Diary of Opening A New Business

[Tony71]

'Thank heaven for us 99% of people out there just want to get paid and go home. '

Hahaha I like that.

Anyone of them can steal the idea. That is the risk you take. But inviting someone in that wants to be part of the "fastlane" I bet ups the odds.

Thank heaven for us 99% of people out there just want to get paid and go home.

 

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[theBiz]

I think what you are selling is irrelevant. To me it sounds you have a lot of experience with sales and could be successful doing this in many industries.

You are a distributor i would say. You are selling a product to other companies it sounds like to me. Considering you said you will have more warehouse workers than salesman it sounds like its reoccurring orders from the same stores. Also you said you have "fronted" the product to other stores so your buying a product and just reselling it to stores on consignment i believe (this being the reason for rapid growth, they cant say no type of deal). Regardless of what the product is, im more interested in the process ..... which you have been giving out a lot of valuable info, so thank you. I remember you saying salesmen may have to physically go sell the product, considering you said its national, its a bit confusing, maybe they actually travel to sell, that i don't know.

I know someone who does this with industrial cleaning products, about 10 salesman who each make about 55-65k per year, hes young but his bank account is very mature.

 

[Blu]

Howabout posting those photos?

 

[The Intrepid]

Just curious, when it comes to scaling and dealing with salespeople how much product knowledge are you expecting new hires to have while coming on board? Aside from being closers with a proven track record, do you expect them to be very familiar with your niche off hand?

 

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[JEdwards]

Here are a few... We have come a long way since then, as we have furniture, etc, in all the rooms also.

 

[JEdwards]

Just curious, when it comes to scaling and dealing with salespeople how much product knowledge are you expecting new hires to have while coming on board? Aside from being closers with a proven track record, do you expect them to be very familiar with your niche off hand?

Not much right now, we train on the basics, once someone understands the basics, they know more than 90% of the people out there, so that is a good thing.

I was just talking the other day that as we grow we will defiantly need experts and troubleshooters for some aspects.

 

[theBiz]

Hey Jack thanx for the pics, beautiful car.

I was just talking the other day that as we grow we will defiantly need experts and troubleshooters for some aspects.

You need experts and troubleshooters to help YOU out in various business aspects like a consultant? If yes like what...?

Or

You need to employ people full time who answer a tech support line?


I really like how the office is staying low budget right now, so many people want the top floor in a skyscraper before they even prove the business model, i hope some people take notice.

No phones at the computer desks? Are these people order takers and not salesmen?

 

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[JEdwards]

Thanks, it's my daily. I know, I know, the new 2012 model has come out, but I must make some sacrifices for the new biz.

1. I will need salespeople who are experts in what we are selling.

2. There are phones there now, headsets too, even some pics of my workers children.

We were still setting up when I took those pics.

 

[theBiz]

Great Jack, thank you. The office is a nice size space for sure.

I have to say i was picturing more of a dungeon/boiler room set up for your sales people than this. It looks very low pressure/easy going environment. What is the sales managers role in this room? Does she stand there all day and monitor activity? It seems with this current setup of cubicles it would be difficult for a manager to hone in on everyone's problems and address them.

I know at my buddies old sales room setup (salesmen were separated from other employees), there were no computers, just cafeteria tables lined up with phones and a sales manager hawking them all day. It was high pressured, but it certainly did work.

Thanx again, really appreciate the input, this is one of the best threads i have seen since becoming a member.

 

[oddball]

Looks good, I like the simplicity of the office. And the Bentley....damn...haha. Very nice.

 

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[Blu]

Jack,
looks like you have a reception area there, do many clients actually visit you?

 

[JEdwards]

Jack,
looks like you have a reception area there, do many clients actually visit you?

No Not at all, But you still need the reception area to have the interviewee's sit and wait.. Lot of hiring to do now.

 

[DreamPursuit]

Looks like you are moving along quite well! After all is done, you ought to maybe write a book about the trials and tribulations you faced in turning $15K into a $10 million business within 24 months. Oh, btw that is one nice car you got. Keep up the good work! +speed

 

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[Maxjohan]

I have no problem with competition, I just don't want to train the competition.

You actually believe that he will steal your idea, and start up a business in your niche. LOL.

Nice thread anyhow.

 

[JEdwards]

You actually believe that he will steal your idea, and start up a business in your niche. LOL.

You actually believe he wouldn't? Now that is funny!

Let's see what he would say when his friends ask, "I worked for this guy who took a $15k investment to $25 million in sales in under two years," Wow, you going to do the same thing? "Naw, I am NOT going to do the same thing I am going to reinvent the wheel... I have an idea to build a texting coupon business."

 

[Rickson9]

You actually believe that he will steal your idea, and start up a business in your niche. LOL.

Nice thread anyhow.

Only an idiot wouldn't. Capitalism is survival of the fittest. I steal ideas all the time.

Best regards.

 

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[theBiz]

I honestly would not be so focused on the idea, i am super impressed with the sales. Why do some people have trouble selling their product/services everyday we ask ourselves? Now Jack comes along and is hiring salesmen in a recession.

There is two answers:

1) You are unbelievable at sales ( if this is true, i am very interested because if you can sell one thing, you can sell another).

2) Your product pretty much sells itself/ high demand and maybe your product is under priced (then i understand why you would guard it)

or maybe it is a little of both, regardless i have always understood if you can not sell your product/service, you will be struggling throughout the businesses duration. The people working for you are getting great experience.

 

[JEdwards]

Two things I wish..

1. I wish my product would sell itself.

2. I wish I was unbelievable at sales.

It is all numbers, price, and service.

You got to have that or you have lost before you start.

 

[theBiz]

O man now I'm even more confused. I really hope Low price is not the key to success because I find it more and more difficult everyday to have a competitive advantage through price considering low barriers to entry and technology. I mean if you had an exclusive supplier in which you would be the first to mArket the product in a particular way that's understandable too.

 

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[Blu]

Jack,
how have you manged things like software licenses? For each new employee dont you have to kit them out with a PC, MS office etc, and then user license for your CRM (what CRM do you use?)

 

[MCD]

Maybe he is just an excellent at hiring others and managing them, as he said a few posts back he doesn't sell the product himself, which would mean sales wouldn't matter.

I honestly would not be so focused on the idea, i am super impressed with the sales. Why do some people have trouble selling their product/services everyday we ask ourselves? Now Jack comes along and is hiring salesmen in a recession.

There is two answers:

1) You are unbelievable at sales ( if this is true, i am very interested because if you can sell one thing, you can sell another).

2) Your product pretty much sells itself/ high demand and maybe your product is under priced (then i understand why you would guard it)

or maybe it is a little of both, regardless i have always understood if you can not sell your product/service, you will be struggling throughout the businesses duration. The people working for you are getting great experience.

 

[theBiz]

Everything matters, but I understand what your trying to say. Yes he seems to be good at hiring others.

 

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[JEdwards]

Jack,
how have you manged things like software licenses? For each new employee dont you have to kit them out with a PC, MS office etc, and then user license for your CRM (what CRM do you use?)

Yes new pc, but we have our own in house crm software that I had written a while back. Then I have them all on google docs, etc for the rest. No licenses needed, yet.

Everything matters, but I understand what your trying to say. Yes he seems to be good at hiring others.

I am good at leading others to do what I don't want to, or have the time to do.

If I am selling, I am not growing.

If I am managing people, I am not growing.

I create the idea and put people in charge of implementing it.

 

[theBiz]

Are you guys talking about something like SugarCRM..? I never really understood the true value of these programs, are they really needed?

If I am selling, I am not growing.

If I am managing people, I am not growing.

I create the idea and put people in charge of implementing it.

That sounds great, you make it sound almost too easy which im sure its not. I guess you put it all on paper, then have others execute it, and in order for it to work so well, the planning really has to be correct. If the planning is not done the right way, your employees would just be spinning their wheels.

 

[JEdwards]

That sounds great, you make it sound almost too easy which im sure its not. I guess you put it all on paper, then have others execute it, and in order for it to work so well, the planning really has to be correct. If the planning is not done the right way, your employees would just be spinning their wheels.

Trust me, it is not easy as it seems, makes for a lot of idle time for others.

In opening this deal, I am really off my game a lot. The deal is, there is the stuff they know they are supposed to do, and then everyday I give them a list of what needs to be done.

Hopefully soon here, there will come a day when it is just done.



Also another tip and maybe i am old fashioned but, I like everything to be printed so I can see it, make changes etc, it is really hard with you young kids to press print and then show it, having someone say they emailed to me means nothing to me. I want to see it. So print it out, it makes it real.

 

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[theBiz]

I have considered myself to be an entrepreneur but now as I have been employing people here and there I realized I am not good at it. I am good at motivating others just not good at picking out the right people. Here is my question, if you are not physically doing any of the work... Once the office is set up, employees are trained, and sales men are on the phone what is considered "hard work" for you? Are you struggling through trial and error to make your system to work? Is motivated your employees the difference between failure and profit? I have never owned a business with full time employees so I'm sure it's a different game.

 

[Inphinity]

Wow, this thread is incredible... awesome turnaround for getting things going!! Any update on any sales yet?

 

[Blu]

Jack,
few questions about your sales....

1. Whats the average value of each sale?
2. How long is each sales cycle?
3. Do you buy leads, or have your sales people source them from phone directories etc?
4. Do you have any poor performing sales people, in this case are you helping them or preparing to cut them?


And I guess a more general question... how have your competitors reacted (if at all) to your company?

 

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[JEdwards]

Wow, this thread is incredible... awesome turnaround for getting things going!! Any update on any sales yet?

We are not doing bad, just not doing enough, yet, but I see it growing and it is all on cash flow now, so no money is coming out of my pocket to do it, and we are not really losing much money. But I am over my original buy in, in liabilities at this point. So it needs to work.

Now I need to scale up, thus the need for the bigger place.

Jack,
few questions about your sales....

1. Whats the average value of each sale?
2. How long is each sales cycle?
3. Do you buy leads, or have your sales people source them from phone directories etc?
4. Do you have any poor performing sales people, in this case are you helping them or preparing to cut them?


And I guess a more general question... how have your competitors reacted (if at all) to your company?

1. Rather not say.
2. Not long..
3. Phone directories, just downloaded them.
4. All of the above. There is always good and there is always bad. I think we have our training down, so now it is just a matter of getting enough good people doing it. But I do not dilly dally, if someone cannot sale they are gone pretty quick.

I don't think the competitors know we exist yet.


I think a big hiccup in most young entres deals, is they can be BSed by sales people into thinking they can do this or that, when they can't. You would be very surprised that a bad a$$ dude that comes in wearing a suit and says I can sell anything but can't, you will hire him over the little old lady that can sell like you have never seen.

Case in point, a few weeks ago this guy came in, in a nice suit, he had been in phone sales for 20 years, gave me the long line, I was number one at this, number 1 at that, all I could think of is then why are you here looking for a starting sales job.. I can already tell, his ego is all he has.

But the question for the young guys here is, can you tell that? You need to because that guy will cost you 1000's, not to mention the wasted time.

 

[JEdwards]

I have considered myself to be an entrepreneur but now as I have been employing people here and there I realized I am not good at it. I am good at motivating others just not good at picking out the right people. Here is my question, if you are not physically doing any of the work... Once the office is set up, employees are trained, and sales men are on the phone what is considered "hard work" for you? Are you struggling through trial and error to make your system to work? Is motivated your employees the difference between failure and profit? I have never owned a business with full time employees so I'm sure it's a different game.

You are going to have to get over that.. You must be able to hire smarter, better than you. If not you will always be "working hard"

The goal is to show up, and go to lunch...