“Why do you take the bus? Couldn’t you at least take an auto (3-wheeler cab)?”
My father never stopped asking his friend, a Gujarati Jain gentleman, this question each time he visited. Even the times he did come to our doorstep in an auto, my father whispered to me conspiratorially, “He probably took the bus to Adyar and took the auto for the last kilometer.“
The said gentleman, had like my dad, landed in Chennai as a teen with less than Rs. 10 in his pocket. He’d then gone on to amass a considerable fortune in the plastics business. Yet, he maintained a disarmingly simple, nearly spartan, lifestyle. While my father pulled his friend’s leg about his frugality, his own actions were not all that different.
As kids we were always embarrassed, when my father would order idli–sambar – steamed rice cakes with spicy lentil – at even the fanciest of restaurants. Likewise we were flummoxed that he’d check in at the 5-Star Taj hotel with his boss, but choose to spend the night at his sister’s duplex in Karol Bagh. It took us more than twenty years to try and get him to wear anything other than the white shirt and pant that he wore every day to work – even then we only managed to get him try solid pastel color shirts!
My dad lived and breathed his belief to keeping his needs simple. Without my realizing it he’d trained me from day one to be an entrepreneur. Not that I was a good student. In my first foray at being an entrepreneur, I blew nearly $250 (yep, dollars) on business cards. Let’s just say I was a slow learner. But luckily I returned to my roots – when we bootstrapped our first startup. We didn’t buy a computer, we didn’t hire a coder – we began pitching customers. We kept it simple – emails and presentations. We operated out of my co-founder’s apartment and held day jobs while we tried to land our first paying customer.
The lesson I learned was not just frugality but to keep every element of life (and business) simple.
Keep your
business simple, so others understand it. Stay focused
offerings simple, so customers just get it
pricing simple so buying what you sell is easy
cash tracking simple – know where it goes, what you need and have
organization simple – so your team is clear about their roles & what’s expected of them
life simple – early to bed, early to rise, love, affection & exercise
“It’s like we’ve done absolutely nothing these last five years. Everything we’re doing is wrong.” My friend was really upset. His company had just brought on board a new VP of Business Development and looked like the man was not exactly winning minds and hearts.
“Worse yet, he has the right answer for everything. I’m just sick of the guy – I don’t think I can work with him!” It took a while for my friend to calm down and when he did, I realized that he actually agreed with many of the new VP’s observations. In fact he’d been saying some of the very same things, albeit a whole lot more diplomatically and in smaller groups. Why then, was my friend not happy that he had an ally, a senior one at that, to set right the things that he himself thought needed to be fixed?
Team conflicts usually originate when something is said or done. And often, it’s not about what is said, but how it is said. Depending on the level of trust or lack thereof, this gives rise to questions about why it is being said – in other words, motive or intent. The secret to resolving team conflict is to both understand the what, how and why.
Content (the what) As most of our work is done with others, as team mates or in meetings, the ability to communicate clearly with one another is important. What is communicated need not always be agreeable or even acceptable at times. Some of us (or many times our bosses or god forbid, our spouses) go out of our way to avoid disagreements. That’s not a good thing, as healthy disagreements and alternate points of view result in better decision making. So if you don’t like what some one is saying, first examine whether you are disagreeing with the content of their statements. If you are, then a discussion (dare I say argument) or reflection can ensue. If however, as with my friend above, you don’t disagree with what’s being said then it’s time to look at style.
Style (the how) We’ve all encountered folks who appear to have no filter between their brain and their mouths. So they blurt out things, at times hurtful, make sweeping generalizations and often label – “I can’t believe how lazy he is – why do you let him get away with it?” A lucky few, may be unaware they do this and may require only pointing out to change their communication styles. Other’s may range from a defensive “You know me, I’m blunt!” to combative “That’s they way I’m” all the way to outright denial, “I don’t do that!” What all these folks don’t realize is that the message is lost, because of the their delivery style. It is critical to address this. People who won’t modify their communication style will not be effective and may be perceived to have an ulterior motive.
Intent (they why) All of us find it hard to hear less-than-pleasant things, especially about ourselves. This could range from the simply social “You have bad breath” to a more career limiting “You never let the other person complete their thought!” When such feedback comes from someone you trust and whose motivations or intent you don’t question, then you are willing to hear what’s said, even if unpleasant. On the other hand, when the person is either new to us or we encounter a style that’s jarring and not amenable to change, then we question their intent. Why are they doing this – are they being political? Are they actually saying or meaning something else? At this point effective communication has ceased and you have yourself a team conflict.
Successful leaders and teams learn to separate Intent, Style & Content. Once intent is clear and non-negotiable, style issues can be addressed. Then real progress in terms of discussing contentious issues with the necessary focus on content (or what’s being said) can be made.
Addressing style issues will enhancing your team’s effectiveness and not doing so will cause much mayhem as intent is questioned leading to further conflicts.
This last quarter, I met several interesting startups, that had a clutch of good customers. When I asked them “How can I help you?” at least three of them asked for help with sales. Not what you’d think, as in find me customers or introduce me to prospects but how do I manage my sales pipeline. In fact two of them specifically had the question “How do I track my sales pipeline?”
Over the last several years, while I’ve used a variety of tools from mere contact managers through sophisticated deal trackers to full-fledged CRM suites, I’ve found myself returning each time to a simple spreadsheet-based sales tracker, at least in the early days. The tracker has not only evolved as I’ve learned but stayed surprisingly simple and has worked just as well in a fund-raising function at non-profits as it has in a for-profit startup.
As I promised these founders, I’m open sourcing the sample tracker as an Microsoft Excel spreadsheet as well as Google docs template. The tracker can be used for selling products or services or combinations thereof. You can download it here.
The tracker has three parts.
1. Setup – your business basics
Based on the nature of your business (product or service), actual sales offerings and the sales process your business may have to follow, you can tweak the setup. All this is done in a single worksheet (the last one, titled “Stages, Categories, etc.” of the online sales tracker). This one time set up of your product or service offerings, your sales persons (or deal owners), and stages of your selling process, makes maintaining your sales tracker easy and minimizes human or data entry errors.
Figure 1 – Typical Sales Stages
Sales stage this is simply the series of steps you have to go through from start to finish to close a sale. It begins with you first identifying a potential target customer for your product or service and runs all the way through receiving payment from the customer (never forget collecting the money is a critical part of making a sale). Figure 1 shows one such typical sales cycle.
Figure 2 – Sales stages for a demo-based sale
Sales stages obviously can vary for your particular business – one common variant that I encounter is when a demo installation or trial period needs to be offered to a customer (something you ideally want to get away from, but unavoidable particularly at tech startups in the B2B space). In this case there may be more interim steps (or stages) in your sales tracker.
Similarly you can set up your product or service offerings, as in actual names or code names that tell you what product or service you are talking about.
Tip: Typically I’ve found it useful to precede the offering name with a numeral such as 1-Bluetooth Stack or 2-SEO Consulting, as this makes sorting and other types of numeral based operations easier. For instance variants could all be numbered within say 100-200 so reports can be easily generated.
2. Sales Tracker
The sales tracker is a straightforward spreadsheet, with each prospective sale or deal on a separate row. For each deal, the row (or record) spells out, who the customer is, what is it that’s being sold (opportunity or offering), what revenue (or selling price) you expect, what sales stage is the specific deal at, who owns the deal and what the target close date is. You can of course have additional fields such as comments, or next steps, key customer contact. Figure 3 below shows a sample tracker for product sales.
Figure 3 Sales Tracker
The tracker also has variants of the sales tracker, if you need to track number of units (N) and have a unit price (P) and therefore compute deal size based on NxP (tab, Sales_Tracker_B_Units). Similarly there’s a tracker variant for service or project selling, (tab, Sales_Tracker_C_Project) where you can add descriptors for a project in addition to any opportunity or offering name you provide. Of course your business may require yet another variant, but you can simply by adding columns make the tracker your own.
By using the Filter function in Excel, you can look up deals
of a particular size or greater
expect to close prior to a specific date
belonging to a particular sales owner or product (or both)
at or before a certain sales stage
that have closed but you’ve not gotten payment
In other words, an individual sales guy (that’s you) can see which of his deals he should focus on this week to close, what is the value of deals you intend to close this month (or week or quarter), which deals have NOT moved for more than a month – you get the idea, you can pretty much filter it any way you need.
3. Summary Report
Figure 4 Report Master
The first tab Report_Master, is a quick overview report of your sales pipeline. It presently has both #deals and deal value by sales stage. I’ve set these up as formulas – these could just as easily be set up as pivot tables if you so desire. You could do without this master report sheet, by merely filtering the sales tracker sheet itself. Alternately if you find that you are running some searches often, you can just have them set up as reports. Its also useful to have a report if you multiple folks are using the tracker and you want a big picture view.
Good luck with your sales – as and when you make improvements do share and spread the love and knowledge. If you have any questions please feel free to ask questions in the comments below. Spread the word. Happy selling!
The last two days my team and I were at an offsite at a local hotel. The meeting room, was in the basement, at the end of a long corridor, nestled in a far corner of the hotel’s Business Center. While our meeting was productive it was a stuffy two days. Made me wonder, how comfortable the US President would be in the White House bunker (at least what I’ve seen of it in movies) given its even greater depth.
When you spend all day in a stuffy room, drinking fluids, having the rest rooms nearby helps. The first time I walked up to them I had to look closely to figure out which door led to the right room. A smart designer had decided to use two tiny androgynous figures, with the words HE and SHE written below them to designate the men’s and women’s restrooms.
Not the best of experiences when you are in a hurry (and when like me you’ve walked into the wrong room, while on a phone!) Alas the story didn’t end there.
During a short break we walked up and out of the lobby to catch some fresh air. On my way back, I decided to use the restroom right behind the lobby and encountered the following two doors and signs that now read GENTS (that’s what I think it said, the fancy font made ready hard) and LADIES. Clearly the same designer was not involved in the design of these two (ornate) doors. Luckily I was wearing my glasses and headed into the right room without any mishap.
It could have been worse I suppose, with signs in German (HERREN and DAMEN) or symbols for male (♂) and female (♀) or playing cards (KINGS and QUEENS). At least for our toilets, why can’t we make things simple with LARGE pictures (for the language or visually challenged) and words for the graphically challenged. This is a solved problem.
I wish I could attribute this to one or more zealous or incompetent interior designers. However, starting from even the most common and widespread of software products (can you say Microsoft Word), we encounter such design inconsistencies every day. All of us, whether involved in building software products, ticketing portals or hotels or mobile phones, need to provide our users consistent, predictable and self-evident user experience aka good design.
I have a hard enough time figuring things out, when I’m not in a hurry to go! So please let’s pay attention to our poor users and help them have a more consistent and intuitive experience.
“I can line up ten old and experienced fools in front of you this evening.”
My father always began his story with this line. As the professional CEO of a family-owned business, one of the challenges my father had to contend with was the different working styles of the younger generation. The speaker in this instance was one of the founder’s grandsons, who was being groomed to run the business.
The discussion was about the relative strengths and weaknesses of a potential new employee that they’d just interviewed. My father, a big believer in hiring the best person for the job, had expressed the thought that this particular candidate was not experienced enough.
My father’s contention was the young clearly had a big advantage, in both the energy they brought and in not being tied down to the way things were done. But for their business, a fast-growing company in a commodity market, experience mattered and could just not be replaced.
Thereupon a debate ensued on the relative merits of youth versus experience, before the young executive made this assertion about old fools. My father always laughed when he recounted the passion and vehemence with which his young protege made this statement. His response always was that no amount of education – whether football, swimming or sex education in a classroom was as practical as getting out in the real world (or in that field or pool) and experiencing it.
Many years later, when hiring in my first managerial job in California or my startup in India, I found this to be repeatedly true. The fresh college grads, almost were always smarter, had studied stuff that we had not even heard of and thought of absolutely new ways to accomplish things often getting things done just because they didn’t know it couldn’t be.
Yet like with good design (or a good meal) no amount of studying prepares us as having done it before – ideally more than once. Riding a bicycle or banking a car on the curve or setting up a website or negotiating with a Japanese customer all works much better once you’ve done it before.
My father hired more than a hundred folks, with absolutely no experience – often young men who were looking for their first break. Several of them are running their own businesses or in leadership roles today. Nevertheless, he taught me, that for many roles or jobs, experience trumps all. The trick is knowing when you can’t do without it!
A popular Frank Sinatra song speaks of love and marriage going together like horse and carriage. The words startups and growth seem to be used much the same way. Recently I moderated a panel on “Why some startups grow and others don’t” at the TATA First Dot powered by NEN student startup showcase.
One of the questions that came up during the discussion was
“Is growth always good? Are there instances when growth can be bad?”
The panelists all agreed that NOT all growth is good growth. Specifically,
Non-focused growth Naga Prakasam, angel investor and mentor, brought up the point, that growth unless directed and focused can easily derail a startup. So growth in revenue, even when profitable, could turn out to be bad in some situations.
One of two things most commonly happen
Revenue consideration – as a cash-strapped entity many startups chase any and all revenue – so you have product companies taking on services or service firms taking on non-core functions – pretty soon the organization is pulled in many directions with people stretched either too thin or into areas that are not their strengths
Customer retention – you have a major or important customer for whom you provide specific products or services. They want you to support them doing something that another vendor is doing – for instance in my first startup we did only Bluetooth software. However our customer, one of the largest accessory makers in the world, wanted us to help them with IT support too. Luckily we turned them down even though the risk of losing our core business to their IT vendor loomed. (Of course their IT vendor claimed that they could do Bluetooth software as well – but that’s a whole another story 🙂 Such growth, unless planned as part of a larger strategy, will eventually end up hurting the customer and your business, as you take on things for which you either don’t have competence or distracts you from your core business.
Non-profitable growth In the semiconductor business, we’d always joke about “making it up in volume!” As airlines, magazines and mobile phone companies learned the hard way, growing non-profitably, especially when you lose money on each sale is not a good thing. In fact, the more growth you have the more money you’ll lose (or burn through) and rarely is the outcome pretty. Sure, there are times you have to get your foot in the door, enter a new market, test a new product when you will lose money – but hopefully that’s well planned and the downside is contained. Either it allows more profitable products to be sold or customers to be acquired and cross over from loss to profit making, when some volumes are attained (or fixed costs or amortized).
Growth, when focused and profitable is good. But when neither can easily hurt your startup and possibly kill it too!
Over the last several years, I have written about startups, entrepreneurship and business in general in the Hindu BizLine and Wall St. Journal. I have compiled these for easy access in the column below.
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