Selling a Price Increase in a Soft Market

Author:

Mark Hunter

Selling a price increase can be difficult in nearly any type of situation, but trying to sell one in a soft market can be downright brutal. Yet, as unpleasant as it can be, it is often essential. The problem usually stems from the fact that the salesperson and the customer are coming at the situation from different perspectives.

Especially in times like this, it is imperative for the salesperson to understand that regardless of what the market or economy is doing, if a price increase needs to be sold, it needs to be sold. This means that the salesperson can’t go into the sales process believing that the customer is going to reject the price increase unless the deal can be saved by offering some type of discount. If they approach the meeting with this attitude, they almost guarantee failure because a customer will never pay more than a salesperson tells them to.

In these types of situations, the first thing that often happens is a comment from the customer about how soft the economy is, how prices are really going down, and therefore, how a price increase at this time doesn’t make any sense. When the salesperson hears this, they usually agree because they hear and see the same thing. However, as soon as they do this, the battle is lost and 9 times out of 10, the only thing that can save it is some type of discount.

To counteract this problem, when the salesperson hears the customer make this type of statement, they should ignore it. Yes, ignore it. The reason? Many times the customer merely wants to get it off their chest and by telling it to you, they feel better. The first response the salesperson should make is to ask the customer questions about how they intend to use what they’re buying and whether or not they’ve been able to achieve the results they’re looking for.

If the customer continues with their line of discussion about the economy and they can’t accept the price increase, then the salesperson should ask about the steps involved in their buying process. The objective is really to get the customer talking. Initially, this can be a little scary because the customer may begin ranting about how they always go for the low price. After they get done explaining their process, the salesperson should question them about how their own customers decide to buy from them. It’s in this part of the discussion that the customer begins to see how and why quality and confidence are such big items in any purchase decision. A good salesperson will then pick up on these two items and reinforce them with follow-up questions that get the customer to further explain the importance of quality and confidence. When the customer sees what they’re buying in this light, the price increase becomes a much smaller issue.

Sometimes, even after this conversation, there will be customers or purchasing departments who will still not accept the price increase. They usually comment that they will find another vendor to buy from. This is often a veiled threat to get the weak-kneed salesperson to cave in with a discount.

For the salesperson, this type of discussion is best thwarted by ensuring the end-user fully understands the value and benefits they will receive from their product, as well as by clearly communicating the amount of pain the customer will go through should they decide to switch. First, the cost of converting to a new vendor is always much higher than initially thought, so the discount the new vendor has to offer needs to be significant. In addition, it might be easy for a customer to find a new vendor at a lower price, but on many occasions, the lower price vanishes after the initial order and, suddenly, the new vendor is at the same price as the original one. Furthermore, the new vendor will not have nearly the knowledge or expertise as the original company about how to service the customer, so the switch often winds up costing more money in the long-run.

As a final line of protection, I strongly believe the salesperson communicating the price increase should not have the authority to make any price concessions. When this power is taken away from the salesperson, it’s amazing how much tougher they are in executing a price increase. By requiring the salesperson to get approval from someone else, it also takes the salesperson off of the hot seat and, many times, as soon as the customer is aware of this, they will stop badgering for a discount.

Selling a price increase in a soft economy is certainly harder than selling one in a booming market. However, as professionals, salespeople need to take the time to know and understand how to sell a price increase in all types of markets. It doesn’t require herculean skills. It requires the diligence and patience to keep the discussion focused on the benefits the customer is looking for from both the product and from you, the salesperson.

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Mark Hunter, “The Sales Hunter”, is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com.

The Age of Anxiety Adds to Economic Woes

Author:

Barbara Bartlein

The economy has tanked, we are fighting in wars with no end in sight, and the new President is predicting difficult times ahead. Our culture has become the “age of (even more) anxiety.” Long before September 11, a study by the Yale Anxiety and Mood Center reported much higher levels of anxiety in the 1990s than they did in the 1950s. By the 1980s, normal children had higher anxiety levels than psychiatric patients tested in the 1950s.

Contributing to this chronic level of anxiety and worry has been 9/11, the D.C. sniper, increases in crime, threats of bioterrorism, and “new” diseases such as Hepatitis C and West Nile virus. There has always been a lot to worry about for those inclined to do so, but now we are given new information every night on the news. The old adage, “if it bleeds, it leads,” is the tune of newsrooms across the country adding fuel to the idea that no one is safe, even in their own homes.

The “war on terror” has left many of us terrorized. This national mantra has created a culture of fear in America like a self-inflicted wound. After the numbness of 9/11 subsided, we struggled as the “new normal” of frisking elderly women in airports, surrendering our lipsticks, and walking barefoot through metal detectors became a way of life. There is fear, anxiety and confusion. Exactly what does an elevation of the color code by Homeland Security mean? What am I suppose to do? Most of us have no idea, except we should probably be anxious. As I am asked the security questions at the Post Office and Airport, I can’t help but think that if I was a terrorist bent on blowing up hundreds of people, it probably would not bother me to offer fraudulent answers.

While this anxiety culture is very real, most of us do not focus our fears on snipers or terror. We transfer it to our everyday experiences and worries. If worried about relationships or finances, these uncertainties get magnified. If worried about the safety of our children, we get knots in our stomachs. And with the price of gas going up again, we fret over the economy and whether there will still be social security when we get there.

In talking with other small business owners, they all say the same thing. Business was slow but it really tanked once the recession was “officially” announced. Overnight, spending curtailed and anxiety skyrocketed. Apprehension gave way to angst as the nightly reports of the car and lending industries problems became clear. While many Americans are facing the harsh reality of losing their jobs, there are still businesses that are stable or even growing. Unfortunately, we hear little of that on the nightly news.

Our apprehension and fear has led most of us to tighten our wallets, reduce spending, and cancel trips and large purchases. We switch from lattes at Starbucks to Folgers home brew. Gone are the designer purchases for the kids—reenter shopping at Target. Not that this is all bad. The “affluensa” of the last decade was a culture of overspending and run away credit. The savings rate plummeted and credit card debt increased. The billions of dollars spent on advertising convincing us that more would make us happy led many of us to buy, buy, buy.

But contagious anxiety is not the answer either. The recuperation from anxiety is as important to economic recovery as quarterly statements. As consumer confidence increases so will spending and the economy. Some things you can do to reduce your customer’s money fears:

• Offer specials. It is a good time to buy almost everything. Let your customers know that you have deals, discounts and specials for preferred clientele.
• Give last year’s prices. When business is slow, I send a mailing letting people know that they can book at last year’s prices. It always gets the phone ringing.
• Extend deferred billing. As credit card companies have long known, people are more likely to buy if they don’t have to pay the full amount right away. Offer a deferred payment schedule to make it easy for your customers to make a decision.
• Give them something for free. Articles, tip sheets, books, and gadgets that help your customers be more successful are always appreciated. They will remember you when they are looking to buy.

Barbara Bartlein offers keynotes, training and executive coaching to help you build your business and balance your life. She can be reached at 888.747.9953 or barb@thepeoplepro.com.

Building Client Relationships in a Downturn

Author:

Andrew Sobel

Ironically, the devastation wrought by World War II created the circumstances for many positive and creative changes around the world, once the conflict was over. The Marshall Plan, which helped modernize Europe, emerged in the war’s aftermath; the United Nations was created; new and stronger democracies came into being; new technologies were adopted into civilian markets; Germany, Japan, and the US turned their industrial energies toward private sector economic growth; and so on. Similarly, I believe the current economic crisis can be a powerful catalyst for developing new and better client relationships and for personal renewal.

If you’d like to revitalize your client relationships and re-engage with the marketplace, here is a list of seven actions you should initiate in the next 30 days. I list them in order of relative urgency.

1. Make a list of your 15-25 core relationships. These should include current clients (list individuals), prospective clients, colleagues, catalysts (influencers, people who can make deals happen and introduce you to others), collaborators (professionals or firms that you may collaborate with and exchange leads with), and counselors (mentors and advisors to you).

My research shows that relationships with individuals representing a broad spectrum of roles (including non-clients such as colleagues, catalysts, etc) are essential to success with clients. Start this process with a list of these critical few―of your most important relationships, in other words, not a database of 500 people you may have met.

2. Identify a next step to create face time with each person on your list. There are endless reasons to get in touch. You could follow up on a project that was done last year. You could develop a point of view on an issue of importance to that individual. You could offer a valuable introduction. You could ask thoughtful questions about how their company is managing through the economic crisis, and share some of the things your other clients are
doing.

I like to think about four ways you can add value during these short interactions: Offering ideas and perspectives (content); Making valuable introductions (connection); Offering personal help (e.g., career counseling, advice to a teenager about college or career choices, etc.); and having fun (going to a sporting event or concert).

3. Create a one-page, personal Sales Funnel. Put all of your current client opportunities in three categories: Category A should represent initial conversations you have had or are having about an identified issue (there might be a number of these preliminary leads). More developed discussions would be under the B category. For these, you’ve met the client several times, a clear issue is on the table, and you’ve discussed an approach and possible fees. C’s are submitted proposals. Pick your three best opportunities―ones you can
still influence, which will probably be from the A or B categories―and really work these with your colleagues. Leave no stone unturned. Have a highly experienced colleague review what you’ve done so far and make suggestions. Make sure you’ve identified and met with all key buying influences (economic buyer, work-with buyer, influencers, procurement, etc.), and that you have a coach.

Ensure that you’ve pinpointed which are the most valuable benefits for the client. Make a list of possible barriers to each sale, and brainstorm how you will overcome them.

4. Now, turn to your core clients (some of the opportunities in 3 could be with core clients―that’s fine―I’m trying to sequence my recommendations into immediate, short-term, and medium-term actions). Pick one as a model. Now, make a list of ways in which you could re-engage and revitalize this relationship. I would focus on the following questions or issues:

a. How well do you really know this client, the industry, and the overall environment it is working within? What knowledge gaps should you be filling?

b. What is this client’s “Agenda”? By Agenda I mean the company’s 4-5 most critical priorities and goals. What is your individual client’s Agenda? What business issues is he or she focused on right now? What personal issues are of concern? (e.g., retiring and leaving a legacy; getting promoted; keeping their job; etc.).

c. What pain-points or critical issues could you help them address? How can you showcase your firm’s capabilities to them and build trust in your ability to solve their issues? Do you have a “branded expert” colleague that you could introduce? Another client you could have them talk to?

d. Is there an opportunity, due to slack capacity, to do a free piece of work for this client, in an area of critical interest? Or, at least, to invest in developing a thought piece or set of recommendations around a particular issue?

e. Given the turmoil, is there an opportunity to create a different “relationship experience environment” for this client? For example, to: Take them offsite? Create a workshop experience to look at previously unthinkable options? Create a forum for them to meet some other like-minded clients and engage in peer-to-peer sharing? Use collaboration technology to connect with them?

f. Does each member of your team have clear relationship-building responsibilities with this client? Are you building many-to-many relationships, at multiple levels?

5. You’ve now dealt with the short and medium term. You’re getting more face time with your 15 or 20 most important relationships; you’ve done everything possible to maximize your best near-term sales opportunities; and you’ve refocused on growing your core clients. Now, let’s think about the next 12 months.

What can you do today to make sure you have a robust leads-stream in the second half of the year? Think about this: There are probably fewer opportunities out in the market right now, and your average success rate for turning one of them into a concrete proposal―and winning that proposal—is probably less than it was a year ago. So you simply have to get sight of more opportunities‹otherwise, your revenues will plummet.

Start by identifying 3 or 4 “traffic building” activities that you can commit to. These can include publishing and speaking; professional association involvement; industry networking; social networking; working with collaborators (a bank or law firm or private equity firm); developing a new service offering; and so on. The list is endless. What activities, in short, will help reinforce your professional credentials and expertise while getting you in front of potential clients or people who can refer clients to you? Don’t say you’re going to do 20 things in the next six months. Rather, pick a few, write them down, and follow through.

6. Think about how to use the coming months to “sharpen the saw” ―to deepen your current skills, develop new ones, and increase your effectiveness as a professional and as a client advisor. The latest research shows that most people don’t really learn from experience―in fact, more experience can actually make you worse at your job. This is because we don’t engage in what scientists call Deliberate Practice. We don’t really work at the specific things that will make us better―rather, we show up and do the same activities over and over again without getting better.

Write down a few things you’d like to work on. Maybe it’s extending your experience to a new field or practice area. Perhaps this year you’d like to get your Myers-Briggs certification, take a leadership role in an industry conference, or spend a month in one of your firm’s international offices working on a project. Or to go to that weekend photography workshop (or meditation retreat you’ve been eyeing...).

7. In everything you do this year, collaborate more than ever. Work to connect with your colleagues and friends. At the signing of the American Declaration of Independence, the sage Ben Franklin said, “We must all hang together, or assuredly we shall all hang separately.” This certainly applies to today’s economic crisis.

You may feel stymied because some clients are cutting back and saying they have no budget right now. But a client in need can be a great client indeed. You simply have to be more creative than usual about the different ways you can help your clients, bold about offering that help, and flexible in how You’re willing to structure and deliver it.

Finally, sit back and breathe. 2009 won’t be easy. But for sure, it will carry surprises for each one of us―and I believe some of those will be very positive ones.

Andrew Sobel is a leading authority on client relationships and the skills and strategies required to earn enduring client loyalty. He is a consultant and educator to major services firms worldwide. Andrew is the author of the business bestsellers Clients for Life (Simon & Schuster/Fireside) and Making Rain (John Wiley & Sons). He can be reached at andrew@andrewsobel.com Tel: 505.982.0211 http://www.andrewsobel.com

Building Client Relationships in a Downturn

Author:

Andrew Sobel

Ironically, the devastation wrought by World War II created the circumstances for many positive and creative changes around the world, once the conflict was over. The Marshall Plan, which helped modernize Europe, emerged in the war’s aftermath; the United Nations was created; new and stronger democracies came into being; new technologies were adopted into civilian markets; Germany, Japan, and the US turned their industrial energies toward private sector economic growth; and so on. Similarly, I believe the current economic crisis can be a powerful catalyst for developing new and better client relationships and for personal renewal.

If you’d like to revitalize your client relationships and re-engage with the marketplace, here is a list of seven actions you should initiate in the next 30 days. I list them in order of relative urgency.

1. Make a list of your 15-25 core relationships. These should include current clients (list individuals), prospective clients, colleagues, catalysts (influencers, people who can make deals happen and introduce you to others), collaborators (professionals or firms that you may collaborate with and exchange leads with), and counselors (mentors and advisors to you).

My research shows that relationships with individuals representing a broad spectrum of roles (including non-clients such as colleagues, catalysts, etc) are essential to success with clients. Start this process with a list of these critical few―of your most important relationships, in other words, not a database of 500 people you may have met.

2. Identify a next step to create face time with each person on your list. There are endless reasons to get in touch. You could follow up on a project that was done last year. You could develop a point of view on an issue of importance to that individual. You could offer a valuable introduction. You could ask thoughtful questions about how their company is managing through the economic crisis, and share some of the things your other clients are
doing.

I like to think about four ways you can add value during these short interactions: Offering ideas and perspectives (content); Making valuable introductions (connection); Offering personal help (e.g., career counseling, advice to a teenager about college or career choices, etc.); and having fun (going to a sporting event or concert).

3. Create a one-page, personal Sales Funnel. Put all of your current client opportunities in three categories: Category A should represent initial conversations you have had or are having about an identified issue (there might be a number of these preliminary leads). More developed discussions would be under the B category. For these, you’ve met the client several times, a clear issue is on the table, and you’ve discussed an approach and possible fees. C’s are submitted proposals. Pick your three best opportunities―ones you can
still influence, which will probably be from the A or B categories―and really work these with your colleagues. Leave no stone unturned. Have a highly experienced colleague review what you’ve done so far and make suggestions. Make sure you’ve identified and met with all key buying influences (economic buyer, work-with buyer, influencers, procurement, etc.), and that you have a coach.

Ensure that you’ve pinpointed which are the most valuable benefits for the client. Make a list of possible barriers to each sale, and brainstorm how you will overcome them.

4. Now, turn to your core clients (some of the opportunities in 3 could be with core clients―that’s fine―I’m trying to sequence my recommendations into immediate, short-term, and medium-term actions). Pick one as a model. Now, make a list of ways in which you could re-engage and revitalize this relationship. I would focus on the following questions or issues:

a. How well do you really know this client, the industry, and the overall environment it is working within? What knowledge gaps should you be filling?

b. What is this client’s “Agenda”? By Agenda I mean the company’s 4-5 most critical priorities and goals. What is your individual client’s Agenda? What business issues is he or she focused on right now? What personal issues are of concern? (e.g., retiring and leaving a legacy; getting promoted; keeping their job; etc.).

c. What pain-points or critical issues could you help them address? How can you showcase your firm’s capabilities to them and build trust in your ability to solve their issues? Do you have a “branded expert” colleague that you could introduce? Another client you could have them talk to?

d. Is there an opportunity, due to slack capacity, to do a free piece of work for this client, in an area of critical interest? Or, at least, to invest in developing a thought piece or set of recommendations around a particular issue?

e. Given the turmoil, is there an opportunity to create a different “relationship experience environment” for this client? For example, to: Take them offsite? Create a workshop experience to look at previously unthinkable options? Create a forum for them to meet some other like-minded clients and engage in peer-to-peer sharing? Use collaboration technology to connect with them?

f. Does each member of your team have clear relationship-building responsibilities with this client? Are you building many-to-many relationships, at multiple levels?

5. You’ve now dealt with the short and medium term. You’re getting more face time with your 15 or 20 most important relationships; you’ve done everything possible to maximize your best near-term sales opportunities; and you’ve refocused on growing your core clients. Now, let’s think about the next 12 months.

What can you do today to make sure you have a robust leads-stream in the second half of the year? Think about this: There are probably fewer opportunities out in the market right now, and your average success rate for turning one of them into a concrete proposal―and winning that proposal—is probably less than it was a year ago. So you simply have to get sight of more opportunities‹otherwise, your revenues will plummet.

Start by identifying 3 or 4 “traffic building” activities that you can commit to. These can include publishing and speaking; professional association involvement; industry networking; social networking; working with collaborators (a bank or law firm or private equity firm); developing a new service offering; and so on. The list is endless. What activities, in short, will help reinforce your professional credentials and expertise while getting you in front of potential clients or people who can refer clients to you? Don’t say you’re going to do 20 things in the next six months. Rather, pick a few, write them down, and follow through.

6. Think about how to use the coming months to “sharpen the saw” ―to deepen your current skills, develop new ones, and increase your effectiveness as a professional and as a client advisor. The latest research shows that most people don’t really learn from experience―in fact, more experience can actually make you worse at your job. This is because we don’t engage in what scientists call Deliberate Practice. We don’t really work at the specific things that will make us better―rather, we show up and do the same activities over and over again without getting better.

Write down a few things you’d like to work on. Maybe it’s extending your experience to a new field or practice area. Perhaps this year you’d like to get your Myers-Briggs certification, take a leadership role in an industry conference, or spend a month in one of your firm’s international offices working on a project. Or to go to that weekend photography workshop (or meditation retreat you’ve been eyeing...).

7. In everything you do this year, collaborate more than ever. Work to connect with your colleagues and friends. At the signing of the American Declaration of Independence, the sage Ben Franklin said, “We must all hang together, or assuredly we shall all hang separately.” This certainly applies to today’s economic crisis.

You may feel stymied because some clients are cutting back and saying they have no budget right now. But a client in need can be a great client indeed. You simply have to be more creative than usual about the different ways you can help your clients, bold about offering that help, and flexible in how You’re willing to structure and deliver it.

Finally, sit back and breathe. 2009 won’t be easy. But for sure, it will carry surprises for each one of us―and I believe some of those will be very positive ones.

Andrew Sobel is a leading authority on client relationships and the skills and strategies required to earn enduring client loyalty. He is a consultant and educator to major services firms worldwide. Andrew is the author of the business bestsellers Clients for Life (Simon & Schuster/Fireside) and Making Rain (John Wiley & Sons). He can be reached at andrew@andrewsobel.com Tel: 505.982.0211 http://www.andrewsobel.com

Five Tips for Fear-Less Business Travel

Author:

Steven Crimando

Fear and uncertainty are continuing to grip the country and world as a result of terror attacks worldwide, heightened security alerts in major cities including New York, shootings on college campuses, violence in stores, malls and offices, and the global economic crisis. Front page headlines, TV and radio news reports and Internet videos laden with crime and heartbreak are bombarding people and making us increasingly afraid about what to do if violence crosses our path.

Terrorism, along with the general economic downturn, increased costs for airline flights, rental cars, lodging and food have all contributed to a decrease in business travel. Many companies are cutting back on travel and are turning to technology such as webinars and Internet-based meetings to conduct business. Still, there are millions of people who drive or fly in order to do business. One of the most significant psychological factors affecting people’s decisions to travel during times of crisis is “controllability.” While the powerful forces that drive the world’s financial markets, and the radical actions of terrorists are beyond our immediate control, our personal safety is not.

Safety is, and should be, an overriding concern among business travelers. When a dangerous situation unfolds, many people feel powerless. Ultimately, when you take a meaningful degree of control with your own safety and security, you venture out into the world with greater confidence and ease. Adjusting your own thoughts and behaviors is the place to start making your world safer and less fearful.

Here are 5 tips for fearless business travel:

1. Remember you are never a passive observer to your own safety. Your safety is a shared responsibility between you, law enforcement, and security professionals. Pay attention to your surroundings including fire exits, bottlenecks in crowds, announcements and general conditions. The police and security staff cannot be everywhere at once. You must be your own first line of defense; be alert, aware and proactive.
2. Don’t run from danger, run toward safety. While this is counterintuitive, running from danger, especially with a crowd or mob trying to escape, may very well put you at greater risk. Running toward safety requires advance planning and awareness. Mentally rehearse escape routes or survival behaviors before something actually happens. Whether checking into a hotel, or selecting a seat in a restaurant or theater, be cognizant of your surroundings and possible routes of escape.
3. File a “Flight Plan.” Just as a pilot plans and documents a route, let others know where you will be throughout the day and how you expect to travel from place to place. Whether you’re driving or taking an international flight, share your approximate itinerary with someone. If they hear about a problem on radio or TV, they may be able to warn you. If you’re in a jam and your family and colleagues know where you are expected to be, they can mobilize assistance if you don’t arrive as scheduled. Create a communications plan to share your flight plan ahead of time.
4. Know Before You Go. Civil unrest, military conflicts and health risks such as disease outbreaks can surface suddenly and turn a business trip into a nightmare. The U.S. State Department, and other sources, publishes travel advisories and warnings in real time. Visit www.state.gov or www.firstgov.gov and consider bookmarking them on your mobile phone or email.
5. Trust your instincts. If something feels wrong, it probably is. If you feel uncomfortable in your travels, give yourself permission to leave. Don’t worry about how you will be perceived or what your co-workers will say. You can always return later, on your terms, when you feel safe. Don’t ignore your internal security system.

In addition, if you’re not familiar with the place you are going, or are worried about it, do some preliminary research on the location, community, and more. Take a look at the local newspaper online to learn about their recent local current events. You may be able to learn about bogus bomb threats that closed the airport, an investigation into cab drivers and crime or other information that can help to keep you informed.

Finally, if you feel so stressed and worried that you cannot participate in your usual daily activities, reach out to support groups and professionals for counseling and help.

Steven Crimando and XBRM specialize in workplace behaviors and psychology that are related to organizational emergency and disaster preparedness. The firm trains employers and employees in the growing field of the human factor of crisis management. This includes responding to economic and financial turmoil, disasters, workplace violence, terrorism, and other crisis situations. XBRM is a division of AllSector Technology Group, Inc. For more information, visit www.xbrm.com.

Insurance for Living Today...Is your business adequately covered?

Author:

Susan Regier

Most people don’t give insurance much thought. They know they need it but it’s not something they spend time dwelling upon. In fact, 88% of families are not aware of their insurance coverage…but Nancy Kirwin is working to change that perception.

With nearly twenty years of insurance industry experience, Nancy, an insurance service specialist/agent with Townsend Mutual Insurance, understands the ever changing requirements of her clients. Working from a home-based office, Nancy personally meets with her clients in the commercial, residential, and farming sectors.

One of the greatest thrills Nancy has in life is helping other people. It started as a young child when she was enthralled with the older gentleman (the insurance agent) who came to visit her parents each year on the farm where she grew up. It was always a big deal to sit at the kitchen table and review their policies to make sure the family was properly insured…and that feeling led Nancy to her work in helping other families experience that same sense of security.

Today, more parents are opting for a home-based business so they have more choices. The flexibility component is a huge bonus with growing families. Parents can schedule work after their children’s bedtimes so they can attend special activities during the day, without the guilt pressure of co-workers and bosses.

But when setting up a home office, it’s imperative that adequate business insurance is considered…and this isn’t a one-size-fits-all policy. If you operate a business from your home and have not informed your agent or broker, you run the risk of being denied from a claim if something happens.

The type of business, equipment, inventory, and liability issues must all be taken into consideration when assessing your insurance needs. Here are a few tips Nancy suggests to help ensure you are protected:

1. Establish a relationship with your insurance agent or broker. Make sure you let him or her know when you purchase new equipment, change locations (home biz to store front), or participate in a tradeshow.
2. Auto insurance must be rated appropriately if you use your vehicle for business use or have clients ride with you.
3. If someone else drives a vehicle for business use on your behalf you need to protect yourself with non-owned auto insurance. Policies should have inclusions and exclusions based on your unique business.
4. Review policies at least once a year, preferably every 6 months.
5. Be sure to have disability insurance, which is based on your earnings.
6. Save money by having higher deductibles – you’re not self-insuring for small losses.

Insurance is for living today. It pays to make sure you are adequately covered…and not paying too much.

Susan Regier is the publisher of www.NetworkingToday.com, London’s online business resource, and head writer of Vantage One Writing, a professional writing service for businesses. 519.471.8726 Email: susan@vantageonewriting.com Web site: www.vantageonewriting.com