Prove Your Capability By Substantiating Your Claims
Unsubstantiated claims are one of the seven deadly sins of proposal readability. Also known as a “motherhood statement”, an unsubstantiated claim is any claim that is not immediately backed up with facts.
These facts need to be relevant to the prospect, and to the decision you are asking them to make.
Prospects see unsubstantiated claims as wishful thinking; something you hope is true, but actually isn’t. Many proposals are riddled with them. Here is an unfortunately all-too-common example. The unsubstantiated claims are highlighted in bold.
XYZ Road Maintenance is Australia’s leading provider of road cleaning equipment to municipal authorities and private cleaning contractors.
Our highly experienced, results-driven research and development team has drawn on world’s best practice to develop our Road Maintenance Widgets, which are considered the most reliable on the market today.
Unsubstantiated claims often crop up in a proposal not because they aren’t true, but because of the writer’s desire to summarise. This is one time when less definitely isn’t more. Any time you make a claim, immediately back it up with facts. Challenge every claim you make.
• Why are we the leaders (or the most experienced, or have the most reliable product)?
• How does this benefit our customers?
Take part of the earlier example - “our Road Maintenance Widgets…are considered the most reliable on the market today.” Here is a better way to persuade a prospect that this claim is grounded in fact.
XYZ has such confidence in the reliability of our Road Maintenance Widgets that we offer a ten-year guarantee on their operational performance, double that of most other widget suppliers.
Customers of our widget include almost half of Australia's municipal authorities and eight of the country’s top 10 private cleaning contractors.
Broken Hill City Council saved $50,000 on its annual road maintenance bill by using our widgets and private contractor Alphabet Cleaning Services has more than doubled the useful life of its existing road maintenance vehicles by replacing Acme widgets with ours.
If you want someone to sign on the dotted line of a multi-million dollar deal, your pitch can’t give them any reasons not to do so.
Substantiating your claims is the easiest way to overcome potential objections and leave the prospect in no doubt as to why they should choose you.
Robyn Haydon, Principal Consultant of Winning Words, is a proposal strategist and writer and the author of The Shredder Test – the Australian guide to writing winning proposals.
Contact Robyn Haydon on:
Office (03) 9557 4585
E-mail robyn@winningwords.com.au
www.winningwords.com.au
Posted by By Robyn Haydon on 1 September, 2008 | Comments | Trackbacks | Permalink Words That Weaken a Pitch
Always keen to absorb more on the subject of pitching, I once bought an e-book that offered to deliver more than 1000 “sensational selling words”. From the moment it loaded I could see this was a questionable claim. My eyes watered as I skimmed the list, from ‘a cut above’ and ‘a child could do it’ to ‘works in minutes’ and ‘without lifting a finger’. I couldn’t imagine using any of these expressions.
Such hyperbole may work in the land of hard-sell (think steak knives and magnetic underlays) but it certainly doesn’t work with business buyers.
Of course not, I hear you say – to tell a buyer that ‘a child could do it’ would be quite insulting. But unfortunately, in a quest to be polite to buyers, suppliers often do use words and phrases that are damaging to their own case – often without even realising they’re doing it.
Ever heard the expression ‘coulda, woulda, shoulda’? It’s a taunt that implies you’re all talk and no action. No one wants a prospect to draw that conclusion about them. Yet that’s just what prospects tend to do whenever we use conditional words in a pitch.
For example, I think ‘should’ is one of the least helpful words in the English language.
Used to express something that’s already happened (as in ‘I really should have passed up that second helping of sticky date pudding’), the word ‘should’ expresses useless regret for something that can’t be changed.
Used to describe the future, it moves into positively dangerous territory. It expresses doubt (that something that ‘should’ happen, but probably won’t); places a burden on the reader (who ‘should’ do something they may not really want to do); or shows that the writer isn’t yet convinced of their own argument (and therefore has little hope of convincing the reader).
That’s because the words ‘could’, ‘would’ and ‘should’ immediately invite the reader to treat the subject as a suggestion or a possibility, but not a fact. (Consider ‘our program could increase your sales by 30%’ vs. ‘our program will increase your sales by 30%.’ Which has you signing on the dotted line today?)
No one wants to help a buyer raise extra objections. They come up with plenty on their own.
Strong and positive (but not overconfident) language is a key ingredient of a winning proposal.
Robyn Haydon, Principal Consultant of Winning Words, is a proposal strategist and writer and the author of The Shredder Test – the Australian guide to writing winning proposals.
Office (03) 9557 4585
E-mail robyn@winningwords.com.au
www.winningwords.com.au
Posted by Robyn Haydon on 17 August, 2008 | Comments (1) | Trackbacks | Permalink
Beating The Proposal Time Trap
Time. It’s something none of us seem to have enough of.
Ask anyone how they are these days and the answer, inevitably, is “busy”. I’m writing this at 6am. If you’re like most people, you may get around to reading it at 6pm – when the phones have stopped ringing – or never, as it is added to the never-ending pile of things you’d like to get to but simply can’t.
Proposals are usually just an extra burden to add to your already-busy day. It’s not surprising that good intentions fall away, timeframes slip, and what is presented by the deadline is not always the best it could be.
Even with all the technology that’s available to help, winning proposals still rely on planning, deep thought, teamwork, and a shared sense of purpose and urgency.
1. If you know you’re going to have to pitch to retain an existing contract, the time to plan strategy is well before the new tender document hits your in-box. How long before depends on how long you’ve got. Even a week will produce better results than waiting.
2. When you have a live opportunity in progress, produce a work plan at the same time you produce your strategy – and stick to it. Be prepared to be unpopular and don’t accept excuses for poor or late material from contributors. Their one piece of input could mean the difference between a so-so proposal and a winner.
3. A final sanity check of a proposal is critical; allow enough time to do this before the deadline. Depending on the number of people who need to review it, this may take one to five days or even longer if you are working with a consortium.
4. Stress-test the commercial sense of your proposal with someone who hasn’t been involved in its development. Ask them to interrogate your offer the way the potential customer would.
The biggest winners are those who finish strongly. My book The Shredder Test includes two self-test proposal checklists (one for free-format proposals and one for prescribed-format proposals, like tender responses) plus a method for third-party proposal reviews. These tools offer extra insurance that you will avoid elimination traps and that each proposal will represent your very best work. All are downloadable from The Shredder Test’s online library when you have a copy of the book.
Robyn Haydon, Principal Consultant of Winning Words, is a proposal strategist and writer and the author of The Shredder Test – the Australian guide to writing winning proposals.
Office (03) 9557 4585
E-mail robyn@winningwords.com.au www.winningwords.com.au
Posted by By Robyn Haydon on 24 August, 2008 | Comments | Trackbacks | Permalink
How To Help The Buyer Say "YES"
In previous articles I have discussed what impacts the value of a business and what makes a buyer say “NO” to purchasing a business. In this article I talk briefly on what things you should do to encourage the buyer to say “YES”.
Getting the buyer to say “YES” is not about cutting the price. You want to get the value you deserve, so you need to convince the buyer the value exists within the business. It is mainly about confidence – making the buyer feel confident and at ease with being able to run the business.
Once a buyer can imagine themselves running the business, you have eliminated many of the more common objections to buying a business.
So what should you have in place to help the buyer say yes?
Sale Document or Information Memorandum
This is one of the most important documents you will prepare – and preferably it should be prepared by a professional, such as a broker or business advisor. It not only sets the scene for your business, but also should explain clearly where the profits are generated and justify the price you are after.
It is also a suggested roadmap for the future of the business. This is important to show a prospective buyer where the opportunities are as well as demonstrating the business is not just about the owner.
Don’t Hide The Weaknesses
Every business has its weaknesses – and trying to hide them from prospective buyers is futile. Instead, show that these weaknesses can be turned into opportunities with the right buyer, and that you have plans in place to deal with them.
Documented Processes & Systems
One of the most common reasons a buyer says “NO” is that they feel they cannot run the business because it relies on key individuals to function correctly. Often the owner is the only person who knows about key parts of the business. Having the business systems and processes documented helps demonstrate that others can run the business. It also helps to improve the productivity of the business because everyone understands their roles and what is expected from them.
Succession Plans and Job Specifications
Losing employees is inevitable in most business sales – people will decide its time to move on, have uncertainty about the future or have a better offer. Making sure you can replace these people quickly is important to a prospective buyer. Have detailed job specifications for all key positions in place, with notes on what you would be looking for in a replacement. Have a list of potential replacements, should key people decide to leave. Have clear plans in place on how you will resource your business into the future.
Performance Reporting
Having a regular reporting system in place and communicated to staff is very important in demonstrating that people know what is going on and how they impact the business. It is not just about showing a growing business, but that there are systems in place to keep the business running smoothly. By demonstrating you have regular performance reporting in place, you make a prospective buyer feel confident that the business is working effectively.
Keep The Workplace Tidy
Regardless of the nature of your business, keeping a clean and tidy workplace will always help the sale process. Other than improve productivity and safety, it also makes the buyer feel comfortable that the business is well-run. It is not just a fresh coat of paint, but making sure workplaces a free of clutter, are well organised and operating effectively helps convey the impression of a smooth operation and gives the buyer confidence that they can continue to operate the business.
SPECIAL OFFER – HALF PRICE SaleReady Workshop:
Have you thought about how you will get the sale price your business deserves? Do you rely on the sale of your business to fund your retirement? Have you thought about your exit strategies? Maxell Consulting works with business owners to help them understand what their business is worth and how to get the right sale price.
Until the 15 August, Maxell Consulting is offering Nationwide Networking readers a special half-price offer on our SaleReady workshop. For only $220 inc. GST, Maxell Consulting will conduct a 3-hour assessment of the sale-ready potential of your business and identify opportunities for you to increase the value of your business.
Simply email Mike mikew@maxellconsulting.com.au or call on 0421 069 717 to arrange your sale-ready assessment.
Perform With Confidence - Glenda Linscott
I am an actress, first and foremost. I am now what they call “a mid-career artist”. Working in Australia in any Arts industry is, at best precarious. That I am talented and enjoy the respect of my peers is fabulous. But it is hard maintaining an even keel in such a precarious industry.
I was so chuffed the other day, when I was introduced by the convener of an Executive Training Course down at the Mt Eliza Business College, who said “Glenda is still a working actress, director and tutor after nearly 30 years, and that in itself is a magnificent achievement.” What a review! I was a bit overwhelmed at that moment. Most of my life seems to be head down, bum up, working hard, doing the best that I can do. It was quite something to be unexpectedly acknowledged like that.
I am chuffed that I am still here, raising two children, working at the top of my profession and still able to deal with all the instability and financial insecurity that comes with the sporadic income associated from working as an itinerant, freelance artist. It is an achievement. And a lot of the skills have been learned the hard way.
Once a few years ago, we were shocked to be presented with a bill by the tax man of $2,500. It turned out to be a terrible mistake made by the accountant. But nevertheless, necessity being the mother of invention, in distress I flew to the computer at 4 o’clock one sleepless morning and wrote my first course outline: Drama for Primary School Kids. I approached the principal of my son’s primary school and offered to rent the School Hall for an hour after school, four days a week, and offer Drama classes at $4.00 a lesson for lower, middle and upper primary school kids. The principal - and the kids - leapt at it and I had a very happy year. My 6 year old son joined in every lesson and my 10 month old baby was on the hip, or crawling around the floor with the other kids.
There was a defining moment that year when we demonstrated a drama class for the School Assembly during Education Week. The collective teachers’ jaws dropped. They went “that’s Maths!, that’s English!, that’s Team Work!, that’s Creative Thinking!, that’s Making the Idea More Important than the Group!” This was obvious to me, and would be to any drama teacher in the country. Its absolutely second nature to us, but it was amazing to see it have a revelatory effect on the staff and parents alike.
Then the school funded me to run Drama Classes during school time, and within six months, I was able to pay back the Tax Bill. By that time, I had worked out for myself what the mistake was, confronted the somewhat lackluster accountant, procured a refund from the ATO and fired him. In hindsight, I should send him a bunch of flowers to thank him for the inadvertent kick along he gave me.
It was also during that year that Tony Blair, the then PM of the UK, had written a White Paper (I was never quite sure what a White Paper was!) Obviously, its an important statement of policy, affirming that the skills required to run a healthy and vibrant arts sector were the same skills required run and develop any thriving and successful economy. Creative thinking, the ability to take action, the ability to communicate effectively, are all skills required in any field of endeavour. Furthermore, he firmly stated that a healthy Arts Industry was a reflection of a healthy, humanistic society.
He put his money where his pragmatic and philosophical mouth was, and I remember reading in the paper that he pledged to re- instate funding to the Arts Sector by something like 80%! - a return to the pre Thatcher funding levels. It was such an affirmation for us Downunder, struggling to articulate to our own economic rationalists that artistic pursuits were vital to the fabric of any society. All performing arts: live theatre, music, dance, circus and the static arts: literatures, sculpture, painting, reflect us. They give value and meaning to our lives. But on a more basic level, important skills are developed and disseminated into the community.
My work as a tutor, teacher and performance coach has continued to develop over the years and now I train and direct actors privately, and at the Victorian College of the Arts. I coach more and more in the professional and corporate sector. I provide Theatre Based Learning for anyone in business who wishes to extend themselves, improve a range of interpersonal and performance skills, and their ability to work effectively in a company whether that be as a team member, manager, or executive leader.
It is always a privilege to work with executive leaders and people training to be the leaders of the future. There’s a serious level of willingness and commitment from them. Self improvement is directly tied to the development of the greater good – personal and for the company. They show a high degree of personal courage when they step onto the floor with me and place themselves trustingly in my hands in order to try this experiential way of learning.
The core techniques of an actor such as positive self awareness, relaxation, breath and vocal control, together with a systematic rehearsal technique utilizing an intelligent examination of text will create a performance with maximum impact. It develops in people with a strong ability to: - Communicate with influence
- Engage others
- Experience and work from a secure and confident core
- To centre and ground yourself at will
- To be in your body, confident and free
- Refine and build focus, concentration
- Develop Awareness of self
Inner body
5 senses
Physical body
Spatial awareness - Develop Awareness of others and their perception of you, and you of them
- Develop a confident voice
- Develop use of language, ability to define ideas in the moment, and to discuss with conviction, interest and confidence
- Try accessible, theatre based learning techniques used by actors allow the individual to experience, in new and refreshing contexts, many of the skills that will be valuable in developing and extending leaderships skills, with particular focus on confident performance
Glenda offers a range of courses to suit various needs in the business community. Her flexible course structure allows her to tailor sessions to suit your available time and budget.
For more information about Perform with Confidence contact Glenda on:
EMAIL: glenda.linscott@bigpond.com
MOBILE : 0408 338 195
WHAT’S COMING UP!
With my colleague Manuela Amgwerd, we are about to run
The Confidence Workshops: Toorak and Northcote
Tuesdays, the 7, 14 th and 21 st August at the Toorak Library, Meeting Room 1, 6.00pm for 6.30pm
Thursdays, the 9 th, 16th and 23 rd August at the Northcote Town Hall, Level, Room 2, 6.00pm for 6.30pm
You should allow about 2 hours for these workshops
Workshops 1, 2 & 3 can be taken individually. It is recommended that you take them in order: $95 per workshop
Cost for all three workshops: $250
Places are strictly limited so please call Manuela on 0424 667 206 or Glenda on 0408 338 195 by 28/07/07 to secure this great opportunity
Godzilla vs Google
The Australian Competition and Consumer Commission has decided to take on Google. This should be fun. The ACCC has recently been taking on (and losing) a lot of high profile cases. It has now taken on Google. But first the facts.
An advertiser on Google used keywords of a competitors to show their ads in Google Adwords. This is quite common. But then what they did was to use these keywords as the headline of their ad. I would regard this as unethical. The businesses involved were two car companies, Kloster Ford and Charlestown Toyota. The company using their keyword phrases (the actual business names) was Trading Post, a competing business. What Trading Post did that was unethical, was to have in the headline of their ad, the names of their competitors’ businesses. So that people may have clicked on these ads thinking they were going to Kloster or Charlestown websites, only to be taken to Trading Post. (More here.)
Trading Post settled with these businesses, but it didn’t stop there. The ACCC then decided to go after Google for allowing these ads to appear in the first place, and also for not making sufficiently clear the difference between advertising and organic search links.
As an advertiser on Google, I do have some strong opinions on all these matters.
Firstly, I believe that the Trading Post use of the business names of its competitors in the headlines of its ads was deceptive conduct. This was passing themselves off as their competitor which is not only unethical, it is also illegal. However, I am unsure whether this was deliberate. One of the little known features of Google Adwords is the ability to insert the chosen keywords into the ad headline automatically. So you may have a hundred keywords, and rather than writing out a hundred ads, one for each keyword phrase in a headline, you can do it once. So Trading Post may have identified this as a keyword phrase they wanted, and it automatically was added to the headline. I would regard this as careless, or even negligent, but maybe not deliberate. But, of course this is wide open to debate.
The second issue is the use of others keywords, so your ad appears alongside your competitors. Now, as long as you are not passing yourself off as your competitor, I don’t see this as such an issue. It is like parking a car with your signage on it in front of your competitor’s store in a public parking space. They may not like it, but it is not illegal. As long as the signage says nothing defamatory, this is ok. I may not do it myself, but in the commercial cut and thrust, it is ok.
If you type in well known brands of cars such as BMW, you will see ads for other car businesses. But unless they are trading in BMW’s you won’t actually see the name BMW in the ad. What Trading Post did, was to use their competitor’s name in their headline- a step too far.
Putiing aside the morality of this, I also question the value of this type of advertising. If I type in “Kloster Ford” and I click on a headline saying “Kloster Ford”, it is pretty clear I am looking for their website (as opposed to just Ford Dealers). So if I get diverted to Trading Post, I am probably going to be annoyed. Not a good first impression for your website visitors to have! The marketing value of being on the same page, but without the name “Kloster Ford” in the ad is more debatable. Since in adwords, you only pay if someone clicks on your ad, if you have a compelling call to action, there is little downside. Unless the ACCC decides to get involved!
While the issues with Trading Post are fairly straight forward, the question of taking on Google is less clear. They are being held to account because they allowed this type of advertising in the first place. The only way that Google could stop this kind of advertising is with human screening of the millions of ads on their website. And even then, they would not stop the really determined. We have also seen similar issues with people unethically putting ads in eBay. It is my belief, that there should be an easily accessible complaints process to Google where someone feels they have been hardly done by, with Google sanctions: like ejection from their search engine- for the worst offenders. This is probably the best penalty you can think of. It would be like being barred from the Yellow Pages.
If the ACCC is successful, and I am sure this would be appealed if they were, you would have the situation of a small market trying to dictate to Google. May they then introduce special pricing to Australia, or maybe just decide just to make their search engine unavailable here.
The other ACCC complaint is that there is insufficient differentiation between organic and paid listings. I believe they are clearly marked, and the statistics are that organic listings are three times more likely to be clicked on than the ads. So I think that is a clear sign that most users can differentiate between the two as well.
Another point is that you can optimise your website (or I could anyway) so that you are on the front page in organic search. So is there really any difference in the end? It is all advertising.
This case is being watched worldwide as it has major implication for the search engine industry.
Over to You. What do You Think?
Author: Greg Chapman of Empower Business Solutions
Premier Business Coaching Advice for the micro to small business owner at an Affordable Price- offerring flexible business and marketing education programs and advice with no long term commitments.
Email address: info@empowersolutions.com.au
Web Address: http://www.AustralianBusinessCoachingClub.com.au
Phone: 03 0256 6215
Six Reasons A Buyer Says "NO"
Buying a business is rarely an impulse or “on the spot” decision. It is a process that can make most buyers nervous at the very least, with many seemingly small things derailing the sale process.
The prime cause for a buyer to say “NO” is fear – the uncertainty about getting it wrong. It is not always about price, it can be about key staff, understanding the business or industry trends. The buyer wants to make sure that future performance will be predictable. What makes a buyer nervous is the possibility of unpleasant surprises further down the track. Often the question a buyer asks is not “how much will I pay?” but “what is likely to go wrong?”
So what things can go wrong and what things generate fear in a buyer?
What Makes A Buyer Say “NO”?
Some of the key reasons that make the buyer say ”no thanks” include:
1. Uncertainty in the industry
2. Changes in regulation
3. Uncertainty in future profitability or cash flows
4. Excessive debt within the business
5. Complex operations or business systems
6. High dependence on owners / staff
The first three reasons relate to the fear of not making sufficient earnings in the future, whilst the other three reasons are more concerned with fear of the business not functioning correctly.
Uncertainty in the industry or potential changes in regulation make people nervous about future performance potential. Whilst this can impact the price that is ultimately paid, it is also the fear of markets disappearing. When import tariffs were dropped in the early 80’s, many industries were radically altered because their markets disappeared. Changes in regulations also have a big impact on the confidence of investors to achieve a long term return.
If the company structure is being sold with the business, then all debts and liabilities are then transferred to the new owners. Excessive debt becomes a problem if the new owner is not confident that future earnings will sufficiently cover the loan repayments.
Complexity of the business is always a killer for a buyer – if they can’t understand it they will not feel confident in paying the price you want.
However a frequent reason a potential buyer says “no” to a business is if the performance relies too heavily on owners or staff. Over-reliance on key staff generates fear that the business will not perform as well without them. In this case it is vital to show how the skills and knowledge can be transferred and how stable and secure the workforce is.
Most buyers of a business will have ideas on how to increase sales or reduce costs, but it is uncertainty that will always make a buyer think twice. The seller of the business must have a plan ready to address these issues and make the buyer feel comfortable and confident that performance will improve under their ownership.
SPECIAL OFFER – HALF PRICE SaleReady Workshop:
Have you thought about how you will get the sale price your business deserves? Do you rely on the sale of your business to fund your retirement? Have you thought about your exit strategies? Maxell Consulting works with business owners to help them understand what their business is worth and how to get the right sale price.
Until the 15 August, Maxell Consulting is offering Nationwide Networking readers a special half-price offer on our SaleReady workshop. For only $220 inc. GST, Maxell Consulting will conduct a 3-hour assessment of the sale-ready potential of your business and identify opportunities for you to increase the value of your business.
Simply email Mike mikew@maxellconsulting.com.au or call on 0421 069 717 to arrange your sale-ready assessment.
Web Address: www.maxellconsulting.com.au
Leverage Technology for Business growth
The last decade has witnessed a new trend in how people find and buy products and services. Online buying is increasingly replacing traditional methods as it is quicker and more convenient. Whether it is booking an airline ticket, buying books/music or getting gifts/flowers delivered, the internet is becoming a popular medium.
In the professional services business, Internet has become the way for finding and qualifying available choices. A telecom company that would earlier rely upon push based methods like telemarketing now prefers to receive enquiries online and respond to them. This becomes an effective source for lead generation and sales.
The quality of these customers is significantly better than those acquired through traditional direct marketing methods. They can shop/ enquire at your online store while you are sleeping or holidaying. As the cost of acquisition, is lower the company can make more profits and pass on a part of the benefits to its customers thereby getting a better retention rate.
The question then is (a) how to attract quality customers to our website. (b) how to guide them to find relevant information, post an enquiry or make a purchase.
The answer to the first question lies in running intelligent Internet advertising campaigns like Pay Per Click (PPC) / banner advertising and search engine optimisation (SEO). PPC has the advantage of assured return on investment as by their very nature, the payment is based on the number of clicks obtained on the website which in turn is proportional to the number of enquiries or sales.
These campaigns have a quick return and can be used to boost the sales at any given point in time. SEO is a longer-term approach and it relies on fine-tuning the website content, metatags and linkbuilding to obtain a higher rank on google, yahoo and other relevant search engines and web directories. Successful SEO initiatives take two to four months to show results but once started can give exponential results at a moderate investment.
As Internet penetration is increasing and buying habits of both consumers and businesses are becoming increasingly oriented towards internet, it is imperative for smart marketers to prepare themselves proactively and leverage this trend to their advantage.
Whether you sell flowers or notebook computers, you can increase your competitive advantage by using Internet marketing as a channel. By using strategies like newsletter marketing and online customer loyalty programmes, it is possible to increase your customer retention. The end result is more customers, increased loyalties and more profits.
Jasmine Batra of Arrow Internet Marketing
We are an Online marketing specialist. Our services include SEO, internet marketing, website promotion, Newsletter marketing, Google Adwords. We also conduct Internet marketing Workshops.
Email address: jasmine@searchenginerankings.com.au
Web Address: http://www.searchenginerankings.com.au
Phone: 98637973
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