.
Go for it!
Best, Robin
February 9, 2010 at 6:43 pm |
Thanks, Carolyn. Yes, thinking about budget and actually asking about the budget are two separate things. It’s a question of timing that comes with experience.
Sometimes it’s not until the second or third meeting that we have the budget discussion, but I would have been thinking about it since day one.
Great to get your contribution.
Best, Robin
February 9, 2010 at 8:10 pm |
Hey Ivan, your excellent comment tells a story that many will relate to. Thank you for your input, encouragement and support.
Like you, I have left many of those meetings that started so well, and with so much promise, but went nowhere financially. They are tough lessons.
I discovered the hard way that often when ‘clients’ want to meet and chat about what you can do for them, they simply have no intention of doing real business, but are doing market research, fishing for ideas or just love to sit and have cups of coffee – or a combination of the three!
Thank you, Ivan.
Best to you and your business (and great blog).
Robin
February 10, 2010 at 12:56 pm |
Hey Mark, your real-life success story speaks volumes about your courage and preparedness to take immediate action! Well done.
Taking the guess-work and mystery out of the numbers helps everyone get more focused. You get to ‘talk straight’ about the real issues with a clear understanding of the boundaries that exist in the current situation.
Great to get your feedback and encouragement, Mark. And congratulations on your great looking website.
Best to you and your business,
Robin
February 10, 2010 at 1:44 pm |
Thanks, Roger. You bring a wealth of crucial experience to the table. Your examples are highly relevant and sobering. Thank you.
I love your observation that once the budget is out of the ‘mystery bag’ that “Now the suppliers have to compete on elegance of design, value of solution.” Top shelf!
Best to you and your business,
Robin
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