2.0 • Sales And Marketing

    2.1 Overview
    ANAPLANS recommends a multifaceted approach to sales and marketing. This approach combines sales training, developing referral business, direct marketing and advertising, as well as nurturing existing client relationships.

    2.2 Developing a Marketing Plan
    ANAPLANS recommends that every associate develops a marketing plan. As Yogi Berra said “If you don’t know where you’re going, you’ll end up some place else.” Having a marketing plan helps ANAPLANS’ associate know his or her market and position him or herself to address it. In particular, it helps ANAPLANS associate determine his or her competitive advantages (as well as disadvantages), which to target the appropriate referrals and clients.

    In developing a marketing plan, it is important for ANAPLANS to ask four key questions:

    1. Who am I?
    2. What are my strengths?
    3. What are my weaknesses?
    4. What makes me different?

    2.2.1 Personal Competitive Advantages
    Each ANAPLANS associate will have five areas of personal strategic advantages/disadvantages depending on the client:

    • Background and experience: Should take the time to think about his or her background and experience and determine what competitive advantages this background and experience gives him or her.
    • Contacts: Depending on the depth of the associates contact network, existing contacts can be an important competitive advantage. Associates should take the time to list their contacts and endeavor to build a network from these contacts. Contacts can be both potential clients and referral sources. Associates should cast a wide net in listing their contacts;
    • Geography: Associates who target a referral or a client in the same city or town has a competitive advantage over those living or working elsewhere;
    • Outside interests: Associates outside interests help him or her determine both potential targets for referrals (e.g., social groups, religious organizations, clubs, etc.), and topics of conversation during meetings.
    • Technical orientation: Awareness of one’s personal skills and technical background as well as the ability to recognize it in another allows an Associate to bond with his or her client.

    In developing a marketing plan, ANAPLANS should think about each of the above five individual advantages and the strategic advantages and disadvantages that each gives him or her from a marketing perspective. .

    One final advantage of the marketing plan is that it helps Associates know what they are not, which prevents them from overselling and allows them to focus on high probability opportunities.

    Overall, Associates should conclude this part of the plan knowing what they are (their advantages), accepting what they are (their disadvantages) and being comfortable with both.

    2.3 Goals of the Marketing Plan
    After completing the above portion of the plan, Associates should ask these six questions:

    Who are my potential clients?

    What are my goals?

    Are my goals realistic?

    Who is involved in making my plan successful?

    Do I need periodic reality checks, if so, how often?

    Do I need a Plan B?

    All of the above should help Associates focus on his or her best sources. Associates should aim to focus on something (target market) or someone (referral source) that he or she can “own”. Associate wants to be the primary source for that referral or target market.

    2.4 Necessary Elements for Success
    Associates should consider and implement the following ideals:

    • “Can do” attitude: Clients can sense a “can do” attitude, Associates with this attitude are more likely to complete transactions and retain happy clients. This attitude includes projecting patience, diligence and enthusiasm, as well as returning voicemail as quickly as possible and answering questions or concerns promptly;
    • Knowledge of the product: Associates must make sure they understand both the ANAPLANS business before starting and the products that ANAPLANS can offer in conjunction with our strategic partners. ;
    • Respect and cooperation: These characteristics are vital for success. Associates should always be respectful of referrals, clients, brokers and each other; and should work together for the benefit of clients and potential clients;
    • Speed is strategy: Factoring clients often need money before they approach a factor. Associates that are able to close a transaction quickly are more likely to succeed. Knowledge of this fact is critical when approaching a prospect or referral source;
      Customer service is vital to client retention: Clients need more than speedy service; they need ANAPLANS to be responsive to their needs, whatever they may be. ANAPLANS will benefit immensely from providing excellent service to clients. Happy clients are more likely to continue their relationship with their factor and to refer their factor to friends and business colleagues;
    • Focus on qualified prospects: Associates who are able to detect early on in a relationship with a prospect whether or not the transaction will close will be able to better focus resources on opportunities that have the highest likelihood of closing. This will also give these Associates the time to focus on selling and marketing activities geared to new opportunities, as opposed to wasting a lot of time with transactions that will not close.

    2.5 Turning Cold Calls into Warm Calls
    It is much easier for Associates to a call a potential referral source if he or she has some connection to that source.

    The five steps to achieving “warming up” a cold call are:

    1. Meet with a referral source (“Primary Referral Source”): Meeting a potential referral source in person is generally better than attempting to speak with him or her on the telephone. For example, a good referral source is often a bank manager. When approaching this type of referral source, Associates should go to the bank and ask to speak with the manager. If the manager is not available, ANAPLANS should ask to speak with the person who reports directly to him or her.
    2. Build a bond with the Primary Referral Source. It is human nature to help people with whom one feels close so building a bond is a key step in the “warming up” process. When Associate enters the office of a potential referral source, he or she should look around for pictures, trophies and other personal mementoes that give him/her a sense of the type of person to whom he or she is talking. Focus on items that he or she has in common with the potential referral source in order to build a bond. For example, if there is a picture of children and ANAPLANS has children, he or she could use the picture as a topic of conversation and a bonding subject; if instead there is a golf trophy and Associate plays golf, this could become a topic and bonding point.
    3. Ask about other referral sources (“Other Referral Sources”): Once a bond is built with the Primary Referral Source, ask in an off-hand way for the names of some other referral sources. For example, if the Primary Referral Source is a banker, ask “who are the accountants in the area?”
    4. Ask to use the Primary Referral Source’s name: Before contacting Other Referral Sources directly, Associate should ask the Primary Referral Source if he or she will call the Other Referral Sources or if they may use the Primary Referral Source’s name when making contact.
    5. Contact the Other Referral Sources: Associate should use Primary Referral Source’s Name when ultimately contacting the Other Referral Sources. These referral sources are no longer true cold calls, because when contacting them, Associate would say that the Primary Referral Source suggested he or she should call. This connection will make the Other Referral Sources more receptive to Associate.

    This five step approach will help Associates build a larger referral network.

    2.6 Referral Sources
    Referrals are a crucial component of ANAPLANS’s business of building and maintaining a client network. Generally, most new business will come from a referral source. As such, it is very important to develop and maintain these relationships. Referrals must be developed and the process of doing so is time consuming and requires significant effort. Referrals will rarely come to ANAPLANS; instead ANAPLANS must seek them out. There are two types of referrals: paid referrals and unpaid referrals.

    The process of befriending a referral is very important for revenue generation as it is human nature to refer business to a person you like or with whom you have a connection. A key way to befriend a referral source is to take that person to a sporting event, the theater or out for a meal.

    2.6.1 Development of Referral Sources
    There are two main ways in which new Associates typically develop a referral source:

    1. Contact current friends or business associates and explain the ANAPLANS system. In deciding whom to approach, target people who have a client network such as bankers, accountants, financial brokers, mortgage brokers, insurance agents and lawyers and inform them of the ways in which ANAPLANS can help their clients; and
    2. Go to or call up potential referrals with which you have no relationship. The best referral sources to approach in these situations are bank branch managers and accountants. Similar to approaching friends and business associates, explain the ANAPLANS system and the way in which it can benefit the referral source’s clients. Associates should cast a wide net in approaching potential sources as this will lead to a larger number of potential referral sources and clients.

    Potential referral sources will often ask 4 questions:

    1. Can you solve my problem?
    2. If so, how quickly?
    3. Will you do it professionally?
    4. What can you refer to me?

    2.6.2 Types of referral sources
    There are many types of referral sources, the first four types are generally the best however each type will help build Associate’s referral network:

    Banks
    Banks are a key referral source. ANAPLANS recommends that Associates schedule time to stop into a bank branch and ask for the bank manager or credit officer. You do not need to make an appointment to meet with bank managers and credit officers. Explain the ANAPLANS program and ask if they can present at the next credit meeting for 15 minutes. Associates can offer to bring the food.

    It is important to note that bank officers generally cannot personally accept referral fees. Therefore, Associates must convince the bank managers and credit officers that their service will offer some other benefits. For instance, through ANAPLANS could alleviate other client related problems such as retention. ANAPLANS can help the bank keep a client, for whom the officer cannot currently provide the maximum financing available to the client from outside sources. By allowing ANAPLANS to provide factoring services, the bank can maintain the client’s bank accounts.

    For maximum benefit, Associates should begin by discussing spot factoring as this will not be viewed as a competitive threat by the bank officer. Spot factoring allows the bank to keep its customer’s regular account, while ANAPLANS handles a specific spot transaction that the bank may not be able to finance.

    After discussing spot factoring, discuss full factoring and purchase order financing, the way in which this type of financing can ease an officer’s short-term pain by providing an interim solution until an account graduates. Remind the officer that a customer would not choose ANAPLANS rates over a bank’s rates and thus when the account grows; it will revert back to the bank.

    Professionals
    Accountants, lawyers and financial consultants make good referral sources. If a client needs money, he or she will most likely go to his/her accountant for advice and may even approach a lawyer. In this way targeting accountants and lawyers can be profitable. Professionals that can help clients with financing stand out. It is important to share with these sources ANAPLANS’s excellent customer service and speed with which financing is available.

    Brokers
    Business brokers and cash flow consultants account for referring about 30% to 50% of most business. These brokers and consultants often find their prospects through a cold call process, but may have difficulty finding factors.

    Generally business brokers and financial consultants are paid a commission of between 10-15% of gross revenues. When dealing with brokers or consultants, Associates should try to deal directly with the prospect as quickly as possible, as these sources may not fully understand the factoring process, ANAPLANS’s system or the prospect. Mortgage brokers are also an excellent referral source and are often overlooked by factors.

    Boards of trade or chamber of commerce
    Board of trade or chamber of commerce provides excellent networking opportunities. Generally members of a board of trade or a chamber of commerce like to deal with other members as there is a connection between them. Also, these organizations often allow new members to send out a brochure with the board or chamber’s monthly mailing. Associates may also be able to give a presentation explaining their products at a members’ meeting. To further solicit business, ANAPLANS may consider offering a discount to members who become clients. REMEMBER: WHEN ATTENDING AN EVENT OR MEETING, FOCUS ON NETWORKING NOT EATING OR DRINKING.

    1. Religious and social clubs: Any church or synagogue groups, Kiwanis, and Rotary Clubs are all potential places to meet referral sources.
    2. Parties/events: Associates should try to get invited to charitable events or other parties given by community, financial, trade or service organizations. Attend every networking opportunity possible.
    3. End users: Associates may contact a supplier’s customers when mining for referral sources. Approaching your client’s vendors is an excellent way of developing new business. Consider advertising in purchasing associations’ magazines and newsletters.
    4. Community: Seek out opportunities through active involvement in their community. For instance, Associates who are also parents may participate in their children’s school activities such as a sports or band booster club. Become involved with local charities or a local environmental chapter. The end goal with community involvement is exposure of ANAPLANS business services.
    5. Current clients’ customers: ANAPLANS already has information about current clients’ customers and those customers may, at some level be a very good source of business.
    6. Small Business vendors: Visit local businesses in search of referrals. Many small businesses have other small business as customers. For instance, you may visit a truck tire company and inquire if any truckers were behind in their payments. You may want to develop a rapport with the proprietor and ask if they can leave behind some brochures for the waiting room.
    7. Newspapers: Many local newspapers periodically run a section highlighting new businesses in the area. You may seek out the listings for business to business enterprises as potential clients. For instance, if new temporary or staffing companies are listed, you should phone and try to schedule a meeting with the owner.

    2.6.3 Focus on best referral sources
    Once a referral network is established, you should focus on their best referral sources. This task can be accomplished by making a list of referral sources and determining from where their referral business originated. You should review this list at least annually to ensure that their best sources remain at the top of their call lists. Associates should always focus on a referral source they can own: a person who always calls that you when he or she has a potential deal.

    2.6.4 Keeping Referral Sources Happy
    Keep in touch with referral sources with face-to-face meetings, telephone calls and emails. He or she can build their relationship with referrals by taking them out for a meal, to a sporting event, to the theater or other social event.

    In addition, sending referral sources personal press releases, newsletters and seasonal cards helps the referral source keep ANAPLANS at the top of his or her mind. Finally, referral sources will feel more compelled to refer potential clients if you refer something to them, thus, you should leverage their relationship by becoming a source as well as a resource.

    2.7 Direct Marketing

    Direct marketing is a methodology devised to induce a response from a suspect, prospect or customer so as to develop a client relationship. It is the process of building a list of suspects and then narrowing that list, first to prospects and ultimately to clients and advocates.

    Essentially, direct marketing involves converting a suspect to a prospect and then converting the prospect to a client. Ultimately, Associates should try to convert their clients to advocates. Client’s who are satisfied with their services make good advocates and referral sources.

    Suspect
    Prospect
    Client
    Advocate

    The first goal of direct marketing is to acquire a list or identify a target market of suspects. Suspects should be companies that do business with other businesses, particularly those in industries where terms of payment are commonly given for goods or services delivered (i.e., industries that qualify for factoring).

    You should always set criteria for suspects and scrutinize their lists to ensure that suspects meet all pre-set criteria. For example, you may want to target businesses that are labor intensive, where granting extended terms of payment may cause cash flow problems with weekly payroll. The importance of building a qualified list as opposed to a random list cannot be overemphasized.

    After identifying a list of qualified suspects, you can begin their direct marketing efforts of converting a suspect to a prospect. The difference between a suspect and a prospect is that a suspect is simply an identified company in an industry where factoring may be feasible.

    Prospects, however, are those companies that have responded to initial direct marketing efforts and seem interested in meeting further with you to learn more about how ANAPLANS can be a solution. A prospect has made a key transition that allows the ANAPLANS to begin to use his or her sales techniques, and build a relationship through direct contact and telephone solicitation. This process of converting suspects to prospects is called prospecting and is an important area of direct marketing.

    Once a prospect signs a Factoring/Loan Agreement, that prospect becomes a client. However, the conversion process does not end here. The final and most crucial transition is converting clients to advocates. An advocate is willing, through word of mouth to become a source of new clients and become part of your referral network. Solicit testimonials from successful client relationships.

    There are three main ways you can engage in direct marketing:

    1. industry trade shows and conferences;
    2. direct mailings; and
    3. telephone marketing to target businesses.

    2.7.1 Industry Trade Shows and Conferences
    Industry trade shows and conferences are an effective means of marketing, as they afford a good, relatively inexpensive opportunity for acquiring clients. Trade shows and conferences often have hundreds of potential clients as attendees. Attendees at these events tend to be receptive to new financing ideas as they are generally attending to sell their products or services, or learn more about other products and services.

    The most effective way to market to exhibitors at a trade show is to approach the booths and briefly describe ANAPLANS. You should explain that you are aware that the trade show may not be the best time to discuss the details; they would like to follow up in a few days. Exchange business cards with the booth exhibitor.

    2.7.2 Direct Mailings and Drop Offs
    Direct mass mail marketing is often ineffective on its own, but does, however, work well when targeted and combined with direct calling. Whether mailing or dropping off brochures and informational letters, use a compiled suspect list to send materials. After that follow up on mailings with a telephone call. This is key to converting suspects to prospects, and eventually to clients and advocates.

    ANAPLANS recommends targeting referral sources when direct mailing and using directories that are focused either on specific industries or on a narrow geographical area. Targeting mailings to qualified suspects improves efficiency of direct mailing. There are five main types of lists that can use to target mailings to qualifying suspects:

    1. Databank lists: purchasable databases enhanced by characteristics and demographics; these lists are often a starting point to use with other sources (INFPO USA – Sales Genie);
    2. Compiled lists: lists constructed with data from trade shows, conferences or another source;
    3. E-lists: lists created from emails or web-surfing; these lists can also be purchased. The main problem with E-lists is issues relating to the growing concerns around SPAM. ANAPLANS does not authorize the use of SPAM email to market services.
    4. Response lists: lists of members of E-Lists, Compiled Lists & Databank Lists who have responded to direct marketing offer;
    5. Client lists: lists of current and past clients.

    2.7.3 Direct Calling to Target Businesses and Referral sources
    Telephone marketing involves placing telephone calls to target businesses and Referral Sources. These calls can be cold calls, calls from a referral source or follow up calls from a direct mailing campaign.

    2.7.4 Telemarketing
    ANAPLANS has not, in the past, had success with telemarketing campaigns due to cost versus results.

    2.8 Advertising
    Advertising is a form of marketing which can successful. ANAPLANS can advertise in several types of venues: Yellow Pages, Community Newspapers, trade journals or directories, community newspapers, and religious or social publications.

    2.9 FAQ’s From Referrals and Prospects
    The following is a list of questions with suggested responses that you are often asked by referrals, and prospects.

    What is Factoring?
    Factoring is the purchase of accounts receivable.

    How Does Factoring Work?
    We buy your creditworthy A/R, giving you 75-80% up front. This gives you the cash up front to purchase more inventory or services allowing you to increase your sales. The remaining 20-25% of your receivables less our fees will be paid to you when we collect from your customer. We will arrange credit insurance for your receivables; collect the accounts receivable and ledger the accounts receivable letting you concentrate on increasing your sales.

    Factoring works for clients who have the ability to increase their sales but don’t have the financing to do so.

    Different from banks, our primary concern is the credit worthiness of your customer. We are not concerned with how much equity you have, the amount of your working capital, the length of time you have been in business or your credit rating.

    Instead, we require creditworthy insurable accounts receivable where we can confirm acceptance with the customer and that the company’s principals have integrity.

    How much will Factoring Cost?
    Factoring generally costs between 2% and 5% of the company’s sales based on terms of 30 days. Once I have learned more about your company, what you sell and who your customers are, I can provide you with an exact quote to meet your needs.

    What is purchase order financing?
    Purchase order financing is short term funding used by a borrower to finance the fulfillment of sales orders or contracts with creditworthy end-customer. The terms of each purchase order financing agreement are transaction-specific, where funds for the purchase of materials and/or services needed to deliver goods to the end-customer. ANAPLANS will target Finished-Goods (FG) transactions, where goods are purchased and resold to the end customer. Work-in-Progress (WIP) transactions will only be considered where materials are purchased for manufacture by a 3rd party, additional security is available and there is a proven track record. WIP transactions for start-ups and owner manufactured goods are not eligible for this program.

    What Will My Customers Think?
    In most cases, especially with large customers, the people buying and placing the order will not know that you are factoring. Our notification and confirmation process is generally with the accounts payable/receiving department.

    The factoring process should be considered positive, in that factors deal with expanding companies and those whose financial needs outstrip a bank’s ability to finance.

    Unlike a bank, a factor does not place a limit or a maximum on the amount that can be borrowed. Thus, as a company grows, the amounts of availability automatically increase, assuring customers of continued supply. We fund up to $5 million.

    Factoring is a very large global business. Worldwide volume exceeds $1 trillion and North American volume is over $150 billion.

    When you factor, you become part of the fastest growing financing for small or medium-sized businesses, showing you are innovative and on the leading edge of expanding your business.

    You decided to outsource your credit and collection functions because your business is growing and prospering. At the same time, you increased your availability of capital, allowing you to concentrate on what you do best, rather than waste time in areas where others are specialists. Our staff is trained with years of experience in dealing with our clients customers. We have fine tuned the art of verification and can turn this procedure into a customer care contact which will reflect positively