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Upstate, statewide consumer sentiment rises in Q2
Consumer sentiment in upstate New York was measured at 90.7 in the second quarter of 2018, up 6.8 points from the last reading of 83.9 in the first quarter of 2018. That’s according to the latest quarterly survey of upstate and statewide consumer sentiment that the Siena Research Institute (SRI) released July 11. Upstate’s overall sentiment […]
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Consumer sentiment in upstate New York was measured at 90.7 in the second quarter of 2018, up 6.8 points from the last reading of 83.9 in the first quarter of 2018.
That’s according to the latest quarterly survey of upstate and statewide consumer sentiment that the Siena Research Institute (SRI) released July 11.
Upstate’s overall sentiment of 90.7 was 1.5 points above the statewide consumer-sentiment level of 89.2, which rose 2.1 points from the first quarter.
The statewide figure was 9 points lower than the second-quarter figure of 98.2 for the entire nation, which was down 3.2 points from the first-quarter reading, as measured by the University of Michigan’s consumer-sentiment index.
Consumer sentiment across New York state is well above the optimism/pessimism breakeven point for the 15th consecutive quarter, Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director, said in the survey report.
“Upstate the overall index jumped nearly 7 points driven by greater confidence in the future of business and economic conditions. Despite, or perhaps because of a volatile stock market, fears of tariffs and a wholesale trade war, consumer sentiment rose dramatically among Republicans — up 14 points — while Democrats, although up a point, trail Republicans by 18 points,” said Lonnstrom.
In the second quarter of 2018, buying plans were up 0.7 percentage points since the first-quarter measurement to 14.3 percent for cars and trucks; up 2.1 to 40.3 percent for consumer electronics; up 0.3 percent to 27.7 percent for furniture; and up 0.3 percent to 7.4 percent for homes.
Buying plans fell 0.8 percent to 21.6 percent for major home improvements, according to the SRI data.
“Buying plans for major consumer items — cars, homes, furniture and electronics were all up this quarter and remain high signaling continued consumer driven activity throughout the economy,” Lonnstrom said.
Gas and food prices
In SRI’s quarterly analysis of gas and food prices, 48 percent of upstate New York respondents said the price of gas was having a serious impact on their monthly budgets, up from 34 percent in the first quarter and 36 percent in the fourth quarter of last year.
In addition, 40 percent of statewide respondents said the price of gas was having a serious impact on their monthly spending plans, up from 29 percent in the first quarter and 34 percent in the fourth quarter.
“New Yorkers notice and feel the price at the pump immediately. Concern over gasoline prices hit 40 percent for the first time since June of 2015 when prices last flirted with three dollars a gallon,” Lonnstrom said.
When asked about food prices, 51 percent of upstate respondents indicated the price of groceries was having a serious impact on their finances, down from 55 percent in the first quarter and from 53 percent in the fourth quarter.
At the same time, 55 percent of statewide respondents said the price of food was having a serious impact on their monthly finances, equal to the responding percentage in the first quarter and down from 58 percent in the fourth quarter.
SRI conducted its survey of consumer sentiment between June 12 and June 27 by telephone calls conducted in English to 807 New York residents. It has an overall margin of error of plus or minus 4.3 percentage points, according to SRI.

Menter, Rudin & Trivelpiece to combine with Barclay Damon
SYRACUSE — Barclay Damon LLP on July 17 announced that the lawyers and staff of Menter, Rudin & Trivelpiece, P.C. are joining the firm, effective Aug. 1. The Menter firm’s 31 employees, including 14 attorneys, will become part of Barclay Damon, the firm tells CNYBJ. Nine of its 14 lawyers are joining Barclay Damon as
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SYRACUSE — Barclay Damon LLP on July 17 announced that the lawyers and staff of Menter, Rudin & Trivelpiece, P.C. are joining the firm, effective Aug. 1.
The Menter firm’s 31 employees, including 14 attorneys, will become part of Barclay Damon, the firm tells CNYBJ. Nine of its 14 lawyers are joining Barclay Damon as partners. The law firms didn’t disclose any financial terms of the combination agreement.
The Syracuse–based Menter firm is “widely known” for its work in commercial-bankruptcy cases, Barclay Damon says.
The combination will increase Barclay Damon’s employee count to 471, the firm says. With an employee count that includes nearly 300 lawyers, Barclay Damon describes itself as a “leading regional firm.”
In the “coming months,” the attorneys and staff of Menter will move to Barclay Damon Tower in downtown Syracuse, and the firm will shift “a number” of administrative groups and functions to Menter’s former office space in Franklin Square, according to Barclay Damon.
Menter, Rudin & Trivelpiece, a 65-year-old firm, currently operates its Syracuse office at 308 Maltbie St. It also has a small North Country office at 120 Washington St. in Watertown. That location will also operate under the Barclay Damon name, the firm tells CNYBJ.
Why they’re combining
Barclay Damon says it believes Menter’s experience in bankruptcy law “in particular” and the firm’s “proven ability to marshal the talents of other professionals in support of complex commercial-bankruptcy scenarios” will have “significant, long-term value for the firm’s growing” client base and areas of industry focus.
Those areas include the “ever-changing” energy and health-care industries, along with the retail and shopping-center developer space. Also known for providing “sophisticated” transactional and litigation advice, the Menter firm’s attorneys bring “decades of experience” in business litigation, commercial lending, real property tax, construction, and employment law, Barclay Damon contends.
Jeffrey Dove, president and CEO of the Menter firm, will help lead Barclay Damon’s “substantially expanded” restructuring, bankruptcy & creditors’-rights practice area as a new co-chair of that practice area.
The combination of Menter, Rudin & Trivelpiece with Barclay Damon is “exciting news, adding depth and experience to the services offered to clients of both firms,” John Langan, managing partner at Barclay Damon, said in a statement. “With Menter’s proven track record and dominant position in the area of bankruptcy, insolvency, and distressed asset counseling, we see this expansion as adding real value to the legal services we offer,” he said.
Barclay Damon was formed in 2015 with the combination of Syracuse–based Hiscock & Barclay and the Buffalo–based Damon Morey. Barclay Damon currently has 12 offices throughout New York state and in Boston, Newark, Toronto, and Washington D.C.

M&T Bank rolls out new services for small businesses
M&T Bank (NYSE: MTB), which banks number one in deposit market share in the 16-county Central New York area, on June 19 announced a series of new and upcoming services for its small-business customers. They include a new online business-loan application, new business credit cards, and a new business cash-management platform. Online-lending platform M&T Bank
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M&T Bank (NYSE: MTB), which banks number one in deposit market share in the 16-county Central New York area, on June 19 announced a series of new and upcoming services for its small-business customers. They include a new online business-loan application, new business credit cards, and a new business cash-management platform.
Online-lending platform
M&T Bank plans to start offering online business loans “in early September,” Julia Berchou, assistant VP for corporate communications, tells CNYBJ.
The new service will enable current business clients to apply for loans and lines of credit up to $100,000 through a “simple” online application. In most cases, the bank will notify customers of approval decisions the same business day, and M&T promises to fund the loans within three business days.
“With this new online-lending technology, we have simplified the process of applying for smaller credit requests, enabling more businesses to access the credit they need online, with swift decision making,” Eric Feldstein, senior VP and head of business banking at M&T Bank, said in a release.
The new lending platform will offer an all-digital format, but customers will still be able to work with a branch manager or relationship manager to guide them through the process for obtaining a business loan.
Business credit cards
Buffalo–based M&T Bank has also launched a new credit-card program for businesses that provides customers with “flexible” access to funds and the opportunity to earn points from purchases, as well as “enhanced conveniences.”
The company previously provided credit cards to businesses through a third-party, M&T said.
The new suite of cards includes the M&T business rewards credit card and M&T business credit card, which are both available with a 0 percent annual percentage rate on purchases and balance transfers for 12 months. The M&T business rewards credit card offers 1.5 percent cash back on all purchases with no annual fee, according to the release. Neither card assesses foreign-transaction fees, M&T added.
The cards will now be available at M&T Bank’s more than 750 branches, as well as through a relationship manager, and can be integrated with the M&T’s online-banking platform, known as “online banking for business.” They also include “design your card” features; online and mobile-account access; fraud protection; and the ability to pay using Apple Pay, Google Pay, and Samsung Pay.
M&T BizPay
M&T Bank also announced the rollout of M&T BizPay, a new automated clearing house (ACH), and wire-transfer service integrated with M&T online banking for business.
The new service creates a “more convenient and simpler” channel for business clients to quickly pay vendors and perform payroll services, “in many cases the same business day,” the bank contends.
“Today’s business owners are busier than ever, and any opportunity to make the process around money transfer or cash-flow management more convenient is incredibly important,” said Feldstein.
M&T Bank has 67 branch offices and a nearly 19.4 percent share of all market deposits in the 16-county Central New York region, according to the latest FDIC statistics, as of June 30, 2017. ν
New NFIB state director hears similar concerns as in last job
Former Unshackle Upstate leader tackles related issues ROCHESTER — Two weeks into his new job, NFIB New York State Director Greg Biryla says he is hearing many of the same concerns that he heard when he was executive director of Unshackle Upstate. “It’s tax-burden issues, regulatory issues,” he says in a July 13 phone interview
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Former Unshackle Upstate leader tackles related issues
ROCHESTER — Two weeks into his new job, NFIB New York State Director Greg Biryla says he is hearing many of the same concerns that he heard when he was executive director of Unshackle Upstate.
“It’s tax-burden issues, regulatory issues,” he says in a July 13 phone interview with CNYBJ. “New York State is becoming — day by day — a regulatory nightmare.”
Biryla points to state Department of Labor rules that affect thousands of small businesses but never have to be approved by the state Legislature. “It’s happening by Department of Labor fiat,” he contends.
Biryla started his post on June 26 and is working to find a deputy state director. The two of them will be NFIB’s representatives in Albany. Membership, communications, and other matters are handled by staff who may work in New York state, or in nearby states.
While Biryla’s boss is in Washington, D.C., he also meets with an advisory committee of New York business people. “It’s very geographically and industrially diverse,” he says.
On the day of the interview, he met with an advisory committee member in Rochester.
The Flower City has been Biryla’s home, but he is planning to move to the Albany area, where his work will find him frequently at the Statehouse. He also expects to travel extensively, meeting members from Long Island to northern New York and the state’s western reaches.
The average NFIB member has five to seven employees, he explains, and generates annual revenue of less than $600,000. Membership is proportional around the state Biryla says, with members more common in areas where the population is densest. In all, New York has more than 10,000 NFIB members.
Biryla says he doesn’t expect to meet every one of those members right away, but does plan to continue to travel, hearing what concerns members.
NFIB will also pay attention and score government officials on their votes and actions, he says. “NFIB has an endorsement process,” he says. “We will select five to 15 pieces of legislation in both houses and we will score their votes.”
Biryla says he is not yet sure if the NFIB would make an endorsement in this year’s race for governor.
Diversifying Outside of Your Small Business
Small-business owners are especially vulnerable to a dangerous investment practice: under-diversification. For many, their business represents the lion’s share of their net worth. With fortunes riding largely on the success or failure of a single business in a single industry, business owners are exposed to heightened levels of investment risk. Recognizing that risk and understanding
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Small-business owners are especially vulnerable to a dangerous investment practice: under-diversification.
For many, their business represents the lion’s share of their net worth. With fortunes riding largely on the success or failure of a single business in a single industry, business owners are exposed to heightened levels of investment risk. Recognizing that risk and understanding a business’s place in an overall portfolio is the first step toward building a more stable investment outlook.
Taking money out of the business is one way to fund other investment objectives; however, determining the best means of accessing cash requires serious consideration of a number of factors, beginning with the type of business entity it is. For example, a sole proprietorship, partnership, limited liability company (LLC), or corporation all may carry different tax implications.
Business owners also need to assess their short-term and long-term priorities for the extracted assets. If, for instance, your goal is to create a steady income stream, your approach will be very different than if your goal is to fund your retirement.
Liquidity options
Here are some simple, tax-efficient methods to help business owners turn part of their stake in a business into a liquid asset.
• Compensation — Putting yourself on the payroll provides you with a steady stream of income without incurring double taxation — corporate and personal — provided the IRS finds your salary reasonable in relation to the services you render.
• Loan repayment — If you have loaned money to the business, set up a schedule for repayment. To avoid tax problems, the debt must be properly documented and contain terms that affirm that the sum is truly debt, not equity.
• Borrow — You may withdraw cash from the business in the form of a loan. Again, be sure that the transaction is properly documented and includes a repayment schedule. In addition, the loan must bear interest at a rate not less than the current applicable federal rate. Otherwise, the interest income may be treated as a dividend or as compensation.
Worker benefits
Life insurance, disability insurance, certain medical benefits, dependent care, etc., can be viewed as cash equivalents that are deductible to the business and not taxable to you. Consider setting up a salary reduction or cafeteria plan that would allow you and your employees to take a portion of compensation as nontaxable benefits rather than as taxable income. Similarly, consider establishing a qualified retirement plan. Retirement plans can be effective vehicles for building morale and for helping owners diversify their assets in a tax-advantaged manner.
When considering a retirement plan for small-business owners, important factors to consider are:
• Size of the business including number of employees
• Contributions for the owner and contributions for employees with regard to amount, flexibility, and source of the contributions
• Costs to set up and operate the plan
• Administration requirements of the plan regarding compliance, reporting, tax filings, etc.
• Available investment-allocation options within the plan
Approaching an employee-benefit plan as a liquidity option can be risky. Business owners who feel pressured to create liquidity without proper planning can sometimes set up a benefit plan that creates additional financial liability. Common pitfalls can include:
• Not engaging a qualified retirement advisor in the process
• Selecting a plan that does not address all of the needs of the business owner
• Picking a plan that is costly and/or administratively burdensome
• Selecting a plan that does not engage/assist in retaining/educating employees
Failing to take these considerations into account in the planning phase can create a logistical headache that overshadows the benefits it offers.
Having access to a team of professional, knowledgeable, and experienced financial advisors is crucial for assisting in the administration and management of the selected plan; this team will provide ongoing advice and guidance in an ever-changing landscape.
Outright liquidation
If you decide to sell the business outright, you will face much planning and decision-making. Do you want to sell the business to an interested third party or keep it in the family? What are the financial and tax consequences of transacting the deal in cash versus stock? What type of transaction are you hoping to negotiate? An installment sale? A private annuity sale? A transfer of assets via a family limited partnership (FLP)?
Regardless of the approach, your best — and first — strategy should be to partner with the appropriate planning professionals who can evaluate the business from a cash flow and net-worth standpoint on a regular basis. This guidance may be the most critical determinant of when is the best time to take cash out of the business.
Michael Zoanetti, CFP, is a VP and senior wealth advisor at Tompkins Financial Advisors. Contact him at mzoanetti@tompkinsfinancial.com or (315) 263-8023.
Author’s note: A portion of this material was prepared by Wealth Management Systems, Inc. This information is for educational purposes only and is not intended to be a substitute for individualized tax or legal advice.
Watertown, Cortland to use DRI funding for small-biz projects
Both Watertown and Cortland plan to use a portion of their respective $10 million funding awards in the state’s Downtown Revitalization Initiative (DRI) on projects to help small businesses. The projects involve both funding and spaces for operations. The office of Gov. Andrew Cuomo announced the projects for Watertown on July 11 and the initiatives for
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Both Watertown and Cortland plan to use a portion of their respective $10 million funding awards in the state’s Downtown Revitalization Initiative (DRI) on projects to help small businesses.
The projects involve both funding and spaces for operations.
The office of Gov. Andrew Cuomo announced the projects for Watertown on July 11 and the initiatives for Cortland the following day.
Both Watertown and Cortland developed an investment plan for their respective downtowns with $300,000 in planning funds from the $10 million DRI grant.
Watertown
Watertown plans to use $825,000 to renovate the Lincoln Building to create a centrally located co-working space.
The project seeks to attract entrepreneurs and artists by providing collaborative co-working space, dedicated desks, private furnished offices, and a conference room, studio, and kitchenette, Cuomo’s office contends. Renovations will also include a new event space on the fifth floor, and a new elevator and stair tower to improve access to all floors.
It will also use $600,000 to create a fund to provide matching grants to property owners for downtown façade improvements and to support small businesses. The program aims to “enhance the downtown and help attract” small-business owners to Public Square.
The projects are among 14 that Watertown is targeting with its $10 million DRI funding award. The state named Watertown a DRI round-two winner last October.
Cortland
Cortland plans to use $484,000 to complete the conversion of a vacant building into the Cortland Business Innovation Center, which will serve as downtown’s hub for commerce and culture and a resource for aspiring entrepreneurs.
The Innovation Center will provide retail incubation for four businesses on the first floor, eight co-working and startup offices on the second floor, and space for one entrepreneur in residence on the third floor.
The funding will help pay for completion of interior build-out of the first and second floors, as well as façade improvements.
Cortland will also use $600,000 to create a revolving loan and grant fund that will assist property owners to renovate and upgrade commercial and residential buildings in the downtown. Improvements may include sign and façade improvements, upper story housing restoration, and commercial space renovation, with an emphasis on projects that reduce the city’s environmental footprint.
The fund may also assist new businesses with startup costs such as marketing and fit-out of commercial space.
The projects are among 10 that Cortland is targeting with its $10 million in DRI funding. The state named Cortland a DRI round-two winner last October. Cortland developed a strategic investment plan to revitalize its downtown with $300,000 in planning funds from the $10 million DRI grant.
What to know about using technology for your company’s benefits administration
Human resources has slowly moved away from being a paper driven industry to an automated, system-driven one. Not all organizations know how to tell if a “system” is right for them, though. In some companies, the current way of doing things is steeped in tradition and the thought of abandoning the familiar is daunting. Factor
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Human resources has slowly moved away from being a paper driven industry to an automated, system-driven one. Not all organizations know how to tell if a “system” is right for them, though. In some companies, the current way of doing things is steeped in tradition and the thought of abandoning the familiar is daunting. Factor in the potential cost of an automated solution, and many businesses simply choose not to go down that road.
Benefit-administration systems will differ, but they generally provide a number of features or “modules” including:
– Employee onboarding
All the paperwork that employees are required to review and sign when hired (payroll forms, policies, company information)
– Automated employee benefits enrollment
Employees can enroll in or change their benefit elections upon hire, during open enrollment, or when they have life event changes (marriage, birth/adoption of a child, etc.).
– Enrollment feeds to benefit carriers
Send enrollment files directly to benefit carriers.
– Document storage and compliance
Build a library of company and other required documents that employees can access at any time.
– Data tracking and reporting
Track when employees complete steps in the system and run reports of information per employee or per benefit.
Implementing any of these features can make a bottom-line difference for your business. You’ll save time by automating previously labor-intensive processes. You’ll save paper and file space by storing documents electronically.
You’ll also increase the frequency and quality of communications you have with your employees, by auto-generating email messages they need and want. Enrollment-period notices, reminders for necessary benefit-related tasks and periodic updates can all be set up in advance. Benefits-administration systems can be set up to give employees’ access to their employment and benefit information as well, including their job titles, beneficiaries, withholding allowances, pay rates, and more.
Your payroll provider may already have a benefits-administration module that will feed information from your company’s payroll and require minimal setup. Standalone benefit-administration systems are also available for purchase, some with the ability to integrate with certain payroll systems. You can often customize which modules you’d like to purchase for your company, giving you more power over your buying process. I certainly recommend partnering with an expert to help you choose which systems are right for you — since the options are so customizable, you’ll want to be sure you’re getting what your company needs.
Jackie Penfield, SPHR, is a human resources & employee benefits consultant for OneGroup Benefits Consulting Group. She holds a bachelor’s degree in business administration and human resources from SUNY Oswego.
Entrepreneurs Need to Take Time to Recharge
The best days that Central New York Has to offer us weather-wise are Upon us. Now is the time to get out, soak up the sun, and step away from the daily grind. No matter what stage of entrepreneurship you are in, it is far too easy to get sucked into wearing many different hats,
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The best days that Central New York Has to offer us weather-wise are Upon us. Now is the time to get out, soak up the sun, and step away from the daily grind.
No matter what stage of entrepreneurship you are in, it is far too easy to get sucked into wearing many different hats, working too many hours each day, and never allowing yourself time to recharge. After all, isn’t this the reason you chose to become an entrepreneur? —to make your own schedule, allow inspiration and creativity, and spend more time with your families and friends. These are the most common reasons I hear from startup entrepreneurs on why they want to launch their own business. But too many times, I hear that within months, they have already reached burnout due to trying to manage it all themselves with little to no financial or labor resources.
“Entrepreneurs are often celebrated for wearing multiple hats and logging numerous hours. But working without letup is a bad habit that can jeopardize business, health, and the life you’re supposedly working toward. That’s counterintuitive in a culture programmed to believe that it takes near-nonstop work to get the sale, beat the competitor, or do whatever is needed to succeed. For most entrepreneurs, rest is considered the province of lesser mortals, put off for a future that never arrives,” contributing writer Joe Robinson explains in an article for Entrepreneur. To learn more on this topic you can view the full article at www.entrepreneur.com/article/237446.
To avoid this burnout, here are five suggestions on how to plan for the chaos of starting and growing a business.
1) Create a work model that fits your business vision and personal needs. Creating a business plan is a way to develop the strategies you will need to be successful. In this plan, create a business model that will allow you to live the life you desire. Truly think about what is your most important reason for becoming an entrepreneur. If it is to have more time with your family, then be sure you develop a strategy to make that happen. For example, this could mean having certain business hours, working from home, or hiring employees to cover times when you can’t be available.
2) Build your team. Who are the key players you will need to get your business off the ground and support you as you grow? This could include your BAIL team (banker, accountant, insurance agent, and lawyer) but also could include others such as IT support, social media, marketing, public relations, human resources, bookkeepers, and yes, employees. Nobody can effectively manage all of these areas alone, so admit you need help and ask for it sooner than later.
3) Make sure you are paying yourself appropriately. Before you get started in your business endeavor, have a clear understanding of what you need to make to live modestly yet comfortably while you are growing your business. Whatever this amount may be, it needs to be incorporated, just like any other bill, into your monthly cash-flow projections. Financial stress can take a severe toll on you, either personally or in your business. Planning ahead for this can reduce unnecessary stress and create a solid foundation moving forward.
4) Understand your financial cash flow. This is one of the most important aspects of a successful startup. Not having sufficient cash flow causes severe stress and is one of the first reasons why small businesses fail. Take time before you invest all that you have to thoroughly examine your cash-flow projections with a professional. This will give you some peace of mind that your concept will be feasible and viable moving forward as you grow.
5) Take time to evaluate and recharge. When you do take that precious time off, make sure that it counts. Only focus on things that will truly refuel your brain and body. Concentrate on what is working and make plans to change what is not. After all, you are your own boss, so you have the freedom and ability to make changes when needed.
Dan Sullivan, co-founder of Toronto–based Strategic Coach and co-author of “The Laws of Lifetime Growth,” has built a multimillion-dollar coaching business in part by advising entrepreneurs to do the last thing in the world they would ever think to do: take time off. His anthem is that productivity and performance start with free time, which he argues is the fuel for the energy, creativity, and focus that lead to success.
“It’s not the amount of time you spend working each day. Entrepreneurs get paid through problem-solving and creativity. You can create a solution in a shorter period of time if you are rested and rejuvenated,” Sullivan says.
So take some time today to plan a much-needed mental retreat and evaluate your next moves upon your return. Tell us your best rejuvenation tricks as an entrepreneur at https://www.facebook.com/onondagabizwiz/.
Keyona Kelly is a certified business advisor at the Small Business Development Center located at Onondaga Community College. Contact her at k.r.kelly@sunyocc.edu.
Getting the fish on the line: How to Get Prospects to Find You
The prospecting problem “I’m looking to further my prospecting techniques,” the salesperson wrote in his email. “It seems I need to increase my ratios by the end of the quarter.” The story isn’t new. Twenty years ago, salespeople were expected to get in front of prospects. Today, those doors are sealed shut. Voicemail and email
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The prospecting problem
“I’m looking to further my prospecting techniques,” the salesperson wrote in his email. “It seems I need to increase my ratios by the end of the quarter.” The story isn’t new.
Twenty years ago, salespeople were expected to get in front of prospects. Today, those doors are sealed shut. Voicemail and email messages are ignored. If all that isn’t enough, few customers are willing to stick their necks out to make referrals.
All of which makes prospecting frustrating and, unfortunately, bordering on useless. No wonder salespeople across the board plead for leads and, hoping to get lucky, keep their fingers crossed.
If you’re looking for an easy, quick way to find prospects, forget it. No matter what anyone may say, it doesn’t exist. Nevertheless, hope springs eternal, which is why there are 17.3 million hits in 0.25 seconds when you Google “prospecting in sales.”
Here’s the problem: how is a salesperson to go about finding prospects who are not only interested in buying, but who are also willing to do business with someone they don’t know, let alone trust?
Getting negligible results from searching for prospects takes a lot of effort — wasted effort. Salespeople are often told, “It takes 10 calls to get one appointment.” They are also told that out of 10 appointments they can expect to make one sale. That means it will take 1,000 calls and 100 appointments to make 10 sales. Whether you do a little better or worse, the message is clear: finding prospects who are interested and ready to buy is so inefficient it doesn’t work.
The prospecting possibility
It should come as no surprise why there’s so much resistance to getting out and finding new customers. Even if we know who and where the prospects are, the obstacles to access thwart our efforts.
It’s time to step back and take a careful look at how selling and prospecting differ. When you think about it, they require two different types of skills. Prospecting is all about getting the fish on the line, and selling involves getting the fish in the boat.
In other words, successful prospecting depends on getting customers to find you. Specifically, those who want to do business with you. If you’re thinking this takes work, you’re right. It does. But if you’re investing time and energy and not getting the results you want, that’s a lot of work, too. Besides, if prospects don’t know you and trust you, it’s easy for them to ignore you or say no.
So, why keep on doing what doesn’t work? Why not take a different approach, one that’s consistent with how prospects think and what they expect from today’s sales professionals?
The task is helping prospects find you, getting them to recognize that it’s in their best interest to seek you out and learn more so they can make informed decisions. This is how savvy restaurants, businesses, insurance advisors, and real-estate agents, for example, attract the customers they want. They use carefully crafted messaging, ratings and recommendations, testimonials and blog posts on social media, advertising, promotional campaigns, and, of course, word-of-mouth to attract prospects.
Instead of trying to get through a prospect’s door, the job of salespeople is shaping the way prospects think about them. No matter what you’re selling, it’s all about pulling prospects into your orbit so they’re “sold” even before meeting you.
Here are the four basic principles that attract prospects and bring prospects closer to you.
1. Never stop building your prospect and customer cultivation database and keep it up to date. Why is this so important? It’s your pot of gold at the end of the rainbow, so never neglect it. Without this database, picture yourself in a darkened room with no windows or doors.
2. Develop a prospect mindset. Here’s why: less than 24 percent of prospects open sales emails, according to TOPCO Associates. So, if you want to engage them, it’s essential to let them know you understand their issues. They don’t care about what you sell; frankly, they tune it out. Always stay focused on what prospects want or need.
3. Share your competence. To do this, salespeople must answer one critical question that’s on every prospect’s mind: “Why should I believe you?” or to put it another way, “Why should I give you my money?” Selling is all about sharing what you know. To become customers, prospects must believe that your knowledge and experience will benefit them.
4. Cultivate prospects constantly. No salesperson is wise enough to know when a prospect is ready to buy. If you’re not top-of-mind, the chances are a competitor will get the sale. Prospects need reminding why they should do business with you. By staying in touch regularly with helpful information (not sales pitches) by email and social media, blog posts, and presentations, you’re there when they have questions and are ready to buy.
Staying in contact sends the message that you care enough to stay in touch. When they’re ready, the chances are they will pay you back by becoming customers.
John Graham of GrahamComm is a marketing and sales strategist-consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com, or visit: johnrgraham.com
Imagine you and your partner invite new neighbors to dinner. The woman, most beautiful, charms you. The man, however, is something different. “You should lose some weight,” he says to one of you. “I think your house needs a new coat of paint,” he snarks to your partner. “The whole neighborhood notices.” During dinner, he
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Imagine you and your partner invite new neighbors to dinner. The woman, most beautiful, charms you. The man, however, is something different.
“You should lose some weight,” he says to one of you. “I think your house needs a new coat of paint,” he snarks to your partner. “The whole neighborhood notices.”
During dinner, he insists your wallpaper clashes with your carpet. “You should change one or the other.” As they are leaving, he asks, “When in hell are you going to fix the potholes in your driveway?”
Once inside again, you scream “What a monster, what a rude guy! He criticizes everything.”
But your partner says, “You are right. He is offensive. But, he is right too. I should lose a few pounds. And we both know the house needs painting. And you have said yourself that we need to change the carpet. And we certainly are the king and queen of potholes.”
“Maybe he is right,” you admit. “But does he have to be so damned rude about it?”
To millions of people in a growing number of countries, this is President Donald Trump. To many, he is delivering the truth. But to them and others his delivery is by left hook. He has no more delicacy or finesse than the former boxer Mike Tyson.
Trump tells NATO nations they are “delinquent” in their payments for defense. He is absolutely right. They have been leaches on America’s generosity. But surely there are polite ways of saying this?
He proclaims that Russia has the Germans by the short hairs. Because the Germans have made themselves totally dependent upon Russian natural gas. He is 100 percent correct. If Russia turns off the spigot in January, Germany collapses.
Trump wonders why the U.S. should keep shelling out for the defense of Europe when European nations won’t pay up to defend themselves, shut out American products and business, and run a $150 billion trade surplus with us.
Trump asks if NATO is obsolete. It may well be. He says the Poles spend to defend themselves. But all-powerful Germany barely has an army. And the U.S. maintains more than 20 military bases there. “Is this fair?” he asks, rudely.
These are all good questions. Questions we should have asked years ago. But Trump is so merciless when he raises them. Undiplomatic, crude, and nasty.
This offends the New York Times. It runs an editorial that claims “Trump does not believe in allies.” But this begs the questions: Don’t true allies share the burden? Don’t allies support instead of leach?
Trump’s bluster offends former Secretary of State John Kerry. He was one of the long line of U.S. diplomats who tried gentle diplomacy to get the Europeans to pony up. And failed.
Anyway, he decried Trump’s remarks. What’s interesting is that he refers to our reputation. He praises former President Barack Obama’s “constructive and congenial way.” He says Obama secured “pledges” from Europeans. He did not undermine “the cohesion of the alliance in the process.” He suggests various thorny discussions should be behind closed doors and involve lots of diplomacy.
He may be right. But Trump and his supporters do have a few embarrassing questions, such as: Why didn’t the diplomacy work? Was it merely talk, talk, talk? We have tried it for many years, but the Europeans continued to leach.
And the cohesion of the alliance? Let us face the truth. Without the U.S. there is no cohesion. None. Find a diplomatic term for zip.
So, will Trump’s insults jolt the allies into action? Will the house get painted and the potholes filled?
People have debated for years about which tactics work better in international affairs. We are in the process of finding out. This president has no time for diplomacy. Don’t invite him for dinner. Although I hear his wife is sweet.
From Tom…as in Morgan.
Tom Morgan writes about political, financial, and other subjects from his home in upstate New York. You can write to Tom at tomasinmorgan@yahoo.com. Read more of his writing at tomasinmorgan.com
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