Tag: Future

  • 6 New Best Practices For Exceptional Customer Service

    6 New Best Practices For Exceptional Customer Service

    [ad_1]

    Providing excellent customer service may be one of the most important things you will do in your business. After all, if you do this part poorly, you’ll lose current customers and perhaps future customers too when they find out.

    1. Create Standard Policies and Procedures

    Setting up standards of service that your customers will read before and after buying and that you can use as your basis for how you provide a solution to their problem will help tremendously. Ensure your return policy, terms of service, and expectations are very clear to your customers.

    2. Let The Customer Speak First

    When a customer contacts you due to a problem, let them talk first. You want to listen to what they have to say and let them know you’re listening by making the right sounds, giving the right looks (if in person) and parroting back to them what you think they meant by what they said in your own words. Most customers tell you what they want in the first minute.

    3. Don’t Take It Personally

    If you are the product creator or direct service provider, it can be hard to provide customer service for yourself because it’s so personal. If you can’t separate things and see them as not personal and only business, you may want to outsource to someone who can do a better job at providing customer service to your customers.

    4. Don’t Be Negative

    Even if you have to say no to someone, it’s imperative that you maintain your composure and don’t be negative. Don’t attack. Don’t defend. State policies that you plan to stick to in a matter-of-fact way. Repeat if necessary, always using a calm voice.

    5. Be Easy to Find

    Don’t make it hard for your customers to contact you. The emails you send to your audience should allow for replying and not be a no-reply email address. Big corporations do use these but as a smaller business, you’ll turn away too many people if you do it too.

    6. Get a Mirror

    If you’re talking to people on the phone, get a mirror that you can look at while talking. If you smile and talk to the mirror, you’ll come off as friendlier and more approachable, and this will help keep the person calmer.

    The thing is, while you want to say that the customer is always right, sometimes they’re not. Sometimes customer service feels like harassment. Even so, you need to put it in perspective and try to listen to what they have to say and what their complaint is first. Try to listen through the anger and find the solution. Create policies that make sense but be willing to bend them. If someone is extra angry, you may be better off giving them a refund.

    [ad_2]

    Source by Jon Allo

    Views: 0

  • How To Outsell All Affiliate Marketers

    How To Outsell All Affiliate Marketers

    [ad_1]

    If you do these things you will absolutely outsell other affiliate marketers, and put yourself in an authority position within every niche market you choose. I promise you. Because the truth is, if you want to make a lot of money in affiliate marketing, you can't be afraid to do some work and to go beyond what other affiliate marketers are doing.

    You need to stand out. You need to give people a clear reason to listen to you so they'll click on your links and purchase the products you recommend. The work you do now will undoubtedly pay off in the end. Once you're making $ 10ka month, you can be lazy. Now isn't the time. Right now, you need to do the upfront work that will set you up for long-term success.

    So, where should you begin? What are the absolute essential steps that you need to take to start making money while looking out for the future? I touched on it already, but keep reading and I'll jump into the trenches with you and show you exactly where you should start.

    Keep a Steady Eye on Your Market

    If you want to make a ton of money in affiliate marketing, you absolutely must be fanatical about keeping tabs on your market so you can effectively position yourself in front of your target audience long before others do.

    In fact, the easiest way to make money in affiliate marketing is to have your system in place weeks before the launch ever happens. That way, you not only position yourself in the search engines (and in front of the line with subscribers) for when the big day comes, but you're given enough time to create content, value enhancers and bonus products that will draw customers to you, rather than the competition.

    When you subscribe to a JV or launch notification program, you'll receive emails and updates about upcoming product launches long before the information is made available to potential customers. In fact, many times, you'll find out about upcoming product launches long before the merchant even begins to contact their own affiliates!

    If you aren't sure where to begin, or who these developers are, you can join Muncheye, which is a launch notification system that will send you emails about upcoming launches.

    If you're interested in business and Internet marketing products, check out JVZoo.

    You'll need to apply for approval with each vendor, but typically it only takes a couple of hours to get approval. Then, you'll have immediate access to their JV promotional page where you'll be able to download swipe files, banners, ad copy, and more.

    Plus, you'll get to see their entire sales funnel and how you can earn more money through their back-end offers. There are countless other affiliate marketplaces online so run a Google search to find a few that offer products that you are interested in and then subscribe to their updates. The sooner you know of a product launch, the more prepared you will be; it's as simple as that.

    If you only start prepping your website and list within a few days of an upcoming launch you'll struggle to generate enough traffic through your affiliate links to make it worth your while. Instead, if you know of an upcoming launch weeks, even months ahead of time, you can set up a killer system that will maximize exposure, and of course, profits.

    [ad_2]

    Source by James Savage

    Views: 0

  • The Success Story of Beethoven

    The Success Story of Beethoven

    [ad_1]

    Beethoven was born on 16th, December, 1770 in Bonn of Germany. His father was a singer in local palace choir. Beethoven’s father was a very common person and he was addicted to gambling. However, his mother was a fairly kind-hearted and gentle female.She married an assistant as her first marriage and married to Beethoven’s father when her ex-husband died.

    Beethoven didn’t have access to go to school for the reason that his family was very poor. Nevertheless, he had a special feeling of music when he was very young.His father wanted to make use of his potential to make a big fortune. As a result, Beethoven had to practice playing clavecin and violin day and night under his father’s pressure.

    Beethoven had a performance on a stage for the first time when he was only seven years old and he made a huge success.Some famous musicians considered him as the second Mozart. Beethoven learned how to compose music from Nifo and published his first work named Concerto in A minor when he was 11. He went to Vienna to learn how to compose music from Mozart and Haydn.

    It seems that he would have a fairly bright future when Beethoven received the first success in 1800. Nevertheless, he was troubled with a terrible matter for years at that time.He found that he has became a deaf person. There couldn’t be anything more terrible than that for a musician. He sank into a blue mood for a long time as a consequence.

    Beethoven has an enthusiastic heart all the time.But his enthusiasm was often unfortunate. He often tolerated both hope and enthusiasm,disappointment and resistance. There was no doubt that all of these emotions had become his unique source of creation. He fell in love with Julia in 1801 and composed a music named Moonlight for her specifically. To his disappointed, she couldn’t understand his noble soul and refused him. Beethoven was upset and despairing for that and married a comte before long. It was the most hopeless moment for him and once a time, he wrote down a paper of posthumous papers.

    He came to life in 1803 and composed some bright and warm music such as The Second Symphonies. From then on, several more beautiful and marvelous music were produced. Some of them are fairly famous and I think you must have heard about them such as The Eroica and The Storm.

    Beethoven finished his masterpiece named The Ninth Symphonies in 1823. This piece of work expressed his world in his dream.

    He suffered from pulmonary edema in Dec.1826, which was resulted from a bad influenza.He passed away on 26th, March, 1827 for the reason of suffering from hepatopathy.

    It is said that the day on which Beethoven died was raining heavily and storming seriously. It seems that even the God grieved over his death.

    Beethoven’s funeral was fairly solemn and grand.It is estimated that over 20 thousand people presented his funeral.

    Beethoven’s wealth and success in music was huge and great. There are few people who can surpass his competence in music creation. He is a great musician for us and we shall miss him forever and appreciate his works.

    [ad_2]

    Source by Linda Ding

    Views: 0

  • Why Your Mindset Matters

    Why Your Mindset Matters

    [ad_1]

    Why does your mindset matter? Your mindset only matters if you want to have a better life. What matters to you?

    Do Things Happen to You, or do You Happen to Things?

    When life happens to you, you are existing. When you happen to life, you are living. Don't let people, circumstances, or environment keep you from living your dreams. Go out and make it happen, you will be glad you did.

    Focus on It

    Do you envision your success? Do you clear your mind of all distractions before you engage your mind? Filter out distractions, negative self-talk, and envision a time in the past when you experienced success. Think about the way this achievement made you feel. Focus your energy on the positive What you focus on-you find.

    Are you Sitting on the Sidelines, or Getting in the Game?

    Do you spend time wishing, or thinking about what you want or are you actively engaged in pursuing it? Don't waste precious time in your life measuring others achievements. If you spend any time on social media, be aware of this mind trap. If you must peruse others success, think about how they got there, and make a plan to replicate this success in your life. Take action.

    Do you Settle for the Status Quo, or are you Pushing your Limits?

    Is life ok, just good enough? Do you wish you had pushed a little harder to reach your goal? If you have a pulse, get busy! There is always time today to break the status quo in your life.

    Are you Continuing to Learn From the World?

    Keep learning new things even if the things you learn don't fit into your overall plan. If you continue to be a student for life, the knowledge will enable you to continue to grow in surprising ways. Expand your world.

    Are you practicing Blame Displacement?

    Sometimes in life, people blame circumstances, other people or things for the reason they did not get what they wanted in life. This habit goes by many names, but I like to call it "blame displacement." The tendency to blame others for events that do, or don't happen in life. Don't be a victim of blame displacement, look back at what you could have done differently, learn from the experience, then move on.

    Do you learn from failure?

    Famous people like Thomas Edison and Albert Einstein have said they learned the most from their failures. Look at your failures and take the information to be better next time. Just make sure there is a next time. Move forward and improve.

    Fear

    Is the fear of failure keeping you from what you want? The following are two different ways to handle the fear of failure:

    1-Think of the fear you are harboring, then imagine the worst possible scenario that could happen if you take action. Ask yourself, "what's the worst that could happen?" If you can live with this-take action.

    2-Fear is a future based emotion. It never takes place in the present. If you feel the fear use it as your rocket fuel to propel you into your goals-take action.

    Don't let fear, lack of focus, others or your environment keep you from your dreams. If you envision your success and believe in yourself and you will be well on your way to achieve your goals.The law of nature wills that what you believe, you can achieve, and receive in life.

    [ad_2]

    Source by Nan L Hruby

    Views: 0

  • Women And Self-Confidence – Healing Women's Insecurity Issues Today

    Women And Self-Confidence – Healing Women's Insecurity Issues Today

    [ad_1]

    Sound like a latte-in-the-sky dream? I mean the kind that could never happen in this lifetime?

    Today, all that ends.

    Let some new confidence with women understanding begin inside you, and beautiful begin being who you are to the core.

    This program for women and self-confidence is exactly the kind of community of women friends you should meet. Its specialty is helping women exactly like you.

    Heal those old wounds so you can break free from the past.

    Stop feeling insecure and overwhelmed by other people's demands.

    Pick up those shattered pieces of women's insecurity issues sitting around in your soul, heart and life and build something stunning and gorgeous with them.

    It's like the Course in Miracles states, "Do not be afraid to look within you."

    If you keep on beating yourself up OR ignoring it and hoping it will all solve itself, you can't pull yourself together.

    Unleash the confident, Got-It-Together, GORGEOUS and RADIANT woman you were MEANT to BE.

    There is nothing that feels better than having the total life confidence needed to be your real, luminous self.

    It makes a woman undeniably gorgeous, and you don't have to be a super model here to be a confident woman.

    It is life miracles of the highest order, and you deserve lots and lots of that!

    Get YOUR life miraculously going again!

    In a previous session I discussed other topics like how to realize more beauty and experience healthy weight loss without paying a fortune for a weight loss program.

    And, imagine being able to turn the heads of men (AND women) as you walk into a room, radiating COMPLETE confidence and allowing your inner goddess to glow.

    What if I told you that the universe is waiting to give you OCEANS of love?

    Wave after wave of it!

    A drenching, nourishing, sea of ​​it!

    You've built an emotional sea-wall that won't let it get to you, and here's the Truth:

    Spark some sizzling hot romance EVEN if your relationship is flat-out boring right now (It takes mere SECONDS to put this to work for you …).

    When you feel loved and confident

    Don't deny your beautiful heart any longer. Unleash the miracle power of love in your life!

    Yes, you can indeed change your love life and everything else, from PESSIMISTIC to PASSIONATE in a heartbeat.

    You have what it takes to feel the POWER to go after your dreams, and you naturally ATTRACT the man of your dreams.

    And if you're already in a relationship, you can build the kind of life together that most people only dream of.

    Dating and relationships are so much easier (and fun!) Once you FINALLY start accepting love.

    When you can FINALLY allow for to be given you love unapologetically from the world that's when your life and your relationships start to miraculously transform and you release all those women's insecurity issues.

    Extend your inner beauty!

    Begin right now in this instant to EFFORTLESSLY accept every kind of good and beautiful love into your life.

    When women's insecurity issues have your life split apart in pieces all over the place, it's easy to feel defeated.

    When frustration hooks up with unworthiness and they have a child called I AM SO TERRIBLY OVERWHELMED, confidence with women is difficult.

    You know what I mean?

    Wouldn't it be nice if you could let go of women's insecurity issues and get the JOY and BEAUTY of a woman who has her act together, as easily as ordering a latte with your BFF at your favorite coffee shop?

    (Please note I always suggest searching the net for related material on how a woman with no dreams for the future can TODAY become a stronger confident woman.)

    To your inner beauty shining forth!

    [ad_2]

    Source by James Nussbaumer

    Views: 0

  • Why Are Organic Social Media Fans Important for MLM Success?

    Why Are Organic Social Media Fans Important for MLM Success?

    [ad_1]

    MLM success is fun and profitable but there is a dark side that has pulled people into doing unethical marketing. It's fun to watch social accounts climb in popularity, however it can be done in the wrong fashion. Organic social growth is the only way to go. Most social media sites are watching for black tactics that enables accounts to grow at a rapid rate and many of the followers are not existent. They can cause problems for your account especially when you're sharing content.

    Your MLM success is based on the attracting and retaining leads and converting them into teammates. If social media sites catch you using unethical means to build your account, they will likely warn you before they shut down your account. That is not the worst of it most search engines especially Google are keeping an eye on this as well and will punish your content or website for bad social growth. Social media traffic is heavily weighed on search engines now. This means that your social media content has more points on search engines than it ever did.

    Building organic social media fans for MLM success

    You need to have an organic following to gain rankings in search engines now. This is the only acceptable method to stay "clean" with Google. You should never pay for followers. It's already difficult to weed out fake fans from the real ones. However, the real ones will engage with you from time to time. In some cases, most of the time if they love your content and you're responsive to them.

    To build future MLM success, you know you need to be responsive, create lovable content and be available in the online and offline world. Your content will come in different styles and flavors because no two prospects are alike in their journey. The content needs to touch on their pains and their journey stage. Once you have your campaign outline, you can develop short and long form content to help you achieve results. Be open to game changers, sometimes you may need to throw a curve ball instead of a fastball. You can throw in a webinar or a workbook to make things more engaging or simple.

    Engaging with your fans is a great to get your messages spread across the internet. They already like some of your stuff, so why not give them something for free. This can help you gain new sources of traffic and fans.

    [ad_2]

    Source by David L. Feinstein

    Views: 0

  • Emotional Labour – Organisational Behaviour

    Emotional Labour – Organisational Behaviour

    [ad_1]

    Abstract:

    Putting on a good show, keeping face, professionalism in customer treatment can all be examples of emotional labour. When in the workplace dealing with others whether they be colleagues or customers we tend to give a positive emotional response despite the negativity of the other person (customer complaint) or our own current mood state (sadness, irritability) known as emotional dissonance. In this paper we will explore the phenomenon of emotional labour and its effect on workers productivity and social relations. The general outcome being that the strain of that dissonance creates mental health problems in the workplace.

    Introduction:

    Emotional labour can be seen as the affect of the current mood of a worker whilst engaging in interactions with others – putting on a good face for example despite feeling emotionally uncomfortable. (1. Robins/Judge 2013) These emotions can be driven by organisational expectations of an employees behaviour towards customers, clients and co-workers in support of the business goals to profit. For example in the service industry, customer complaints should be handled with a polite professional smiling attitude so that the customer perceives that their complaints are receiving serious attention. Despite the fact the service provider (customer relations officer) maybe be in a personal bad mood, have life problems or employment concerns – all this is swept aside to provide the company’s public positive image to the customer. For the employee engaged in such activities the strain of appearing positive and enthusiastic may cause both physical and emotional strain often leading to further deterioration in mood after work and in between assignments. You could argue that a good deal of the time we are in fact faking our emotions (feelings) in front of and towards others to support social conventions for example being polite. If a customer’s complaint is unreasonable, they are showing anger, accusing the company or misleading them and selling shoddy products – the company service support worker must maintain control over their own emotions despite feeling that the customer is wrong and the complaint is unwarranted or even ridiculous they still have to maintain the company driven reaction to the customer with calm professionalism. (2. Myler – Case Studies 2018) Some companies make being happy at work almost mandatory – where staff entertain, create an atmosphere or encourage excitement over the product and its associated feelings of happiness. For example, theme park staff forced to smile all day – try it yourself – it is very stressful to keep a happy demeanor in the face of disgruntled visitors waiting hours in a queue for a five minute ride or the phone shop worker being asked to entertain the queue of waiting customers with hi-fives and silly games. (3. Grandey et.al. 2010) Many customers in fact reporting discomfort at being targeted for unwanted attention and interaction). Therefore there is a difference between felt emotions (what I am actually thinking and feeling) than with displayed emotions (what is expected of me). After an interaction the employee can feel both exhausted by the forced situation and emotionally angry at faking their feelings for the benefit of others. Many people who suffer from depression report that faking happiness is the biggest strain of the day.

    Culture and Emotional Labour

    Culture may impact on how someone sees emotional labour as the expectations of others in the light of social comparison. (4. Matsumoto etal. 2009) For example many American service jobs, such as retail staff, service providers and customer interaction workers all feel that a positive upbeat smiling enthusiastic person is a definite requirement for the companies image management. The monocor – have a nice day – often rings false in the ears of those who understand this is not a genuine sentiment but a practiced social grace. In other cultures such as Japan or Asia in general – forced politeness or deference to not displaying emotions may in fact cause particular strain on everyday life where displaced emotion can be seen in acts of violence and sexual deviance. The French tend to not display openness in dealing with customers but in fact a non-smiling or even impolite attitudes towards their clients. This can cause companies dealing in global markets problems with staff in having to adapt and understand policy in line with the cultural underlying expectations of behaviour.

    Mental Health

    Many psychologists, counsellors and others such as nurses encounter patients (clients) who maybe presenting mental health problems such as anxiety (worry about future events) or depression (living with the past) that report difficulties in the work place in faking their emotions towards both colleagues and customers – that they feel the strain of the day at home later through irritability, sexual indifference a lack of appetite and sleep. Keeping up appearances at work therefore effects the very quality of our lives both in and out of the work place. (5. Myler Case Studies 2018) Dealing with difficult people whether customers or colleagues leaves us feeling exhausted physically and mentally. In therapy the psychologist maybe searching for psycho-dynamic reasons for the negative feelings from past patterns of behaviour and often miss the power of the here and now effect of faking your feelings at work simply due to enforced company policies that require us to present an image of well- being and happiness that actually is not there. Treatment therefore should focus on workplace stress rather than personal history.

    Role Play & Emotional Labour:

    Of course we are schooled from an early age in how to act given certain social situations, for example being happy at a birthday party ( don’t spoil it for everyone) to look sad at the funeral (even when we did not even like the deceased). We have learned behavior for situational displays of affect. Have you ever been told off – criticised – looked at the person with a smile on your face – and they say, “what are you smiling at?” they think you are not taking them seriously enough, acknowledging their concerns – the truth maybe that we think their remarks are unwarranted and silly – however our learned correct response is to – look serious and be intently listening – while all the time inside feeling what an idiot this person is! In other words we are often asked to fake it – for the sake of the other persons feelings – this is often seen as high empathy when in fact it is more often just a learned reaction to a situational event. Emotional intelligence is seen a as a panacea for management effectiveness but maybe little more than learned responses to situations, rather than a genuine cognitive response to some event. In other words emotional intelligence maybe more pop psychology than a fact. Measurement for emotional understanding may reflect no more about the learned response to given situations we have come to understand through cultural, generational and traditional customs of our community or group behaviour. Psychometric tests for emotional intelligence may in fact be invalid and not robust enough to provide any useful measure of a persons feelings towards others but in fact reflect that learned behaviour – what should be the response not what I actually feel inside.

    Attributions Theory – Misunderstanding Others:

    Attribution theory ( 6. Heider – 1958) suggests that we attend to what we see more than what we know. In other words – we do in fact judge a book by its cover. So if we are busy faking our emotions so must everyone else? So how do we know that the mood being displayed to us is genuine or faked. We pride ourselves on being able to know others feeling by their facial expressions, there seemingly genuineness and authentic sounding responses. In fact much of the time we maybe reacting to the faked emotion rather than the real one. We are often surprised to hear someone committed suicide – we may say – they always seemed so positive and happy looking – but that is exactly what a mis-attribution is – the lack of skills to identify a real emotion from a faked one – we are actually quite good at emotional labour at work and so do we really know what anyone is actually feeling, as opposed to what they are displaying to us. So the helpful shop assistant may in fact be bored rigid at having to seem enthusiastic about a product she has already spoken about ten times that day already.

    In Summery:

    Emotional labour is a situation where the employee expresses the companies desired response to a given situation. Emotional dissonance are our feeling of confusion between our internal feelings and the face we put upon the situation given company policy towards others. Felt emotions therefore being what we actually feel as opposed to displayed emotion being the faked response to another person. Finally emotional intelligence being no more than learned responses to events as we behave given the situation we find ourselves in. The consequences of faked emotions can be strain leading to emotional exhaustion that has both physical and emotional outcomes for mental health and general well-being. Judging others may in fact lead to mis-attributions where we think the faked emotion is in fact the real feelings of the other party.

    To be honest, open and authentic would be real intimacy in our relationships but carries the high risk of rejection and misunderstandings.

    References:

    1. Robins S.P. Judge T.A. 2013 – Organizational Behavior 15Ed Pearson Publishing

    2. Myler S.F. 2018 – Myler Case Studies 2018/19 Unpublished

    3. Grandey A. et.al. 2010 – Work in the Global Services Economy – Journal of Service Management.

    4. Matsumoto D. 2009 – Culture & Emotional Expression – New York, Taylor & Francis publishing.

    5. Myler S. F. 2019 – Myler Case Studies 2019 Unpublished

    6. Heider F 1958 – Attribution Theory – Oxford Dictionary of Psychology 2001

    [ad_2]

    Source by Stephen F. Myler

    Views: 0

  • Why Customer Concentration Impacts a Business Sale Transaction

    Why Customer Concentration Impacts a Business Sale Transaction

    [ad_1]

    Few owners recognize the major impact that customer concentration has on the sale of their business. Customer concentration represents a significant obstacle and will affect the salability, valuation, and deal structure of a business-for-sale transaction. Not only will it create problems in qualifying buyers but it will impact the ability for any prospective purchaser to obtain third party financing to complete the acquisition. Determining if customer concentration is present in an enterprise is a critical element of the succession planning process.

    Customer concentration is a situation when one customer represents a significant portion of revenues or when the business has a very small customer base. Based upon the expert one consults, the exact percentage for a concentration to exist varies. In most cases it is recognized when one customer represents more than 10% of sales or when the top five customers comprise greater than 25% of a company’s revenue. In either situation, a huge risk is created from the lack of diversification and steps to mitigate it should be taken years in advance of a planned business exit.

    When evaluating a business sale it is important for an owner to recognize that their client base has a significant impact on the enterprise value of the company. A broad and diverse base of customers where there are a large number of clients contributing to the business’ revenue will achieve a higher transaction value as it reduces the risk that a sizable decrease in earnings will occur if any one customer is lost or a particular industry segment that the business serves encounters economic distress.

    In addition to a lower sales price, businesses with customer concentration issues are more difficult to market for sale. For main street business transactions (those with adjusted earnings of less than $2mm) third party financing is used in the majority of cases. Businesses with high levels of customer concentration are very difficult to get financed. Lenders may provide only partial financing, offer sub-optimal terms, or decline the loan altogether. In situations where third party financing is not available, the pool of available buyers is significantly restricted and the terms of a deal could be heavily weighted on a contingent earn-out based on retaining the revenues derived by the largest customers. “Typically we want no customer concentration over a 10% level when considering financing an acquisition. Higher levels are possible with much more explanation and supporting documentation but remain a major concern” states Steve Mariani, President of Diamond Financial Services.

    Lastly, customer concentration will have a direct impact on the deal structure for the business sale transaction. Buyers will strive to bridge the customer concentration risk through a variety of delayed ‘performance based’ financing methods. For example: Assume both parties agree on a transaction price of $900,000 based upon $300,000 of adjusted earnings (a 3x multiple). If the key account in question represents $75,000 of the $300,000 this would represent $225,000 of the transaction price. A buyer will strive to isolate the $225,000 component to ensure that revenue is maintained post sale. After a period of 12 months, if the customer and income are still in place the seller would receive the funds. If the identified client and corresponding revenue was lost during this period, a pricing adjustment would be made.

    In situations where the buyer is unable to obtain transaction financing due to customer concentration issues, the seller might have to accept a “contingent earn-out” for the revenues derived from the largest customers, or worse, they may also have to finance a major portion of the “non-contingent purchase price” negotiated with buyers.

    Contingent payouts could be structured in a variety of methods:

    Earn-Out:

    Earmark part of the purchase price with payments made over a period of time contingent upon the retention of specific customers or achieving specific revenue targets.

    Escrow:

    A percentage of the acquisition price will be held in an escrow account for a specified time.

    Seller-Financing:

    The seller would be responsible for financing a major portion of the purchase price through a seller note. The seller note could be structured with contingencies for revenues derived from the largest customers.

    With any of these deal structuring techniques, the seller cannot be expected to guarantee the revenue in perpetuity and if the transaction price is based upon retaining one or more key customers, the seller may require more active involvement in maintaining the client relationship during the term of the agreement. Obviously, this brings an additional complexity to the transaction.

    In most cases, buyers will look to discount the amount they are willing to pay for a business (with high customer concentration) unless they receive assurances that the risk is low. While the obvious strategy to reduce customer concentration risk is to diversify and increase the business customer base, there are a number of situations where customer concentration either does not pose a significant risk or could be mitigated.

    Customer Contracts:

    Having a contract in place will not eliminate all of the risk of losing a key customer, but it will provide the buyer with security that the revenue and profits will continue after a change in ownership takes place. When customer contracts are involved, the ability to assign or transfer will be important to understand. In many cases, a stock sale vs. asset sale is elected to preserve these contracts.

    Barriers to Entry or Exit:

    Businesses could have intellectual property, product expertise, or patents that create competitive advantages barring competition. Others are located in geographically remote areas where the supply benefits discourage customers from changing the relationship. Lastly, there could be significant capital requirements for manufacturing and tooling or agency approvals (pharmaceutical or government contracting industry) that creates a barrier to entry from potential competitors.

    Providing a Variety of Products and/or Services:

    Having a broad relationship with a key customer where the relationship is not based solely on one product, one location, and one individual decreases the risk that a singular change will fundamentally impact the future revenue stream and continuity of the account.

    Economies of Scale or Synergies:

    The acquisition may be pursued by a strategic buyer where they are bringing new products/services to the enterprise, a broader geographic distribution footprint, or economies of scale in production. Any of these elements would assist in reducing the concentration of revenue risk that an identified key client would represent to the future organization.

    Summary

    Businesses which have high levels of customer concentration are inherently risky and it is important for the owner to appreciate this concern from the perspective of a potential acquirer. Ultimately, the buyer seeks only to retain the customers which have contributed to the success of the business and are factored in the valuation and transaction price. From the position of a buyer a few logical questions and concerns would be:

    1. How does the value of the company change if a customer representing 10% or more of revenue and/or profits is lost in the first year?
    2. How easy would it be for the client representing the customer concentration concern to leave the business?
    3. What unique situations exist within the business to preserve the customer relationship in the years ahead?
    4. What are the logical steps and corresponding costs to mitigate the customer concentration risk?
    5. How do I achieve a win-win transaction? Protecting me, the buyer, against the risk of a near term revenue loss while providing the seller with the proper remuneration for the fair market value of their business?

    While the risk may not be able to be totally eliminated, there are a number of situations where customer concentration is more palatable and a proper explanation should be provided to the buyer at the earliest opportunity. Getting out in front of this potential challenge is critical to achieve a win-win deal. When good communication exists, and two fair and reasonable parties are at the table, there are a number of structuring options available, when necessary, to mitigate the risk and negotiate a fair and reasonable transaction price. Obviously, the best approach for a prospective business seller would be to develop and implement plans to reduce any customer concentration elements years in advance of a business exit. Eliminating this type of risk is just sound advice for any small business owner regardless of whether a sale is contemplated.

    [ad_2]

    Source by Michael Fekkes

    Views: 0

  • Wisdom For Living

    Wisdom For Living

    [ad_1]

    Do you have wisdom? Wisdom is the key to successful living on earth. Lack of it is to be groping in the dark and be surrounded by great woes, wailing and destruction. Wisdom makes the difference between success and failure, life and death, poverty and prosperity, health and sickness. Possession of wisdom is to possess life.

    “I, wisdom, dwell with prudence, and find out knowledge and discretion… I love those who love me, and those who seek me diligently will find me. Riches and honor are with me, enduring riches and righteousness… The Lord possessed me at the beginning of His way, before His works of old… Then I was beside Him as a master craftsman; and I was daily His delight, rejoicing always before Him… – Proverbs 8:12, 17-18, 22, 30 (NKJV).

    The Lord founded the earth by wisdom (Proverbs 3:19) and so man needs wisdom to be able to occupy her successfully. Wisdom is the principal thing to possess in order to enjoy living on earth. Every challenge in life is basically a wisdom problem and to have wisdom for any challenge is to have 50% of it solved.

    Wisdom was God’s master craftsman in creation. He utilized wisdom to successfully create all we see, use and enjoy. With wisdom you have prudence, knowledge and discretion; a complete package that will help you not to stumble or make mistakes in your words and action.

    The choices you make are measures of the wisdom available to you. The more the wisdom you acquire the better your choices and the outcomes you get. It is your responsibility to go for wisdom in all areas of your life. You need wisdom to live a victorious Christian life and also to live every phase of your life very well and remarkably: as a child, student, worker, spouse, parent, friend, leader, neighbour, colleague, group member, boss, employee and client. The list can go on and on. Your level of wisdom will affect your relationship with others and so is important that you possess it.

    Your tomorrow is a product of your application of wisdom today. The wisdom seeds you plant today grow and add up to give you a glorious future. The wisdom steps you take today will take you to your ultimate peak tomorrow. The prize you pay today to get wisdom cannot be compared to the returns that will come to you in future. The outcome of wisdom is worth all you have to put in or sacrifice to get it. The success of your life depends on it, so go for the wisdom for living.

    The word of God (The bible), which is the bag of wisdom seeds, has all the wisdom you need to live a triumphant life on this earth. Search the word for them, for whoever finds wisdom finds life and obtains favour from God.

    [ad_2]

    Source by Ngozi Nwoke

    Views: 0