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FINANCE
worse, they all sound like that and half the reason is that they’re using
20-year-old sales techniques. Aim to sound different.
Here are some examples: “Hello John my name’s Bill Smith from Business
clothing this is a sales call to introduce what we do with the aim of fixing
Managing year
a half hour meeting.” That works because it’s honest, which people
respond to well.
I know of a double glazing firm who start with “Hello Mr Smith I expect
you’re sick of calls from double glazing companies. To demonstrate that
we’re different and to apologise for the rest of the industry I’d like to
bring you a cheque for £50 that you can use on our products.” It works,
end deadlines
apparently. Testimonials are also helpful.
A basic error is failure to focus on what’s in it for the prospective
customer. At the very least the pitch should talk about how your product
has benefited other businesses in the same sector. That justifies the call. It
also helps to close because nobody likes to think that they are behind
their competitors.
Don’t give everything away in the phone call – it takes away the need to
meet. This is typically a function of sales people being too talkative. They
successfully get through to the person they’re targeting and proceed to
sell the product not the appointment. Moreover, because the product With cash flow becoming a mounting problem
doesn’t lend itself to selling by phone, they fail twice. Also, because
they’re talking not listening, that’s a third failure.
for SMEs, many are dipping into money set
aside for the taxman. Clive Lewis, Head of SME
Issues at the Institute of Chartered Accountants
“
You want four cast-iron benefits
in England & Wales offers advice
to spell out in less than a minute. It’s
low-cost, it’s proven to work in your
business, we’re local experts and it’s
F
inancial statements are vitally important and a key plank in a good
system of planning tax payments. As well as forming the basis of the
tax liability, and for limited companies filing with the registrar of
companies, financial statements will be important to providers of finance
easy for you to do . . .
and for credit reference agencies. It is worth making the extra effort to
”
get the statements right.
Preparation of year end financial statements starts at the date of the year
end. One of the most overlooked areas in financial statements is stock
and work-in-progress. If your company has stock, you should ensure that
The gatekeeper is your friend. Establish rapport with this individual and it is counted on the last day of the financial year and valued at cost. The
you have an ally, because he/she will keep all your competitors away from same applies of any work in progress. You will also need to provide your
that client. A good start is not to think of them as gatekeepers, rather as accountant with details of debtors and creditors.
concierges. When the accountant has prepared the draft financial statements they
Pure cold calling is inefficient. Some initial contact will make your will arrange a meeting to discuss them and to settle any queries. The
telephone sales more effective. I have written here before about the discussions would also focus on what the key ratios (such as gross profit
benefits of a memorable mailer. I repeat the recommendation, because it per centage) indicate about the condition of the business; any unusual
makes the telesales follow-up so much easier and more effective. patterns in the expenses; the business’s future prospects and whether
My personal bugbear is the cold-callers who, through no fault of their there is room for increasing profitability through measures such as cost-
own, have to start their call with “Can I speak to the business owner?” cutting. At this meeting you should ask your accountant to comment upon
My invariable response is “If you know his name, you can, otherwise no.” your accounting records and whether there are any steps you could take
Similarly, cold callers who have no idea how big my business is or what I to improve them. This might result in the accountant reducing their fees
do for a living get short shrift. This approach is hugely wasteful of both for preparation of the financial statements.
time and money but I experience it virtually every day.
Training staff to be more effective at telesales has clear potential but Know your tax liability and plan for payment
there is much to consider: opening the call, questioning and listening At the meeting the accountant should give an indication of the tax
skills, analysing need, selling benefits and structuring dialogue are just a liability arising from the draft financial statements. After the meeting the
few that may demand attention. accountant will finalise the financial statements and write to you with the
A key factor in getting this right is to decide what you define as a precise tax payments arising from them.
successful outcome. You need to put numbers on this, otherwise neither Key payment dates are January 31 and July 31 for the self employed. For
trainer nor trainee knows what their aims are. Sales volume or value are small limited companies, corporation tax is due to be paid nine months
sure to play a part in this but so too could improved customer satisfaction after the end of the accounting year.
leading to better retention and more repeat purchase. It is advisable to set aside a regular amount into a separate bank account
You can also improve profitability by making fewer face-to-face sales calls for the tax liability. Otherwise it is easy for tax payments to catch
and managing smaller value accounts exclusively with telesales. Some businesses out, particularly when business is slack. Many continue taking
customers prefer this approach – it’s less time-consuming and service is the same salary out of a business even when sales have dropped, leaving
often improved. insufficient funds for tax payments. Getting the financial statements early
Telesales training should be considered but the costs can vary. Two days and being told the exact amounts owing and date of payment can focus
on an open course would typically be £750. A bespoke in-house entrepreneurs’ minds.
programme could cost £1,500 to £2,000 for a maximum of 12 trainees. Currently, if a business has difficulty making payments the HM Revenue
There will be additional costs such as creating course materials. Trainers and Custom’s Business Payment Support Service (BPSS) can help. A
cost the exercise differently so confirm what is and is not included in a helpline operates seven days a week (0845 302 1435).
headline price. So, getting accounting information in early means you will have sufficient
time to discuss any issues with your advisers and shareholders and will
Paul Clapham is a marketing consultant with more than 25 years’ enable you to plan tax payments. Good planning will avoid last minute
experience covering a broad range of business sectors and a full spread of panics.
marketing disciplines. He works with small, medium and large companies
alike to increase their profitability through marketing. Tel: 01453 765432. www.icaew.com
www.printwearandpromotion.co.uk August 2009 | 19 |
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