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Business Essentials: So who said it was better to travel in hope?

A hi-tech firm is racking up the air miles chasing deals that might not come off. Kate Hilpern sees if there's an alternative

Sunday 25 September 2005 00:00 BST
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At Cicero Networks, travel can be even more stressful. After all, it's one thing if you know you're heading across the skies for a done deal, or even a probable one - quite another if you have no idea whether you will clinch a sale.

"We are a medium-sized software firm, with six people frequently on the road," says Ross Brennan, chief executive and co-founder of the Dublin-based provider of wireless technology. "Probably our biggest dilemma is that we are dealing with somewhere between a six- and 18-month lead cycle, and there is absolutely no guarantee a sale will be successful. In a market where the dynamic is for companies to keep buying each other out, there is an even bigger element of the unknown."

Most of the travel is to mainland Europe, where Cicero chiefly sells to telecommunications companies. "It's the EU countries really and the reason is that what we are doing requires a reasonably advanced handset, which you're most likely to find in those markets."

In some countries, Cicero has invested in a local agent to try to increase sales. "But while the agents are good at getting initial interest, we have learned that we are the ones who need to do the selling. With the best will in the world, the agents may know the people, but they can't see the whole process through because they don't have the expert knowledge."

He wants to know how he can bring greater rigour to determining which trips are worth while and which prospects are worth chasing. "The story of how our products work is very interesting and everyone seems to want to hear it. But that's not to say everyone is able to spend out on it," explains Mr Brennan. "It's really annoying when you travel to Hamburg, where someone appears really interested, and then you discover he has no budget for this year."

He has tried to prioritise certain trips and to secure sales in a shorter period. "But most people don't immediately understand what we have to offer, so you have to meet them."

He has also considered recruiting overseas sales people. "But you hear horror stories of double-jobbing and treble-jobbing, with the end result that they don't achieve much, so I'm nervous about it," says Mr Brennan. "Perhaps, though, it's one of those things you just have to do and hope you get it right."

www.ciceronetworks.com

WHAT THE EXPERTS SAY

Frances Wilson, international manager, the Chartered Institute of Personnel and Development

"Your decision can be made by asking yourself three questions. Is it time effective? Is it financially effective? Are people properly prepared?

"Face-to-face contact might be the only option, but have you considered video conferencing or looked at cheaper countries in which to hold the meeting?

"A bad sales rep is bad for business. It is vital to select the right person and to make sure they are well prepared. If recruiting from abroad, train these people fully so they understand your brand values and have the product knowledge to complete a sale.

"If you send someone from your office overseas, provide them with cultural briefings so they understand how business is conducted elsewhere."

Pete Ferns, director, NatWest Business Banking

"Different languages, cultures, and business and legal practices can make even the most experienced entrepreneur nervous . However, many of today's successful businesses point to international trade as the key factor that enabled them to break into the big time.

"As you have experienced, travelling can be expensive, especially if you then find that some companies don't really understand or have the budget for your product.

"To avoid this happening in the future, look at other ways of communicating. Do the businesses that you deal with have video or audio conferencing facilities? This might be a good way of fact-finding before you commit to a plane ticket.

"If employing agents overseas isn't working, could a member of your Dublin team become a dedicated international sales manager, spending a few months at a time based in and targeting a specific country? It may even work out cheaper than having agents.

"Most of all, remember that the advantages of operating overseas are extensive and can lead to much greater profits if managed correctly."

Nick Hurrell, director of corporate sales support, Business Travel International UK

"A good travel management company (TMC) can provide the planning and booking advice needed to ensure these sales trips are cost effective.

"The first question should be: 'Do I actually need to travel?' With video conferencing you can assess the client's interest before both sides agree that a meeting would be beneficial.

"If travel is essential, consider fitting two or three meetings into the same trip. A circular ticket from Dublin to Paris, on to Brussels, then Frankfurt and home again is likely to be cheaper and more time efficient than three individual trips. A TMC can find the best deal and route and should suggest using low-cost airlines if appropriate.

"Companies should also consider buying a return air ticket to a single destination, say Paris, and using the efficient continental rail network to visit nearby countries. Trains are also great mobile offices."

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