Sales Expert Grant Cardone talks about the Skills You Need When the Economy is Tough and the Selling Environment More Competitive than Ever.

By Deborah Jeanne Sergeant

As an internationally recognized sales expert and author of the new book Sell to Survive, Grant Cardone represents an ideal interview subject, considering today’s economy, since he believes that recession success can only be achieved through selling. Home Business Magazine recently interviewed him.

Home Business Magazine (HBM): How important are relationships in one-on-one selling?

Grant Cardone (GC): Relationships are selling. It’s the difference between a contract and contact: the “r,” for “relationship.” Until you have that, you have no contract.

HBM: The old-school method of salesmanship tended to be confrontational. How is yours different?

GC: I developed Information Assisted Selling™. Selling hasn’t changed much in the last 50 to 60 years. Ninety percent of the population despises the sales process because it’s confrontational and not information assisted. Every person seeks information to start the sales process. It’s not technical information he or she wants, but practical information. Can I afford it? Do I qualify to purchase it? Does it meet my needs?

HBM: What are a few concrete ways that home business entrepreneurs can generate good sales leads?

GC: People should start with their base of power, the people you know: friends, family, neighbors, people you used to work with, even people you didn’t get along with in the past. People try to start with new leads, and [those leads] have no reference to this company and the company has no credibility. You’re starting from beyond scratch, instead of someone who knows someone. That’s a faster start for a company than a fresh Internet lead off a Google search.

HBM: What is the top mistake home business entrepreneurs make?

GC: Most small businesses fail because they don’t ring the register often enough with high enough prices. That is the number one reason businesses fail. It’s not a lack of capital. That’s a myth perpetuated by the schools.

HBM: What are the top mistakes most home business entrepreneurs make when it comes to sales during a recession?

GC: Making [their product or service] cheaper is a formula for disaster, because they will sell smaller volume and price and profit is very critical. They talk price instead of solutions. People are looking to solve problems. The problem for a company today isn’t the budget but how it uses the solution we’re offering. The number one reason people don’t make decisions to buy is that they don’t know if it’s the right decision, not price. Small business owners put too much emphasis on “people don’t have money,” but that’s not true. People are just more selective. People want to know if they’ll love it and if it will solve their problems.

HBM: How is it even possible for a home business to increase sales during a recession?

GC: Regardless of what is being suggested by the media, the company must decide that 20 percent less sales than last year isn’t good enough. They must decide to go forward. During a recession, the competition has been weakened. This economy offers the opportunity to the go-getters. Entrepreneurs are pulling back on the energy and resources they use, so if the market pulls back 40 percent, I’ll assume my competitors will do that in their spending and habits. I’ll use correct estimation of effort, a formula where I’ll adjust the amount of effort I put into the business. This is where a person has to be right for home business. It’s easy to grab something to get some comfort instead of working to grab the opportunity to get more market share.
Production is the solution to all problems. When I produce better, I’m under less stress. It’s important for me to be focused on the things that move my business along. If you study wealthy people, they buy time. They get someone to take care of the baby or they get a maid. Changing the baby’s diaper and cleaning the house aren’t productive things for the company. Is making six more phone calls or changing the baby’s diaper more productive for the company? I do schedule time to spend with [my daughter], but then I’m back to the phones! HBM

Deborah Jeanne Sergeant writes from her home office in Wolcott, N.Y., penning trade and consumer articles and corporate marketing materials. Her web site is www.skilledquill.net.

Previously published in the December 2009 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit www.homebusinessmag.com