Rules of thumb wiki

What is a thumb? A short (less than paragraph) instruction for dealing with a set of circumstances. A rule of thumb can be used when there's less time and less information than the user may desire.

NEGOTIATION

In a negotation, he who cares less, wins. - Anonymous

Don't go into a negotiation without listing every issue beforehand. Establish an aspiration level, a minimum, and an initial asking price for each issue. - Charles Karrass

If you're planning on doing business with someone again, don't be too tough in the negotations. If you're going to skin a cat, don't keep it as a housecat. - Marvin Levin

If you don't like what you're hearing, respond with a question, even if it's no more than "Why are you saying that?" - Mark McCormack

Talk about price last. People have tremendous anxieties about hearing the price, so use preliminary negotations to get all the auxiliary issues resolved first. Say "If the price is OK, would you be willing to..." - Jay Kaplan

Round numbers beg to be negotatied, usually by counteroffer round numbers. Odd numbers sound harder, firmer, less negotiatble. - Mark McCormack

As a buyer approaching a negotating meeting, be sure to trumpet any bad economic news headlines as much as possible. - Chip Conley

Throw a temper tantrum within the first ten minutes of the negotiating -- nine out of ten times it will effecitvely intimidate your opponent. - Mark Randall

Successful negotations are 70% preparation, 20% implementation, and 10% acting. - Robert Olson

Never negotatie on a full stomach. - Victor Antonetti

ENTREPRENEURSHIP

The less time and money it takes to start and manage a company, the more likely it is to succeed. First-time entrepreneurs are better off pursuing ideas they can implement handily. - Robert Kessler

Don't use your personal name as part of the business name of a new company, as this protects you in case the company fails and protects you against disagreeable business practices of a future purchaster. - Chase Revel

Before going into a partnership with someone, spend time with them in three different kinds of situations: a relaxing one, a competitive one, and an intellectually stimulating one. - Joan Kelly

Choose carefully your first people in starting a business. Make sure they have quality as humans, that they are more qualified than yourself, and that at least one has already been succesful. - James Treybig

The idea for a new venture is likely to be strategically unsound if it can't be put into one coherent sentence. - Kenichi Ohmae

The chances of success of a new company are generally greater with two full-time partners rather than a solo entrepreneur. - Professor Arnold Coooper

PRODUCT DEVELOPMENT

The two worst things to say to a creative person: 1. That's been done before. 2. That's never been done before. - Seth Godin

People don't steal ideas. Ideas are cheap. Implementation makes the difference. - Seth Godin

A new product should have at least three different substanial advantages over its competitors in order to justify support. - Karl Vesper

Don't start raving about a new idea to everyone in the corporation. Instead, enlist the support of those who like the idea, think it through, then propose it. - Robert Townsend

In choosing the name of a new product or service, there are only two guidelines that must be met (all other guidlines are superflous): a) Flexibility: Does the name trascend price categoirzation? Is it siffuciently broad enough to allow changes in the product/service? b) Pleasant-sounding: Is the name easy to say and hear? Does the sound of the name get the point across? - Seth Godin

Thirty percent of new product failures had a concept that met no clear need. - Thomas Poole

MARKETING

The most important qualities in a marketing executivec are: patience, imagination, ego-strength, and aggressiveness. - Jay Conrad Levinson

Offer customers a guarantee on an aspect of the business that is routinely performed. - Customer Service in Action

Real stamps instead of mtered inkblots raise the response rate of mailing to consumers at home. - Shell Alpert

SALES

When fielding questions from a customer, paraphrase his objections, avoid showing resisteance, and question him tactfully on those parts of his arguments that seem to be weak. - Amacom, "The Skills of Selling"

If you're only there to sell one thing, make a suggestion or assumption and let them tell you you're wrong. People have a need to feel smarter than you are. - Mark McCormack

Sprinkle your sales letters or presentations with references tso your subject's first name. - Mell Holloway

Offer your customer a choice between two alternatives; don't force the customer into a "yes/no" decision on one alternative. - Mirek Springer

Summer sales calls should be scheduled in the middle of the week to avoid prospects who are taking long weekends. - Salesmakers Syndicated Services

Sales reps spend 32% of their time on waiting and travel, 24% on administration and meetings, 5% on service calls, and only 39% of their time selling. - McGraw-HIll Research

Make sales presenations one-to-one to the key decision maker. Try to restrict it to one person because this does not allow the dynamics of the interrelationships of the individuals to affect the presentation. - Mark McCormack

Always have the chief decision maker to invite his/her secretary to the sales pitch. This makes follow-up meetings and phone calls easier to schedule. - Ben Casnocha