Elevator Pitch Tips from Hard Hat Business Advice

Before you start your promoting and prospecting activities, it’s essential to be absolutely clear about what you are selling in terms that are meaningful for the target customer.

The way to arrive at this is to develop your proposition into an elevator pitch. The idea is that by chance, you’ve stepped into a lift with someone who looks as though they could be a potential customer. They say ‘Hi, what do you do?’ You have only one floor to engage their interest and get them to say ‘That sounds interesting, here’s my card, will you call me later?’

The important thing to remember is that when they ask what you do, they don’t really care! What they are actually asking is: ‘What can you do for me?’ Which is an entirely different question, and being able to answer it engagingly is at the heart of successful networking. The key is to focus on the benefit you deliver for your customers.

Think in terms of what your customer does with your products or services and answer this question as clearly and unequivocally as you can:

Why should they buy from you, rather than your competitors?

The answer to that question is what forms the basis of your sales pitch. If it helps, try listing the things you do that help your customers, then list the reasons why they should be doing business with you rather than someone else. If you haven’t already done it, work on your segmentation to make sure that you understand your customers’ needs and motivations to purchase.

For one example, a cleaning company called Acme Cleaning, the elevator pitch may look something like this:

Hi, I’m Emma from Acme Cleaning. We deliver a responsive cleaning service that guarantees community-housing tenants will have a clean and safe environment they will be proud to live in.

Notice that there is a structure to creating an effective elevator pitch:

1. The introduction line (this is me)
2. The deliverables (this is what we do)
3. The ‘so what’ line (this is what’s in it for you)

To give another example, my pitch for the pump repair business of Jones Ltd. would be something like this:

Hi, nice to meet you. My name is Jim Jones and I help improve production line productivity. We service production line pumps. After forty years in the business we can get spares for any type of pump and can make parts that are not available any more. So our customers maximise profits from their production lines because we minimise the down-time for them.

Notice how clear and specific the message is. Nowhere is it mentioned that Jones Ltd can also make guard-rails, and do general engineering, that might come out if the conversation develops later. It focuses on what they want to sell now. Being clear and specific has two important benefits:

1. If you’re in the lift with Jones and are in any way having a pump problem — or know someone that is — you’re going to want to take his card.
2. If you’re not interested, you’ll want to move on quickly, which sets Jones free to talk to the next person who gets into the lift.

Important things to remember about the elevator pitch are that your goal is not to talk about you but to provoke a conversation. And any conversations that develop from it are intended to build a relationship that will result in a sale, not close a deal there and then. You need to talk about results, not products or the company.

By the way, it is fine to have different elevator pitches if you have different products and services, but always choose one to work with on each occasion. Never, ever mix them because it will diminish your clarity of purpose.

Perfect, remember and rehearse your elevator pitch; you’ll come to use it time and time again.

Good luck with your elevator pitch!

Filed under: Sales Builder

Directors Duties under the Companies Act 2006

The Companies Act 2006 received Royal Assent on 8^th November 2007. It was hailed as the biggest reform of UK company law for 150 years. It is the largest UK Act ever with over 1,300 sections. Approximately one third of the Act replaces company law provisions in previous Acts in a clearer and easier to understand manner.

The Act includes the first ever statement in statute of directors’ duties which is intended to codify much of the old law derived from both statute and common law.

The following is a general introduction to the subject and is not an exhaustive guide. Directors are advised to seek proper professional advice on any specific matter in connection with this complex area of Company Law.

DUTY	CONSIDERATIONS
Duty to act within their powers (s171)	Directors must act within the powers contained within its constitution. In most cases this will mean the Memorandum and Articles of Association together with any relevant resolutions passed at meetings of the members.Directors are advised to familiarise themselves with the articles and other relevant documents. It should also be noted that they should only exercise their powers for the purpose for which they are conferred and not for any other purpose, even if to do so may be in the best interests of the company.
Duty to promote the success of the company (s172)	Directors must act in a way that would be most likely to benefit its members as a whole. However, in doing so, directors should have regard to: The likely consequences of any decision in the long term The interests of the company’s employees The need to foster the company’s business relationships with suppliers, customers and others The impact of operations on the community and the environment The desirability of maintaining a reputation for high standards of business conduct The need to act fairly as between members of the company. Directors should be concerned more with the long term consequences of their decisions than with short term benefits. It is suggested that directors ensure that minutes of major decisions are drafted in a way that makes it clear that these matters have been considered by the board. It is further suggested that people providing material for board meetings are made aware of the matters directors are required to consider to ensure adequate information is included for the directors to make informed decisions.
Duty to exercise independent judgement (s173)	Even though a director may have been appointed to represent the views of a particular group of people, the director must act in the best interests of the company even if it is prejudicial to the group that appointed him.Directors may seek advice from suitably qualified people or delegate matters to committees. However, they must exercise their own independent judgement in deciding whether to follow someone else’s judgement on any matter.
Duty to exercise reasonable care, skill and diligence (s174)	The level of care, skill and diligence expected is that of a reasonably diligent person with the general knowledge, skill and experience expected of a person occupying that position in the company. In addition, a director is expected to use any general knowledge, skill and experience that the director has.Individuals should think carefully before accepting directorships. All directors, including non-executive directors, are expected to have the knowledge and competence to perform their tasks to an acceptable standard.
Duty to avoid conflicts of interest (s175)	Directors should avoid situations where their inetersts are likely to conflict with those of the company. If such a conflict arises, a director should declare that interest as soon as they become aware of it.Directors should ensure that a procedure exists to adequately record such conflicts.
Duty not to accept benefit from third parties (s176)	Directors should ensure that they do not receive any benefit from third parties which may be considered to be a bribe. Any benefits received should be disclosed to the board and minuted.Benefits which are so minor that they could not be thought to influence the director may be ignored. If in doubt, declare it!
Duty to declare interest in proposed transactions or arrangements with the company (s177)	As with s175, interests should be disclosed as soon as the director becomes aware of them. Disclosure extends to a person connected with a director (e.g. spouse and children).Directors should abstain from voting on matters where they have an interest.

Directors should have regard to other relevant statutes which impact on their duties including:

• Company Directors’ Disqualification Act 1986
• Insolvency Act 1986
• Health and safety at Work etc. Act 1974
  The following action points may assist directors to fulfil their duties under the Act.

ACTION	FURTHER ADVICE
Take responsibility for better environmental and social performance	Foster a working environment in which the wider responsibilities of the company are both accepted and fulfilled. Monitor corporate responsibility issues on a continuing basis
Have regard to the interests of creditors	Directors are responsible for the company’s relationship with creditors. Directors should also consider their obligations under the Insolvency Act 1986. Maintain a strict record of decisions and the reasons for them. Consult an insolvency practitioner getting written advice where possible.
Ensure proper procedures for decision-making	Review existing procedures for decision making. Ensure such procedures help the directors take decisions that will promote the best interests of the company as a whole. Designate a director or the Company Secretary to report any departure from agreed procedures. The Chairman of the Board should ensure that the decision making process is carried out properly.
Understand obligations under the Companies Act 2006	Make sure that all directors and those responsible for preparing board papers are aware of the statutory duties under the Act. Provide newly appointed directors with suitable information or training as to the performance of their duties. Ensure prospective directors are made aware of the duties of directors before they agree to be appointed as a director. Directors should have job descriptions and/or service contracts which set out their duties clearly.
Develop a proactive approach to corporate governance and understanding the companies affairs	Acknowledge that directors, particularly non-executive directors, should enquire into the conduct of the company’s affairs. Directors’ ability to question management provides an effective safeguard against decisions being made in default and without regard to statutory factors.
Ensure adequate information flows	Detailed agendas should be made available in good time before meetings together with the appropriate material upon which their decision making will be based. This applies particularly to dense financial information. Complete information from a wide perspective of views is essential to reduce the likelihood of making a wrong decision.
Guard against conflicts of interest	Directors should ensure that the Act does not prevent them from acting as a director. Cross directorships between competing or co-operating companies may cause difficulties here. Directors should ensure that they understand the extent to which they are allowed to take part in decisions in which they are interested. Review and amend the articles in line with the new Model Articles if necessary. It is likely that articles compliant with the old law contain redundant provisions. Ensure clear and comprehensive company policies are put in place regarding conflicts of interest and benefits received from third parties.
Acknowledge that statutory duties apply to all areas of decision making	Directors make decisions in their day to day work as well as in formal board meetings. They must comply with their duties in all their decision making. Consider mentoring or peer review to ensure the quality of individual decision making.
Responsibility for employees and other staff	Directors may delegate tasks to employees, staff or agents of the company but they cannot delegate their responsibility for the proper completion of those tasks. Directors are responsible for the conduct of employees and other staff.
Ensure that adequate insurance is in place.	Review directors’ indemnities and directors’ and officers liability insurance policies.
Seek professional advice.	Obtain legal advice from a properly qualified practitioner to ensure that things are being done correctly and in accordance with the law. If the company is in financial difficulties, consult an insolvency practitioner at the earliest opportunity. Do not wait until insolvent liquidation is your only option.

Sources:

1. The Companies Act 2006
2. The Companies Act 2006: Directors’ Duties Guidance by David Chilvers QC, Published in October 2007 by The Corporate Responsibility (CORE) Coalition
3. InstituteofDirectors Factsheet– The duties, responsibilities and liabilities of directors.
4. Guide to Directors’ Duties – Brachers LLP

Hard Hat Business Advice. August 2010

Filed under: General Management, Team Builder

Top Ten Time Management Tips from Hard Hat Business Advice

1. IDENTIFY THE TIME BANDITS
We all suffer from the work of the time bandits. Keep a time log for a few days and analyse the results. Create tactics for dealing with time wasters. Focus on what you can change now. Deal with interruptions and don’t get distracted.
2. USE THE RAFT TECHNIQUE
Go through your paperwork and sort it aggressively using the RAFT categories. Plan to only handle each piece of paper once. Use the bin – if it’s really important someone will eventually send you a copy! Refer, Action, File, Trash!
3. FOLLOW THE CATEGORIES OF TIME RULES
Focus on the important but not urgent category. It stops them moving into important and urgent!
4. KEEP A MASTER TO-DO LIST
Use a note book and update ACT! or Outlook daily.
5. BREAK IT UP INTO BITE SIZED CHUNKS
Break big tasks down into bite sized chunks. You will be surprised how quickly you complete the task. Use sub-lists for large projects.
6. PLAN YOUR DAY
Be sure to plan tomorrow at the end of today. Use the Hard Hat planning sheet.
7. GOT A SPARE MINUTE?
If you find yourself with a spare ten minutes, look at your to-do list and complete a small task. Alternatively, look at a bigger task and break it down into a sub-list. Plan to do the sub-list elements to ensure you get the job done on time.
8. STAY ORGANISED
Don’t let your desk get out of control. Tidy using RAFT often and file things immediately. It will improve your retrieval time no end! A tidy desk improves productivity too.
9. BE HONEST WITH YOURSELF
Look at how you use your time. How often do you play solitaire or freecell? Don’t waste your time. You could go home earlier!
10. TAKE A BREAK
Frequent breaks improve productivity and clear your mind. Walk round the business and talk to people. They need to see you. Eat often and keep your fluids up. Drink water not tea or coffee. Keep a fruit bowl on your desk instead of a pile of random papers!

Filed under: Time Builder, hard hat, management, time