A recent report from payroll firm ADP
notes that in the U.S., 193,000 more people worked at businesses with
1-19 employees in February 2013 than before the recession. I find this
very interesting.
The reasons, the report notes, have less to do with a surge in new
hiring than the fact that fewer small businesses have been affected by
the mass layoffs the nation’s largest organizations have faced. While
America’s “main street” businesses face growing pressure from internet
sales and big box retailers, small and local businesses continue to be a
strong force in the national economy and an increasingly important
source of American jobs.
I had the chance to visit this week with Erik Blomquist,
the VP of business development for LunaWebs, a web development firm that
specializes in the design and creation of sites and applications
for—you guessed it—small to medium firms. Here’s what Erik had to say
about the secrets to selling products and services to the nation’s
hundreds of thousands of “main street” and community businesses:
1. Become Part of Your Community’s “Main Street.” To
sell to small business, you should become a genuine part of small
business. This requires time, effort, and most especially a
commitment to spending time with small business owners on their own
turf. Says Blomquist: “I learned this lesson during my first week in a
new job. I had left a job where I spent significant time traveling
internationally and living the dream.
“When I began my new job, I quickly found myself scheduled to attend a
conference in Colby, Kansas—a far cry from Kuala Lumpur. As I drove to
the conference, I asked myself several times, ‘What am I doing in Colby,
Kansas, attending a conference at a Comfort Inn?’ I did not know I was
about to learn one of the best ways to build a business.”
2. Work Hard. “My father and
grandfather had taught me to work hard. They taught me to cut all the
grass, to pick all the cherries and to finish all of my homework.
Professors and mentors had taught me to work hard on analyzing the
facts, building strategies around solid goals and objectives, and to
continually work until the work is entirely done.
“What I learned that day in Colby, Kansas—and in many subsequent
years—was a lesson that was not taught to me by parents, mentors or
professors. Instead it was learned through a practice that fewer and
fewer people experience, especially today. It is a simple principle, and
one that has ample evidence in the business world of today, just like
yesterday.”
“For example, Standard Oil experienced success because of local
owners and operators who were visited by a Standard Oil business
development person. These individuals went in person to the small towns
and big cities throughout the nation to establish relationships and
convince someone locally to open a gas station. It was a relationship
sale.
“William Randolph Hearst
and Joseph Pulitzer built their newspaper and media industries in a
similar fashion. They established relationships with local newspaper
publishers and editors, invented syndication and eventually created the
largest newspaper and media holding companies of their day. The same
principles apply today. But in an effort to consolidate and cut
expenses, we have often forgotten that what humans and customers crave
is relationships.”
3. Build Relationships. “Small business customers
want someone to care for them. They want someone to talk to. They want
to do business with someone they know and care about and who cares
equally strongly for them. Businesses today have forgotten that having a
salesperson in every state or even several salespeople in each state
can be the key to true success because the company’s ultimate success is
based on caring for their customers.”
4. Care for Your Customers. “Technology has many
uses. I have dedicated my career to technology. When technology saves
money, increases efficiency and helps to accomplish tasks that were
never before possible, it is a great thing.
“When technology keeps a company and the individuals in the company
from engaging with their customers and building the bonds of an
unbreakable relationship, it becomes a detriment. The products may be
quality offerings that the market needs, but every market will have at
least several participants. Without relationships, it may be easy to
lose a customer.
“It is very easy for a customer to leave and move to another vendor
if their only relationship is what I would categorize a ‘light
relationship’ (based on marketing emails, support forums, and limited
communication with the people of the company). However, it is nearly
impossible to break the bonds of a deep relationship between a customer
and vendor. When you know your customers’ birthdays, the names of their
children, their hobbies and you know each customer as an individual, it
is a relationship you are never likely to lose. These principles help to
drive brand loyalty.
“I would never advocate reverting back to the days of the milkman and
the paper delivery boy. I would, however, hypothesize that for every
business there is an appropriate mix of light and
deep relationships, and that every sales and marketing plan should
include the right mix. In other words, when building a company and a
sales plan, you must first know the type of relationships you want to
have with your customers, and determine the ways you can and should take
the working relationship to them (a la pharmaceutical companies), or
whether the relationships will come to your company.”
5. Be Proactive and Personal. “The deepest
relationships are proactive and personal. These are the relationships
that hold the most value, and, by extension, will bring the most revenue
to your growing business, as well.”
Erik’s secrets for selling to “main street” are a fundamental secret
for my own company’s increasing success. Of every award, Fishbowl’s most
prized acknowledgement is the one that came from our local community:
Utah’s Best of State award for enterprise software (which we have now
received for two years in a row). Our community has some of our most
avid customers, and our partner relationships (which I would
characterize as strong and genuine friendships) with our customers run
deep. This, indeed, is the secret of selling to small business. Are you
up to the task? I welcome your thoughts.
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