Mark Bruneau - Selling intangibles - Wins and sins
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Transcript of Mark Bruneau - Selling intangibles - Wins and sins
Professional Services Start-up That ScaleStart-up Festival
Montréal July 11, 2014
1. Defining Intangibles
2. Scaling Services
3. Wins & Sins — A Personal Journey
Mark BruneauFounder & CEO of ADVENTIS and VELOCENT
Selling Intangibles: Wins and Sins
1. What does “Intangible” mean?
2. Building A Scale Services Business
3. Services Start-Ups Wins & Sins
Mark BruneauStart-Up Festival, July 11, 2014
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1.1 Defining Intangibles
Selling intangibles…
Can be:• Imagined• Infered
Need to be:• Touched• Seen• Quantified
Use active listening & incisive language to shape a vivid picture of the Journey and its outcomes
… Requires a bridge from ideas to concrete results
Measurable outcomes• Market share• Enterprise value• Competitivity
Superiority
Intangibles Tangibles IDEAS RESULTS
• Overcoming Doubts• Make Them Believe
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1.2 Language that Surfaces Issues & Opportunities
“I did not sculpt David — I removed the excess stone that released him” - Michelangelo
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Active Listening
1. Invest in developing deep understanding of the client business, industry, and possible issues & opportunities
2. You want to sell more? “Stop talking” — don’t think about what to say next — Listen to infer coded needs
3. Develop real-time hypotheses and use investigative questions to test them
4. Synthesize, summarize, and paraphrase in real-time
Client Confidence
1. “I respect you, you’ve taken time to learn about me, my company, my industry”
2. Earn the legitimacy to ask deep questions
3. “This consultant can help me sound GOOD” — “You express my issues & opportunities more incisively than I can ever after 10 years”
4. “I will enjoy the process of working with this smart person”
1.3 Less is More
“You don’t sell intangibles by talking about them, but by demonstrating just what it feels like to work together.”
Charles H Green
“When your work speaks for itself, don’t interrupt”
“Consider both interpersonal chemistry and strategic needs to determine which relationships to cultivate”
Don Moyer, Harvard Business Review
Henry J Kaiser
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1.4 First Be an Expert — Then Be a Friend
• Most CEO’s are lonely:‐ In the pursuit of power and wealth many have lost
family, friends, a personal life…
• Most CEO’s are mis-informed and are told by their senior executives highly varnished truths
• Over time, through trust, empathy, and external comparative knowledge — be a friend:‐ Truthful‐ Empathic‐ Helpfuland they will keep you around a long time!
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Selling Intangibles: Wins and Sins
1. What does “Intangible” mean?
2. Building A Scale Services Business
3. Services Start-Ups Wins & Sins
Mark BruneauStart-Up Festival, July 11, 2014
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2.1 Understanding the Leverage Model
Finders1
Minders5
Grinders25
Leverage Consulting Model
Cost & Value
• Rain Makers‐ Rare‐ Prima-donna
• Extract maximum value from teams
• Rigorous research & analyses
Early stage: "highly customizable" work performed by skilled professionals - no standardization and reproducibility. Low leverage model: After 2-3 years, a few senior people sell their expensive time at expensive rates. Limited growth potential. High leverage model: Bill out junior people at high utilization. Profit drivers:• High utilization rates• Allows finders to secure new projects.
Key enablers of high leverage:• “Lead" the market in a particular
industry sector or functional area• convert learnings into reproducible,
standardized modules
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Productable
Teachable
Deliverable
Highly Customizable
Services“Guru”
Standardized &
Reproducible Services
Standardization EngineProduct Marketing
“Products” for Clients
“Training” for Staff
“Delivery Set-Up”for Organization
LearningsLearnings
Learnings
Cost Low
Geographic Expandability
High
HighLow
Client Value Proposition HighHigh
Scale allows lower cost, speedier delivery and a deeper network
Sub-Scale At-Scale
2.2 Why Scale & Leverage Matter:
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2.3 From “Guru” to a Sales Generating Machine
Get Published
• Identify trade publications• Get to know the editors• Learn what they want• Submit articles
Get Referred
• Do great work• Refer others• Consistently connect • Ask for referrals
Be the Authority
• Identify your special knowledge• Master public speaking• Develop list of opportunities
Be Connected
• 2 Industry events per month• Be very curious• Be very helpful• Reconnect with those you meet
Engage in Social Networking
• Blog• eNewsletter• LinkedIn Networking• Reconnect with those you meet
Engage in Community
• Something you truly care about• Add value• Learn the etiquette• Reconnect with those you meet
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Selling Intangibles: Wins and Sins
1. What does “Intangible” mean?
2. Building A Scale Services Business
3. Services Start-Ups Wins & Sins
Mark BruneauStart-Up Festival, July 11, 2014
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3.1 A Personal Journey
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After Harvard Business School 1986, I joined Mercer Mgmt Consulting — after 5 years I had vaulted from “Associate” to “Senior Associate”… Too slow for me
I thought I could do it faster, sell as well as Partners I worked for — so I started my own firm — me and a box of business cards
In 5 years, we reached $10M revenues, in 10 years we reached $60M in revenues — with no debt nor line of credit
I sold the firm shortly after — for 1.25 X revenues
3.2 My Learnings — Wins & Sins
WINS+ Keep cost as variable as possible
• Part-time high caliber stringers• Well networked home offices
+ Clear value proposition, well defined industry or functional expertise
+ Scope projects narrowly and precisely — Then OVER deliver
+ Set achievably stretch revenue (objectives sold – billed – and collected) for each partners – with clearly defined functional or sub industry charter
+ Commission 2-4% on fees sold+ Hire staff slowly (after demand is
secured)+ Hire the best – Pay what it takes (test
for work ethic and cultural fit)+ In case of M&A offer generous
retention bonuses over 3 years
SINS− Over-commit to fixed costs
(people, office space, etc.)
− Generalist value proposition
− Over-promise on contract scope and deliverables – working beyond scope is never appreciated
− Unclear performance expectations by level
− Neglecting marketing and sales prospecting while delivering
− Mistaking big contract revenues as lasting forever
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