MSP University Managed Services Blog

Protect Your Cash Flow During Bad Times and Good

There are a lot of concerns for businesses when it comes to cash flow and the recession. There are less lines of credit being extended and owners need to find ways to ensure the cash keeps flowing.

Here are some tips to help your business stay on top of the credit crunch:

Cut Back on Excess - Pay attention to where your finances stand. You need to have an active hand in your business' money management. Spend only what you need to be productive. You may even think about renegotiating pricing and terms with your vendors.

Pay Attention to Money Due - If you closely monitor who owes you money and when, you can take proactive measures to ensure the bills are getting paid and reduce the time, energy, and money you waste on collecting overdue or missed payments.

Don't Put All Eggs Into One Basket - If you are highly dependent on a singular, or small group of clients for the majority of your receivables, you can be vulnerable to money problems. The reality is those who owe you those receivables may also be at risk for going out of business before paying you what they owe. You should make sure that no one source has more than 25% of your generated income at any time.

Invest to Grow Your Business - Since credit is sparse these days, you may consider borrowing from a bank what you need in collateral and use it to make smart investments that you can use to grow your business. Investing your cash in what will bring in a consistent return may be a better option than just having limited resources of cash.

Accept Credit Cards - If your business does not yet accept credit cards, you should seriously consider changing the rules. Prospects and clients may be more apt to pay up if they have the option of paying by credit card rather than cash or checks, as they do not always have the money on hand when invoices come due.

Go Beyond the Banks - Since credit at banks is tighter than ever, you may have to get creative about how you can raise capital for your business. One popular way many businesses have found to go beyond traditional bank loans is using what is known as a “merchant advance”. This is a process where a third party will analyze your credit card revenues during a certain time period. Based on those revenues, your company can get an advance that can be used for capital right away. You can pay back the advance plus interest based on future credit card receipts.

Cash flow is essential if you want to grow your business. In fact, good cash flow is critical if you want to stay in business. You need to remain active in the money management of your business, especially if you are experiencing a period of growth. Spending too much too soon without proper thought for the business down the line can be detrimental to your company's livelihood. Also, setting a precedence early for collecting on invoices due is one of the keys to cash flow success.

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Erick Simpson
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Pricing Your Services In Tough Economic Times

Business owners face many challenges in this changing economy.  In order for your company to be successful, you not only need to provide a product or service which prospects and clients find valuable, but it must also be affordable.  Unless your business caters to clientèle that are unaffected by the recession, it is important to review your pricing strategy to ensure you are not losing business to your competitors.  Chances are once your cleints find another company that meet their needs at a price they can afford, they will not magically return when the economy rebounds. The following tips can help you price your product in a way that helps your business not only make a profit, but remain competitive.

• Pretend you are the client -  As business owners or managers it is easy to become so engrossed in the “numbers” that you forget to consider the needs of your client.  From a business standpoint you may price your product based on your own financial goals or quotas.  Your client has little concern over the success of your business and is interested in obtaining a product or service at a price that they deem provides maximum value.  In addition to asking, “what price will return a profit?” you must also consider the value you can communicate to your clients in regards to your products and services, and what ultimate price theu would be willing to pay to receive this value.  Know your prospects, their needs and their financial situation and sell on value to set prices accordingly.
• Understand your competition-  The recession has caused a shift in consumer spending.  As more people battle debt, decreased savings and uncertain financial futures, they are paying close attention to where they spend their hard-earned cash.  This means your clients are not only looking at the price of your products and services, but also those of your competitors.  You should do the same in order to insure you differentiate yourself and remain competitive.  If your competition is providing similar products or services at a much lower price, you must be able to respond to this through a value proposition compelling enough to close your clients on your services. If this becomes increasingly challenging, you may need to reconsider your target market, prospects (find technology-strategic and technology-dependent ones), deliverables and sales technique. 
• Reward loyal clients -  In an attempt to drum up new business many companies offer lucrative introductory prices to get people in the door.  While this may lure new clients to your company, your value to their businesses will determine how long they stay.  Remember to reward your loyal clients by offering discounts, incentives or special offers on additional products and services in appreciation of their business. 
• Higher quality brings higher prices -  Quality products and superior service can set you apart from your competitors.  Your prices should reflect this elevated position within the market.  The recession has certainly changed the way people are spending money, however consumers will always pay more for higher quality products whenever possible. 

At the end of the day, you must determine a price that reflects the value of your service in addressing the needs of your clients while at the same time generating profits for your company.  If you fail in communicating your value proposition effectively, and your prices are percieved as being too high, you risk alienating prospects, and if your prices are perceived as too low your company will not thrive.  Navigating the gray areas of pricing is an art that every successful business must master.

Click here to learn marketing and sales techniques to sell on value and increase your profitability during difficult economic times in The Best I.T. Sales & Marketing BOOK EVER!

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Erick Simpson
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How To Handle Negative Publicity Gracefully

  Whether you are just starting out or you've been in business for some time, dealing with bad press can be an emotional roller coaster. With so much emphasis on your business getting the word out about your products and services and building on positive feedback from your strategic business partners and clients, it can be quite a surprise to find yourself instead at the receiving end of bad press.

There are times when strategic business partners or clients may not only be disagreeable about how you do business, but be downright mean and malicious about it. Spreading rumors or bad-mouthing your company can quickly get out of control if the source has connections. It may feel natural to want to come out swinging against the naysayer - but that reaction too is bad for business. You'll only be compounding the problem. Instead you need to get your facts straight and present your retort after much consideration and level-headed thought.

Here are some tips to help keep your cool and combat bad press:

• Find out exactly what is being passed around. Check out blogs, internet news, forums, and even the human grapevine. Have an understanding of what people are saying before making any decisions. Resist the temptation to start typing back in defense of yourself and your company when doing research. You will end up doing more harm than good and feeling worse about the situation in the long run.
• Take a time out. Depending on the level of bad press or bad mouthing your company is getting, you need to back off and take a few days to think about the situation clearly. Likely you and your staff will be riled up and ready to fight. In order to really handle the bad press, you need to be cool, calm, and collected. Take your time and prepare yourself to handle the situation with grace.
• Sit down without distraction and consider your possible responses to bad press. If the rumors are confined to a particular website or blog, think about your rebuttal in the same format. If the bad press is in the news and other mediums, consider a bigger plan. Write out five messages you can send out to the press and internet resources. Include information you want known in a concise manner. Remain positive and resist bad-mouthing any individual or company. You may also want to speak to key people in your industry and ask them to help you put your message out there. If warranted, by speaking out, you will be able to prove credibility in that you have nothing to hide.
• Carefully review all aspects of the situation to determine if a formal response is the correct action. Sometimes; based upon factors such as the source of the bad press and the source's perception among your colleagues in the industry, a response by your company may be the wrong approach. By responding in some instances, you may be unwittingly fueling a situation that will naturally dissipate on its own. The last thing you want to do is lower your company's perception with others by dignifying bad press with a response, especially if it is obvious to the recipients that it has been circulated maliciously.

There will be times when your bad press comes in the form of customer feedback. It can be easy to dismiss a handful of negative comments, but it would be more effective if you considered all the feedback you receive and what you can do to improve the situation. You may be biased or self-centered enough to think all your business is perfect. That thinking won't increase your business or help reverse negative images people may have of your company. You have got to listen actively to provide the best for your clients.

If you are just starting out in business, this may not be quite as important a lesson as others for you to learn now. But there may be times in the future when your business might take some negative hits in publicity. In order to be prepared to deal with this possibility, make sure you have a firm understanding of your company mission and values when just starting out - and stick to them. It can be very easy for an unfocused company to deteriorate in light of negativity.

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Erick Simpson
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The Difference Between Customer Service and Exceptional Customer Service

Successful businesses are those that understand the need to not only generate a profit, but to also provide quality customer service to ensure customer satisfaction.  Customer service representatives have the important role of creating a positive first impression for prospects and meeting the needs of existing clients.  Businesses that focus on providing exceptional customer service stand apart from their competition.  A recent survey indicates that consumers trust word-of-mouth experiences over advertising - making satisfied customers your number one advertising tool. 

Raise the bar for your customer service representative by implementing the following strategies:

• Make it part of the culture-  business owners and managers set the tone in the workplace.  Make customer satisfaction a part of the company culture by encouraging and rewarding actions that improve customer satisfaction.
• Provide proper training-  employees who have direct contact with potential or existing clients must be properly trained for their position, and have the knowledge necessary to answer questions and provide suggestions or solutions to problems.  To ensure your clients always receive top notch service, supervisors should always be present to assist or support trainees.  While most people are understanding and patient when dealing with a new employee, your clients should never feel their businesses are not important enough to warrant professional service.
• Understand the needs of your clients-  in order to meet the needs of your clients, you must first determine what those needs are.  As their Trusted Advisor and business partner, your clients rely on your expertise to help them figure out what they need to achieve their business goals.  Be certain to conduct quarterly business reviews (QBRs) and talk to your clients and carefully listen to their responses to ensure everyone is on the same page and working toward the same goal.
• Empower employees to resolve issues-  customer service representatives must have the ability and authority to address problems and offer solutions.  This is one of the areas where proper training pays off. By trusting and empowering your employees to handle situations as they arise, your clients do not have to wait for a resolution.  Problems that are solved quickly and efficiently can easily turn an unhappy client into a satisfied one. 
• Exceed expectations-  to set your company apart from the competition, find ways to not only meet the expectations of your clients, but to exceed them.  This shows your clients that you appreciate their business and are willing to go the extra mile to ensure their satisfaction - which leaves a positive, lasting impression.

Exceptional customer service is provided by companies that genuinely understand the importance of customer satisfaction.  As a result these companies retain current clients and gain positive word of mouth advertising.  What message are you sending your clients?

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Leveraging the Value of Managed VOIP Services

Recessions are hard on businesses.  When credit is tight and businesses are unable to get financing or loans; and overall sales are down due to the economic conditions – business owners have to find ways to reduce their costs wherever possible to free up money to reinvest in their businesses.  One area many business owners look to in reducing costs while still receiving a quality deliverable is their phone service and its costs.  For any business that must provide phone support or handle customer service via the telephone, it's imperative that they have a reliable phone system in place.  The trouble is – business owners are reticent to shell out the cash for expensive, traditional top of the line phone systems which allow remote and traveling employees maximum connectivity and unified communications; and which make it possible for customers to get routed to the right person to help them with their issues quickly and easily - no matter where they may be.

Managed Services Providers that offer Managed Voice over IP telecommunications and unified messaging solutions can help businesses upgrade their phone service and systems in an affordable way.  VoIP-enabled businesses with employees who work from home or the road allow prospects and clients to connect with their intended resource by dialing a single number, which can route the call behind the scenes to a cell phone, home office phone or even a hotel room. And if a Voicemail is left, these VoIP solutions will email the target recipient a wave file of the message, allowing its playback from any email-enabled appliance such as a cell phone or laptop. These sound files can then be emailed, forwarded to someone else's voicemail box, or archived. With the number of employees working from home increasing steadily, this is a capability many business owners will be looking for in their phone systems. And because these VoIP solutions rely on the Internet as their backbone for much of their call transmissions (and completely for calls between branch offices), costs are much more affordable than with traditional phone systems which rely on Local Exchange Carrier's circuits.

A business owner that recently spent $12,000 (financed over three years) to switch her phone system to a VoIP solution with a Managed Services provider states she has cut her telecommunications bill by roughly a quarter. But even though she needed to reduce her costs in order to remain competitive during the recession, she claims the biggest benefit isn't financial. "When we're dealing with big customers, we have to appear to be bigger. We need to look professional. We need to be accessible. We wouldn't be able to survive if we didn't make this investment.”

How's that for giving your clients a valuable service that they need?

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Erick Simpson
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What's Your View on IT Services?

Our friends and Sponsors at CompTIA are asking for your help in completing a short survey on your opinions of ever-changing IT services. Please take a moment and provide them with your valuable feedback. Here is CompTIA's request:

The IT business continues to evolve at a startling pace. To help members stay ahead of the curve, CompTIA is collecting opinions from a range of industry experts such as yourself. Please take a few minutes to share your thoughts on the key trends affecting IT services, including managed services, and more.

To begin the survey, go here: http://survey.euro.confirmit.com/wix/p259532566.aspx

In appreciation of your valuable feedback, CompTIA will publish results for members. Highlights will also be available at our Breakaway member event in August.

We value your privacy--your responses are anonymous and confidential. Results will only be viewed in the aggregate. Please complete by Tuesday, July 28th.

Thanks in advance,

CompTIA Research Team

CompTIA is the leading not-for-profit trade association for the information technology industry. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy.

...

Join MSP University at CompTIA Breakaway 2009 at the Mirage Resort and Casino in Las Vegas, NV on August 2nd-6th, 2009- use code BKMSPU here to receive FREE registration (save $249!). I'll personally be facilitating several sessions on Tuesday, August 4th - stop in and visit with us!

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Erick Simpson
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5 Mistakes To Avoid In Your Press Releases

Crafting and distributing an effective release is a good way to publicize your business, your upcoming events and your notable achievements. A press release is not something that can simply be thrown together, but must be thought through, written, and proofed carefully. Good press releases can get picked up by a number of news outlets, so you want to create something that is not only representative of your company but also something that will catch people's attention.

All too often, those who are creating press releases on their own without the assistance of a professional writer make the same mistakes that take away from the focus of the release, and may even fail to get notice from online news resources and blogs.

Here is a list of 5 common moves that often fail when creating and distributing press releases:

DON'T:

Fail To Make Your Release Newsworthy
A press release is designed to inform the press about something newsworthy going on with your company. Why else would readers and online news resources be interested? If you are designing press releases around the fact that you added a picture or a new blog post to your website, you are bound to go unnoticed and your release will fail to be circulated online. Create a buzz about something of interest – a new contract, a trip to a trade show, a guest speaker spot, a strategic business partnership.

Run Off At the Mouth
Your press release should be concise, well titled, and able to grab the attention of the people you are sending it to within the first few sentences. Include relevant information and don't send two pages worth of jabber that no one wants to or has time to read. Make your point and make it quick.

Email Blindly
If you are emailing your press release to individual media persons, make sure you are messaging the right person, otherwise the wrong contact in the media will likely consider your information as junk mail and therefore not even give it a second glance. Don't be lazy about your research. Find relevant people and relevant places to send your press release.

Attach Your Release
When you are sending out the press release, consider that not all people will have the same software you do. No matter how universal you think your writing software is, there will be some that do not use what you are using. Instead, copy and paste the information, including your contact information, in the body of the email. If individuals want more information, you can email it to them specifically after they have requested it. Also, consider that many individuals will not wish to open attachments for fear of computer viruses, and because some simply do not have time to open all the attachments they receive.  This rule also goes for any other information you'd like to use, such as brochures or videos. Again, if someone wants every bit of information you have on your company, they'll ask you for it directly.

Send Releases Every Day
While it can be good practice to keep your name in the news, it can also cause problems when you overload your email distribution lists with incessant, daily emails. Try and space them out – maybe once a month to keep interest, but also maintain a professional appearance to your company and its news. Keep your releases to a minimum and remember to only include relevant information.


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Erick Simpson
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What is Web 2.0 and What Can it Do For Your Business?

The “old” internet started about 15 years ago.  People would create a website that described their business services, address and contact information and put it online.  The information on those websites didn't change much, so visitors would go to the website two or three times – realize they already knew the information that was on it, and go someplace else.

The “new internet”, often referred to as Web 2.0, uses websites like living, breathing communities.  They're constantly changing and growing with new content, new people and new information.  People continue to visit these websites because they've always got something new to learn or experience.    Web 2.0 offers user-generated content on demand.  It gives people what they want instantly. 

This is the future of the internet and it's up to you to see how your business fits into it. 

What Can Web 2.0 Do For Your Business?

All businesses have a place in Web 2.0 – there is a targeted community for every industry and in every niche.    You can use Web 2.0 to accomplish the following:

• Global Branding:  social media sites like Facebook, Twitter, LinkedIn, Youtube, as well as the interactive features of blogs and forums allow you to grow your brand.  You can establish your name, your expertise, and position yourself as an authority in a certain market and build credibility in your prospects' minds. 
• Connect With Your Prospective Clients:  when you're delivering up to date information across the various Web 2.0 platforms, you're delivering value to your prospective clients first.  They begin to trust you and seek you out online when they have questions or need your services.
• Mass Communication and Increased Exposure:  anyone can leverage the reach of Web 2.0 to create global marketing platforms without an advertising budget.  Web 2.0 has the tendency to create viral marketing – videos posted to Youtube can show up across thousands of other websites in a matter of hours.  Your messages are online and working for you 24 hours a day, 7 days a week, and all of your communications should be pointing back to your website and bringing targeted prospects to you.

It used to be that marketers were “king”, and could effectively convince people to buy their products or use their services.  Today, consumers are far more educated and aware of the techniques marketers use – and are therefore more resistant to these older methods of advertising.  Consumers are in control now, but a savvy business owner and marketer will realize that understanding what people are thinking and saying about your brand is useful to connecting with your prospects – and influencing sales.

Click here to learn more marketing and sales techniques to increase your profitability during difficult economic times in The Best I.T. Sales & Marketing BOOK EVER!

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Erick Simpson
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How to Use Social Media as a Marketing Strategy in 3 Steps

Since the beginning of time, word of mouth has always been the most powerful and effective form of advertising.  It was used long before we had television, radio or internet, and is still used despite all of our technology advancements.  Social media is a marketing strategy that essentially increases your word of mouth advertising – with the goal of encouraging other people who have worked with your business to help promote the services and products you offer.  Social media allows us to build relationships through various online communities where people gather to communicate and connect.  The relationships you create help establish trust among the community, and trust in turn results in the ability to sell a product or service indirectly.  Connections on social media communities will also generate traffic to your business website.

Here are 3 steps to using Social Media as a Marketing Strategy:

STEP ONE – a large part of any social media marketing evolves around the use of a blog.  Your blog is like the center of your marketing wheel, with other methods radiating outwards from the blog as the wheel's spokes.  Your blog is not only a place where your prospective clients can come for information, but it should also become a place where people can interact with one another through your blog comments.  Encourage people to leave comments on the blog by asking questions in your blog posts.

You'll use the sidebar space on your blog to link to your social media profiles, or to display feeds from them.  Most social media sites offer widgets that allow you to quickly paste the code into the blog.  You should also link to the blog from your main business website, from each of your social media profiles, in your email signature, from your newsletter (online or offline), whenever you post to forums and message boards, and when you leave comments on other blogs and websites.

STEP TWO – if you aren't already a member of some of the most popular social media sites, sign up and create profiles for your business so you can interact with others.  Some of the more popular social media communities for businesses include LinkedIn.com, Twitter.com, and Facebook.com.  Begin interacting with others, but don't consider it a marketing task – just sort of “mingle” online like you would at a party and participate in conversations.  Help people connect with others who share interests or can offer valuable information to someone else.  In the process, you will build genuine relationships and trust with your online contacts. 

The best results will be gained from people who use social media consistently.  You can't do one hour of social media tasks and forget about it for a month and expect to get results.  You'll need about an hour of time set aside to work with social media a few times per week.

STEP THREE – After a few weeks of activity on various social media sites, take time to analyze your results.  Take a look at where your traffic and profits are coming from.  If one of the social media sites aren't offering any results, you can consider spending more time on it to see if you can improve your results – or dropping it to focus your time on the platforms that are working for you.

Click here to learn more effective, low-cost marketing techniques to increase your profitability in The Best I.T. Sales & Marketing BOOK EVER!

...and Attend MSP University's next Boot Camp for FREE!

Erick Simpson
MSP University
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Where You Work Can Dictate How You Work

If you're just starting out or have been in business for some time, there are certain aspects about the physical environment you work in that dictates your productivity and ability to work. Your office environment should be both comfortable to work in, yet function to achieve the maximum productivity no matter if your staff count is large or small. When people are in the same space day after day, there needs to be some serious consideration about how the office is set up and whether the staff is consistently able to be productive.

Design considerations do not have to cost you tons of money. There are few basic rules you can follow to ensure your workspace is efficient whether it is just you or a large staff.  Here is a brief look at what you should consider:

Achieve a Level of Comfort

Your office space should not promote the desire for endless naps but it should be comfortable. The proper lightening should be used to prevent eye strain. The use of functional and ergonomic furniture is recommended to keep staff safe and healthy. Other considerations include anti-glare screens if computers are used frequently, adjustable chairs, monitors, and adequate desk space and work areas. Proper equipment helps prevent injuries that often accompanies repetitive movements day in and day out.
Functional Layout

Regardless of how much space you have or don't have, you can work to arrange an office layout that helps to improve the efficiency and the flow of the office. Equipment that is shared such as printers and fax machines should be placed in an easily accessible area. Employees that often work together should be placed close to each other in designated department areas. Employee's desks or cubicles should be spacious enough to work in and placed in a way that makes navigating around them easy for everyone.

Reduce Distractions

There is often a lot of activity that happens in any office on a daily basis. Consider what office equipment makes excessive noise and keep it out of earshot from the employees as much as possible to prevent distractions and disruptions. Keep conference areas away from or closed off from employees working at desks or in cubicles. Place employees who do phone sales or a lot of telephone work situated away from those who need quiet to perform their jobs. Utilize cubicles, carpeting, and other sound-absorbing materials to keep excessive noise levels low.

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Erick Simpson
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