From The Editor's Desk
This month is my last as Editor of The Dealmaker newsletter. As you may know. I am studying for my psychology honours degree and have decided to try my hand at counselling. I'm pretty sure this is my calling, but if I don't try it, I'll never know. I am joining a clinic north of Johannesburg and will be dealing with predominantly Aids and Aids related cases. It is with sadness, though, that I leave Spectrum Solutions. I've learnt a tremendous amount being part of a small, fast growing team, and writing the newsletter each month has been insightful and eye opening for me. I have thoroughly enjoyed interacting with the newsletter readers and The Dealmaker™ graduates.
Nico and Sunette de Kock |
Remember we recently announced the winner of our Newsletter Survey? Well Nico de Kock and his lovely wife Sunette finally made it to South Africa from Zambia and were whisked off to lunch by The Dealmaker™ team. Although Kim Meredith claimed to be the host, David Black, Chairman of Spectrum Solutions, ensured that the alcohol flowed while Julie Purkis, the company's Business Director, provided the after lunch Harley-Davidson themed entertainment. By all accounts, it was a fabulous (and very long!) lunch. |
In this month's edition of the newsletter
- The "Did You Know" section will give you a quick business tour through the good ol' US of A.
- We interrogate Brett Parker, COO of SecureData, in "The Real You" Interview. Brett was kind enough to answer more than 12 of our questions!
- Our "How You Can Improve Your Business" segment features really useful guidelines on what you need to do to enhance your business website.
- In "This Edition's Story" we are reminded about the important role that obstacles play in our lives.
- "Does Power Really Matter?" is the question Kim Meredith poses in the "Guest Article" section on dealmaking.
- As we move towards the last quarter of the year, there are only a few opportunities left to attend one of our life-changing programmes before the prices increase in the new year. Book now!
As my journey here ends, I would like to wish the dealmakers out there all of the very best. I hope you have picked up a few tips from the articles that is has been my pleasure to bring to you.
Enjoy the joys of Spring - Portia Ngcobo
Did You Know?
In last month's newsletter edition we featured Japan, the second largest purchasing power in the world. This month we bring you the country with the largest global economy - a nominal 2006 gross domestic product of more than US$13 trillion - the United States of America.
America, first occupied by native American Indians, was originally founded as thirteen colonies of Great Britain located along the Atlantic seaboard. On 04 July 1776, they jointly issued the Declaration of Independence which officially announced independence from Britain and the formation of a cooperative union.
The current American government is a federal republic system meaning that individual states have sovereignty over their territory. The president is head of the government and is elected for four year terms. English is the official language.
Quick Tips On Doing Business In The United States Of America
- A hand shake in business situations is used. It is firm and generally lasts for a few seconds. Gentle grips are taken as a sign of weakness. Too long a hand clasp may make the meeting uncomfortable.
- To show respect when meeting, use a title such as Dr, Mr, Miss or Mrs. If unsure of a woman's marital status, use Ms (pronounced "Miz").
- Terms of endearment like "honey" or "baby" are considered inappropriate and demeaning, particularly when directed towards businesswomen.
Negotiating And Selling
- Business is often done at lightning speed. For example, a sales person may bring a final contract to a first meeting with prospective clients.
- Sending the relevant information electronically prior to appointments is recommended. Be prepared to transact through electronic systems.
- The use of handheld, cellphone and associated devices is common inbusiness meetings. Taking calls during meetings is normal, although highly irritating to international visitors.
- US executives begin talking about business after a very brief exchange of small talk, whether in the office, at a restaurant, or even at home.
- Until you know a person well, avoid discussing religion, politics or other controversial subjects. Acceptable topics are a person's job, travels, food, sports, music, movies and books.
- Lastly, while businesspeople always have business cards, they're not exchanged unless you want to contact the person later. Be sure to include your email address and website on your card.
United States of America offers mammoth potential for foreign businesses wishing to expand. Good luck in the land of the free and home of the brave!
Extracted from "Kiss, Bow, or Shake Hands" by Terri Morrison and Wayne Conaway
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"The Real You" InterviewInterview with Brett Parker
Chief Operating Officer of SecureData
The Dealguru™ Graduate |
1. When you were a child, what was your favourite toy? Why?
A Richard Scarry book, where you had to find a worm on each page. Who knows why?
2. In one sentence, describe your current job to a five year old
I am the guy who is the happiest when things go well and will cry the most when they don't.
3. What has been the most embarrassing moment of your life?
Playing Austin Powers in a company-directed movie.
4. Where do you dream about visiting? Why
The Soviet Union - for many reasons including the culture, the history and the fact that I have almost been there on three separate occasions but never quite made it. And Tel Aviv. I believe it's an amazing place.
5. Do you have a "Life List"? If so, name three things that are on your List?
1. To own a company that can be run from anywhere in the world
2. To be healthy until the day I die
3. To grow old with my kids
6. Tell us one thing that nobody knows about you
I am training for the South African Championships - Bench Press.
7. What is the biggest lie you tell about yourself?
I can bench press 205 kilograms, when I have actually only managed it once.
8. What is the biggest lie you tell to yourself?
220 kilograms is a light weight.
9. What would your partner/spouse say are your three greatest strengths?
Ambitious, Being a loving husband and father, Caring
10. What would your partner/spouse say are your three greatest weaknesses?
Being influenced by mates in a pub, Horseracing, Socialising
11. If you were a superhero, who would you be? Why?
Spiderman - we have the same surname!
12. What is the best advice a grand parent ever gave you?
Live your life as if today is your last day - have no regrets.
13. What is the best advice a business mentor gave you? Who was the mentor?
Nothing is what it seems. Pieter Bouwer.
14. In your career, what have been your greatest achievements so far?
Doing a presentation with Bill Gates
Meeting Nelson Mandela
Being appointed as a Director of Microsoft SA
Being appointed as Vice President, Territory Sales SAP EMEA
15. What do you do in your spare time to blow off steam or relax?
Train at the gym and study horseracing.
16. Your favourite gadget of the moment?
None, they all suck!
17. If you could assassinate one person with absolutely no consequences, who would it be? Why?
Probably Robert "It is because of Colonialism" Mugabe. Or any person who has ever harmed a child.
18. If you could choose the President of the entire universe, who would you choose and why?
My wife - she would let me make the decisions. She's also hot!
19. What would you like to be remembered for having achieved in your life?
As someone who was a good friend, awesome father and well-liked for his honesty, integrity and generosity.
20. If you were given the opportunity to have dinner with one person, alive or dead, who would you choose and why?
Al Capone. It would give me insight into the mind of one of the world's most notorious crime bosses.
Tips On How You Can Improve Your Business: Top Ten Tips To Improve Your Business Website
While surfing the internet recently, I came across the following fabulous tips on http://www.bytestart.co.uk from Lydie-Design Studio Ltd. This is what they have to say about upgrading your website.
Whether you use your website as a means of selling goods or as a corporate brochure interface, websites have become a fundamental part of business. It's not surprising that 70% of businesses have websites.
With the market and technology forever evolving, how does a small/medium sized business make sure their website remains competitive?
1. Have a plan
Establish the purpose of the website. Set out your main goals and make sure they are fulfilled.
2. Establish measures of success
Is your website driving enough traffic? Measure visitor usage and interactions regularly.
3. Promote yourself
A website can be used as an online brochure. Update your customers about recent successes and testimonials. If you don't tell them, nobody will.
4. Introduce your brand
Have a unique logo and slogan for you brand. Make it eye-catching yet easy to read. Complicated brands make websites look crowded.
5. Deliver valuable content and keep it fresh
Updating your website regularly will keep clients coming back.
6. Make your website easy to use for the general public
Make a simple home page that is consistent with the other pages of the site. The easier it is to navigate, the more likely they are to stay and browse.
7. Allow e-commerce sales
The proportion of business sold over the internet doubled between 2002 and 2005. Ensure your website makes it easy for your customers to purchase products online.
8. Build a customer list and use it
Create a database of possible clients and maintain on-going communications.
9. Regularly promote your website
No one will look at your website unless you make them aware of it. Ensure your website is advertised on your marketing literature.
10. Don't overload your website with too much copy
Less is more, as they say. Try to avoid large amounts of text on your website as it can turn the customer off.
Extracted from http://www.bytestart.co.uk
This Edition's Story
In ancient times, a king had a boulder placed on a roadway. The king then hid himself and watched to see if anyone would remove the huge rock.
Some of the king's wealthiest merchants and courtiers came by and simply walked around the rock. Many loudly blamed the king for not keeping the roads clear, but none did anything about getting the big stone out of the way.
Then a peasant came along carrying a load of vegetables. On approaching the boulder, the peasant laid down his burden and tried to move the stone to the side of the road. After much pushing and straining, he finally succeeded.
As the peasant picked up his load of vegetables, he noticed a purse lying on the road where the boulder had been. The purse contained many gold coins and a note from the king indicating that the gold was for the person who removed the boulder from the roadway.
The peasant learned what many others never understand. Every obstacle presents an opportunity to improve one's condition.
Extracted from www.motivateus.com
Guest Article
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Does Power Really Matter?
By Kim Meredith, Managing Director of Spectrum Solutions |
In my last two articles, I spoke extensively about trading, or giving to get, or quid pro quo. As you have probably realized, these three concepts all amount to the same key idea. To be a great dealmaker, you need to embrace the principle of "give to get". This becomes even more important if you are in a weak position when doing a deal. The weaker your position, the more you need to focus on trading.
Do you think that a dealmaker can actively create or influence power in a deal? The good news is that the answer to this question is a resounding "yes"! Imagine, for a moment, that you need to close an important deal but you feel you don't have as much power as the other party. This will definitely compromise your position in the deal, so how can you create power?
Planning
The first and most important step in increasing your power is proper planning. Planning is a huge subject (one which will be addressed in next month's article), but relative to power, planning needs to be your starting point. If you fail to plan around the power aspect of negotiation and dealmaking, don't be surprised when - not if - you end up with a less than favourable deal. In planning, you need to assess your power vs the power of the other party and then address all the possible elements that impact power.
Incentives
Your planning will soon reveal to you that the other party needs to have some interest in doing the deal with you. Can you create this interest? If so, how? The answer lies in incentives. If you have had the opportunity to read Freakonomics, the fascinating book by Steven D. Levitt & Stephen J. Dubner, you will have realized that incentives make the world go round - especially in negotiation and dealmaking! The more incentives you can find to entice the other party, the more interest they will have in doing the deal with you. Remember that disincentives are also a form of incentive - the person with whom you are doing the deal may get to avoid a consequence by doing a specific deal. For example, a buyer for a large retail organisation may avoid a disappointing bonus (the disincentive) if they can negotiate a significant discount from an important supplier. Incentives and disincentives are referred to as "hot buttons" or "wins" in selling parlance. Incentives are undoubtedly the most immediate way of improving your power in a deal.
Trading
There is immense power in the trading process, and trading is driven by proposals. To be a powerful dealmaker you need to make proposals and respond to proposals - and this means having a lot more than just one or two items (typically incentives and disincentives of varying values) with which you can trade.It is very easy to fall into haggling, rather
than trading, if you have only a few variables with which to trade. The skilled dealmaker will always come to the table with lots and lots of variables in their back pocket - and be prepared to trade them. Don't shy away from making trading-based proposals - it is one of the most effective tools you can use to gain, and keep, control of the dealmaking process.
Who Needs The Deal?
Another very important element in determining power is establishing which side needs the deal more. It obviously stands to reason that the side needing the deal more is in the weaker position. Sometimes there is little you can do to change this situation, so if it is you that needs the deal more than the other party, you need to spend as much time as you can looking at all the ways of improving your power.
The Team vs The Lone Ranger
There are plenty of pro's and con's in being part of a team vs doing deals on your own. You need to assess which option will give you the bigger advantage. A rule of thumb is where you can, take a person you trust along with you to keep track of the deal - that is, make notes, watch for signs of flexibility from the other side, figure out the other side's agenda and so on. Be very careful, though, as you don't want to take someone to a deal who gets too involved in the proceedings and loses all your hard won ground! If you are dealing with a team, you may want to go in on your own and play divide and conquer with the other side. Equally, you may want a team of your own to give you support or to equalize the numbers. The team you use (or don't use, as the case may be) can and will influence your power position.
Perceptions Of You
The more legitimacy and authority - as recognized by other party - you have, the more power you have. Remember that perception is reality. If the other party does not see you as having the necessary authority, your position is immediately undermined, reducing your power. Another two important influencers of power are credibility and appearance. I was lecturing to a group of executives from a company employing over 100,000 people in the USA recently and I stated during the lecture that personal credibility and appearance impact a person's position in a deal. This is, apparently, not a politically correct thing to say! But, as harsh as it may seem, if you don't look and act the part, if your credentials are not up to scratch, your power is damaged. This is the nature of human nature!
Word Power
The language and words you use when doing deals, particularly when negotiating, are of paramount importance. When we are coaching dealmakers, my colleagues and I invest a substantial chunk of time teaching dealmakers the power in words. This is a subject in its own right but, for starters, get used to using the word "if". "If" suggests conditions, "if" suggests trading. It is, for us professional dealmakers, the most powerful word in the deal world. At our company we believe "if" to be the meaning of life!
Hard Work
There is no substitute for commitment and hard work - in dealmaking, effort is rewarded with results. The time you invest in planning, getting information, preparing questions, selecting and briefing your team, practicing your opening positions, etc. will always pay dividends. Have you ever heard the saying "knowledge (or information) is power"? In a deal, nothing could be more true. Unfortunately, though, this means hard work - research, reading, discussions and the like.
Sole Supply vs Competition
There are two sides to this coin - the seller's use of sole supply vs the buyer's use of competition. In the world of deals, these situations arise every day. If you want to understand the power in of the seller's use of sole supply, you have only to think of monopolies. Monopolies can hold their customers to ransom. Why? Because they have the power to do it. But what happens to these monopolies when the tide turns and competition enters the market? Imagine what we would be paying in cellphone charges if there was only one provider? The opposite of the monopoly is the person who can choose from many suppliers and then proceeds to play one supplier off against the others in order to drive down price or improve the terms of a deal. A graduate of one of The Dealmaker programmes decided, after a course, to play this game with low cost insurance providers. She managed to secure an outrageously low premium in the end. So, to increase your power, consider if you are able to use sole supply or competition to improve your deal. This may not seem fair, but it is used every single day by companies and individuals alike to strengthen their position of power.
You may be thinking by now that power can be used to gain unfair advantage. This may be true. The reality, however, is that power is created and improved and used. What are you doing to improve your position of power in a deal or are you simply reactive to the power play? What is the person you are dealing with doing to adjust their power? If you do not use the power available to you, you will not be able to maximise your deal. No skilled dealmaker will ever allow this to happen. So, to improve your power in a deal:
- use techniques such as a SWOT analysis to assess your power and then invest quality time in the planning process
- recognize that there is huge power in making proposals - the more trading you do (and the more variables with which you have to trade), the stronger you can make your position
- consider all the kinds of power available and how best you can maximise these.
Good luck with adjusting your power. It is within your hands to change.
Kim Meredith
Johannesburg
September 2008
The Dealmaker™ Programmes - Final Dates for 2008
The Dealmaker Programmes Company has been able to hold the price of the courses for the last two years, but with the changes in the global economy, prices will be increased with effect from 01 January 2009. To avoid this increase, book now for any of the remaining courses of 2008.
The Dealcloser™ |
Venue |
01 & 02 October 2008 |
Johannesburg |
The Dealdiva™ - Women Only |
Venue |
11 & 12 November 2008 |
Johannesburg |
The Dealmaker™ |
Venue |
07 - 09 October 2008 |
Johannesburg |
The Dealguru™ - Executives Only |
Venue |
14 & 15 October 2008 |
Johannesburg |
Please phone us on +27 11 440 0193, or email enquiries@thedealmaker.com to secure your place.
Forthcoming Attraction
07 - 09 October 2008
The last The Dealmaker™ for the year will take place on 07 - 09 October 2008. The Dealmaker™, our flagship programme, is a three day event designed to achieve a shift in your ability to close all deals more profitably and quickly through negotiation strategy and execution. This is a skill, without which, business simply does not work.
Book now as places for this programme are very limited. Please give us a call on +27 11 440 0193, or send an email to enquiries@thedealmaker.com to book a seat.
May your September be filled with new beginnings - Portia Ngcobo |
