Предприниматель | Информационно-аналитический журнал - Part 30

Under another name: the experience of serial franchisee

What should I keep in mind when buying a franchiseAutumn 2008 .

Petropavlovsk- Kamchatsky. Before entering the store tightly zadraenny ” Tsentrobuv ” – turn . Opening of the first store in the town of cheap shoes people are waiting impatiently. Owner , 25 -year-old entrepreneur Taras Sharyge too eager . The company, which he bought a franchise and pay 540,000 rubles for the right to use the brand, allows to open stores only in season – fall and spring. Shopping center built in the summer, and a few months Sharyga paying rent on empty. “I was very nervous , tried to dissuade them ,” – says Sharyga . But on the first day of his patience was rewarded: the store sold a tenth of the purchased games for the season .

The ideal way to make a trade

” Tsentrobuv ” was the third – and last – Sharygi shop , open for franchising. By that time he already had experience in trading – own shop equipment for snowboarding and other extreme sports. The second such store town with a population of 200,000 people was clearly not needed, and the owner decided that franchising – the perfect way to make a trade.

In Petropavlovsk -Kamchatsky then built the first modern shopping center ” Shams “. “The owners have said : we want souvenirs , tourism and shoes. I say only that he was in Moscow , has held talks on franchising . They are wildly happy “- says Sharyga . He played for broke – no agreement on the hands were not. Reaching home , the young man got in touch with the ” Expedition ” and ” red cube “. Representatives of the first network agreed at once, the second had to be persuaded about a month. With ” TSENTROBUV “, the contacts you found on the Internet , too, agreed with no problems.

History of failure

All three franchises Sharyga recouped in less than a year and a half . But it turned out that each purchase a franchise – a business with a clean slate. In 2010, as an experiment Sharyga bought three franchises – apparel network Sasch, confectionery stalls Tip Top and sports shop “Pro Sport”. All three stories ended in failure , the entrepreneur has lost more than 4 million.

Sharyga recognizes that in many respects he is guilty . First of all, was wrong with the place – “Pro Sport”, for example, held the third floor of the shopping center , where visitors are few. But franchising in all three cases was limited to only sign. “Pro Sport” does not even require a lump-sum fee and royalty (for many franchisors absence of these payments – pride ) – only commercial equipment and supplies manufacturers’ recommendations . By comparison, before the first “expedition” company compensated for half of the cost of urgent delivery of goods from Moscow to Kamchatka , and the managers of the company flew specially to motivate his salespeople. Now the entrepreneur will always pay more attention to the depth study franchbuka ( a list of recommendations for the franchisee . – Forbes).

Marianne Kashezheva , managing partner of “Business Bazaar” , warns that you should not rely on the instructions over the phone or by e -mail, electronic presentations and marketing materials. ” Any question of business, requires a personal meeting ,” – she said. It is worth asking in advance , ready to for this seller.In franchising entrepreneur Sharyga not disappointed . Six months ago, he opened a shoe stores under the names Obuv.com and Comforto. Now nine franchises bring Sharyge 7,000,000 rubles monthly revenue and margin will not fall below 15%. ” Many people think that franchise – it’s business on a silver platter . Nothing of the sort ! You provide the goods, give tips and fleece three skins for non- standards. And they are right , “- says Sharyga .

Features of the negotiations “in Russian”

The desire to show the strength , to win at any cost , an unwillingness to bargain – how not to give in to all this ?

Starting to talk about the practices of business , we should remember Mark Twain , who said that ” all generalizations are false, including this .” Therefore , I note immediately that all of my statements below do not claim to be the basic research of the existing models of governance in Russia . I do not agree with the Western experts who utrerzhdayut that the negotiations between the ” in Russian ” and the combination of ” nomenklatura style ” there is no difference . But we should accept the fact that the features of the conversation in different nations vary otkulturnyh traditions of a people . In the behavior of my colleagues, conducting negotiations with foreign kllegami , there are three main differences.

The desire to show who is stronger

On the mindset of the Russian human impact echoes impersokogo period, which can be defined as the dominance of power . Force , regardless of whether the money is , or authority , rank or talent, determines the behavior of the Russian colleagues . And if we start from the fact that during the negotiations , man is driven three motives – the desire to satisfy both parties to protect their rights or to show who is stronger – you can safely say that it motivates people rsskim third motive.

Realizing this, the foreign partner has to choose : either to leave the game , as the forces initially unequal, or to recognize the strength of both sides equal (but this is only possible when the foreign partner is no less powerful countries , such as China ), or look for other ways to equalize the force.

It should be the last resort for those planning to enter the Russian market. This may be the key to the knowledge possessed a foreign expert who wishes to conclude a partnership equivalent in strength . For example, Info Partnership with Korean company to a Russian businessman can be abundantly Info Partnership with compatriots other things being equal .

It should also be noted that in contrast to the Arab and Mediterranean countries , China and India, for the Russian bargaining itself be thought as something degrading . The roots of this has come from impersogo mentality.

The desire to win

The desire to command and even caused this principle as an “all or nothing” . And if an American , which entered into negotiations will seek to achieve success for both parties (the principle of win-win), it is more important for the Russian victory at the expense of the defeat of the other party. Avoid conflict can only help the search for a compromise . If the Russians have no other options , he is willing to negotiate.

Trust your partner

The third factor that determines the characteristics of negotiations ” in Russian ,” relationships , or personal acquaintance . The fact is , for the concept of «relationship» for a foreigner and “relations” for the Russians – not the same thing . Culture, harkternuyu for a society , forms the country’s history. And if you turn to the history of Russia , you will understand why from time immemorial Russian distrust foreigners not only in matters of business , but also to life in general.

For most foreign partners need only a brief business acquaintance . For example, representatives of industrial companies from the UK can sign a contract for $ 20 million with U.S. partners after a meeting with them . Sometimes enough to make a deal and virtual dating . In Russia, this is unacceptable. Strong relationships can guarantee that you will be talking to the proceedings. So for many foreigners , osobenoo from the West, where people live by the principle of “time is money” , it is not clear exactly why you need to make six visits to Moscow before the start points of the contract agreement . And if the foreign partner is not ready for such a long acquaintance , rosiyanin may be deemed inconsiderate and generally refuse to cooperate .

All other osodennosti negotiations – as a rule , the effects of these factors , or the influence of the common myths that appear due to the difference in mentality and are known far beyond the borders of the negotiation process .

For example, there is a myth that Russians are accustomed to negotiate in an aggressive manner . But in my experience , the Russians are not more aggressive than the Italians or Americans . Another myth – talks in Russia are always slow. In fact, they are not longer than negotiations in Latin America, and the process of negotiations balance between the desire to build a relationship and the principle of “time – money.”

Successful negotiations with representatives of Generation Y

Specialist negotiating shares tips on how to manage people born in the 1980-1990 ‘s.

55 -year-old vice president of the company was very angry. It is not time that morning asked his secretary to call the 31 -year-old PR- manager Dimitri. He still does not have a copy of the report , and the meeting on the nose. But Dmitry , instead of answering the call, sms sent to the chief , ” I’ll call you later.” But the call never came, and instead it was the second sms: “Report in your inbox from Saturday .” Vice – president of the company should read this article before you dismiss Dmitry . Generation Y people are different. They think differently and act differently. With them not turn out to work if they do not understand . And without them, the entire company can be lost .

If you are one of the leaders of the company, then surely the most promising employees will be people who belong to the generation Y. To this generation includes all those born in the 1980s and 1990s , and now they have become managers in companies. They are many of my students : they are all well- dressed, well aware that they speak English, but they prefer to answer in Russian , they have plates in their hands and they prefer to perform multiple tasks simultaneously . They may learn and at the same time to work . All of them are talented, do not praise the authorities are contradictory and can not concentrate on one thing for a long time . They can get bored quickly , so choose the social and professional mobility instead of a stable workplace. To find a common language with them , you should follow a few rules :

1. Give them a chance to speak. They are very annoyed when they interrupt . If your negotiations last for an hour, let them say 45 minutes. Do not take it as disrespect . This will help you to quickly reach an agreement . And if you want to achieve good results , give them a chance to talk , do not show their power.

2 . After 45 minutes , start to talk . Express slow and clear. You should not talk like them. His proposal ozvuchte in the last 10 minutes : it should sound briefly and clearly . The main rule – speak briefly . No need to explain to them your opinion , as it does not interest them because of something they enjoy and Twitter instead of writing letters . No need to convince them , just let go home , let them think .

3 . It is not necessary to talk about long-term plans : they do not want to think about the distant future. Make plans for next year, but no further. And if both parties will be satisfied at the end of the term , it can always be extended.

4 . Evaluate them on achievements , not by how much time they spend at work. Relationships are not interested , they are interested in the result. Therefore, any financial relationships must be present financial rewards for certain achievements , not for the time worked in the company.

5 . It is not necessary to delay the negotiations with them : one or two meetings , but no more. And attempts to delay the process can have you harm. The people of this generation are very comfortable feel in limbo .6. They are familiar with the notion of deadline . And if they did rip off , make them pay. Do not forget that they need the money more than a good relationship.7. Do not forget that the people of this generation are very inconsistent . Therefore, they should not be asking ” Why ? ” , Control them with actions.

Want to become a millionaire? Forget about the millions!

Ruben Harutyunyan , the head of men’s fashion shops network Henderson explains why it is impossible to develop the business , focusing solely on income.

He believes that we can only dream of millions in childhood. Annual revenue Ruben is approximately $ 100 million, and its network includes more than one hundred stores. Investment fund Aton Capital Partners in mid-2010, the company has invested Harutyunyan from $ 10 million to $ 20 million (the exact amount was not disclosed ) , thereby acquiring a minority stake of its business. When this network owner claims that he never in his life had no purpose to get rich. He shares tips on what motivation in business is the right one.

A friend of mine bought from Italy to Armenia vineyard. For eight years he was engaged in breeding resistant varieties of grapes before you received the grapes from which it was possible to make good wine. If, then, he appealed to investors , he would laugh. As many as eight years he spent , not even trying to recoup investments , and just getting ready to start production. He then did not aim to get rich. He is brought pleasure : he just wanted to prove that the land can give not only a fine cognac , but also an excellent wine. And last year, he presented his wines at the London exhibition and quickly attracted attention . As a result, he began to supply Armenian wines of its own production to a ” Michelin ” restaurants and large stores of London.

I know many businessmen , but among them there is no one who would have once made ​​a clear plan and, following it , has achieved a lot of success . In business card is not as important as the compass . I think the most important thing here – to find out what matters most to you, what gives you pleasure . It is impossible to become a good professional in music or sports, even if given the matter fully and at the same time do not love it. The same applies to business. It is impossible to succeed if there is no passion, no properly arranged priorities. Money should not serve the purpose , and the result of the work .

I’ll tell you about how the network was founded by men’s salons Henderson. Interestingly, the brand created not I, but Jerzy Marek Pehotski Lyubyanich and owning a Polish company LPP. When I met with them , I was committed to selling clothing from the company Fruit of the Loom. Then , in 1990 , they needed someone who can promote men’s clothing under the brand Henderson on the Russian market . Once I got samples of shirts and realized all the prospects , I agreed. While the market was presented a rather narrow selection of shirts mid-market , and so we stood out with a partner to explore the preferences of our Russian customers . We took part in the formation of collections of shirts : picking colors, materials, styles . I loved it , because I do not just sell , and participated in the development of the company. But then there was a small conflict : we have been working to improve the quality of the product , which inevitably entailed a rise in prices. Accordingly, the LPP did not like it , because the expensive items are sold slowly, and realize the bulk party was becoming increasingly difficult . In 2002, the LPP presented on the Russian market a new brand of youth clothing Reserved, inviting me to take part in its development. At first I agreed, but after a short stint still refused because he wanted to focus on the development of the brand Henderson. First, I did not want to deal with the mass market . Secondly, I wanted me to participate in the development of the brand , not just to sell her collection. After a year I decided to buy a brand LPP Henderson. Now LPP has five youth brands , which bring them an annual income of about € 1 billion we also create not only one shirt (in Henderson today the company has its own design studio , and the orders come in Spain, Italy , Portugal, China and other countries – Forbes). I am glad when the streets of cities around the world , I meet people who wear our clothes , shoes or accessories. In addition, we also have a second brand Hayas. And we get no pleasure from the level of our income , but from the realization that we are helping men to look good .

Of course, not every business that you love, will bring in more revenue. According to statistics, only 5-10 % of people completely realizovuyut all their aspirations and ideas. One day I was watching the Olympics on TV in London eight best runners competed , with each of them dreamed of winning , but the prizes went to only three of them. But does not mean that the desire to win the remaining five athletes were in vain . We each have different abilities , but it is important to decide on what brings us pleasure , and that we are willing to do for the people better than others. There is not a case in which all the efforts to make progress , to improve will be in vain . This is precisely the way to success. It is important to tune before starting a business. Because the most famous stars of Hollywood, whose revenues are now measured in hundreds of millions of dollars, starting with the fact that earning $ 100-200 . The famous French comedian Louis de Funes began his career with minor roles he ever played for years. But he tried to play expressively that later brought him worldwide fame.

This does not mean that the road to success is always a long and complicated , but should start with small steps . And when you find what you want to do, not have to calculate income. If you want to bake cakes , not because it is possible to make money, but because you just love pies , sooner or later your efforts will be appreciated by people . And even then you will be able to earn and .

Which is better – to hire an external or internal candidate

The president of Microsoft in Russia tells us how to choose between internal and external candidates for the vacant post .

In order to make an important decision , we always need to weigh the “pros ” and “cons .” Sometimes we even write down all the pros and cons on the sheet of paper , which helps us make things easier . Personally, I rarely do so , as some of the pros and cons are not always equivalent.

But there are some situations in which decision- making is the standard procedure . One such situation for me was a choice between external and internal candidate for one of the vacancies in our company. As a rule , I choose internal for several reasons:

1. You are already well aware of the strengths and weaknesses of the employee. It may not seem as attractive as the exterior , but it is only an illusion , as an internal candidate is more loyal to the company and has been verified , it is well acquainted with the structure of the company and the business processes that take place in it. He does not need to adapt , to meet with colleagues, software hardware, software, and internal rules . If you place a bet on his strengths, while at the same time helping to fight with weak , you can achieve considerable .

2 . Typically, an external candidate seems to be more competent and strong. First, all new always seems more attractive. Second, an external candidate always strive to present yourself in the best light . For many people, the transition to the new company is not looking for the best implementation of their abilities, but a way to make a career . And each new company and position they view as another step in the career ladder. This does not mean that they are bad professionals, but to sell themselves as expensive as possible for them is much more important. And not every company approaches a staff member .

3 . The interview is always a bit of a lottery . Sometimes good people can not present himself well in the interview , and therefore does not make the best impression . This is especially typical of certain types of persons , for example , creative professionals or researchers. And especially do not praise himself accepted in Russia . In addition, applicants are often found , which can produce a false impression regarding their knowledge , skills and experience. Perhaps each manager familiar with the situation , when the candidate expectations far exceed the reality.

4 . Always try to protect and support its people. When you hire an external candidate (especially for the head ) , it is stressful not only for himself but also for the employees who will continue to work with him. In the Russian office of Microsoft is trying to do the work and interaction with colleagues are more comfortable , but still completely eliminate the possibility of conflicts we can not. And the emergence of the new man – this is primarily a risk that the relations in the team may get worse .

5 . The optimal time employee without losing their motivation is really low. On average , it’s somewhere in 3-5 years ( depends on the post). That is, every time you hire an outside person, you , to some extent reduces the motivation of one of its employees , who hoped to hold this post . We have created a system in which every employee in our company can build a career , it lays out regularly with his manager . This gives considerable assurance of frustration.

Five main issues of franchising

In the capital, hosted the forum “Moscow – the territory of franchising “, where businessmen and government officials in Moscow discussed the prospects and problems associated with the development of franchising, which is an effective tool for business development. We offer five most pressing issues .

1. Entrepreneurs are not aware of the procedures for the acquisition of franchises and the benefits of doing business by franchising. According to the president of RAF Merab Elashvili , today in Russia franchise sorely lacking PR. The objectives of the association is to provide assistance and advice to budding franchisers .

2 . Among the entrepreneurs is very low demand . According to the General Director of ” Independent laboratory Invitro ” by Alexander Ostrovsky in Moscow lack of entrepreneurs who are ready to open your own business and to fight for its successful development . According to him, the need to help entrepreneurs , or small and medium-sized businesses simply will not.

3 . Today franchisees in Russia are low quality. According to the Director of Franchising Company “Express Retail” Alexander Nikanorova , business development for the franchise requires no less work than developing their own business. But many entrepreneurs forget about it . Alexander Nickanorov remembers that it happened and that we had to register them for cash .

4 . It is very difficult to get a bank loan without collateral and at a good rate. On December 31, 2011 Sberbank has launched a loan program called ” Business-start ” to help entrepreneurs start businesses for franchising. Under the terms of this program, you can get a loan in the amount of 3,000,000 rubles for a period of 3.5 years with an annual interest rate of 17.5 . To date, this is the only program of its kind.

5 . From 1 January 2013 the business has the opportunity to choose the tax system ( flat tax on income or a temporary patent system ) . According to the vice – president of ” Rush Subway Franchise Companies ” Gennady Kochetkov , this may give rise to disputes between brands and franchisees , since the payment of taxes under the patent is the use of cash registers neobyazatelnym.I if earlier it was possible to control the operation of the franchisee at the booths , it is now necessary look for new ways to control or restrict their rights .

Advertising in stores

Shopping is the most influential advetising after television .

Typically , consumers are not as loyal to the products they buy. According to studies, more than 65 % of people can move from one brand to another . That attract customers to their product , companies try to influence his choice in Sami crucial moment – when a person is standing behind the counter , choosing products .According to the CEO of marketing agency ” POLE ” (a part of Twiga) Startseva Olga , 70 % of consumers make choices , standing by shelves with merchandise. Therefore, advertising in stores is particularly advantageous .

Not so long ago, held in Moscow promo campaign for confectionery factory “Bolshevik .” Promotional campaign organization engaged an agency of Twiga. Also, what kind of racks with pastries were consultants , the store also went recruited buyers . Once the rack fit a regular customer , consultant began telling him about the production factory “Bolshevik” , at that time employed by the buyer came by and threw a few phrases of praise to the production plant.

The agency ” POLE ” organized a similar promo campaign to advertise plumbing Laufen, resulting in increased sales by 35 % during the promotion .

Startseva says , to get involved in this technique is not necessary. For a large company, it will not change anything special , more interesting to promote the products of young companies with minimal advertising budget . Currently, the agency ” POLE ” is organizing a similar promotional campaign to promote the products of the new beer brand .

Trade marketing as a way of promoting the products at sales began to be used in the group Twiga the mid -1990s. Recalls Karina Ohanjanian , group vice president of Twiga, the first such project was organized by the company Unilever. Then have developed a special branded boxes and price tags that were to highlight the products of Unilever in market stalls and kiosks , which at the time sold 70% of the company’s products. Since then, as more and more ways to influence buyers , market stalls grew to retailers , and advertising groups began to organize units BTL, involved in the development of new marketing techniques that were not in the direct advertising .And if in 1990 – g ‘s on the development of BTL advertising as much as 10 % of their advertising budget , but now the figure is 50 %. According to the assessment of RACA , in just one in 2009 for BTL-actions in Russia spent 51.5 billion rubles, which is not much cheaper than outdoor advertising and advertising in the media combined. But less than half of this amount was spent on trade marketing .

Giving gifts to customers

According Startseva , shops are now the second most important after television advertising resource . At Olga Startseva already had a 6 -year experience in the company of Procter & Gamble, where promotional campaign in local sales of products held several times a month. One of the easiest methods that marketers use – gift with purchase . As a result, sales may rise 15% to 50 % depending on the product itself and the gift to him (it could be as early as one unit of the product, and a souvenir ) . But sales are rising , as a rule , only at the time of such action . After the end of the promotional campaign selling back to the previous level , in the best case – are a bit higher. But the good news is that it is unnecessary to spend money on advertising the installation of racks and promoters to work , as is the case with resampling and tastings . To organize such a campaign in 100 stores require a minimum of $ 50,000 per month , not counting promotional materials, the cost of rent for the place and promoted products . Furthermore, the cost of ” admission ” for promoter can range from $ 100 to $ 250 per day depending on the store .

The opportunity to try the product

Wine promotes sales by at least 30 %, and sometimes up to 200% and , as in the case of the promotional campaign for the brand candies ” Ruzanna .” Sampling promotes sales by 25-50 %. What to choose ? Tastings should be made in cases where it is necessary to introduce customers to a new product or increase sales in certain retail outlets. But after conducting a sales campaign usually return to their original location . After sampling sales tend to become higher than the previous 5-10 %. What’s the secret ? Just taking a product from the buyer may try it when it is more convenient, and better remember what he looks like .

Less cost – more demand

Discounts help to increase sales by an average of 15%. And also during the campaign . Having laid out on a wooden pallet , the pallet is the same material but with a promotional sticker , you can get up to 40% growth. Pallet advertising is receiving from the category of POS- materials. But the fact is that the passing of racks, the buyer can only remember three messages . Therefore it is better to make the text as short as three or four words , and how you can more interesting for the buyer. For example, “In just a 1rubl for the day ” or “Removal of any spots .

“According Startseva , many large companies there are brands that are promoted only through trade marketing . You can interest the consumer , without spending a single penny . In 2006, before the sales- team Procter & Gamble has been tasked to promote the market a new brand of hair dye Wella with minimal advertising. Then the staff Procter & Gamble decided to draw the attention of customers that boxes of paint were on the shelves upside down. And this calculation is justified , and for the first month of sales of the new hair dye rose 15 % higher than planned. But not every product can be flipped upside down. This is the only exception that proves the rule that you have to pay for the demand .

How to find a supplier

How to avoid the deterioration of the situation with counterparts

Now even entrepreneurs who own businesses malymm must follow the changes in the world Conomy . Slowing the development of markets in Europe and the U.S. may cause a decline in the price of gas and oil, and this in turn can lead to a reduction of the Russian economy and thus revenues. As a result – the standard of living of the population falls , and with it the level of consumption. Thus the struggle for the consumer is becoming increasingly fierce.

Another negative point – the strengthening of the crisis in the credit sector in Europe , which can cause a significant increase in the cost of credit , therefore, for medium-sized businesses loans may become less available. For example, for enterprises as wholesale and retail trade, who are our customers, and for those providers that allow stitching to pay for materials and raw materials. As a result of increasing liquidity , solvency buyers falls, and conditions for the supply of raw materials deteriorate.

As for the rise in price of credit resources , we have noted that, compared with the first half of 2011 , the value of loans that are offered at floating rates , rose by 2.5 %, while the value of loans at fixed rates – 1-1.5 %.

As the company is trying to defend against this ? First of all it is important to retain customers and gain their trust by providing high quality of production and sales .As for working with clients – the introduction of a system that allows customers to control the limits of the receivable processing new orders. The basic limits are calculated each quarter depending on the plans for the next quarter shipments for each customer , as well as individual criteria for each buyer.

The most important criteria for us are the period of cooperation with the buyer , the assessment of its financial position , which is based on financial statements or business inquiries , provided by external financial experts , such as, for example , Coface Rus. In addition, we analyze the entire cycle of production and sale of our products throughout the supply chain, as well as analyze how the buyer involved in it . It is also important to comply with the payment discipline during the previous quarter.Sach our company applies the suppliers apply the principle of just-in-time, that is, considerable attention is paid monthly assessment of all suppliers , analyzing the improvement or deterioration of the reporting period , as well as figuring out all the factors that influenced it .

Each quarter, we conduct a detailed audit of all our suppliers. For example , we can go to the suppliers in order to monitor the availability of additional stocks of raw materials provided by the contract .

In vzaimodeytvii with traders it is very important to further understanding of the chain of procurement directly from manufacturers , analysis of legal documents and the total activity in the processes of supplier deliveries , the assessment of financial stability provided by the supplier on the basis of financial reports.

To minimize the risks in supply chain management , it is important to always have alternatichnyh suppliers, and when signing contracts must always specify a fixed cost of products supplied for a period of not less than one year , and also to specify the exchange rate at the date of delivery. This will help to minimize currency risks during the stitching on payments .

Tips on conducting business negotiations

Israeli pro gives tips on doing business negotiations.

Moti Crystal worked in the Office of the Prime Minister of Israel , where he studied the preparatory work, scenario development and analysis of the crisis in relations with the Palestinians following the outbreak of terror in September 2000. As a result of negotiations in 2002, in the Basilica of the Nativity in Bethlehem, held under its auspices , were successful . Today, he is the founder of the consulting company NEXT, which helps private companies to conduct successful business negotiations .He offers a few tips on how to properly negotiate and achieve their goals.

1. need to collect all the information. You need to have all the information : about the people involved , the subject of negotiations on how the previously conducted such negotiations and how they ended with – do not be squeamish to anything, absolutely any information can come in handy. If you do not have enough information to consider that for you , these negotiations were unsuccessful .

2 . Necessary to map the stakeholders. It should be a visual map that describes all human relationships . This way, you can learn a lot of interesting things. Should think twice before taking his ex-wife talks to CEO of the company. One day, I was not lost chet negotiations only because time has not learned that a former company lawyer resigned and was replaced by a new one, used to work out all the documents very carefully .

3 . Correctly count the time. Time can either work in your favor and to the detriment. If you have to sign a document of the New Year in the U.S., then in the middle of summer, you ‘re too late. So how soon will come Thanksgiving, then Halloween , and then Christmas.

4 . Think of the interest . Getting ready to negotiate, you have to understand exactly what you need for your opponent and for what reason .

5 . Work on the strategy of negotiations. Very often people are not serious talks , believing that they can come and see how things will go , and then you can think of something. But as a result , they give considerably lower than wanted and could. Must advance to outline its position. There are three strategies . The first – the negotiations from a position of strength. Even if all the cards in your hand , it is necessary to think well before opening their opponent. You should not try to compare your opponent to the ground , because the negotiations – it’s not a fight. The second – a position which always keeps a famous American investor Warren Buffett, and it sounds simple: take what you need , leave. He makes an offer only once. Do not like it – good-bye . Third – negotiations through intermediaries. This option can be used as in people’s lives and in the life of nations. Usually , in such negotiations do not have to change strategy.

6. Plan revision mechanism . At a time when almost any day is a change , you should not enter into a contract for five years. Each paragraph should indicate the possibility of revising the treaty after a specific period of time. This simplifies the process of negotiations and provides an opportunity to change the terms , if something goes wrong.

7. Try to get acquainted with a future opponent. For many people personal relationships are no less important than the business relationship. For Russia, this is especially important : here one or two of the visit is almost impossible to conclude the contract. People love to get to know each other well , and from personal observation to make decisions. It is not necessary to try to understand . It is necessary to accept and act accordingly. It is better to meet with prospective opponent , drink wine with him , talk about some abstract of the business things, and you will see that the process will go much more quickly.

How to expand your business

The leaders are actively growing businesses to share their experiences

Self-assured businessman boasts that he was able to realize a unique project , the income from which will be $ 100 million in five years . Such phrases are generally preceded by attempts to rapidly expand their business.

Have come down to earth in a few years or even months , and then comes to the aid of experience : the ability to use the knowledge learned from their own failures . When Samuel Smiles , a famous Scottish writer , said: ” ” He who never made ​​a mistake, and did not make discoveries .

“We asked the managers and founders , who ran small companies , but then they decided to dramatically expand . Their experience is peculiar to many . What were the major flaws and their mistakes?

Alexander Mayzler all done on their own, but did not have time to

Foundress of Thinking Caps Tutoring Alexander Mayzler

Error – wanted to do everything for you . I opened my business in 2004 and did everything themselves : in the teaching and administration at the same time . Then I thought that hiring an assistant does not follow, as well as to allow this, we could not afford , and thought that the work of another person will not meet the standards we have adopted . The problems started because I just do not have time to deal with all and was very tired.

Conclusion: what can you best do it yourself , the rest is assigned to another . Then I highlighted in a separate list of what I’m good at and loved to do, and that could be carried out by someone else. On the basis of this list, I started hiring other workers.

Bob Fisch, 46 years lost touch with customers

Founder and CEO of Biggby Coffee Bean Fish

Error: no longer communicate with customers.In 1995 I opened a coffee house which I have been doing their own coffee, which allowed me to constantly maintain communication with visitors . Within four years, we have decided to engage in franchising. Once I got distracted from work and realized that our network is comprised of more than a hundred points, and I had been sitting out all day in the office, answering phone calls and letters , I spend business negotiations . I could not see our visitors for weeks.

Conclusion: every day I started to call in at our cafe , changing , so the office to work on the road. Since three years have passed , and we were able to increase profits in half. Now we have reached a figure of $ 40 million per year, and this year we expect to increase this figure , as sales in the same cafe increased by 7%, and more continue to grow.

Mark Sheehan , 59 years old : the tasks performed by incompetent people

CEO of Rubicon Sports Mark Sheehan

Error: excessive self-confidence. The company Rubicon, engaged in the manufacture of heavy-duty rescue and ski jackets , considered it possible for her to extend the range of products and production run of summer clothes . We offer consumers a line of clothing for children that protects against ultraviolet radiation , called Sun Shredders. We made a mistake with this project , deciding that customers liked the colors and patterns . We turned to designers of high-tech professional clothes for adults with a request to design clothes for the children, that was far from their area.

Conclusion : It is better to do that than to you better than anyone .

Rob Basso, 37 years has not identified the target audience

The founder of Advantage Payroll Services RobBasso

Error: guided by a very wide range of consumers , rather than to form his target audience. I bought a marketing firm contact list of companies, each of which we sent our flyer . After that, we started to call all of these companies. But we did not even bother to properly determine who exactly should be directed to our offer. It turned out that the flyers were sent to CEOs , while the purchasing decisions of the Company are CFOs . Thus, it was in vain spent a lot of money .

Conclusion : over time , we found that our target audience are companies that employ 15 employees , it must be service companies, and besides, they have to be in a certain area. Only after that we managed to organize a sale. But it was necessary to think through all the start.

David Hauser , 28 years: looking for new people, but because of their compatibility with the team

Grasshopper Group co-founder David Houser

Error: hired a new employee , based on their technical abilities , not thinking about personal compatibility with older employees. A few years ago, Grasshopper, which supplies small companies virtual phone system started very actively developed , the search for new employee has considerable challenge for us . We are looking for people with a technical mindset and hire only the best professionals , forgetting that they would find a common language with already working with us humans.

Conclusion : When a company is in the early stage of development , corporate culture is no less important than professionalism sotrudnikov.Teper we were special criteria by which we take people to work. Now we hire a new person that fits all of our requirements , and do not even know exactly what duties he will perform in our company.

Tom Walter , 62 years : It is used in the old methods

CEO of Tasty Catering Tom Walter

Error: working with clients using older methods . When we have had some success , engaged in the organization of corporate and outdoor events , we decided to expand the business – organized inexpensive eateries. Our sales are well known and always take into account the needs of enterprise customers. As for the cheap eats , there must have very different , and therefore our sales staff were not disappointed.

Bottom line: before you do something , you need to be aware of their strengths and weaknesses.

David Nour , 42 years : the company wanted to increase due to increased office

The founder of Relationship Economics , David Nour .

Error: The thought that the size of the office corresponds to the successful growth of the company . I was wrong for a long time , considering that the size is always correspond to the prestige of the company. That is why at the time I decided to team up with a consulting company hired new employees , rented a large office , has increased the number of services bought another Copier and even a gym for employees. Six years were spent one million dollars , and then I decided to go to our customers with the question : ” Why did you choose us .” They replied that they use our services because we have a lot of interesting ideas , we are energetic and always implement original solutions . On the number of copiers in our office , no one mentioned.

Conclusion: I have cut staff Relationship Economics, moved to a new office , where I now work only . Now I get more money , headache was much less, and life became more balanced.

Greg Ehresmann , 54 : rushed to the employment of new managers

The owner of the family business – the restaurant Triple XXX, Diner (a type of fast food ) Route 66, as well as companies engaged in the manufacture of soda , Greg Ehresmann.

Error: wanting to expand, hastened to hire professionals bad . Opening the second point , we have taken the work of the manager who assured us in the presence of her relevant experience . But, as it turned out later , no experience she had , and with the opening of another point of the work was several times more . And as I got to the one institution (which is about 20 minutes drive from the other) , the other has had to put out the fire .

Conclusion: hire people people on whom you can always rely on.

Shelly Sun, 39 years old : I wanted to promote several projects

CEO of BrightStar Franchising San Shelley .

Error: undertook the implementation of several projects, but failed to finish any of them . Agency nurses BrightStar provides health care at home, as well as services carers . Recipients of our franchises , we have always offered several projects, as a result of complaints received by unfocused and messy approach .

Conclusion : always focus on the most important processes and bring them before the end of the implementation , and then proceed to less important projects.