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On Building A Sales Organization – 2 July 24, 2013

Posted by David Dirks in Building A Sales Organization, Sales Management, Sales Strategy/Tactics.
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DirksProPhotoNote: This is the second in an ongoing series on building an effective sales organization/team for a small business.

So you want to build your sales organization…make it strong…faster…better…at finding and creating new business for you?  No problem – as long as you recognize, acknowledge and are able to execute with the ability meet several criteria.  I’ll deal with the first in this post: targeting, hiring and training the right sales people.

Here’s how I laid it out in the first post on this subject:

Willing to either hire experienced sales talent or willing to invest in the sales training required to help entry-level sales personnel become productive in a reasonably short time period.  Doesn’t much matter how great your sales opportunity is if you aren’t willing to either hire successful, experienced talent or hire the best & brightest entry-level talent – and then be willing to support them with the best-in-class sales and product training you can afford.

Here’s how:

  • Develop a list of job responsibilities – the tasks they would need to implement day-in-day out to accomplish their sales mission.  Then you need to articulate exactly what they are accountable for in the sales job.  Making sure you have thought through exactly what you need this person to do and what they are being held accountable isn’t as obvious as it sounds.

Example of a job responsibility:

Research and target potential prospects that fit our customer profile within the sales territory assigned.

Example of a job accountability:

Meets monthly, quarterly and annual sales targets for specific product categories as assigned.

Job responsibilities lead to the fulfillment of job accountabilities – those measurable end results that count.  They add real value to the business…in sales and revenues.

Now let’s talk about the minimum amount of sales experience you need.  You may only need a college graduate – fresh from the ceremony – for the kind of business and industry you’re in.  Or you may need someone with specific kinds of industry experience.

For example, a John Deere dealer will most definitely need a sales staff that understands agriculture, farming and the machinery that makes it all work.  A company that sells specialty software to banks and other financial institutions will want someone with banking industry experience that relates well to their product line.

Be clear about the minimum amount of bonafide sales and industry experience you need for their success and yours.

  • Well before you think of placing an ad (based on your well thought-out job description), think through what kind of initial and follow-on training will be necessary to give your new sales hire the best chance of a strong start.

Setting anyone…experienced or not…on their own without much attention to the amount of initial product, service and sales training they’ll need to become productive, is not effective.  The first 30 to 60 days of any sales persons life in your business is critical.  So it’s worth the time and effort it takes to prepare and initial your sales hire with the right amount of product and sales training that will boost their initial productivity.

Target the right hire. Train them well. Watch them grow.

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On Building A Sales Organization – 1 July 20, 2013

Posted by David Dirks in Building A Sales Organization, Sales Management, Sales Strategy/Tactics.
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David Dirks

David Dirks

Note: This is the first in an ongoing series on building an effective sales organization/team for a small business.

There comes a time that some successful small businesses find themselves in.  It’s the time to consider the need to build more revenue by engineering a sales organization.  What does a vibrant, dynamic and proactive sales force give you?  How about the ability to scale your revenues by adding more boots on the ground?  Now I’m NOT talking about going from 1 or 2 sales people to 20 overnight.  The first step is recognizing that the only way you can scale revenues in a northerly direction is by building a sales organization starting from ground zero.

But let me save you the money, time and resources it takes to build a sales organization and culture in your small business.  It’s simple from my experience.  If you are willing to do ALL of the following, you have the right stuff to really create a viable and revenue contributing sales organization whether with 1 or 20 people:

  • Willing to either hire experienced sales talent or willing to invest in the sales training required to help entry-level sales personnel become productive in a reasonably short time period.  Doesn’t much matter how great your sales opportunity is if you aren’t willing to either hire successful, experienced talent or hire the best & brightest entry-level talent – and then be willing to support them with the best-in-class sales and product training you can afford.
  • Willing to create a sales compensation plan that truly rewards people for their efforts but doesn’t leave them wondering how they are going to eat while they ramp up & beyond.  Whether you hire experienced or entry-level sale people, be prepared to compensate them within the range of what is at least the standard for you industry.  Going cheap on the compensation plan equals  consistently high turnover.  At best, you’ll be a good place for someone to get some training and experience before they go off and find a real sales organization to make a living off of.
  • Willing to support your sales team with the resources they will need to get the job done.  That includes providing them with professionally created sales collateral (brochures, catalogs, product info sheets, etc.) – and not material created by your niece or nephew who calls themselves a “graphic designer”.  Sure, they’ll work on the cheap for you but more often than not, their work is substandard.  Hire professionals with a bonafide track record.

So, if you’re truly committed to hiring quality, providing compensation that motivates and allows someone to earn a better than average living, and support them with the sales tools they’ll need to be successful – you can entertain building a real sales organization.

 

Betterment…Is A Strategy July 12, 2013

Posted by David Dirks in business strategy, marketing, Marketing Buzz, Sales Strategy/Tactics, Sales Tactics.
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DirksProPhoto Why do people buy your products or services?  Are they forced to buy them out of necessity? Do you have a monopoly? Probably not. But understanding why people buy – and it’s often not on price – is one key to business longevity.

If you sell products or services that can easily be obtained elsewhere, why should they buy from you?  Think about yourself as a consumer for moment.  When you make a purchase – are you making it to contribute to a life of mediocrity?  No.  We buy things because of one basic reason: betterment.  I buy milk as a staple but the place I buy my milk is the place that offers me the best tasting milk at a fair price.  I don’t buy my milk anywhere else because I feel the milk I buy there is better for me and my family.

Betterment.  It’s a word…a noun to be exact.  Websters defines it as “becoming better” and “an improvement that adds value to property…”  Consider yourself “property” as a consumer.

As a business owner, your job is to convince the rest of the world (or at least your wedge of it) that your product or service offers someone a way to better themselves…their lives…their families.  In a world where everything seems like a commodity, your edge is communicating how your company delivers on improving something in the life of your customer and, most importantly, your prospective customers.  The success of your business model depends on it.

That said, if betterment was easy to define, everyone would be doing it but few are – just look around you.  Most business owners are stuck on price or try to differentiate based on product or service features or benefits.

Apple has long been a master at parlaying great technology and wrapping it around betterment.  Apple marketing and sales messaging is almost centrally focused on how Apple products enhance or better a life.  And they are able to deliver on that promise to (if you are a pc head, you don’t get this but we’re ok with that).

If you follow a blog, perhaps this one – you have the expectation that spending time here will better your life or business in some way, shape or form.  Otherwise, you wouldn’t spend you time on any blog that didn’t offer and deliver on that.  The most popular blogs are followed because people get something out of them (entertainment value, economic value, etc.) that they can’t find easily elsewhere.

The first step on the path of a message of betterment is to translate what your product or service does to get a customer there.  The destination is betterment.  For example, a landscaper cuts the grass and makes the property look great each week.  Where’s the betterment? How about the time it frees you from having to do it and spend more time on things you want to do instead – like spending more time with family.  By making your property look like an estate, you feel that your property and the quality of your life are enhanced (as opposed to looking at tall grass and weeds).

In other words, a betterment message is thinking of your product beyond the standard features and benefits it offers.  How does it translate – tangibly or intangibly – into a path to making some aspects of a customers life better?

The second step is making sure all of your marketing and sales messaging is zeroed in on the elements of betterment…clearly…concisely…and consistently.  You have to be able to draw a picture in the mind of the customer so they don’t need an algorithm to figure out why your product is the one they should buy.  They should “get” betterment.

Never easy to do but clearly worth the investment of time and effort to get there.  Betterment – it’s a strategy.

Iteration Is A Strategy July 1, 2013

Posted by David Dirks in business strategy, Dealing with change, Solving Business Problems, Strategy.
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David Dirks

David Dirks

Does the Facebook of today look like the Facebook when it was first launched in 2004?  Did Amazon perfect its business model of today in 1994 when Jeff Bezos founded it?  Is the IBM of today the same as the IBM of say 40 years ago?  Here’s another question for you: How many businesses hit a genuine business model home run where sales and profits start cranking out right from the start?

The answers to the above questions are “n0”, “no” and “once in a blue moon – if ever.”  To iterate is to keep trying – keep pushing your business model forward.  It’s tinkering with the engine until it sounds like all cylinders are working smoothly.  In some cases, it’s challenging the very dream we have hold so dear in our business – the very vision we have might not be the vision that produces the life blood of any business – greater sales, growing profits and cash flow.

Iteration is a process that should be integrated into the culture of most any organization but rarely is.  Here are some thoughts on the process of iteration:

  • Don’t get married to your vision or dream.  What? How can we achieve greatness without a vision we can steadfastly commit to?  It’s not easy – if it was then iteration would be a breeze and everyone would be doing it.  They aren’t – which is just one reason why many organizations fail within five years or less.
  • Business plans are like war plans.  Everything changes when the bullets start to fly.  Yes, I know you spent a ton of time working and toiling over your business plan and it’s a great starting point but…when the reality of the business environment hits it, it’s over.  Competitors don’t play nice or according to the plan.  Customers are more finicky than the business plan sales projections call for.  Things have to change when the bullets fly.
  • Not everything has to change.  Sometimes iteration means tweaking only what needs to be tweaked.  Keep testing, changing, moving forward – throwing out what isn’t working and keeping what does.
  • Challenge yourself to iterate on purpose.  When you realize that iteration is a part of your business life if you want to succeed for the long run.

When you build a business…it’s about the long run isn’t it?

Dave