The SBA reported recently that small business owners’ top 2 concerns were poor sales and inflation. They also report that it is usually small business growth and innovation that leads our economy out of recessions.
My sales team is really informal. It’s mostly me. Sometimes my staff helps out if I ask them to. I know I have to kick sales into high gear if I’m going to have a good year next year. What do you suggest?
You’re not alone. Many small businesses struggle with sales. It’s important to think through structures, accountabilities, and rewards. Many business owners make the mistake of hoping that throwing more money into the pot in commissions will solve the problem. Getting sales into high gear is job #1 for every small business owner who intends to have a great year next year.
Informality is an okay in the beginning. It gets sales off the ground. But to build a robust organization that can grow year in and year out, you’ll need something more. In a post-recession, slow growth economy, it will take intention, coordination, and accountability to build up sales.
Big competitors are hungry, reaching lower and offering more incentives in order to pick up business. Price competition is a no-win game for virtually every small business. Small businesses can’t make it up in volume the way the biggest producers can, and their pockets are nearly as deep – which means losses hurt more, faster.
Small businesses can win at sales by taking advantage of their smallness. They are generally very flexible. They can innovate and modify products or services to meet custom specs, affordably producing smaller quantities. They can help clients test new markets without spending a lot of overhead to do so.
The small businesses’ chain of communication is incredibly short, which speeds things up. They can quickly make decisions. They can rapidly respond to prospect requests and changing market conditions.
In a post-recession, slow growth economy, buyers are cautious about committing to high volume runs. Many buyers find it’s smarter to conserve funds and energy as they face their own demands to ramp up, by teaming up with small vendor partners.
In other words, the marketplace is hungry for sellers who are prepared to help out. The sellers just have to know where to look for business opportunities. And they need to have a solid game plan and staff that insures they keep moving the ball forward with sales.
Who can / should be on your sales team? Just about everyone in the company.
Set up weekly group meetings. Talk about what’s been sold recently, what’s pending, and what’s in the development stage. Brainstorm what sales to go after next and how to get in the door. Find out what the competition is doing by listening to customers’ complaints – often accounts receivable staff hears those kinds of war stories.
Assign responsibilities. Set a company goal for new leads / week. Same for discovery, proposals and closes. Ask the group to divide up duties and report on results.
Assign specific people to go after specific accounts – either to expand them or get them as a new customer. Set up packages of services or products, to make pricing more automatic. Log prospects into a database to insure leads don’t get lost.
Celebrate successes. Go out to do something fun as a group. Bring in pizza to celebrate a big win. Encourage camaraderie and cooperation by rewarding the group, rather than singling out individuals. It’s not just about the money. It’s about accomplishing the mission together.
Identify people who don’t seem to get it. Sit down with them one-on-one for a serious conversation. Make it clear their paycheck is on the line, and they are expected to help with sales. Ask them to make a list of things they can do to contribute. Don’t let them off the hook, and if they’re unwilling to help, consider asking them to move on.
Look around you. Your current staff has a good understanding of what your company does, and why it’s good at what it does. Tap into that potential fully. Move people up into sales related functions. It’s easier to fill entry level / junior positions as you reward producers with growth opportunities.
