Business Strategy

Your Doors Are Open - You Better Deliver Then

Eat. Drink.

There is an immense shortage in available human resources today. I know you all are feeling the pain. There is also an increased demand from your customers for excellent and efficient service. Customers have been trapped for a year and are ready to spend. They actually have higher expectations than ever.  They want your product yesterday without hassle. They will pay for your products, services and reputation, assuming you can deliver what you promise.

Are you actually capable of delivering what your team is selling? Do you understand and identify customer expectations based on how you are selling your products and services?

Go through a step-by-step review of your customer’s buying and service experience. Look at what you’ve changed due to your staffing limitations. Perform an operational review of your team and ask them for recommendations to save time and reduce unnecessary steps. Then, make these changes to enhance the customer experience. At that point, you must communicate what’s different to your customers in advance of delivery.

Customers are forgiving but only sooooo forgiving. We are still in the hospitality industry, and customers want a memorable experience, every time. They are paying for it and expect as such. There is a certain threshold for what is and is not acceptable if your doors are open.

Inspire.

I just returned from a week working with clients on the east coast. Getting back in the swing of pre-pandemic office visits and collaborative work was so invigorating, inspiring and exciting. This trip reaffirmed that I absolutely love what I do and working in person in the same room makes all the difference to connect with my wonderful customers.

I stayed in a comfortable, centrally-located conference hotel, rented a car from a leading car rental company and dined out at various restaurants the entire week. I had high hopes for excellent customer service but was also realistic knowing what hospitality companies are dealing with today.

Unfortunately, I experienced a lot of poor hospitality situations this week. I say situations because most team members went above and beyond to try to remedy the challenges. However, these employees had to work harder and spend more time and money on fixing the challenge than if they had just offered me the original product or service. A few examples:

  1. Incorrect return date on my airport car rental.  I tried to call the airport rental office and national rental customer service to correct the date, at least ten times. I spent over two hours listening to hold music. (I even called the emergency line as if my car is broke down, but they didn’t even answer.) On the 11th call, a national customer service agent finally answered, put me on hold for another 45 minutes to then disconnect the call. I gave up. I drove back to the airport, returned the car on the wrong date and walked right to the customer service desk to pick up keys for my second car. As I checked out the second car, the agent asked why I didn’t just extend the first car. Ugh. Imagine if they answered the phone. They would have had one less car to clean, one less car to check in and out and one less aggravated customer.

  2. No housekeeping service. I was in a very nice hotel for seven nights at an extremely reasonable rate. I had to call on a daily basis for individual toiletry items that could have easily been stocked for me had the hotel thought about the length of my stay. Rather than bringing me everything at once, a housekeeping attendant would bring me single items delivered in a plastic laundry bag and hang it on my outside door knob. I also left my garbage out in the hall each morning so they could empty it. It made the halls look cluttered and messy. Imagine if the hotel had a housekeeping spot-check employee that simply audited each room, refilled supplies, removed dirty glassware and did a quick trash removal.

  3. Club service. I know, this is a luxury item but as a business traveler, I select hotels that offer this amenity so I save time. Hotels sell this club service by offering a higher rate or by thanking you for your loyalty for this convenience. Pre-covid, I would grab some fruit, yogurt, coffee and bottles of water throughout my stay. Easy, quick and self-service. My seven-day hotel’s club had a broken coffee machine, bags of potato chips and occasionally, room temperature bottled water. In lieu of this club service, the hotel told me to call down and order anything I want from the room service menu for breakfast, compliments of them. This was unbelievably generous, and I expect very expensive in the long run. Now what used to be a quick grab involved calling the front desk to order, having a room service attendant bring the food and the kitchen making my customized breakfast to order. Imagine if they had the club running even at 50% of normal, the amount of money the hotel could save by minimizing all these steps?

These managers should have identified the basics of customer service and prioritized their limited human resources effectively. The employees spent more time running around to satisfy service substitutions. This made everything more difficult for the employee and the customer. Had they measured the amount of steps each employee took to deliver, they may have realized that the original services would have saved them more time in the long run.

Snap Out of It! … Is Next Year Ready to Roll?

Eat Drink

Have you set your 2021 revenue goals yet? If not, do it today. You should have started setting this goal sixty days ago. Covid-19 shouldn’t be an excuse.

If you have listened to any of my Catersource classes or read any of my previous blogs, I have always recommended sales leadership start next year’s goal setting process in August to have a revenue number by the end of the year (assuming you run a calendar fiscal year). This allows everyone in the organization to be ready to roll with sales and production for the next year immediately after the holidays the first week in January. Typically, as caterers, our end-of-year is so busy with production that the thought of sitting at a desk and running numbers from October thru December seems impossible. Why August? The numbers created in August go through several rounds of negotiations between sales team members, owners and department heads before agreement; hence the five month lead time.

So what is Covid going to do to your 2021 number? Figure it out. You have to start somewhere. Your company needs structure and guidance to move forward and make decisions. Don’t sweat it either. Numbers typically change throughout the year.  At least you get the ball rolling.

Sales Leaders: Here are five general tips to get this number done now!

  1. Confirm What the Company is Going to be in 2021*

    Covid has given the company the opportunity to change product lines – do you know what your team is selling?

  2. Identify Your Leadership and Management Team*

    Do they have what it takes to get you there? Are they already leading the change?

  3. Make Sure Your Culinary, Service and Operations Team are Trained & Ready*

    Who, what and when will they be available to produce what your team is selling?

  4. Determine a Realistic Revenue Number**

    What are your fixed costs and what are profitability goals? What is already on the books?

  5. Determine your 2021 Sales Team – Think Tight**

    Who do you need to get you to that revenue number and how will their role change in 2021?

*Ownership and other department heads are imperative in developing these first three core decisions that affect sales structure

**Sales Leaders – it is very important to lead these last two steps via history, data, client relationships and trusting your gut!

Bonus Tip!! Be real and honest when setting your revenue number. Over-inflating an unrealistic revenue goal will only encourage unnecessary spending that nobody has the luxury of right now. Be conservative yet bold enough to push your team to sell and not wait for the orders to come in.

INSPIRE

“Snap Out of It!”

I’ve had to tell myself “snap out of it!” every now and then when I’ve had my own “woe is me” moments these past eight months. This year has been brutal since March. Agonizingly painful. No other way to say it. But you know what? I love this industry. I love sales. I love consulting. I love educating. It fuels me. And I am going to continue to do so. How? By practicing what I preach.

I have set my 2021 goals. I have set my 2021 budget. I have worked through similar steps as recommended above. I have also challenged myself to think about our industry and what will become of it. I know this much about myself and my future:

  1. I will continue to offer Fulton Market Consulting’s existing services to clients while also providing new products to markets that may have not used a consultant in the past.

  2. In my first three years of business, I have been able to continue my passion for educating as well as travel, allowing me to work with clients all over North America. I will expand this further and am excited for new opportunities ahead.

  3. I will work on a stripped down, bare bones budget for 2021 to cover my expenses. I will run lean and not overspend until clients start re-investing in training, education and consulting more than they have in 2020.

  4. Hospitality is in my blood. It has been for 35 years now. I cannot imagine doing anything else and never will. I will continue to support and encourage our industry’s comeback, mainly for the amazing people that are so talented and dedicated to their craft, working long hours & putting in the years as well, creating memorable experiences for us all.

I am ready to roll.

What’s a Number Anyway?

Eat. Drink.

fulton_market_consulting_blog_eat_drink_inspire_what's_a_number_anyway.png

May 15th is soon approaching. I posted a blog 7 weeks ago stating that we needed to be ready for work when that date arrives. Why did I pick that date? I figured by May 15th, it would be 8 weeks later and we would all be itching to get out of quarantine. We would all be ready to get back to business. The shock and sadness of the economic & emotional damage of COVID-19 would be less severe and we would want to get back to normal as soon as possible.

I shouldn’t even say get back to business, because we have always been in business. Our business will now be different moving forward. So, let’s get to work. It’s time to focus on what we will do for the rest of the year.

How do WE do this?

Think this way. If you were a $10 million company at the end of 2019, what will you be now? A $4 million company? If you were a $1 million company at the end of 2019, will ending the year at $500,000 be okay? It is imperative to make this numeric decision for all other decisions (i.e. budgeted expenses, human resources). Sure, it is somewhat of a guess but you have to start somewhere.


Inspire.

I started my new position as Vice President of Sales one month prior to the 2008 recession. Within my first three months, I had to re-forecast the sales revenue for 2009 based on how 2008 was shaking out. I also had to decide what human resources were necessary in order to achieve that new revenue goal (as well as several other things). This re-forecast number affected all other departmental decisions as well.

We had to make tough calls to come through that financial crisis. We made things lean and started to build back up methodically. Times were not always easy and the team needed to trust me. If 2007 was my yardstick for the last “normal” year, we set a goal to hit that “normal” by 2012. We knew 2009 would be tough but we made the three-year commitment and stuck to it. Our goal-setting was effective; we exceeded each previous year’s revenue goal, but most importantly, we actually became more profitable.

I say to all my clients, “a revenue number is just a revenue number.” So many people see a large revenue number as guaranteed success. I help them look at this differently. I would easily prefer a 20% year-end profit on $2 million versus 10% profit on $4 million. It’s the same bottom line with a different hustle. It’s time to look at your company and get back to numbers that make sense moving forward. Use this time to make your company stronger than before the pandemic.

Sales Leaders — What Do We Do Now and Next?

I am trying to remember what happened post — 9/11 and post — 2008 recession. I was a Director of Sales managing four salespeople when the unspeakable horror hit NYC, DC and Shanksville in September 2001. I was a Vice President of Sales managing 32 team members when the financial disaster hit our entire country in September 2008, newly hired one month prior. 

Of course I remember these tragedies both in different ways; the first from a human perspective with sadness and disbelief; the second from a business perspective of what the hell just happened and do I even know who I am managing yet? For the life of me, I do not recall specific tactics and plans that got us back, but I do remember one thing, I had to be a leader.    

Did I know what specific steps I had to take as a leader to get revenue rolling in again? No; it was the first time these two different things happen to me in a management role. But I did know I had to inspire and lead the team to find our footing again, move forward and eventually return to booking events again. During this drought, I had to develop a strategic sales and human resources plan for when it was time to get back to business.

This is where we are now — right? Kind of. What is weird about this disaster is how fast it hit and the unknown end date. This is agonizing for us all; we are expert planners that like every detail finalized, all logistics in place and timelines followed to the minute.

Sales leaders, step up now, because this unknown cannot hold you back.

We are hospitality wizards. My entire career, I approached every event thinking, “I am going to face at least one challenge that will require a decision on the spot; let’s just hope it’s at the beginning of set-up and not while the guests are walking in the door”. Well, guess what, this is our set-up.

Start tackling this challenge now with your remaining sales team members so when your clients are at your door again, you know what you are offering next.

fulton_market_consulting_sales_leaders_corona_corvid.jpg


Leaders To Get to the Next….


Finalize your Business Focus

  • Review business that has postponed and confirm new status

  • What products and services are you offering moving forward? What is changing?

    • Recognize we are not going to be 100% the same business as before

  • Think Differently – How do we adapt and what are the most profitable lines of business?

  • Get pulse from sales team on annual repeat customers for Q3 & Q4 events

    • What will be their revised sales projections for May-December 2020?

    • Have you developed a new revenue goal and related expense budgets?

  • Have you updated your P&L projections?

  • Owners…Do you feel good about all this?


Develop New  “Life of the Sale”

  • Think Through the Customer Experience from Inquiry through Invoice

    • Based on each business line

  • Measure the Path — Who and What is Needed at Each Step and When?


Be “Sales” Ready

  • Be Ready for First Inquiry- Can you follow up with pricing and a proposal in an hour?

  • Develop and Share Event Ideas- What types of events will clients be asking for?

    • Employee Appreciation? Team Building? Fundraising?

    • What Venues are available and make sense for these event types?

    • Non-Saturday weddings?

  • Update all Marketing Outlets — Website, Social Media, etc.

           

Develop an Operational Timeline

  • Look at Event Calendar — what has postponed and when does the first event kick in?

  • When can you start rebuilding BOH operations?

    • What are the financial thresholds for this ramp up?

  • What information do you need from the sales team to help you make these decisions?

 

Communicate to the Team

  • What is the best method of communication? Group or Individual?

  • Recognize “What does this mean for me?” is top of mind for most employees

  • Are you ready for all the questions?

  • Remember to be honest and open


Take a moment to reflect on who you would consider the three best leaders in history. If your three are similar to mine, each historical figure brought their people back after a significant crisis or tragedy. They faced adversity but persevered through determination and grit. As a sales leader, adding strategy, planning and hustle into the mix means you are focused on the next. Do it. Our community, staff and customers are all looking forward to it.

May 15th NOW is the New Year

I have always been in control of my destiny my entire career. As a salesperson, the more I worked, the more I made. There were very little outside factors that affected my success in my 25 years of sales other than 9/11 (which was extreme) and a few economic recessions (inconveniences in my opinion). 

This Coronavirus pandemic has put us all into a state of shock. A week ago, it seemed to be an over-hyped lead news story by every media outlet. Now, this pandemic has become a tsunami, hurricane, tornado and earthquake all at once.

Several caterers are closing their offices for the next eight weeks in order to reserve funds for when we all may be ready to serve again. This corresponds with the CDC recommendation for no gatherings larger than 10 guests. This is scary, yet provides hope with the possibility of an “end date”. As owners and employees, it is imperative during this time to buckle down but look forward. While you have operational “down” time, I implore you to use these weeks to work through proactive strategies so you will be ready to get back to business.  Let’s make May 15th a reality NOW.

Next 8 Weeks — Critical Stage

Week 1-3

•   Review Existing Team Members and Continue to Employ Those Critical to Client Management

•   Furlough or Layoff Team Members Until Operations are Back in Order

•   Make Your Clients Feel Safe — Keep Communication Lines Open

•   Strategize with Venue Partners on Future Date Availability

•   Determine Monthly Break Even Number for Fixed Expenses

•   Stop all Unnecessary Expenditures

Week 3-5

•   Revisit Legal Client-Facing Contracts/Agreement for Necessary Updates

•   Reissue New Contracts for Existing Postponed Event Clients

•   Update In-House Event Calendar and Project Staffing Needs

•   Get to Know Your Local Competitors Better-We are in this Together

•   Revisit Vendor Partner Financial Relationships

Week 5-8

•   Restructure Revenue Goals and Re-Forecast Budgets for Remainder 2020

•   Revisit Marketing Collateral, Website and Social Media Outlets

•   Assess Pace of Client Interest and Market Segment Inquiries for New Business Bookings

•   Brainstorm on New Lines of Business

•   Work on Tabled Projects

May 15, 2020- Reset Stage

Let’s look at May 15th NOW as a new beginning. This will be our new calendar year. We need to work proactively and positively to get our team catering events again. Taking the steps above is a great start.

Did we survive another year?

Eat. Drink.

It’s the beginning of November. Like most businesses, you are in the home stretch. Hopefully you are having a fruitful and rewarding year of sales. You probably are enjoying a few quiet weeks before holiday party insanity happens from the end of the month thru New Year’s Eve.

fulton_market_consulting_did_we_survive_another_year.jpg

But as sales leaders and business owners, something else may be gnawing at you. It’s not production timelines or finding enough servers for Saturday night’s event. It’s the horrible anxiety of… Are you going to hit your year-end goal? Unfortunately for most caterers, it seems like we roll into November wondering, how did we get ourselves in this situation again? Are we going to survive another year by the skin of our teeth? How and where do we pick up last-minute business?

This is a stressful and painful approach to the last two months of the year. We should be celebrating our success rather than stretching an already exhausted team to the max in order to make the annual goal happen. 

Approaching sales in a strategic and methodical way now is the key to kicking off next year right.  When meeting with my consulting clients, I teach strategic sales processes such as the following:

  • Each sales consultant should have a customized, written sales plan buttoned up and ready to go by the end of this month so they can hit the streets after January 6th

  • Next year’s individual numeric sales goal should be set by now and your sales consultant should have been tracking bookings since this past September

  • Sales consultants should end January with 50% of the year already booked definite

  • Proactive rebooking of clients should take place in early January (if not already) so you can see how next year is shaping from the start

My clients have already seen revenue and outbound activity increase because sales consultants are being held accountable through targeted actions such as above. I also see how this helps the Director of Sales more effectively manage, lead and inspire their team through this organized and timely approach.



Inspire.

I am a business owner now. For 25 years, I was always the employee. A business-minded, owner-acting employee mind you, but still an employee. Which means I had no risk nor pressure about paying the bills.

It’s different when you are the owner. You think about every expense. You think about every sales opportunity as well. Should I spend money on this in order to support my business? Did I make the right decision regarding price? How often should I touch base with that potential client who hasn’t responded to my proposal? Have I followed up too many times?

I have been in business now for 2 1/2 years. I approach my own business development strategies as the only sales “generator” the same way I did as a large catering company’s Vice President of Sales managing over thirty individuals. I set annual numeric goals and develop my own expense budget through reviewing my relatively “new” history and determining what is realistic for next year. I think about client patterns, catering seasonality, industry trends and who may need me while investing time and financial resources for my marketing and networking efforts.

I never want to approach my own business hoping I am going to make it by the end of the year. I will always stay on top of my game and be proactive throughout the year with my sales efforts. This allows me to enjoy these last two months, take a look back at the great year I had, reflect on years prior and look forward to the great year ahead.

It’s Time to Get Back to School … Sales School!

fulton_market_consulting_sales_strategies.jpg

Ah, as an original Upstate New Yorker, there was nothing like this time of year. Crisp autumn mornings. Gorgeous yellows, reds and changing greens of leaves. Apple cider and cinnamon donuts. Football. Jeans and sweaters. Going back to school. Living in the Midwest now, I still get this fabulous change of seasons and September is still my favorite month of the year. I LOVE THE FALL!

There is something else I always loved about this season … it was also that time of year when I would sit with my sales stars to develop next year’s goals, individual sales strategies and plan for the upcoming year. It was that time to recollect on the year thus far, look at what worked, what didn’t work so well and focus on what was ahead. It was mentally “back to school” time to buckle down, strategize and get their individual plans together. As their sales leader, I then collected all the individual plans to develop a company wide annual revenue goal with overall strategic plan. Why did I start this process now? I wanted it to be methodical, well-thought out and “massaged” so the final result would be completed and buttoned up by mid-November. Once the holidays hit, we were all too busy to focus on anything strategic and then boom, it’s the new year.

This strategic goal development process is a daunting task if you have never tackled it before. However, it is imperative for sales and executive leadership to encourage this as they grow their organizations, now. SALESPEOPLE WANT GOALS. They want to be successful, accountable and have defined expectations. The easiest way to start measuring tangible success is writing down an agreed upon achievable numeric goal. This is the first and initial step toward individual sales success that in turn results in team success.

Get your team back to school now. Do not wait until the new year begins. That’s kind of like being the last person in the lunch line.