Sunday, January 31, 2010

Dealing with Credit – How to Expand your Line

One of the more common requests the past few months has been around being able to expand credit lines with distribution or financial institutions. The frantic calls usually involve a very large sale that exceeds the minimal credit capacity that most partners often have available. The good news is that end customers seem to be spending money again. The bad news is that many partners have done nothing to prepare for the increased demand and credit needs, so now it goes into crisis mode to try and land that big deal that puts one over the top.

Rule #1 – We live in a new world. No matter what your experience has been previously, the rules have changed. There are much tighter views being taken on credit and the requirements are definitely increasing. So expect it to be more difficult and be prepared to share more information.

Rule #2 – Get credit capacity before you need it. This has not changed. Far too many partners are completely undercapitalized as a company and then wonder why everyone is not signing up to give them unlimited capital. Financial institutions loan money based on a few factors. Like being profitable over time. Seems a little unfair doesn’t it? They expect us to make money every year? Yes they do. They also expect you to leave earnings in the business. That is called equity. And it is necessary to grow your credit capacity. If you spend it all or take it out there is no increased value in the company. Banks don’t loan based on your managed service contracts. They loan based on equity and past performance.

Rule #3 – Prepare to provide a lot more documentation. For a long time, many financial institutions loaned money based on character as much as facts. Those days are rapidly leaving us. You need financials and business plans and budgets and projections and a strong reason to convince them that you will pay back any funds you borrow. They will likely require a personal signature to get credit. It is not unfair or unusual.

Rule #4 – Make money. The bottom line is that it is important to run your company profitably. Look in the mirror and ask yourself if you would loan someone else money that has a profit structure like yours. Many partners show a loss or very minor profit each year. That does not lead to a solid loan application. Your EBITDA % is critical – first to know and understand – but then to grow so you are accumulating some profits. That is why benchmarking is so critical to partners to participate in and understand. How can you improve if you are unsure how you are performing compared to others? Analyze your performance and make sure you are profitable.

Rule #5 – Be creative. There are ways to work around most credit situations. HTG is ready to help you if you find yourself in a position of opportunity but struggling with credit. There are many alternative ways to structure deals so you don’t lose the opportunity. Get engaged as soon as you know the need may arise. It is always better to ask before you need it than to be scrambling when you are against a timeline.

HTG has a special arrangement with Ingram Micro to accelerate credit line reviews based on the following guidelines. Please review the guidance below that they have shared to make the process flow more smoothly when you request a review:

It is no secret that today’s financial markets have undergone many changes over the past twelve months. Two notable examples of such changes have occurred in the housing market and the auto finance business and both have resulted in hardships well beyond their respective markets. The recent bankruptcy of CIT Group reflects the latest casualty of a tightening in the credit markets.

The good news that Ingram Micro wants to share with everyone that regardless of the conditions of the financial markets and the downturn of institutional lending that has begun to plague our economy, Ingram Micro has not changed our lending practices. What this means is that we have not modified our lending practices to reflect the tighter credit that exists in the market today.

The basis of being able to support your credit request are grounded on several fundamental lending practices that we adhere to as a means of marginalizing our losses and thereby controlling the cost of doing business and this, in turn, is reflected in our pricing to you.

If you have already established an account with Ingram Micro it may be that we are not current on mandatory information and your credit analyst may request the following:

1. A current set of financial statements (Balance Sheet and Income Statement) for your company and depending on the information we have on file they may also request your last year-end financial statements or tax return.
2. Additional ways to expedite your request include the following;
a. Along with the financial statements, please consider providing us with any relevant information regarding any significant occurrences and their resulting impact to the financial statement as this will help us better understand your company
b. Any pertinent information about the type of year you are having, etc
c. Information regarding your banking arrangements and credit line as applicable.

Additionally, we want you to be aware that Ingram Micro has established several alternatives to help you close opportunities beyond your existing credit line. These programs generally function on the credibility of your client and as such do require a certain degree of paper work but we will be there to explain it and help you through the process. Please feel free to ask your credit analyst about Ingram Micro’s alternative financing programs and they will be more than happy to take you through each program and help align the right program to fit each situation.

Saturday, January 30, 2010

Microsoft Webcasts To Explain eOpen and MVLS Migration

Microsoft® recently migrated eOpen and MVLS to the new Volume Licensing Service Center website (VLSC) in order to provide a convenient, online solution for customers and partners to easily manage their licensing agreements and Microsoft products. As a result of the initial upgrade, a number of Partners experienced some access and usability issues. We know this has been both inconvenient and frustrating in some cases and we appreciate your patience and assistance during this transition.

To address many of the common questions and provide a review of the new features and procedures of the site, Microsoft’s VLSC team is providing an in-depth training, including tips and tricks, on how to access and navigate the VLSC site so you can more easily access and manage the information you need to provide the best experience for your clients.
Topics will include:
• VLSC registration and site navigation
• How to request or acquire site permissions
• Self-service tools
• Proper support paths if you experience issues

A Question and Answer session will be held at the end of the Live Meeting session.

This event should not only provide you with a better understanding of how to accomplish the licensing management tasks you need to do, but will also provide a better understanding of how the VLSC enhancements can improve the licensing experience for you and your customers moving forward.

There will be three Live Meeting sessions occurring Feb 3rd at 8:30am, 1:00pm and 6:30PM Pacific Standard Time. Event registration information is included below. You will only need to attend one event; please choose the one most convenient for you.
For additional resources please visit the VLSC site on the Microsoft Partner Network.

Partners who are registered with the Partner Learning Center may register here.

If you are not registered with the Partner Learning Center or do not wish to register for the event, please Join the Webcast by clicking the link below:

8:30 a.m. Pacific Time Session:
Webcast Link
• Passcode: S'`2{C_[c
• Telephony: 1-(866) 294-0201 or 1-503-295-8000 (International)
• Pin: 7086

1:00 p.m. Pacific Time Session:
Webcast Link• Passcode: 4s%x'{Sq8
• Telephony: 1-(866) 668-7265 or 1-503-295-8000 (International)
• Pin: 9062

6:30 p.m. Pacific Time Session:
Webcast Link
• Passcode: p6S;>s#)g
• Telephony: 1-(866) 556-5724 or 1-503-295-8000 (International)
• Pin: 1469

Are You Part of Microsoft's SBSC Program - You Need to Be!

Microsoft had brought back an almost unbelievable offer for SBSC members. $1000 dollars to use for marketing that is simple to access and take advantage of. And you can use it for the HTS e-newsletter service as well as well as a number of other options. I wrote about that here last year when the funds were available.

Microsoft Small Business Specialists (SBSCs) have access to rebate funds reserved for them and the timeline has been extended! SBSCs are eligible to receive up to $1,000 back on their marketing investments. Those funds are available for you to drive demand generation efforts through Ready-to-Go Marketing (includes Events, Campaigns, and various Marketing Services). We want to make it easy for you to grow your business.

Don't wait: Those funds exclusive to SBSCs are valid until March 31, 2010 or until supplies last.* To get your reimbursement, submit your invoice at www.mspartnerdirect.com/rebate. Your special promotional code is: 'SBSC' (This CANNOT be used in conjunction with the 'LAUNCH' promotion code).

Here's how to get started:
1. Find a Ready-to-Go Marketing Service that's right for you here.

2. Once you've received the invoice for the service, submit the rebate request here.

3. You'll receive your rebate check in the mail within 4-6 weeks!

If you have any questions, please feel free to contact the Ready-to-Go Marketing Help Desk:

Send an e-mail to a team member at rtgmktg@microsoft.com, or call toll-free at
(866) 441-0237.

If you are not an SBSC member, I have just 3 questions for you today:
• Do you sell to small and medium-sized businesses (SMBs)?
• Do you provide your SMB customers with Microsoft technologies and related services?
• Do you want to differentiate yourself in your marketplace?

If you answered Yes, have you considered joining the Microsoft Small Business Specialist Community, a group of 6,500 trusted technology advisors focused on selling to Small Business customers. Benefits of joining include access to exclusive marketing dollars, recognition from displaying the SBSC logo, support from an Online Technical Community, and increased exposure to partners and customers through the Microsoft Partner Finder and Solution Finder.

As an SBSC Advisory Council member, let me tell you why I am part of this Community.

The Microsoft SBSC program has been valuable in helping us differentiate our company in the markets we serve. We not only get a designation that sets us apart, but we also gain access to marketing and sales tools that help us drive business and reach out to prospects and customers. The SBSC program has been a valuable part of growing our business and our relationship with Microsoft.

You too can become a Small Business Specialist in just 2 easy steps, as an Action Pack Subscriber:
1. Take a Small Business Sales and Marketing Skills Assessment

2. Pass one of five technical exams

Currently, Microsoft is offering a 100 percent off voucher applicable to exams
70-653: TS: Windows Small Business Server 2008, Configuring and
70-654: TS: Windows Essential Business Server 2008, Configuring.

Alternatively, we are offering a 50 percent off exam voucher to complete the other three exams.
Join the Community Button

Call 877-254-6825 or send a message to msppexp@microsoft.com to pick up your voucher, and an expert agent will guide you through the sign-up process.

Please don't hesitate to send me an e-mail message so I can help answer any questions you may have on the value that the Small Business Specialist designation adds to my business.

Friday, January 15, 2010

The Power of Partnership - Kudos to SonicWALL

Today I experienced the power of partnership - twice in one day from the same vendor - SonicWALL. Our first experience revolved around a technology challenge at a customer site with an implementation. We had fought an issue for a few weeks and just couldn't quite get things configured the way the customer wanted. Our customer was frustrated and we knew that our only real chance to save the sale was to get an engineer from our vendor to come in and help us. They stepped up and delivered in an amazing way. Engineer flys into the closest airport and drives to meet our team on site - rural Iowa. The problem turned out to be much more difficult than anyone expected, but they got it resolved after about four hours of working together on site with our engineer and the customer IT person. The customer response - blown away that we were able to secure a vendor engineer to come to their location and provide that level of support. Not only did it save the sale and implementation, it has given them confidence to move forward with another project which had been placed on hold. Our partner came in on a white horse, exceeded the customer expectations and helped both our companies drive business.

My second experience involved a conversation with the CEO of SonicWALL. Matt Medeiros took 30 minutes out of his schedule to do a conference call with a dozen HTG members who were with me for our pilot CEO Forum meeting. He was traveling in Texas but not only made the time, he gave us invaluable insight into the role and importance of leading our companies with a CEO mindset. I know the group was blown away that first of all Matt would make time to talk with us, but secondly was able to share his 5 step process of leading SonicWALL and a number of other key gems of information as we discussed the role. That half hour did a lot to cement the belief that SonicWALL truly understands the importance of their partners and the channel for the group. A perfect example of a leader that truly understands the power of partnership and investing in the folks that sell their products.

You may think this is a SonicWALL commercial. It certainly is not. It is just plain and honest reality. The local field team has a deep relationship with HTS/HTG and together we plan the business and work the plan. When we need them, they show up. When they need us to execute, we do. That is how partnership works. All the way to the top at SonicWALL. Leadership starts at the top, and in this company, they understand the importance and power of partnering from top to bottom. Thank you to the team and their leader for being the model vendor for the channel. You made my day and impacted both HTS and HTG in a very meaningful and significant way! Kudos to Kevin, Ben, George, Ted and any others that helped us make this possible. We appreciate the opportunity to partner with and work with each of you. And a special thanks to Matt who created and maintains a culture of partnership. We are blessed to be able to work with you and your team.

Tuesday, January 12, 2010

Are You Using Assessments to Drive Sales?

Tomorrow - Wednesday January 13th - at 10AM central join me along with
Derek Kuhr, Lead Engineer of HTS, and Danielle Aronstam, Core Infrastructure Partner Marketing Manager to learn more about the FREE tools available to Microsoft Partners to help assess customer needs and find them the right server solution. You can register here.

Do you know how partners are using sales tools to deliver deal close rates of almost 70%? There are a wide range of Server, Virtualization, Management, Hosted Services products available to meet the needs of all your customers’ – regardless of their shape or size! Ensure you are recommending the right Server Solution to your customer and become their trusted business advisor. Join this webcast to learn how to assess customer needs and utilize the Business and Technology Assessment Toolkit (BTAT) and the Recommend the Right Server Solutions Tool (RRSS) to help you target the right products for each individual scenario. If you are not already using an assessment process to build strong relationships with your customers, you are leaving business on the table.

We have just updated these tools and will give you a sneak peak at what is new and all the opportunities that assessments will give you to drive business in 2010. Hope to see you online!

Monday, January 11, 2010

Channel Conflict Now Hits the Event Market

We certainly have heard a lot about channel conflict for a number of years, but the calendar now seems to be the latest battle ground as three networking giants have decided to all hold their partner events the same week - the last week of April. Our good friend The Var Guy wrote about it in his blog last week and posted the dates. The unfortunate thing is that those dates are also the same exact same week as our HTG members will be in Dallas for our Q2 event. Our dates have been set for 2010 and 2011 for some time so it is unfortunate that these vendor events overlay our dates.

So what's a partner to do? Whether you are a partner with Juniper, Cisco or HP - the challenge is the same. You can't be more than one place at a time, right? Well, not exactly. I think this is a great time to leverage the reality that most companies need to broaden their relationships with vendors and send a different person to these partner events. Having attended a number of them over the last 25 years, I have come to the realization that more often than not they really aren't targeted at the CEO/owner anyway. Normally there is a lot of technical and sales information, a handful of partner program info, and some motivational talks from the main stage. The CEO of the vendor normally is there to share his take on the future. But is attending this kind of event the best use of time for an owner?

Maybe, just maybe it is time to send your sales manager and service manager, VP of Sales or VP of services, or whatever label you may be using, in your place. My experience is they will get a lot more out of the vendor events because the information is targeted at them and it directly impacts their job performance and often pay. Owners may take a few notes but seldom get around to sharing with the appropriate folks they left home in the office. Am I right? Are you raising your hand on that one? Sure it was nice to get out of the office and go to a nice venue and spend a few days in the middle of a bunch of folks you don't know. Easy to hide and slip away for some R&R time during the breakouts. But in reality, we build our bench and increase our leadership and ultimately our organization when we send the folks in the trenches to the vendor events. It can also be a way to reward those in your company that have performed well and can enjoy the special treatment that typically goes with these vendor events.

Owners need to focus on running their organization, executing and strategizing for the future. That is what happens when HTG peers get together. While I am disappointed there is a conflict, there is little doubt in my mind where the value of those days will best be filled for owners. Having folks together in Dallas focused on their business working on their problems listening to their peers will have far more impact than a few days of vendor fire hose. Sorry to our vendor friends, but running events against what really matters like HTG will cause us to have to skip your event. Even if we are on the advisory council, which is my issue with HP. I hate to miss it but there really is no decision on this one - I will be in Dallas with HTG as that is where I get the most bang for my time investment.

Our calendar is posted through the end of 2011. I hope we can avoid these conflicts in future years. I don't mind if the three networking companies want to compete for my time, just don't expect me to give up the most important event which is spending time focused with my peers, to attend yours. It won't happen.....not now, not in the future. So if you want my attendance, a little planning will be necessary. Priorities dictate that peers come first. See you in Dallas!

Sunday, January 3, 2010

A Powerful Quote for 2010

Colin Powell said this: "When we are debating an issue, loyalty means giving me your honest opinion, whether you think I'll like it or not. Disagreement, at this stage, stimulates me. But once a decision has been made, the debate ends. From that point on, loyalty means executing the decision as if it were your own". I love these words. It captures the way people should live life. Debate the issues while the decision is under consideration, but once made, it all comes down to execution.

That fits in with my favorite all time quote from Thomas Edision: "Vision without execution is hallucination". At the end of the day - it is about getting things done not thinking about what could be or debating what should be. The world is run by people who show up and do something. I see lots of people trip up around these two areas - loyalty and execution. So many want to challenge what leadership has determined is the course of action, and even if they buy in, it is lip service with little or no action.

I see it in churches, civic groups, community service organizations - pretty much wherever people are involved. Everyone wants it their way. And if it isn't - well they just take their toys and pocketbooks and leave to go play somewhere else. That is not what life should look like. No one will get their way all the time, and if you choose to be part of an organization, then you need to be willing to be loyal to the direction of that organization or get out. Staying involved by whining about the decisions that have been made or undermining the group is about as pathetic as it gets. Yet it happens all the time and non profits/churches seem to really attract that kind of attitude.

Have you experienced the discussions about the color of the carpet, the look of the communication, the time of the meetings, the haircut of the leader's wife? We all agree (don't we) that petty little things like that have no place in organization life. But equally as frustrating can be the undercurrent when decisions are reached. Boards and leaders are in place for only one reason - to set direction and make decisions. That is their purpose. They are not there to please people and do what any one individual wants. Their responsibility is to evaluate the best for all involved and lead the organization down that road.

At some level this applies to our businesses too. We pay people to do things our way if we are owners, but at the end of the day, it really still boils down to loyalty and execution. If we have the right people on the bus they will line up and follow our direction. They should be providing input along the way as the decisions are reached, but once a course is set, they need to get on the bus and make things happen. If not, time to find a new job. That is the perogative of an company - to take those off the bus that don't discover what it means to be loyal.

It isn't so easy in volunteer organizations where people are a very necessary and important part of the mission. But even here, one bad apple can really spoil a big bunch of the barrel. We have to be careful not to ignore the impact of someone who doesn't get behind the vision, mission, values and direction of the organization.

As we begin 2010 and a new decade, I challenge you to consider all the things you are involved in and live the way Colin Powell describes above. If you have input, give it clearly and concisely during the discussion process. But once the decision is made, execute at the 110% level and stop the whining. Seldom is direction changed by that method, and it is a big red flag about the loyalty one has to the organization they are part of. The better approach would be to move on if you can't be loyal and execute. The world would be a very different place all across the good old USA if we lived this way. Churches wouldn't know what to do with all the extra manpower and time they would have to do productive and meaningful things.

Make the decisions of any organization you are part of your own, and then execute with a passion and effort that is second to none. That is how we make a difference around us. It isn't by continuing to try and make things our way. It is by getting aligned with the direction and decisions and working tirelessly to execute. That is what prevents vision from being hallucination!