Most entrepreneurs don't start a business because they love to sell. But they quickly learn that without sales they won't succeed. Eventually, if things go well, bringing in a sales person is the logical next step.
Before hiring, ask yourself the following questions: Should I hire employees, agents, or distributors? How do I ensure they will succeed and accurately represent my business? Is it true a good salesperson can sell anything?
Business leaders often refer to selling as a mysterious game, a necessary evil, even a dark art. Regardless of how you view sales, growing a business usually means increasing the sales effort.
The question is how.
A common mistake is hiring a friend of a friend who "could sell ice to an Eskimo." Simply showing a new sales representative how you've always done it, providing product details and crossing your fingers is unlikely to generate success. Dark art or not, this is no time to experiment in vending voodoo.
To increase the likelihood of success, consider reversing the order of those steps. Start by clarifying why you need better selling. Then get specific about what needs to be done. Generate ideas to execute a sales strategy and then begin searching for the right fit.
Figure Out Why
Let's review each of those steps. Figure out why you need a better sales effort, and define a sales strategy. But don't put it somewhere to gather dust. Review it at least as often as you would review your financial and marketing strategies. A sales strategy should describe and define the sales role, its integration into your organization, and why it is important for your success.
When reviewing what needs to be done and what you hope to accomplish, flesh out your market share and identify what you want sales to bring. Define the demographic you expect to reach.
Your sales strategy should establish a tactical sales plan for winning new clients, and setting a reasonable timeline for reaching these new goals.
If sales is not your area of expertise, seek advice. Start by examining the effective selling practices of others in your industry. Consider asking a representative in your industry to lunch and ask them how sales works for them. Later on, when sales numbers either disappoint or skyrocket, you will need a solid understanding of those practices to determine what needs to be adjusted or duplicated. You don't need to be a sales guru, but you should have a clear picture of what is effective.
Sales Structure
Next consider the selling structure that best suits your business. Factors to consider include sales lead time, product complexity, unit volume and frequency per sale, and repeat sales potential.
Hiring full-time salespeople is often best for complex products, services with long lead times, and products with strong re-order potential. A good staff salesperson will build rapport with clients, develop customer loyalty, and, once up to speed, provide insight into the market. But be aware that a new hire may require an up-front investment.
Distributors may be the best choice if what you sell is a commodity, a high volume product with low margins, or a product with a short sales cycle. Distribution has little up-front investment, offers more "feet on the street" for your dollar and a distributor may take ownership of your product prior to selling to the end user. Bear in mind, someone still has to sell to the distributors, provide sales support and product training and consistently manage the process.
Consider independent agents if you have a niche or complex product with limited reorder or short product lifecycles. Agents work well when clients purchase infrequently but in high volume. An independent agent will often act as a consultant, representing a small selection of niche suppliers to an equally narrow and well-penetrated client base.
Outsourcing sales is one strategy that is increasingly popular. Initially created for telemarketers, many new outsourcing services blend the benefits of a staff salesperson with those of an independent agent. Outsourcing can be economical and effective for business-to-business sales of products with high differentiation and short sales cycles. Taking this approach will still require strong internal sales management and strategic planning.
Finding the Right Fit
Once you've answered the why, what, and how questions, you are ready to find the best fit. Write down a job description, get specific, and then stand firm. Making the wrong hiring decision is costlier in time, money, and lost goodwill than any delay needed to find the right match.
When you begin your search, know that salespeople are not born. They develop skills. Almost anyone willing to learn sales skills and determined to succeed can become successful in sales. Just remember sales skills must be practiced regularly to stay sharp long after the training period is over.
When interviewing, look to past behavior as an indicator of future success. Ask how your candidate has acquired new knowledge and skills in the past, why they did so, and how they applied something they learned to achieve a positive result. Do not compromise on this. If they can't show examples, they have not shown a will to grow.
Commitment is easier to gauge. Be certain that their interests and skills align with your industry, even though they don't always have to have industry experience. For example, a small engine repair genius could become adept at selling medical devices, but is unlikely to ever take an interest in ad sales. Second, understand what a candidate's personal goals and ambitions are, then tie those to their performance. Can they achieve their goals working for you? How large of a step are you in their career path? And are you okay with being a stepping stone.
While personal goals may be a motivator where interest in a field is lacking, if a similar opportunity closer to their interests comes up, you could lose a highly successful rep.
Shine light onto the dark art of sales by approaching this vital element with the same rigor you give to the rest of your business. The result will reveal a science that can brighten your entire future.
Jon Anderson is the principal sales accelerator for Sidehill Consulting, LLC in West Chesterfield, a sales and business development advisory and coaching firm. He can be reached at jon@sidehillgroup.com, by phone at 603-614-4691, on Skype at jon.a.nh, or on the web at www.sidehillgroup.com.
Current Issue - April 2024