W I N T E R 2 0 1 3

The State of Small Business Financing 4NSCA Updates 6Creating a Mobile-Friendly Website 7 Not-So-Average Leadership Training 8Proposals That Close More Business 10

P U B L I S H E D B YNSCA3950 River Ridge Drive NE, Suite BCedar Rapids, IA 52402800.446.NSCA • 319.366.6722Fax: 319.366.4164www.nsca.org

E X E C U T I V E C O M M I T T E E

PresidentIngolf de JongGeneral Communications, Inc

Vice PresidentKelly McCarthyGenesis Integration, Inc

TreasurerMichael HesterBeacon Communications

SecretaryRay BaileyLone Star Communications, Inc

Immediate Past PresidentRon PuseyCommunications Specialists, Inc

B O A R D O F D I R E C T O R S

Paul CroninAtrion Networking Corporation

David Ferlino Whitlock

Ron PrierRPAV

Catherine ShanahanShanahan Sound & Electronics, Inc

Josh ShanahanSport View Technologies

© Copyright 2013 by the National Systems Contractors Association (NSCA). All rights reserved. Printed in the USA. Except as permitted under the United States copyright act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, be manipulated or entered into or stored in a database system without the prior permission of NSCA.

Statements of fact and/or opinion are the sole responsibility of the authors and do not imply an opinion of the officers or board of the association. Send letters regarding materials to: NSCA, c/o Building Connections Editor, 3950 River Ridge Drive NE, Suite B, Cedar Rapids, IA 52402.

Upcoming Events

What We’re Thankful ForAs 2013 comes to a close, I’ve spent some time thinking about all the things we’re thankful for here at NSCA. And at the top of that list? Our members. We appreciate and share your enthusiasm for and commitment to your careers, your businesses, and the systems integration industry.

Established in 1980, NSCA has been dedicated to making your business a success — no matter what kind of resources you need to make it happen — for more than 30 years.

During the past year, your membership and active participation has helped NSCA:

• Increase your access to industry-related information, resources, and data through new surveys and the 2013 Financial Analysis of the Industry report, the “What Every Integrator Needs to Know” monthly webinar series, and numerous feature articles in industry trade publications

• Create our first-ever regional conference series focused on technical and hands-on training for all members of your staff

• Lobby for legislation and policy change that protects your business and the industry

• Launch a new website that offers more features and information for members

• Offer one-on-one guidance from me, based on my experiences as a former systems integration firm owner

• Create new membership categories with enhanced services

• Form a new partnership with FMI to produce our biannual Electronic Systems Outlook, which provides indicators of new business opportunities by tracking new construction starts and renovations in the commercial buildings sector

We’re proud of what we’ve accomplished in 2013, but we wouldn’t have been able to do it without you.

It is through your desire and dedication to your profession that NSCA continues to thrive. We are thankful for your membership, and wish you great success in 2014. And remember … we’re here to help you succeed by serving as your voice, your business resource, and your trusted advisor.

Chuck WilsonNSCA Executive Director

P.S. If you have questions about your membership or benefits, or the resources available to you, please contact us at 800.446.6722. We’re available Monday through Friday from 8am to 5pm CST. Or you can send us an e-mail at nsca@nsca.org, or visit www.nsca.org and talk to us via virtual chat.

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Feb. 27-March 1EvEnT16th Annual Business & Leadership ConferenceFour Seasons Las Colinas • Dallas, TXFor more information about the Business & Leadership Conference, check out pages 8 and 9 or visit www.nsca.org/blcinfo__________________________________________________

January, 2014WEbinarState of the Industry with Commercial Integrator__________________________________________________

2014WEbinarSNSCA is currently planning the “What Every Integrator Needs to Know” 2014 webinar series. If there are certain issues or speakers you’d like to recommend for next year (or you’re interested in leading a webinar topic with NSCA members), please let us know at nsca@nsca.org.__________________________________________________

2014bEST PracTicES conFErEncESArrangements are underway for the 2014 regional Best Practices Conferences. If there are specific topics or training you’d like us to consider, or a location we should investigate for 2014, contact us today!

Visit www.nsca.org to get the most up-to-date information on 2014 events, seminars, conferences, and webinars

The past few years haven’t been rosy for small businesses seeking loans. Although frozen credit markets have thawed somewhat, not all bankers are rolling out the welcome mat for small businesses due to continuing economic uncertainty. While lenders are giving more, they’re generally focusing on larger loans ($1 million or higher) for businesses with the healthiest balance sheets. The good news, however, is that business owners who can’t obtain loans, or are hesitant to take on debt during times of sluggish sales, are instead finding alternative ways to finance their businesses.

The National Federation of Independent Business (NFIB) spoke with financial experts and small business owners to obtain an accurate picture of small business financing at the end of 2013.

Small Business Lending ImprovesThe financing landscape is improving. In 2011, only 29% of small business owners reported having a small business loan (down from 44% in 2008). Today, the percentage of regular borrowers has rebounded to approximately 30%, says Holly Wade, senior policy analyst at NFIB.

The Thomson Reuters/PayNet Small Business Lending Index, which tracks loan volume to small U.S. companies, finally reached pre-recession levels in July. “We’re seeing a pickup in small business lending,” says Jeff Stibel, CEO of D&B Credibility Corp., an organization that provides credit scoring for businesses.

In particular, big banks are stepping up their lending. The Small Business Lending Index, conducted by New York City-based Biz2Credit, found that small business loan approvals from big banks reached 17.4% in July 2013, up from 11.3% in July 2012. Small banks approved 49.4% of small business loans in July 2013, up 2% since June 2012.

“Now is a good time to borrow,” says Mark Faust, a Cincinnati-based growth consultant and author of Growth or Bust! Proven Turnaround Strategies to Grow Your Business. “It doesn’t take rocket science to predict that interest rates are going to go up.” Interest rates have been at historic lows for a few years, but are starting to rise. A U.S. Treasury 10-year note neared 3% interest in early fall, while it remained under 2% for most of 2012 and 2013.

Businesses Seeking Larger Loans Are SuccessfulDespite signs of slight improvement in lending, challenges remain for owners seeking loans. By many accounts, it’s still very hard for those with less-than-stellar balance sheets to get bank loans. In Q3 2008, when small business lending was at its peak, 41% of respondents to the Wells Fargo/Gallup Small Business Index survey said obtaining credit was easy over the past 12 months. In the Q3 2013 edition of the survey, only 22% said it was easy to obtain credit. Additionally, the Federal Reserve Bank of New York found in May 2013 that, while 55% of profitable businesses in New York, New Jersey, and Connecticut got their loans approved by banks, just 26% of those operating at a loss and 19% of those at break-even had loans approved by banks.

CPA Richard Levychin, a partner in accounting firm KBL LLP in New York City, says businesses with troubled balance sheets need to turn to higher-interest-alternative lenders for short-term financing unless they can clean up their credit scores.

And many are doing just that: The Thomson Reuters/PayNet Small Business Delinquency Index, which measures payments that are 31 to 180 days past due, reached an all-time low of 1.48% of loans in July, down from a high during the recession of 4.73% in mid-2009. Still, banks’ cautious behavior will likely continue for the next few years as the memory of the financial crisis lingers.

Businesses seeking larger loans seem to have an advantage over those seeking microloans. Amid continuing economic uncertainty, many banks are focusing on larger deals to make the most money.

According to a U.S. Small Business Administration Office of Advocacy report, the total value of loans of more than $1 million rose 12% from 2011 to 2012. In the same period, the total value of outstanding loans of $100,000 or less decreased about 1%. Loans up to $1 million faced a 3.1% decline. But that doesn’t mean it’s easy for owners to secure a large loan.

Bank Loan AlternativesOnline crowdfunding platforms like Kickstarter and Indiegogo, a method of acquiring small loans from several independent investors, have also steadily gained ground as an alternative to borrowing from banks. The amount of money secured through these online hubs nearly doubled from $1.5 billion in 2011 to $2.7 billion in 2012, and should rise to $5.1 billion globally this year, according to research firm Massolution. Peer-to-peer lending, considered a form of crowdfunding, has also been growing. Massolution found that it grew to $1.2 billion globally in 2012, up 111% from the year before. (Peer lending is a transaction between people, not businesses.)

Some entrepreneurs have plunged into raising equity investments from high-net-worth accredited investors on crowdfunding platforms, a process now allowed under the JOBS Act. This has been a particular boon to early-stage startups being bypassed by venture capitalists, according to some observers.

Funding from venture capitalists has picked up, however. According to the National Venture Capital Association, total venture capital funding

for early-stage startups was $13.4 billion in 2010; in Q2 2013, funding of early-stage startups was already hovering near $3 billion.

Such activity is likely to pick up steam following the July 2013 decision by the Securities and Exchange Commission to lift a general ban on soliciting accredited equity investors through social media sites and other venues. Meanwhile, entrepreneurs have been waiting for an SEC decision on whether they can sell equity to the general public, which some observers worry could expose unsophisticated investors to fraud. __________________________________________________________________This information was gathered from Elaine Pofeldt at the National Federation of Independent Business (NFIB), a small-business advocacy association.

Financial experts and business owners weigh in to paint a truthful picture of financing for today’s small businesses

The State of Small businessFinancing

HOW MUCH DEBT SHOULD YOU TAKE ON?

With low interest rates, many businesses are eager to lock in a loan; however, it’s important to consider your business’ individual circumstances before borrowing. These five questions can determine whether your business is in a good position to borrow (and how much debt it can handle):

1. How much cash will be available for monthly payments? bankers typically look at your business’ debt-to-income ratio and cash flow when evaluating a loan application. Look at your income and expenses. a cPa can help you analyze your profit and loss statement and balance sheet to figure out how much debt your business can realistically handle, even if there are bumps in the road.

2. Are there weaknesses to address? a lack of sufficient revenue to cover your expenses will leave you in a weaker position to handle loan payments. before borrowing to cover funding gaps, work with your cPa to find ways you can fix the problem. “can you raise the cost of the product you’re selling to raise some additional revenue, or can you review your overhead expenses to see if there’s any place to cut expenses?” asks Michael Eisenberg, a Los angeles cPa.

3. Will a loan ultimately increase your cash flow? if you’re taking on a loan to pursue a new line of revenue, then borrowing can be a smart move. but there’s a caveat: Your plan needs to have a realistic chance of success, or you could end up with an unmanageable amount of debt.

4. Are you paying too much interest on another loan? Getting a loan at a better rate so you can pay back another high-interest loan may leave your business in better shape financially. Lower monthly payments can free up cash for other uses.

5. What will happen if your business can’t pay the loan? Earlier this year, financial information company Sageworks found that the average private company’s probability of default was 3%, down from almost 5% a year earlier. if sales are slowing, it’s important to consider what resources you will be able to tap if your business can’t pay it off.

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0713_LSP500_Ad_NSCA.indd 1 7/15/13 1:29 PM

M E M B E R A D V E R T I S E M E N T

When it comes to websites, many businesses are now questioning whether they should focus their efforts on creating a mobile responsive site or a mobile app.

HTML5 Responsive Sites vs. Native AppsAccording to ThinkMobile, the debate as to which platform is best for displaying a website on a mobile device is becoming antiquated (and hasn’t been fully resolved). Of the more than 1.78 million apps in the marketplace, only 200,000 were created in HTML5.

ThinkMobile also points out that native apps beat out responsive design in a number of key areas, such as:• Aricheruserexperience(HTML5hasbetween30and50device

capabilities, and native apps have access to more than 6,000)

• Overallperformance(nativeloadsfaster)

• TimelyaccesstonewOSinnovations(forexample,AppleandGoogleoffer between one and three big updates each year)

• Security(thesecurityofdataintransitandatrest)

However, ThinkMobile also declares responsive design the winner in a few areas, citing lower cross-platform development costs, availability of programming expertise, and immediate updates and distribution control.

Other industry experts contend that user behavior is geared more toward HTML5 responsive sites than to native apps. They also point out that the World Wide Web Consortium deems HTML5 as being “feature complete”; it projects that a long-term outlook will shift away from native development once the hype dies down.This information may help you decide which is best for your integration firm …Pros of Native Apps• Businessescanleveragepropertiesofasmartphone(like“shake,”GPS,

and cameras) to add to the “wow factor” of the app

• Performanceisoftenfaster(somemobilebrowsersarefasterthannativeapps, however, because they can optimize memory management and performance)

• Nativeappallowsnewcustomerstofindyoubysearchingthe app marketplace

Cons of Native Apps• Nativeappsareoftenmoreexpensivetodevelopandmaintainacross

multiple platforms

• Userexperiencetakesahitwhenusershavetoproactivelyupdatetheirapps to keep them working

• Apps don’t offer the ability to share content the way it can be shared on the web

• Appsthatgeneraterevenue(throughrenewalofyourbusiness’services,forexample)canbesubjecttoaheftycutbytheplatformowner(30%forApple and Google)

Pros of HTML5 Responsive Sites• WorksfromonesetofURLsandonesetofHTMLcode,sowebsite

changes only need to be made once

• Ensuresthatallcampaigns(email,search,social,oraffiliate)pointtomobile-friendly pages

• AsinglesetofURLsalsooffersSEObenefitsbecauseallbacklinkspoint to a single domain

• Scalability

• Userexperiencethatcloselymimicsthedesktopcomputerexperience

Cons of HTML5 Responsive Sites• Pagesloadslowerthannativeapps,whichcanaffectconversionrates

• Inmostcases,responsivedesigncostsmoremoneybecauseof the complexity of ensuring that layout and code work in tandem at every breakpoint

• Designconstraintsmeanmonetizationchallengeswhenstandard ad units don’t fit

__________________________________________________________________This information was gathered from SCORE’s Dean Vella, SEO Specialist at Bisk Education. SCORE is supported by the U.S. Small Business Administration.

creating a Mobile-Friendly WebsiteNSCA Updates

WHAT DO THESE TERMS MEAN? Responsive websites respond to the environment and are created with multiple fluid grid layouts. One design suits every screen size, from an iPhone to a 60-inch flat screen display. To see responsive design in action, visit the websites of Target or The Boston Globe on different devices and screens to compare.

Native apps are application programs developed for use on a particular platform or device. Because native apps are written for a specific platform, they interact with and take advantage of operating system features and other software that is typically installed only on that platform. They can use device-specific hardware and software, taking advantage of the latest technology available on mobile devices.

To stay relevant and increase revenue, your website has to follow where the market is going … and the market is going mobile

BLOGSinside nSca www.nsca.org/nsca-blog

Authored by NSCA Executive Director Chuck Wilson, you’ll find the latest info on:

• Budgetingandforecastingtipsfor2014

• Takingchargeandincreasingyourconfidenceasaleader

Get the Gab (Government affairs blog) www.nsca.org/gab-blog

Authored by NSCA Senior Director of Government & Industry Affairs Cathy Mrosko, you’ll find the latest info on:

• ThelatestintheAffordableCareAct–whatitmeans for you as an individual and as an employer

• TheeffectsofnotfollowingtheLPPRrule

RESEARCH2013 Financial analysis of the industry

Our newly updated report takes the guesswork out of job estimates, demonstrating the true cost of doing business. As NSCA members, this free benchmarking tool will help you avoid eroding margins, overbidding on jobs, or misusing labor. You’ll be able to use it to identify excess business spending, inefficiencies, and waste.

EVENTSNSCA wrapped up its first regional Best Practices Conference (BPC) series in November. Since then, we’ve been busy surveying our members and developing plans to make the 2014 BPCs even more focused on the type of training you need. NSCA’s BPCs will be headed to new locations in 2014, so watch our website and communications to find out which U.S. cities are next!

MEMBER RESOURCE GUIDEOur updated Member Resource Guide walks you through all the benefits available to NSCA members … from ready-to-use documents created specifically for our industry to free “What Every Integrator Needs to Know” monthly webinars.

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Secure, enterprise-grade video collaboration used to exist only within the company firewall. Not anymore. With Polycom® RealPresence® CloudAXIS™ Suite, you now have everything you need to extend that same high-quality collaboration over the web to other businesses or individuals regardless of application, system or device. To learn more visit www.polycom.com.

It’s time for video collaboration without boundaries.

M E M B E R A D V E R T I S E M E N T

To Sell is Human: The New ABCs of Moving Others Daniel Pink, Author, A Whole New Mind, Drive, & To Sell is Human

Sales roles have changed more in the last 10 years than in the previous century. Buyers today have just as much information as sellers, so Daniel Pink reveals the new ABCs of selling: attunement, buoyancy, and clarity.

SESSIONSEconomic Outlook 2014 Dr. Lee McPheters, Arizona State University

This popular session has become an annual tradition of analyzing long-term trends, current conditions, and the economic outlook for the year (and beyond). Dr. McPheters uses NSCA’s new Electronic Systems Outlook to examine how more than eight vertical

markets will trend in 2014.

Achieving Higher Profits through the Theory of Constraints Dr. Lisa Lang, Science of Business

You don’t need to invest a lot of money to increase profits. Through this highly interactive presentation, discover how to leverage the resources you already have. Find maximized profitability through Dr. Lang’s own hands-on discovery process, which shows you how to influence the biggest and quickest impact.

Mafia Offers: Setting Your Company Apart from the Competition Dr. Lisa Lang, Science of Business

What’s a “mafia offer”? A market offer so good that your customers can’t refuse it … and your competition won’t offer the same. Dr. Lang will lead hands-on exercises that will have you challenging your own thinking when it comes to creating an irrefutable market offer and increasing sales.

We think that good leadership starts with creative, effective decision-making. Sixteen years ago, when NSCA created its first Business & Leadership Conference (BLC), we wanted to help leaders in systems integration, low-voltage contracting, and technology solution firms:• Learnthemeaningandsignificancebehindcurrentindustrytrends

• Refineexistingskills

• Developnewabilities

• Betterunderstandthefutureoftheelectronicsystemsindustry

BLC covers business angles in a way that’s unique to our industry. You’ll find practical solutions to existing and new challenges, and hear what your peers are doing to build stronger firms. From new sales processes to IT/AV convergence to employee recruitment, our Business & Leadership Conference2014–heldinDallas,TX,fromFeb.27toMarch1–willhelpyouadvance your leadership skills.

To kick off BLC, we welcome two celebrated keynotes: best-selling business author Daniel Pink and modern-day workplace strategist Adrian Gostick. After listening to the customized information they share, you’ll walk away with inspirational ideas for motivating employees, retaining talent, and establishing a culture that breeds high achievement. BLC attendees will also have access to any sessions they want to attend.

KEYNOTES7 Steps Managers Can Use to Create a High-Achieving Culture Adrian Gostick, author of The Carrot Principle and The Orange Revolution

Adrian Gostick shares his simple, seven-step roadmap for a success-driven team, which walks you through the research-based characteristics of the world’s most profitable, productive team cultures. You’ll then learn about the details needed to create a productive work culture.

Facing New Realities of the Service Economy We’re hosting a bold, dramatic discussion on AV/IT and security/IT integration, as well as converging technologies. Debate the CIO/IT involvement, migration to services, the new direction that integrators must take, and the industry’s fight to stay relevant in projects moving forward.

The Top 5 Issues Influencing Your Business TodayDiscover strategies, tactics, and management skills to keep you ahead ofthecurve–notbehindit–whenitcomestotheimpactofhealthcarereform; contracts, IP protection, and your rights; new tax implications, labor laws, and regulations; and managing alternative procedures for project closeout/payment.

Driving Results through Accountability Greg Bustin, Author, Take Charge!, Lead the Way, & That’s a Great Question

Sharing the most thought-provoking questions that successful people examine regularly to get more of what they want out their businesses and lives, Bustin shares tidbits from his third book for leaders and CEOs: That’s A Great Question. 

What’s Working and Why? 10 Success StoriesAs we cover the top 10 ideas from 2013 that led to significant integration industry improvements, including IT integration, ERP, cost-savings, and RMR managed services, we promise that you’ll walk away with even more plans for improving and energizing your own business processes.

To be the best motivator, trainer, and educator you can be, plan to attend the 16th annual Business & Leadership Conference

NOT-SO-AVERAGE LEADERSHIP TRAINING

What makes for a valuable and influential leader within a systems integration firm? Honesty? The ability to delegate? Confidence? A surplus of ideas?

REGISTER NOW TO SAVE!Through Jan. 4, 2014, NSCA is offering an early bird

registration discount of $100 for all attendees. NSCA members may qualify to receive an additional 10% discount toward each registration fee.

NSCA members who are first-time attendees are also encouraged to apply for the Randy Vaughan Founder’s Award to receive free registration (a $1,099 value). To qualify, applicants must be in a management or decision-making role. Applications can be found at www.nsca.org/blc.

For more information about BLC, or for early bird registration, visit www.nsca.org/blc or call 800.446.6722.

SAVE $100through Jan. 4

The Carrot Principle: Using Recognition to Engage People, Retain Talent, and Accelerate Performance Adrian Gostick, Author, The Carrot Principle

Learn how the transformative power of purpose-based recognition can produce astonishing increases in operations results. Great managers lead with carrots, not sticks … and when they do, they achieve increased levels of productivity, engagement, retention, and customer satisfaction.

BLC 2014 Feb. 27 – Mar. 1, 2014 Four Seasons Las Colinas Dallas, TX

8 B U I L D I N G C O N N E C T I O N S

ProPoSaLS THaT cLoSE MorE bUSinESS

Similarly, proposals shouldn’t be spread out like trotlines. Writing and submitting proposals takes time away from what you need to be doing: talking to prospects, assessing needs, helping your prospects understand your business’ unique abilities to deliver the results they desire, agreeing on the value you can deliver to them, and performing the work.

A proposal isn’t a starting point or work in progress. Instead, it should serve as a clear, concise summary of what will be accomplished for the prospect and the value they will enjoy.

It will become the main part of your agreement with the prospect (once it’s approved). It will also be a document that everyone can refer to as a guide for the work being done and what will be gained as a result. It should be brief; it shouldn’t look “legal,” but it should be clear and professional. And it shouldn’t contain any mention of your fees. Each agreement should be 100% tailored to the prospect’s project. When your desire is to bring in more business and spend less time chasing prospects, approaching proposals in this way helps break down the barriers between your prospects and the pen they use to write you a check.

Here’s the simple formula: 1. Get the prospect to clearly articulate what he/she wants to accomplish

2. Get the prospect to agree on an estimate of the value (in dollars) that the project will earn or save him/her

3. Get the prospect to decide when he or she would like to have the project completed

4. Get the prospect’s go-ahead for you to begin the work necessary to deliver results

Your fees should be presented after you and the prospect have agreed on everything else. Your fee agreement can be attached as an addendum.

Here are some other suggestions for formulating proposals that can ultimately help you close more business: 1. Don’t include details about what you’ll do to deliver the benefits outlined

in the proposal. The client should already trust you and be convinced that you can deliver the desired results. You can talk about process, develop methodologies, and help them understand what you’ll do, but this doesn’t need to be in the proposal/agreement. Spend time helping your client understand you, your business, your experience, your capabilities, your commitment, and the process you use. Details will just bog down the agreement, and that’s not good for anyone.

2. Provide three options in your proposal for accomplishing what the client desires: one with a minimalist scope of services, one with a middling scope of services, and one with an extensive scope of services. Of course, the fee requirement for each will be different. One great benefit of the “multiple options” strategy is to get the client to move from “who do I choose?” to “which option of yours do I choose?”

Customeragreementsareoftenmisusedandmisunderstood.Theyshouldn’tbeabarrier to doing business. For most businesses, they don’t need to be filled with legalese or require review by the prospect’s legal advisor. Proposals shouldn’t be used to introduce yourself or your firm. They shouldn’t be used to gauge a prospect’s interest.

3. Identifyandworkonlywiththedecision-maker/ultimatebuyer–theperson who can approve the agreement and sign the check. Proposals to non-buyers are a waste of time (and paper and ink). When a non-decision-maker says you have to work with him, explain that your company policy prohibits you from working with non-decision-makers … and that you’re only able to work directly with decision-makers because there is a lot at stake and neither of you can risk miscommunication or errors due to not involving the person who ultimately judges the results.

4. Establish and include the project’s business objectives in your proposal. Not the deliverables, methodologies, or tasks to be performed, but the objectives that will be accomplished for the client. Include the value of completing each. The items can be for either the company or the person you’re working with (or both).

5. Include measures of success for the project. These are the things you’ll both look to evaluate and ensure that progress is being made.

6. Don’t deliver the agreement until everything is agreed to between you and the prospect. Each time he or she asks for a proposal, drill down on the terms that need to be clearly agreed upon. Explain that, once you agree on terms, you can deliver a proposal that contains the agreed-upon terms. When you have an agreement, and they’re excited to get started and see results, tell them the proposal will be on their desk–inwriting–thenextday.Thenmakeithappen.There’snoneed to present it in person because they’ll need time to review it anyway.

7. Include in the written proposal that the agreement is contingent on agreement of the fees to be paid. When the client asks for the fees, tell him or her that the first priority is agreeing on what you will be doing before you can provide fees. Then, once the proposal has been reviewed and the prospect has agreed to all the terms, provide the fee proposal with an investment stipulated for each option. Include ROI estimates for each option in your fee proposal. Then, agree with the prospect on when you willfollowup(afterhe’shadachancetoreviewthefeeproposal) if you haven’t heard from him or her already.

After submitting the fee proposal, follow up at the agreed-upon time. When you reach him or her and complete the initial greeting and niceties, don’t say a word. Just wait for a response. If he beats around the bush, ask which option he has chosen. Don’t agree to reduce any fees without removingsomeofthedeliverablesormethodologies–whetherornottheyare outlined in the agreement. Refer to the ROI for each. Remember that you’re selling value, not price.

Once the discussion has happened, ask if he or she is ready to get started. Signing the document and paying the initial fee is secondary to getting started on the work. Once you begin, the agreement is basically in place. Another trick: If you simply receive a check, don’t bother with the signature. Add to the proposal that payment for services constitutes acceptance of the agreement. __________________________________________________________________This information was gathered from The Business Owner Journal, a publication that offers expertise for the business owner.

It may not be the most conventional way to handle an agreement, but trying this approach can help you close more prospects

B U I L D I N G C O N N E C T I O N S 1110 B U I L D I N G C O N N E C T I O N S

3950 River Ridge Drive NE , Suite B | Cedar Rapids, IA | 52402Ph: 319.366.6722 • 800.446.6722 | Fax: 319.366.4164www.nsca.org

PRSRT STDUS Postage PaidCedar Rapids, IAPermit No. 860

Daniel Pink, New York Times and Wall Street Journal bestselling author, will reveal the new abcs of selling in our industry: attunement, buoyancy, and clarity.

February 27 – March 1, 2014 Four Seasons Las Colinas Dallas, TX

www.nsca.org/blc

EARLY BIRD PRICING!SAVE $100on registration through Jan. 4

Scan or visit www.nsca.org/blcinfo for a full conference schedule