Zellers ISSUE 0 3 A ug us t 2 00 9

Consulting
Group
Management
focus
Everything is Negotiable...
Build More
Good negotiation skills are vital to small business people PROFIT
because it is something we use every day. Whether it is
asking a vendor for a lower price or getting a potential cus- in you Business!
tomer to sign on the dotted line, negotiations are part of The Zellers Consulting
small business life.
Group provides consult-
Before you begin the negotiation, here are two quick ing and manage me nt
strategy points: services to a growing list
of small business clients.
 Do not take the negotiation too seriously - and do
We offer our clients cus-
not take it personally. It is just a game.
tomized solutions linking
 Next, decide what approach you want to take. business information with
Conventional wisdom is that one should strive for a technology, strategy and
win-win outcome. However, as is often the case execution.
with conventional wisdom, it is not always right.
Simply put, we make
If you have extra advantage, then do not worry
about the win-win — just go for it. If your personal style is very competitive, a win- our clients:
win scenario may leave you feeling that you have left money on the table. Understand
however that tough win-lose negotiations often leave a sour taste in people's mouths -  More Efficient
one that does not go away quickly.
 More Competitive
Once you have decided upon your strategy, what about tactics:  More Profitable
Use questions to obtain undisclosed information: When you walk onto a car lot, the first
thing the car salesman does is ask a series of seemingly ordinary questions such as: What are ...and we
you looking for and how much would you like to spend? Far from being mundane, your answers Guarantee our
to these questions actually help the salesman create his pitch to you. Any of us can use this work!
tactic. Not only does it make you appear interested and cooperative, but also fosters the disclo-
sure of useful information.

Try to avoid making the first offer: While this is “Negotiating 101”, it is still worth remem-
bering. If forced to make the first offer, be outrageous: "Well, if you really want me to tell you
how much I want to pay, I guess $100 a month would be great!"
Do not fall in love: When it becomes clear to the other side that you have to have something
(whether it is a price, issue, or a thing), you have tipped your hand and a skilled negotiator will
use it against you.

Have a “Red Herring”: Having something you do not really care about - and are secretly will-
ing to give up - can create goodwill by making you seem reasonable when you do give it up.

Make unilateral concessions: As an addition to the rule above, a carefully crafted unilateral
concession, even of a red herring, may get you something in return.

Finally, if you still do not have what you want, consider this tactic:
The calculated blowup: Sometimes it can benefit you to have people dislike you a bit or, even
better, to fear you somewhat. After repeated attempts to resolve an outstanding problem, it
may be time for the calculated blow up. Call the company and get mad, really mad! Threaten
to sue and do not back down. Typically, they will not only try to calm you down, but more im-
portantly, they will work to appease you. Later, after you have the desired outcome, you can
apologize.
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 Zellers ISSUE 0 3 A ug us t 2 00 9

Consulting
Group
Management
focus
Everything is Negotiable...(continued)
For future reference: They will not want to deal with you like that again and may be afraid of
Our Expertise
making you angry a second time. Mentioning a previous conflict may just get you what you
want - because they will want to avoid another confrontation. Strategic Planning
Productivity
Improvement
Management by
It Always Helps To Know Where You Want To Go Objective
Sales Team
Have you ever paddled a canoe down a winding river? Management
The best place to be is where the current is moving the fastest.
If you can stay in the center of the current, the moving water Business
does the work. The water carries the canoe and it’s occupants Development
for a pleasant (and completely dry) trip down the river.
Gross Margin
Observing carefully and planning where you want to go make
canoeing a “thinking person’s game. You watch the river and
Improvement
keep steering the canoe in the direction of the current. Process
Re-Engineering
Staying in the flowing current requires teamwork and communication plus a continuous (and
coordinated) set of small course corrections – a paddle stroke on one side, a stroke or two on Leadership Coaching
the other, a paddle dragging in the water, the person in front paddling on one side and the per-
son in back on the other. Small course changes – correctly applied - make it an easy and Company Branding
thoroughly enjoyable ride. Product Marketing
However, if you stop planning, communicating or working together, you lose control of your Management
direction and the canoe is stuck on the riverbank (or upside down) – and the unpleasant heavy Training &
work begins. You expend a great deal of energy righting the canoe or paddling against the cur- Development
rent - just to get back to that pleasant float down the river.
Lead Generation
Think of your business the same way. Lack of planning, uncoordinated activity, waste and
Program Creation
inefficiencies in your business are analogous to tipping the canoe upside down or becoming
stuck on the riverbank. Planning, Inventory
making small changes at the right Management &
time (just like when you are canoeing) Re-Alignment
allow you to avoid drastic changes in
the structure or direction of your busi- Performance-Based
ness later on. If you can make those Compensation Plans
small course corrections and adapt to
changing circumstances - while stay-
ing focused on your primary goals -
business can be a pleasant ride, too.
Coming in
Do you have a plan? Our research future issues:
indicates than less than half of small
businesses have a formal plan. In
these challenging economic times, “Failing to Plan is Planning to Fail.” If you do not have a Where’s the Cash?
plan, get started on creating one. Click here to download a business plan outline. We know
that many business owners are better at “doing” than planning. However, sustaining profitable Fundamentals of
growth requires diligent planning and dedicated foresight. Inventory
Management
If you already have a plan for your business, when did you last review it? Take it out today
and read it. Are the assumptions it contains still valid? Take the time to re-visit your assump-
tions and update the plans you made. Direct Mail Marketing
Basics

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 Zellers ISSUE 0 3 A ug us t 2 00 9

Consulting
Group
Management
focus
It Always Helps To Know Where You Want To Go From the
… (continued) desk of
Ted Zellers
Does your plan include a budget? Again, our research indicates that many small businesses “To truly become a high
do not have a formal budget. A budget will help you control spending and through comparison performing company with
of your actual results with forecast results, will help you identify areas of your business in need greater profitability, you
of change. must plan for it, evaluate
f i n an c i a l p e r f o r m a n ce
Many businesses create their budget once a year and then file it away. At the end of the year,
they take it out and lament the variances between actual and forecast results. Then, they cre- and take action to ad-
ate another budget just like it – and file it away! dress problems as they
arise.
Use your budget as a planning tool to see the way ahead. Generate a financial statement
every month and review it! Compare your actual performance each month against your budget To do this, you must
forecast. If current conditions indicate that your business plan needs revision, your budget have accurate and timely
should also change. financial i n f o r m a t i o n,
which you understand
Key Performance Indicators (KPI) should be established to monitor your company operations and use to measure the
on a continuous basis. Most of the data needed to assemble your Key Performance Indicators
p e rf ormance of y our
(KPI) is already available through you business accounting software. Once the key metrics are
business.”
established and the proper reports selected, management must review the reports and assess
the key indicators frequently in order to recognize and deal with potential problems quickly.

For those of us in the

business of helping other
Staying Alive in Business Last month, we talked about the causes of Business Failures and
businesses survive and
the study results published by the Association of Insolvency and Restructuring Advisors were
prosper, the greatest chal-
very clear – 67% of the time, a busi-
ness failure occurs because manage- lenge may be initiating this
ment fails to deal effectively with inter- discussion with our clients.
nal problems within their control.
At the Zellers Consulting
Knowing when conditions have changed Group, we believe making
– externally (like the slow economy) or clients more efficient and
internally (rising costs or declining mar- competitive is our primary
gin) - is essential. How quickly can you goal.
recognize problems growing in your
business? Swift recognition and fast
We can assist virtually any
implementation of necessary changes
are crucial to keeping a company fo- client with a careful and
cused and secure. Another benefit to objective evaluation of their
early recognition of problems is that direction and performance –
corrective actions taken promptly will and if warranted – provide
often head off other, larger problems. them with the expertise to
implement marketing, sales
and operational improve-
ments that will make their
business more efficient and
more competitive.
www.zellersconsultinggroup.com
Questions or comments? Email us at: tzellers@zellersconsultinggroup.com or call 248-410-6882 Let’s make sure that our
© 2009 Zellers Consulting Group. All rights reserved. businesses (and our cli-
ents) stay strong and
Page 3 of 3 healthy.