Incoterms

Too many times I see people and companies using "shipping" terms that are not accurate and cause a waste of time due to the need of exchange of clarification emails. Moreover, if ever worse-come-to-worse, these terms can cause unwanted liabilities for one of the parties. One of the reasons for these confusions is that during the years the amount of terms have grown and changed. Today there are terms that are used just for air freight, ocean freight, or for both. 

Therefore, I decided to put here a short list of the most common and useful terms and their meaning. I made the list in a logical way, so the terms are starting from the point where the buyer has the most responsibility and develops to the one where the buyer has the least responsibility. 

Ex. Works: This means that the Buyer is buying the goods at the Seller warehouse (office). From thereon, it is the Buyers responsibility to get the goods to wherever they need to go.

FOB: The Seller will get the goods on the boat or to the air terminal. From thereon it is the Buyers responsibility to get the goods to wherever they need to get to. This responsibility includes the freight cost.

CIF: In this case the seller will get the goods to the marine or air terminal at the destination, but all other responsibility is with the buyer, i.e. duty, customs, in-land freight, etc. 

DDU or DAP: Here the Seller take responsibility to deliver the goods to the Buyer. HOWEVER, all customs and duty fees are responsibility of the Buyer and the seller doesn't carry the burden of their costs.  

DDP: This is what many people know as "door-to-door". Here the Seller takes all responsibility to deliver the goods to the Buyer at the Buyer's designated location.

This list is a simpler version of the Incoterms and is to give you a basic understanding of these terms. You can download a very easy to use chart HERE. 

Easy Way to Create a Flowchart

Some time ago I had to prepare couple of very detailed and complicated marketing and sales flow charts for a new company. These flowcharts were to show the marketing plan and the sales plan in a visual way and were part of the business development process. I started making the flowcharts with the usual MS Office suite. However, as I was laboring on preparing these flowcharts I thought that there must be a much easier way to prepare them. I searched online for flowcharts making programs and came about a program called "SmartDraw" (www.smartdraw.com). I tried this program and I must tell you that I stronglly recommend it to anyone that needs to make impressive and professional flowcharts. It is a great, easy to use tool, with many charts templates that make the flowchart making process a breeze. 

The most effective and least expensive marketing/promotional tools

A few days ago I saw a question on LinkedIn as follows:
"What are the most effective and least expensive marketing/promotional tools for a Small Business Owner (1-2 people) in any given market-place?"


The straight answer is that it depends on the type of the business. Different types might use different marketing approaches. However, here are few ideas that hopefully will get you on the right track:


1) Online presence is important and even crucial to some business. If you have a good eye for design and you don't require anything too complicated, you can start by using one of the free site building services (personally, I like http://www.wix.com/). As per SEO (Search Engine Optimization), it is true that some SEO services will deliver great results. However, if you do not have the budget for it start with very simple things:


    (a) Submit your site to ALL search engines
    (b) Make sure to update and add content to your site regularly
    (c) Use as many social network sites (e.g. LinkedIn, Facebook, YouTube, etc.) to post information about your business with a link to your site.
These are just a few basic methods, and obviously a professional service might be able to offer you greater and faster results.


2) Write Press Releases and submit them through a press release submission service, a recommended one is: http://www.prweb.com/. You can also use free PR distribution services, however, be careful to check their reputation before using them as some of them are noted for sending spam and can actually cause more damage then help.Press releases are especially useful if you have a website.


3) Make sure to register your business on as many free directories. There are many free directories online and all you have to do is to search them on Google and start registering with them. Try to add as much relevant information and keywords in your ad.


4) DON'T underestimate the power of cold calling. Indeed it is an old tried method, with no sex appeal, but this method has probably generated more business then all other methods combined; and with today's low low rates from VOIP services (e.g. Vonage.com), phone calls cost next to nothing.


5) Word of the mouth. Make sure you give great value (not to confuse with price) and service to your customers and they will make sure to tell about your business to the people they know.


6) Don't be shy. If you have a satisfied client make sure to ask the client if knows anyone else that might be interested in your business. You'll be surprised are people are happy to refer you to someone they know.


7) Mailing list. Mailing lists can be a great tool to drive business in your direction. Make sure that your mailings are relevant and are worthwhile for your customers to open them. Always include in them, information but also promotional offers.


8) Discount Sites. Sites like groupon can help you get business.


9) eBay. While trying to sell your product on eBay you might be able to get additional exposure for your business, in the form of including its name, website, etc. in your ad.


10) Try to see if there are any governmental agencies that might have an interest in promoting your business (e.g US EPA in case you are cleantech company). These agencies can get you free promotions through publication and speeches they give.


11) Last but not least. Make sure to include your logo, brand-name, slogan, etc. on your product! (and obviously on all stationary). 


The above list is just a basic starting point for marketing your business, but there are many other promotional and marketing methods and they are limited only by your imagination and ingenuity. Make sure to dedicate the time to research and think about how you can promote, develop, and market your business.

The 150 Most Influential Headhunters in the World

Bloomberg Business Week has just published a list of the "150 Most Influential Headhunters in the World". The list allows for customization and sorting of the information by several columns, like: geographical area, title, function, etc.
Hope you will find this list useful. 
http://www.businessweek.com/interactive_reports/recruiter.html

The Importance of a Sales Team

A few years ago I was involved with a technological company. This company had a cutting edge technology and where out in the market before anyone else was out there. However, the CEO of the company decided that out of the 150 employees he had in the company, only 1 should be in sales. Furthermore, when the economical crisis hit the company, the same CEO decided that even this 1 sales manger was too much and that he himself can do the job. Needless to say, that within 2 years the company was down to less then 30 people and on the brink of bankruptcy. 

The above story is real and comes to show the many times in the past I was amazed by how many mangers and CEOs overlook the importance of good, qualified sales team. A lot of mangers view the sales team as a bunch of easily replaceable people. This is especially prevalent in technological companies where the technical personal is seemed to be the most highly respected and with the most prestige as they are creating and doing what the company is all about - Technology. 

However this is a mistake. All companies (aside from NPOs) need to remember that their purpose is to sell. It doesn't matter if the company is selling products, services, expertise or anything else, the reason the company exists is to sell. Therefore, it should be understood that everyone in the company is in a supporting role. Everyone in the company is to support the sales team. Whether it is the R&D (supporting by providing products to sell), Logistics (supporting the delivery of the sale), or the CEO (providing the sales team with the bet tools to do their job-sell). Moreover, it should be understood that it doesn't mater how great the product, service or technology is, without sales it as useful as an ashtray on a motorcycle. 

Furthermore, many times, and specifically in technological companies, it is expensive to replace and train new sales people. Just imagine how much time it takes to train a sales person. The need to teach that sales person about the service, product, or technology. The need for that sales person to exactly understand the business environment and models involved in what he/she need to sell. Like with any new employee, there is a learning curve that sales people have to go through, however, since their job is to generate cash-flow and income for the company, managers should look more carefully how can they help these most important people in the organization.  

Another factor many managers overlook, is that sales people are the face of the company. These are the people who crate the relationship with the potential and actual customers. Many times business will be conduct because of these personal relationships. However it should be remembered that relationships are not created within a day. They need time to be established and this time need to be given to the sales people. Furthermore, high turnover of sales personal can reflect badly on the company where customers and prospects are starting to ask themselves "what is wrong with the company/product that the sales personal is changing all the time?".
A good company is built from all kinds of factors but at the end of the day it is important to realize that the company must have a good qualified sales force to make the sales, without it the company is sure to fail.  

From Small Business CEO to Big Business CEO

So you made it! Your start-up company, that you started with your own two hands has become a "real" company. You have a nice turnover and several 10's of people in the company. Now it is a crucial time in the future of your company. Becouse, you see, managing a start-up is not like managing a big company. There are many adjustments that you as a CEO need to make in your handeling and attitude in order to make the transition from a small business CEO to a big business CEO. As a small business CEO, you are probably used to be in control of every aspect of the business; all the decisions are yours to make and everyone is being managed by you. However, now that you have become a big business CEO, you need to make one of the most difficult things and that is to delegate responsibilities. You need to understand that you cannot stay in control of every aspect of the business, and that from now on others might need to make decisions instead of you.
As CEO you have to remember that your job is to give direction to the company, and make sure that its future is as bright as its past. However, if you will keep micromanaging your employees, and the daily routine work you will not be able to fulfill your duties as CEO. You will become overworked with managing the sales, marketing, HR, R&D, etc. This workload will not allow you to dedicate the needed time to think about the future as you will be buried under the daily workload.
The above does not mean that you should keep your hands off of the daily goings. Rather it is to say that you should be like a ship captain where you supervise a crew of people that are able to do the job and you are to make the necessary adjustments when the ship is going off course, or if there is a need to make a new course. This is why it is so important that at this stage you will have good managers in your organization that can take good decision and deliver the necessary results.  

Sales Vs. Marketing

Often when I discuss with people what I do, they use the words marketing and sales interchangeably. I find myself always having to explain that these two are not the one and the same.
Sales involve all the processes that are directly connected with the actual sales process. The actual process of selling the product to someone. Marketing involves all the processes that bring knowledge and attention to the product/company/service.
Sales processes may include:
Sales calls
Meetings
Selling through a channel
e-commerce (website that people can buy on)
Stores
and other like activities


Marketing activities include:
Preparing and distributing catalogs
Advertisement (printed and digital)
PR (public relations)
Trade-shows
Events
etc.


Simply put the purpose of Marketing is to create a positive attitude towards the sale.
Sale is the actual act of selling something to someone.