Negotiating Secrets: Aim for win-win outcomes
Negotiating Secrets: Aim for win-win outcomes
“Begin with the end in mind” Stephen Covey, author of the Seven Habits of Highly Effective People
Whether you are a buyer, a seller, or involved in industrial relations, you will usually negotiate with the same people on a regular basis. You will wan to develop a relationship with them so that they want to do business with you again. You will both want to feel that you made a good agreement-we call this feeling ‘win-win’.
There are four possible outcomes to any negotiation:
1. Failure to agree. When there is simply nothing on which you can possibly agree, it can appropriate for the negotiators to go their separate ways.
2. Lose-lose. When both parties refuse to move, when it was in both their best interest to do so. Neither side achieves its objectives nor do the two parties generate solutions to their problems.
In this week’s issue:
What’s Your Plan for 2012?- p2
Negotiating Secrets: Aim for win-win outcomes -p2
Build Your Business Empire By Thinking Big and Starting Small-p3
Excel in a Changing Environment -p4
10 Things Never to Tell Sales Prospects-p5
Think big, start small and move fast-p6
Business Ideas-p7
Courses-p8
Upcoming Events-p9
BusinessLink Community Marketplace p10
Get your free copy by emailing admiralharare@gmail.com
3. Win-lose. When movement os predominantly one-sided. The side that did not move ‘wins’ whilst the side that did all the moving ‘loses’. Here, individuals are more concerned with victory rather than relationships. Too much effort is put into achieving short-term goals rather than long-term objectives, and the long-term relationship between the parties is jeopardized.
4. Win-win. The experienced negotiator will work towards creating two-way movement that is felt to be reasonably split between the two sides. Movement is aimed at bridging the gaps between them. Communication channels are developed and kept open for two way communication. With an emphasis on flexibility, solutions are proposed that enable both sides to achieve their objectives. Satisfactory decisions are arrived at and long-term relationships are enhanced. There is a perception that both parties have demonstrated reasonable movement, the lifeblood of negotiations. Once the meeting is finished, there is a spirit of partnership as the two parties set about making the agreement works.
If you want to do business with someone in the future, aim for a win-win result from every negotiation.
Source- Negotiating Secrets- David Brown (Collins, 2010)
Don’t Miss the BusinessLink Networking Breakfast Meeting on 27 January 2012- Marketing to Accelerate your Growth
The networking breakfast meeting will take place on Friday 27 January 2012. The venue is Flava Café restaurant. No.7 Livingstone Avenue, between 2nd and 3rd Street, Harare.
The guest speaker is Nigel Jumbe, a marketing and branding expert and the Managing Director of Summer-Hay Media, a leading corporate marketing, branding and advertising company. Nigel has worked with many market leading companies, including Meikles Africa, Nicoz Diamond, Zimre, Nissan, Servcor Celebration Ministries among others.
Many entrepreneurs struggle to grow their businesses and make money because of poor marketing. Nigel will talk about how you can market yourself and your business effectively in order to accelerate your growth.
The event starts at 0815 and ends at 0945. Entrepreneurs will have an opportunity to exchange ideas and advice as well as network and share business referrals.
The cost is $10 for BusinessLink Gold Club subscribers and $20 for non-subscribers. New subscribers to the Gold Club attend their first breakfast meeting for free. If you bring in two people, you will attend for free.
Please book your attendance early by calling Christine on 0772 854 301 or emailing marketing@smebusinesslink.com.
Seats are limited, so book early to guarantee your place.
Invitation to the “Accelerate Your Growth in 2012” SME Business Seminar and Networking Event and Launch of SME Association of Zimbabwe
If you want to seriously grow your business in the coming year, then you will learn a lot from the business experts and experienced entrepreneurs who will speak at this Seminar on Wednesday 14 December 2011, at the Holiday Inn, Harare.
The objective of the Seminar is to provide expert advice to SMEs while sharing
insights and opportunities through networking. The SME Association of Zimbabwe will also be launched, with initial executives and committee members being nominated into office at 10am.
The topics to be covered are as follows:
• How to take your small business to the next level Farai Mutambanengwe.SME Advisor, MD of Adways Consultants (Pvt) Ltd and Founder of the SME Association of Zimbabwe
• Strategic Planningto Grow Your Business in2012- Phillip Chichoni. Strategic Business Planning Consultant and Director of Admiral Business Systems (Pvt) Ltd
• LeveragingHuman Resourceto Achieve Your Strategic Goals –Rodrick Bumhira. Strategic HR consultant and MD ofStrategic Synergies (Pvt) Ltd
• Effective Marketing and Branding to Grow Your Business- Nigel Jumbe. Branding, marketing and advertising expert and MD of Summerhay Media (Pvt) Ltd
• Maximizing the benefits from the new Information Technology and the Internet-TBA
• Experiences from successful entrepreneurs – TBA
• SME Loan package explained- CABS Representative
• The Importance of Financial and Cash Flow Planning for the new year-TBA
Don’t miss this opportunity to meet other enrtepreneurs and professionals and expand your network. Bring your business cards or company profiles for networking and business exchange. Participants will receive a CD of John C. Maxwell’s audio books “21 Laws of Leadership”, “25 Ways to Win with People” and “Becoming a Person of Influence”
Fee $50 for BusinessLink Gold Club subscribers, non-subscribers $75, covering materials, handouts, teas, refreshments and buffet lunch.
Please book you seat now by calling Christine on 0772 854 301 or emailing marketing@smebusinesslink.com.
Visit http://smebusinesslink.com for more information.
How to cope with working capital challenges in this illiquid economy
The problem is acknowledged throughout the world: in difficult economic times, the successful management of cash flow and working capital is often crucial to business
success – even to business survival.
The Zimbabwean economy is still a long way from recovery. Dozens of entrepreneurs and SMEs send me emails weekly describing how the lack of liquidity is crushing their entrepreneurial spirit and preventing them from growing their businesses.
This problem is not unique to Zimbabwe. In the Western countries hit by the global recession the story is the same, and in some cases worse. And entrepreneurs need to go back to basics. Ben Bernanke, Chairman of the Federal Reserve, recently said.
that “shortening the cash cycle and better use of working capital” is the most important factor as private sector organisations struggle to overcome current economic volatility and the increasing difficulty of accessing capital markets.
That’s also the view of the IBM Institute for Business Value. It says that the current environment is “placing unprecedented constraints on access to credit and capital”, and there is widespread agreement that “cash flow and working capital management will be central to survival, growth, and strategic flexibility”.
The major problems facing Zimbabwean SME’s is the lack of cash in the business to meeting operational needs (such as marketing and operating expenses,purchasing stocks etc) and the unavailability of affordable loans to cover the cash gap. It has already been said before by numerous entrepreneurs (not economists by the way), that the cost of funds in Zimbabwe does not allow for profitable business. So, how can one solve the cash problem without resorting to expensive buying?
Here are a few tips:
1. Get more good customers:
Instead of accepting the “average” customer who will try to push your price down and also give you a hard time when it comes to paying, look for high value customers who appreciate your product and service and are willing to pay more for higher value. Good customers know you are in business and will not try to bankrupt you through cutting your margins or delaying payments. Most are even willing to pay upfront. So, change your marketing strategy to attract high end customers- Mercedes Benz customers instead of Toyota Spacios.
2. Sell more higher margin products:
Most of us want to do easy business; something that someone else is already doing or selling. Unfortunately the rules of markets and economics dictate the obvious: less pain less gain. Change to higher margin, not so easy to supply products and services. This calls for innovation and creative thinking. Deliver products and services that people really need and are willing to pay for, real wants and needs.
3. Focus on cash generating activities:
Both performance management and incentive mechanisms should focus on workign capital and cash. Reward sales people who bring in quicker paying customers. How fast do you convert sales to cash? And how fast do your suppliers expect payment? That gap is what you should be concentrating on in order to maximize your cash inflow.
4. Educate yourself to understand working capital management:
Very few entrepreneurs understand the workings of working capital and cash flow. The realities of the new economy is that the key difference between organisations that successfully meet the challenges of the current economic situation and those that
don’t is their ability to adopt the practices, processes, and technologies which increase their understanding of working capital performance. The challenges are great, the penalties for failure severe – but the opportunities for success are there to be seized.
To survice and grow in this economy it is vital to get down to the basics of business: understand the finances; actively manage your working capital and cash; engage in effective marketing that brings in more and higher value customers; provide the customer experience that keeps and bring in more customers; and learn to plan for the short and medium term. Keeping on doing things the way you have always done them will keep you getting the same mediocre results; change and start managing your business now.
You will find more resources you need to survive and grow your business at http://admiralbiz.wordpress.com.
You can now list your business profile where it will be seen by hundreds of other high performance entrepreneurs at the SME BusinessLink Community: http://smebusinesslink.wordpress.com
Don’t miss the SME BusinessLink Networking Breakfast on Friday 26 August 2011. Mr. Lameck Danga, the Head of Retail and SME Banking will be the guest speaker, you may ask all you need about how banks support entrepreneurs and get to know about the specific programs currently available to help you accelerate your growth. Don’t miss it; call Christine on 0772 854 301 to book your place. (Fee $12 for Gold Club subscribers and $20 for non-subscribers. Special offer for new subscribers: subscribe now and you will get free entry to this networking event).
ESSENTIAL BUSINESS TRAINING FOR AGRO-INDUSTRY ENTREPRENEURS
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Markets Turmoil: What it means for Zimbabwean SMEs
Those who follow international business news saw how how global markets panicked while Zimbabweans were celebrating the Heroes holidays. Although the US debt problem is specific to America, markets in Europe and Asia tumbled. The effect on Africa is minimal, except on the largest economies such as South Africa and the oil exporting countries. In Zimbabwe the only significant effect would be psychological as “economists” and other bad news mongers predict more “bad news” and “hard times ahead”.
This is not to say we have to relax. No ways! In Zimbabwe we were already in crisis as evidenced by the tight cashflow and slow demand which, conditions that have not improved as expected since the introduction of the free market.
Most SMEs are struggling to survive day by day, month by month. Zimbabwean entrepreneurs need to be more focused, have clearer visions and adjust their business models.
Entrepreneurs who don’t have clear long term visions will always be scared and shaken by changing market and economic conditions.
A strange thing happens during recessions and market turmoils. While the majority of business owners and executives concentrate on survival and short-term gains, a few entrepreneurs and organizations make great leaps during the down cycle before recovery starts.
In 1932 against all recommendations. Kellog’s released Rice Krispies in the middle of the Great Depression. With that move the firm jumped over its biggest player in the industry.
In 2001, everyone thought it was the worst idea ever to release the iPod in the middle of the dot-com crash and Apple was taking a beating in the market. But Steve Jobs thought otherwise, and removed the Sony Walkman from the perch in personal music players.
In both cases, the competitors were caught unaware and couldn’t move fast enough to respond.
The lesson: don’t follow the mood, seize the opportunity! Strike while everyone else is gloomy and complaining and waiting for the environment to change. The time to start or grow your business is right now!
How to Start a Profitable Niche Internet Café Business: Workshop Friday 29 July 2011
Internet has literally exploded in Zimbabwe, with Econet, Telecel, TelOne, Africom, Powertel etc all offering internet services. But there are profitable opportunities in niche markets that are currently not being satisfied by the current service providers. Why not exploit those gaps? Learn the following key skills:
• How to research the market
• how to craft a business plan for a Niche Internet Service business;
• evaluate viability and feasibility
• analyze the costs / benefits offered by the different broadband suppliers (wired , wireless & fibre)
• make financial and cash flow projections,
• source affordable equipment,
• raise start-up cash (without borrowing),
• quickly build a solid customer base,
• maximize revenues and run your business profitably.
The 4 hour course will equip you to go and start your own business (internet or any other – think out of the box!) right away.
Venue: SME BusinessLink, 111 Seke Road, Logan Park Hatfield Harare.
Fee: $40 (BusinessLink Subscribers $25) covering course content, materials, business plan and marketing plan guidebooks, templates and worksheets on CD, refreshments and meals.
Time: 0900-1300
To book, please call Christine on 0772 854 301 or make your payment at SME BusinessLink in Hatfield before 2pm Thursday 28 July 2011.
Visit http://admiralbiz.wordpress.com for full workshop details, or request information form by emailing admiralharare@gmail.com. (Limited class size- book early)
STOP DREAMING AND START BUILDING YOUR NEW BUSINESS NOW!
I receive dozens of emails every week from people saying they want to start a business but don’t know where to start, or they have many ideas but they can’t decide which one to implement. That’s common among potential entrepreneurs and serial entrepreneurs (i.e. people who are always building new businesses).
Unfortunately, too many people get stuck at the idea stage and never get to start. How sad when some brilliant ideas die without seeing the light of day. Here are some tips to help you get started on your business right now:
1. Take a step, any step. Just thinking of the many tasks involved in your new business can exhaust your mind before you even begin. So just pick something—anything—and do it. You’ll feel good getting a task done and then be encouraged to take on another one. Before you know it, you’re on your way. It’s easier to start with something that you like to do, then go on to the other tasks. The good-feeling you get from starting will give you the momentum to continue.
2. Keep it simple and forget perfect. A successful entrepreneur offers a hint: “If you’re opening a hot dog stand, you could worry about the condiments, the cart, the name, the decoration. But the first thing you should worry about is the hot dog. The hot dogs are the epicenter. Everything else is secondary.” Figure out what your hot dog is, hold the (perfect) trimmings for later and you’ll find starting gets much simpler.
3. Don’t reinvent the wheel. There is no need to build something from scratch that you can rent, lease, or (better yet) use for no or low cost. For example, when you are building your website, consider using WordPress or Blogger rather than having a custom-coded website built. The “off the shelf” tools are much cheaper, faster, and easier to use while you’re learning what is needed for your business.
4. Tell people you’re starting. Some founders assume they shouldn’t tell anyone what they’re doing because someone could steal their idea. But in real life experience, the benefits far outweigh the risks. First, nothing makes a business “real” faster than telling the people in your life that you’re starting it. Second, a curious thing happens when you tell people about your business. They ask questions and offer ideas. They make introductions and identify the competition. And, by knowing, they can support you (emotionally and otherwise) as you’re doing this incredibly rewarding but hard thing.
5. Tell people what you need. Immediately after you share with someone what you’re doing, you should also identify for them what you need right now. This makes their help even more helpful. For example, if you are a technologist who really needs an online marketing expert to help you run the business, tell that to everyone you meet. Your contacts may not know the right person but someone else they know might. You’ll be surprised what a small world it is that way.
Yesterday at the networking cocktail evening, one entrepreneur revealed some insights about how finance is not what drives business to success. Joseph Chinhamu of Native Timbers told us how how borrowed some money from a bank last year to finance an exprt order. All of sudden the cancelled while the goods where ready to be dispatched, saying he had found a better deal. Unfortunately the products have been manufactured to this customer’s specification and no-else wanted them. He suffered a big loss and had a big struggle paying off the bank loan.
A few months a go he decided to start driving his business by looking for local customers. His approach was to look for good potential customers, convince them to pay a deposit which he used to procure his raw materials. This way the risk of cancellation is greatly reduced and the only loss he can suffer is his gross profit. His business is picking up due to his focusing on good customers that he has been finding through networking at the Zimbabwe National Chamber of Commerce, where he is an executive member of the Harare branch. He recently joined SME BusinessLink so he can further expand his network. The point of this experience is that you don’t need money to drive your business, you need customers. And networking is an effective way of meeting serious potential customers without spending a lot of money on advertising.
Best wishes in your business growth!
Phillip Chichoni
0777 774 007
http://admiralbiz.wordpress.com
**The BusinessLink Community is now live online at http://smebusinesslink.wordpress.com. Please visit it if you are looking for products and services from fellow SMEs. If your profile hasn’t been listed yet, please email send it to me using the format attached. If you haven’t subscribed to BusinessLink you are missing out on an opportunity to accelerate your growth through networking, referrals exchange. BusinessLink members are encouraged to first approach fellow members for business. This benefits all members as they help each other to grow. And it’s much better and less riskier to do business with someone you know, someone in your network.
We are currently negotiating with a new leading edge telecoms company for a special deal for SME BusinessLink members. The company provides telephone, mobile, SMS, e-mail and broadband internet services all in one package. It is an excellent product for SMEs and offers the cheapest call rates of 5 cents per minute to cell numbers, compared to other networks 20 to 25 cents per minute. If you are interested in the package which spreads payment to 4-6months, please send me an email. Tell your friends about it, the bigger the numbers the more clout we get as a group.
**Business Plan writing classes are currently running. The next two are on Wednesday 27 July and Saturday 30 July. Please book early and pay at least 24 hours before the class you wish to attend in order for us to plan the logistics properly.The classes are designed to equip you with the skills and tools to help you put your business idea into bankable plan. Please call Christine on 0772 854 301 to confirm you booking.
**The Zimbabwe Entrepreneurs Business Plan Competition is on until 31 August. If you have a brilliant business idea please enter and you could win start up capital, business start-up kit, business skills training, mentorship and assistance in setting up and growing the business. Don’t let your ideas get wasted, get moving right now. See http://admiralbiz.wordpress.com and go to the Competition page for more details.
ESSENTIAL FINANCE FOR ENTREPRENEURS AND PROFESSIONALS
Essential Finance for Entrepreneurs, Business Owners and Professionals
Raise your company’s financial IQ! More easily attract bankers, investors and other critical resources. Financial statements, ratios, strategic and operating plans, budgets – all play a key role in building successful companies. Here’s how to use them to your advantage. This is finance for the entrepreneur or business owner with no previous financial training. This full day course will leave you empowered and more confident financially.
Course dates: Friday 22/07/2011
Venue:
Presenters:
• Phillip Chichoni (ICSAZ) of Director of Admiral Business Systems (Pvt) Ltd
• Joyce Tanga Shumba (ICAZ) partner at Tanga Shumba & Associates (Chartered Accountants)
• TBA
Fee: $70 per person, including meals, refreshments and handouts and certificate of attendance. (SME BusinessLink subscribers pay $50)
Program for Essential Finance for Entrepreneurs:
0830-0845 Registration and Teas
0845-0900 Introductions
0900-1000 Main objectives of financial management & introduction to financial and management accounting
1000-1045 Demistifying accounting jargon, basic equation, concepts and principles
1045-1100 Tea break
1100-1145 Business model & profitability; assets, liabilities, income and expenses
1145-1215 Introduction to financial statements; essential record-keeping
1215-1300 Interpreting financial statements, essential ratios and their analysis, breakeven analysis, costing basics, working capital management
1300-1400 Lunch break
1400-1500 Cash flow management, forecasting & planning; debt & equity financing; finance raising, business valuation
1500-1515 Tea break
1515-1545 Financial planning; components of a good business plan; planning process, variance analysis, capital budgeting
1545-1630 Essential controls: financial cycles, financial control systems
