After getting “beat up, challenged and sob-storied” about the Economy on so many visits… she decided to turn things around by asking ONE GREAT QUESTION:
“WHAT IF THINGS WERE DIFFERENT?”
WOW! According to C-M and her teammates, this ONE GREAT QUESTION completely changes the DIALOGUE and CONVERSATION!
It immediately allows people to RE-FRAME their thinking around the FUTURE… instead of bemoaning the Dow or their 401(k) or the housing market.
I think this is also a terrific lead-in to talking about LEGACY GIFTS, MULTI-YEAR COMMITMENTS BASED (on future ability to invest), PRESIDENT’S CIRCLE, etc.
I beg, urge and encourage you to try this ONE BIG QUESTION when somebody starts talking about the “economy, the recession, the bailout, the deficit, etc.”
P.S. This assumes that you’re actually still out there making VISITS and PRESENTATIONS and ASKS.
If you’re not, C-M’s ONE GREAT QUESTION is merely a worthless nugget.
]]>Nowhere is this more important than within the Third Sector and the For Impact world. SOCIAL ENTREPRENEURS are going to make all the difference in the world, because they’re not hiding under their desk waiting for the government to bail them out.
I just finished part of my upcoming book on ENTREPRENEURIAL SPIRIT which has to do with ATTITUDE vs. SKILL.
ENTREPRENEURS are all about ATTITUDE. For example, my own personal attitude is that I refuse to participate in any “downturn”. I want to be in control of my life and my business and I’m not going to let AIG, some stupid bank executive or a sub-prime lender affect my life.
More importantly, we’re going to keep helping SOCIAL ENTREPRENEURS and FOR IMPACT ORGANIZATIONS generate the resources they need to FUND THEIR VISION. Just because some community foundation stops giving to “Capital Campaigns” and large corporations have their ‘charitable giving hatchet men’ spread fear and doom and gloom is not going to change our coaching attitude.
Stop listening and reading about the end of the world. Instead, CHANGE YOUR WORLD.
]]>Some gems from the article:
- Know your math: How much do you need? It’s not enough to say, “We’re losing money.” You can’t respond until you figure out exactly what that means. It’s simple and yet most orgs can’t tell me exactly how much they need.
- “It’s a terrible idea to cut back your sales efforts in a recession.”
- “You can’t borrow your way out of debt.”
- At the end of the recession, the winners will be those who have taken advantage of their most important resources—imagination and creativity.”
By many accounts we’re in the midst of ‘economic turmoil’ like most of us have not seen in our lifetime. Two ways to think about this.. For me /for us/ for our orgs this is all opportunity. We can learn things now that we couldn’t learn for… we can learn things now that will be leveraged by our companies/orgs for the next 50 years!
So many people are freezing right now. Keep running. It’s a great time to learn about:
- ‘these conditions’
- functions of the marketplace
- ways you can strengthen your system
- relationships in your community.
Jan 1 I jumped in to function as a ‘development officer’ at an organization. I’m usually a trainer or a strategic coach (read: outsider). However, right now is the most incredible time to innovate, test, try and learn — in the field. It’s the ultimate challenge – producing results in this environment (is proving VERY POSSIBLE) and it can translate to success in any environment.
One thing I’ve had reinforced is that entrepreneurs move the world – not ‘companies’. Most companies are like cold-blooded animals that slow-down or hibernate when things get cold. They literally go into preservation mode by not moving. Entrepreneurs are like warm-blooded animals. They run faster to stay warm! The lesson: work with more entrepreneurs or ‘entrepreneurial companies’. Not only are they actually moving – they’re going to be much better ‘conditioned’ when things heat up.
]]>Brad Feld is a fun funder/tech entrepreneur/cool guy in Colorado to read @ feld.com. He directed me to 2-Speed (Will Herman) and this post: Remain Aggressive. You need to read this post – it’s strong enough to balance out a lot of the other ‘negativity’ out there around ‘this economy’.
Some bullet points:
- Play offense, not defense. Not a time to batten down the hatches – successful companies move fast and innovate (especially in these times).
- “You can’t save yourself to success.”
- Make sure you respond instead of react, you never panic.
- “You have to assume that nothing is coming to you – people, business or new ideas – you have to aggressively go out and hunt down everything that will move your company forward.” — See Tom’s entire message about the economy – Now More than Ever we need to be out, making visits, on the offensive, building and maximizing relationships. See my post last week about HOW to respond.
- “think” (that’s all I need to excerpt of that line)
I’ve been living ‘in the field’ for the past few months. Here are a few thoughts on the economy and some stories about how we’re responding.
- Massive Action
This is a Tony Robbins principle. Basically, do what works and do a ton of it – massive action and you will be successful. It’s actually a pretty simple concept. It just requires discipline and faith. The discipline (in this case) to keep lining up visits and the faith to know it will be very good for your organization.
On one campaign we’re ‘activating’ 20 prospects every week (new + existing relationships). This means we’re doing strategy, sending out predisposition and following up to schedule visits. Our goal is 60 visits in the next 100 days. That’s massive action… and proving to be successful.
- Trendwatching: The ‘economy’ is the current objection.
It’s natural to hear an objection (at first) in any economy. A lot of people/gatekeepers are using the economy as the objection-de-jour. In several months, or a year, you’re going to hear, “Now that the economy is turning around we’re being flooded with requests… it’s not really a good time.”
Keep in mind, ‘the economy’ is not a valid objection until you’ve been able to share your case for support. Until you’re able to do that, you’re ‘just another nonprofit looking for a handout’. You and I both know you’re not ‘just another nonprofit looking for a handout.’ You’re a wonderful For Impact organization that’s changing the world. Persevere so you can share your story.
I’ve made 62 visits since October 10 (and coached people through even more). I’ve had a TOTAL of THREE ‘economy rejections’. These were three corporations that were putting ALL giving on hold. And, to be fair, they weren’t rejections – they were just issues with timing.
- Even if your glass is half empty – it’s still half full.
Again, 62 visits! We’re generating tons of commitments/cash and I only have three real rejections.
Many orgs are putting campaigns on hold – citing the economy. Let me be real – the economy comes up in conversations (more on that later) – but not everyone is hurting and even rejections are just issues with timing… Even when a prospect cites the economy we’re still being asked to submit a request! Something like this: “We’re not receiving many requests right now because we/I don’t have much money to give. That being said, please let me know what you need… when the faucet turns back on I want you to be first in line.”
Read that last line again and again.
- So what are we hearing?
Most of the questions about the economy are coming from prospects asking about ‘the funding landscape’ and other prospects. On a visit yesterday the prospect asked, “Aren’t you worried about the economy? Are others going to give right now?”
Notice he was NOT talking about himself. He was asking about others. He was asking about the perception, the plan, the landscape. I’m finding this to be the most common discussion about the economy – about OTHER PEOPLE. It’s not an objection – he still committed to $50,000.
We told him (and tell others) this:
- Now is a great time for us to be making visits – because no one else is.
- We’re not getting many rejections because of the economy – but it’s something everyone does ask about – just as he did.
- Even when we do get a rejection, it’s not a ‘no’ – we’re hearing that we’re going to be a number one priority when the ‘faucet turns back on’.
- We are taking ‘massive action’… increasing the number of visits mostly to deal with the ‘perception’ of the economy but also (to be pragmatic) so that we can overcome challenges through action.
- We REALLY view the key to success as RELATIONSHIPS, not transactions. It’s a great time to be out building relationships… even with those that can’t give.
- And, most importantly, our mission hasn’t stopped so we can’t stop taking this important story to the community and having great discussions like this.
- Now is a great time for us to be making visits – because no one else is.
- We are getting creative with mechanics.
One way to respond to the economy is to be creative. Last week we met with a major prospect for $1.0M. She had been predisposed for months. Her company had lost 77% of its value in the markets.
We put together a strategy to ask for $1.0M.
- She was not able to commit to the full $1.0M citing timing/markets
- But agreed that she wanted to make the commitment and the project was an important priority.
- Our solution was put together a gift that included cash + planned gift to equal $1.0M with the idea that the planned gift portion included an option to be converted to cash/pledge if the markets turned around. (AND THEY WILL)
The prospect loved this idea – made the commitment – and even started a discussion about keeping the planned gift in place after/if she was able to convert the balance to cash.
Not every gift is a creative request for $1.0M. If someone is not able to commit as much because of the economy we’ve been responding with something like this, “That makes sense and it’s completely understandable. Would it be okay if we kept this dialogue open [about funding the full project] – revisiting it every few months? We all know this will turn around and it would be great to keep open communication about where we are and where you are.”
- Time for change.
I’ve watched more than a few boards/leadership finally decide it’s time to change. I think ‘the economy’ forces a discussion that’s been tabled for months or years at many orgs. There is always sense that ‘we can deal with the funding problems at the next board meeting’. Not now…
Seeing some real discussions. Real change – in a very positive way.
- Doubles.
Of the 62 visits (some with new relationships, some with existing) five have stepped up to offer larger that usual gifts. One investor said, “I feel like it’s my responsibility to give more right now because others can’t. I feel like it’s an opportunity to make a difference at a time when it’s needed and valued the most.”
Cool. Wouldn’t have happened if we weren’t ‘in the field’ having the discussions.
We have a second printing — you can order below. (You can also get the transcript electronically for free).
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To our friends at this organization (they know who they are): Don’t let ‘a recession’ determine your timeline for saving lives, changing lives and impacting lives…
- A campaign is a time to build and maximize relationships. This begs the question, when would you NOT want to be building and maximizing relationships? We should be funding the vision – always. Note: Get more on Funding The Vision with Tom’s Campaign book.
- You need to be out selling. If I were to put that in a softer way that might be more widely received I would say you need to be out telling the story… or even just making visits.
- 16 months. This is how long it’s taken me to schedule a visit with my best project on one particular project. 16 months of persistence, gate keepers, put-off’s, delays. We persisted because the prospect was our top prospect (we knew/believed this). When we FINALLY got the visit the prospect thanked us for our tenacity… it turned into a $2.1M commitment. If you wait until we’re out of a recession to start ‘working the list’ what happens?
- 4 months. This is about how long it takes from the time you ASK to the time a six-figure gift is closed. Note: This is of course a little arbitrary and a complete generalization. I took a composite of my own experiences plus stories from funding boot camp alums – representing orgs of every shape and size. My point is, if you need the money in April you can’t start visiting in March.
- Fine. Don’t call it a campaign. If you’re that worried about perception just don’t call it a campaign.
- December 6, 1994. This was the day Orange County declared bankruptcy. It was also the same day The Suddes Group started a successful economic development campaign in that same county. I share this and could share dozens of other stories about being out in every economic climate. I’m not just typing a bunch of empty thoughts. We’ve been out there. We are out there – now. I’m damned straight playing the credibility card on this one… now more than ever you need to be out making visits. We’ve put together an entire seminar/publication around these stories.
- If you’re worried, be authentic. Let me assure you. No one is going to throw you out of his or her office or home because you’re there on behalf of a worthy cause during “a recession”. And, I PROMISE no one is going to ask, “How dare you come to me right now?” But, if it helps, work up your response and your security blanket. “We can’t stop telling our story because of the market and quite frankly, it’s not the market that’s driving us. It’s [CANCER] [HOMELESSNESS] [EDUCATION] [HOPE] [BEAUTY (arts)].”
- Finally, remember this is about RELATIONSHIPS, not transactions. The RELATIONSHIP to your CAUSE has nothing to do with the economy. ]]>
THE OTHER SIDE OF FEAR IS COURAGE.
The other end of Wall Street connects with millions of better roads, all leading from the stink of greed and billion dollar bankruptcies. If it was all just a casino, where were the complimentary cocktails? Metal is our currency. Its value is on the rise, even as wealth on paper spontaneously combusts. So we’ll still lend to those putting in long days. The American ideal of work and reward does not diminish with the stock market.
SCREW IT.
LET’S RIDE.
*This was a full page ad from Harley-Davidson. You can view an interactive version online at Harley-Davidson’s Website. Their normal ‘MESSAGE’, which is on the side of my bike and many people have as a tattoo, is:
LIVE TO RIDE.
RIDE TO LIVE.
This new ‘MESSAGE’ is a direct response to what’s going on in the world today but still incorporates the idea of ‘RIDE’.
What is your MESSAGE in these times???
*If you’re struggling, try this with your INVESTORS:
‘LIVE TO GIVE. GIVE TO LIVE.’
]]>Message synopsis: Get out and visit with your best people, now more than ever. Don’t make decisions for your prospects and focus on the fundamentals (top of the list, message and the ask)… be a social entrepreneur… don’t hunker down in your bunker.
I’ve picked three great stories that were posted in comments and emails.
- “It’s time to give”: From Rocky at Mission Generation
“The man I was speaking with told me I came at the worst possible time. He had lost 200 million over the last three days. He was ready to end the meeting with that sentence when I quote the scripture below.
And there was a famine in the land, beside the first famine that was in the days of Abraham. And Isaac sowed in that land, and received in the same year an hundredfold: and the LORD blessed him. And the man waxed great, and went forward, and grew until he became very great: (Gen 26:1,12-13)
“I said, ‘it’s time to give.’”
“The time spent at the Impact boot camp gave me tremendous confidence. We ended up talking for three hours; he cut a check on the spot and committed to helping monthly.”
- Don’t Make Decisions for Your Prospects: This comes form Peter Schrappen at the Washington Health Foundation. The foundation’s largest previous gift was $40K.
“We asked for and received a $400,000 commitment yesterday (yes, yesterday 10/9) while the Dow dropped 400 points).
- Be out in field and good things will happen: And finally, this email comes from Armen at the Charlotte Diocese.
“We’ve been out in the field making visits with your encouragement. I just wanted to report that not every person is crying the blues. We’ve made many visits in the past few weeks and we’ve picked up 9 new Bishop’s Circle members [$1,000+] and a new major gift.
These notes are all from recent funding boot camp alums. That being said, success comes not from their status as alums but because they’re out in the field, visiting with real people and having real conversations about these prospects can save lives, change lives and impact lives.
As the media continues to pummel us with story lines about the economy just remember today’s combined message from Rocky, Peter and Armen: EVEN THOUGH THE DOWN DROPS, NOT EVERYONE SINGS THE BLUES. IT’S TIME TO GIVE!
]]>