MANA defines itself as the association for professional manufacturers’ reps and those who aspire to be professional. We believe the more professionally you operate your business, the more successful you become. The greater your professionalism level, the higher the quality of principals you sign up. The higher their quality, the greater your sales and commissions.

Professionalism can be quantified; it’s more than just a phrase. From MANA’s perspective, these criteria define a professional manufacturers’ agents:

• Professional manufacturers’ agents create business plans, keep them current and use them to guide them to prosperity.
• Professional manufacturers’ agents represent quality principals with whom they work as trusted partners in profits.
• Professional manufacturers’ agents negotiate fair and balanced agreements that protect both parties and retain knowledgeable attorneys to review them prior to signing.
• Professional manufacturers’ agents work with principals as Partners in Profits.
• Professional manufacturers’ agents invest in training to learn effective selling skills.
• Professional manufacturers’ agents leverage technology to maximize productivity.
• Professional manufacturers’ agents analyze line profitability and terminate agreements with unprofitable principals.
• Professional manufacturers’ agents back sell their value to principals to minimize the chances of being fired for doing too good of a job.
• Professional manufacturers’ agents grow their businesses by hiring qualified direct salespeople or sub-reps.
• Professional manufacturers’ agents learn effective ways to work with international principals.
• Professional manufacturers’ agents create succession plans and sell their businesses.

This issue of Agency Sales magazine marks the first in a series that will continue to explore the subject of MANA serving as the association for professional manufacturers’ agents and high-quality principals that work with each other as partners in profits. Next month, we’ll introduce a similar program for high-quality principals.

The article that preceded this one (“Why Does a Rep Need a Business Plan?”) initiates this on-going series of articles that address the professionalism criteria. In subsequent issues of Agency Sales magazine, we will focus on the other criteria as listed above. Those articles will be followed with information detailing articles, special reports, teleforums, webinars and other presentations that provide information to reps and their manufacturers.

What follows are references to such articles and presentations that pertain to the discussion at hand.

MANA members and associates may access the various articles and other presentations that address the importance of reps and manufacturers working with business plans by visiting the “member-only” section of the MANA website (www.MANAonline.org).

Webinar

Beginning with the obvious question: Why write a business plan?, Jerry Leth, MANA’s vice president and general manager, takes reps through the steps they should follow in order to create a path to the future. Everything from a SWOT analysis, mission and vision statements and defining strategic principles is covered.

Key elements of an effective plan are described in detail in this audio/visual presentation.

Teleforums

Business Planning — Jerry Leth, MANA’s vice president and general manager, professional trainer Nicki Weiss, and a MANA rep stress the importance of reps having business plans; what are the elements of such a plan and how to use such a plan as a marketing tool.

Strategic Planning for Any-Size Agent Firm — MANA staff and coach/trainer Nicki Weiss host more than 400 participants in a discussion that covers the differences between strategic and others forms of business planning. Also addressed are steps to follow in order to get into a “strategic planning state of mind.”

Word Document

An executive summary introduces readers to a typical independent manufacturers’ representative agency and provides a synopsis of a workable business plan. Strategies for the agency’s future growth are provided as well as typical mission and vision statements.

Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis leads into action plans for future growth. Also emphasized are the need for continued personal development in the profession and the pressing need for a workable succession plan.

Excel Spreadsheet

A revenue plan is offered that includes most of the income (commissions, fees for services) and expenses (insurance, rent, outside services) that a typical agency might face during a three-year period. The spreadsheet provides a clear view of what the rep must anticipate as he/she plans for the future.

Profile of the Manufacturers’ Sales Agency

This profile of the typical independent manufacturers’ representative agency paints a picture showing who the rep owner is, where he’s been and what his hopes are for the future. It describes the types of business organizations (e.g., partnership, S Corp., LLCs, etc.) favored by reps and lists additional services offered by agencies.

Altogether, readers gain an in-depth look at an entrepreneurial venture where agency owners are usually well compensated.

Agency Sales Magazine Articles

C Corporations — These remain the largest single form of operation of most sales representatives. Tax considerations of the C Corporation, as well as “working condition” fringe benefits are explored.

Limited Liability Companies (LLCs) — For tax purposes, an LLC may be classified into whatever form of business is desired. As a result, an LLC should at least be considered as part of the initial process in the formation of any business or investment entity. LLCs are compared and contrasted with a limited partnership, general partnership, all partnerships, S and C corporations.

S Corporations — the overriding reason for electing to be an S Corporation is taxes. Except in rare instances, these corporations are not subject to corporate income taxes, but rather have the treatment of a partnership — in that only the “owners” are taxed. The benefits and drawbacks of S Corporations are explored.

Implementing a Winning Strategy for Your Rep Firm — Growth strategy consultant Tom O’Connor has spent a great deal of time working with independent manufacturers’ representatives. He takes readers through the strategic planning process that he has found to be successful with any number of reps. Learn why he says, “You don’t win the war in your market by cutting costs — you do it by taking share.”

Vision Quest — Mapping Out a Dynamic Business Growth Plan — Author Joe Calhoon maintains that mapping out a dynamic business growth plan paves the way to accelerated performance. He advocates that developing a clear and simple plan will strengthen employee morale, increase productivity and improve profitability. An effective planning system is the most reliable predictor of business growth — it keeps everyone on the same page and ultimately leads to higher performance.