This article appears in Sign Builder Illustrated.
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that is long established, if you expect to drive growth in your business, you
need to bolster your sales effort. This involves recruiting, training and
supporting a sales team.
one salesperson or many, requires the right talent, the right plan and the right
leadership. Most of all, the success of your team requires what legendary
basketball coach Pat Riley calls a “core covenant” among everyone in your business
to support your sales effort. As the leader of your team, you should remind
your employees that everyone is involved in sales, or should be.
organization should unify with a common purpose or mission in mind. Only when your entire shop meshes together and
recognizes that everyone has a responsibility to contribute to your sales efforts,
will your team realize its greatest professional accomplishments.
must put the goals and interests of the team ahead of their individual interests.
That’s easier said than done, of course. In most organizations, people succumb
to the frailties of human nature, such as greed, envy, anger and resentment, all
of which jeopardize team unity.
different sales capacities, from direct salesperson and independent rep to a
manager, who hired, trained and fired many salespeople, I offer my perspective
on what works and what doesn’t work as you build your sales team.
and Hiring Salespeople
of a manager is to recruit and hire the members of his team. While you might
get lucky in finding a sales candidate through a job search, a better way is to
ask other businesspeople in your community to recommend people who may be a
good fit. You should also ask salespeople, who call on you for recommendations.
you can recruit are salespeople currently employed by your competitors. In his
book, Made in America, Sam Walton explains that he never felt any
shame in going into another store to uncover and lure talented candidates for
his business.
salesmen, working for a competitor or in a related industry, have strong business
relationships and can convert these relationships into sales. Before you hire a salesperson from a
competitor, make sure that they are not bound by a non-compete agreement.
competitor has let go, try to discover why he was fired. If a salesman didn’t work
out for the competitor, what makes you think that he will perform better for
you?
selling graphics, you might recruit someone who, at the very least, has
industry experience. Some of the people, who have become the best salesmen, have
been truck leasing salespeople and experienced graphics installers.
Sales Candidates Online
a sales position opening on a job site, such as Monster or Indeed, is one of
the quickest, easiest and most effective ways to recruit qualified candidates. You
may also consider posting opportunities on LinkedIn, even though it is not a conventional
job site.
advantage of these sites is that they cast a wide net for candidates looking
for a sales position. What’s more, for a small shop, a job site, such as
Indeed, is cost effective, because its standard services are free. In the opinion
of many, Indeed is also one of the most popular and most effective job sites. By
using these sites in searching for sales candidates, you also save time, which is
generally in limited supply for a small business owner, who often wears many
hats.
see if the Indeed job site will produce results for your business, create a
free employee account and post a job listing. To attract the most qualified
candidates, choose a descriptive job title. In selecting a title, you should
use a service, such as Google’s Adwords, to test which description is most effective.
job description should concisely explain the responsibilities and work experience
required. A well-written description should attract the most qualified prospects
and, at the same time, weed out the unqualified. To make your posting easier for
applicants to read, consider using bulleted copy.
promoting job opportunities in your shop, you will also need to develop a
business profile, explaining what your company does and what distinguishes your
business in the graphics industry. Your company profile should also provide links
to your website and your social media platforms, such as Facebook, LinkedIn and
YouTube. Links to these sites should attract interest in your business and project
the personality and appeal of your organization. Be sure to list your company
name, physical address, phone number, email and website address.
generate more views of an Indeed job post, you can advertise or “sponsor” your
posting. As a shop owner, you only pay when a respondent clicks on your posting
to open the details in the job description. In addition to posting openings in
your shop on job sites, also post the job on your website and on your social
media platforms. After you hire someone for an opening, remember to close the
job.
Sales Candidates
prepared. Carefully read through the prospective
employee’s resume and construct several questions to better assess the
personality and character of the candidate. When you are hiring salespeople,
you should clearly define the specifics of the job. Explain in detail what you
expect in terms job responsibilities and outcomes.
understand that selling is not a part time activity. If you expect that your
new hire will devote part of his time selling and part of his time marketing or
part of his time doing office activities, he will likely spend his time doing what
is easiest. That will not be selling.
become sidetracked. I have seen salesmen getting involved in all types of
activities that have nothing to do with selling. In some cases, when a salesperson
gets distracted, it is not entirely his fault. Others in your organization can
impose on his time. For this reason, in defining sales responsibilities, you
need to write down what you expect them to do and what you do not want them to
do. You should quantify sales activities and the sales budget that he or she must
achieve. Make sure that the parameters of the job are cast in stone, so there
is no misunderstanding in the future.
in an interview:
have some experience in sales. Better yet, is a salesperson with experience in
selling signage and graphics. In interviewing, your candidates probe to
discover what types of products and services that they have sold in the past. How
did the candidate rank in comparison to other salespeople? What did they like
about their previous sales jobs? What did they dislike? You may also ask your
candidate to describe their most significant sale.
sales candidate set for themselves? People who are successful, especially in
sales, have established very specific goals and have written them down.
follow up question, ask the candidate what plans they have made in order to
achieve their goals. Salespeople, who have taken the time to write very
specific goals for themselves, who have devised plans for achieving those goals
and who act every day on those plans, have the motivation and the discipline to
be successful. Finding someone who is goal-oriented, however, is a rarity.
your candidate to imagine that if everything goes right in his career, what
type of life will he be living in the next ten years. How much will he be earning
annually? What type of house will he own? What assets will he have accumulated?
If a salesperson is not motivated by money, there is not much that you can do
with them.
what they know about your business. If they are worth their salt as a salesperson,
they should have researched your company in preparation for the interview. If he
has not researched your company, he is probably not the type of person who will
do any pre-call planning if you hire him. Selling other businesses is a
thinking man’s game and requires planning and professionalism.
the candidate has acquired the basic skills necessary to thrive in a business
environment. For a salesperson, he or she must communicate effectively both in
speaking and in writing. The person that you are considering also needs a good
understanding of basic math. Finally, you need to determine if he or she has
the reasoning skills to recognize a prospect’s problems and unmet needs and, in
the role of a sales consultant, can develop solutions.
business or an MBA may be impressive on paper. What’s more important, is someone
who can think on his feet and who can effectively communicate with business professionals.
the candidate’s commitment to learn and continually improve their knowledge and
skills. The seventh habit in Dr. Stephen Covey’s Seven Habits of Highly
Successful People is to sharpen the saw. As technology rapidly evolves, everyone needs
to sharpen their skills. In your interview, you may ask what your prospective
salesperson is doing to improve or sharpen their sales skills. What courses in
sales have they taken in the past? What plans do they have to improve their
sales skills?
sales speaker Brian Tracy recommends that if a person devotes one to two hours
a day reading about their industry and listening to educational sales tapes,
you will lead your field within a couple of years. Ask your prospective employee
what type of reading they have done to improve their sales knowledge or
understanding of the industry.
able to tell you what value they can provide. Ask the candidate what they can do
to help you grow your business. In selling
themselves to you, they should be able to explain to you why you should hire
them.
of Highly Effective Salespeople
judgements about the personality of your prospective employee. To a large
extent, you will need to trust your gut instinct in evaluating a candidate. While
this type of assessment is anything but objective, if your head and heart are
not in alignment when judging someone, you should keep looking for the right
sales candidate. Some characteristics to look for include:
people have a naturally charming, likeable and charismatic personality. These qualities
are difficult to define and certainly cannot be quantified. They are, however,
easy to recognize when you encounter someone with these characteristics.
believe in themselves, their company and their abilities to provide prospective
customers with unique business solutions and value. I can instruct salespeople about
the technical aspects of vinyl graphics design, manufacturing and installation.
I can teach them how to conduct a fleet graphics survey or needs appraisal. I can’t
teach confidence. It is an inherent personality characteristic. The best that you
can do as a manager or mentor is to provide your employees with encouragement. In
interviewing sales candidates, the type of personality that you should look for
in a salesperson is one that is self-assured without being arrogant, pushy or
obnoxious.
of rejection. Successful salespeople don’t take rejection personally and can
get up off the ground after losing a sale to a competitor and move on to the
next opportunity. Great salespeople also discipline themselves to follow up on opportunities.
If a candidate has not developed a good
follow up procedure for himself, he will likely let several opportunities slip
between the cracks.
type-A personalities, versus the laid-back type Bs. They usually have a very
competitive nature. Generally, assertive
people have participated in team sports rather than being the type of person
that sits in the stands, observing. What activities does your sales candidate
participate in? What awards has he or she achieved? Successful salespeople are goal-oriented
and motivated by commissions, and winning sales contests.
salespeople feel that sales is their calling. Too many apply for a sales job
because they desperately need a job or view it as a steppingstone in their climb
to a management position. These people ultimately want to be someone’s boss, rather
than being on the streets in the thick of the fray. In their heart of hearts,
they are just going through the motions until something better comes along.
jumpstart stagnant sales is to hire independent sales reps. With the right
training and compensation package, these reps can bring in significant amount of
business. The value that they bring to your party is their relationships that
they have developed over their years in business.
rep initially can cost you significantly less than a company salesperson,
because you pay them straight commission. You don’t pay them a salary, nor do
you cover their expenses. Plus, you are not on the hook for health care or retirement.
Unlike a direct employee, there is little risk associated with hiring someone
who is non-productive.
Alive author, Harvey Mackay, recommends that you should always
keep your eyes open for a good potential employee and hire him, even if you don’t
presently have an opening for them. If you can afford it, that’s good advice. This
also applies to contracting with an independent sales rep.
even though he or she may perform the same work as a direct employee. Manufacturer’s
reps operate their own businesses. Using a manufacturer’s rep especially makes
sense for a small shop, that cannot afford to hire a direct salesperson.
income tax, Social Security or Medicare from their commissions. Another advantage
of using independent reps is that you are under no obligation to provide any
benefits, such as health care, vacation time or a retirement program. You also
are not responsible to cover their travel and entertainment expenses, nor do you
need to supply their tools needed to do their jobs, such as laptop and computer
programs.
you benefit from their long-term relationships that they have cultivated for
years. Independent reps may also cover geographic territory where you have no presence.
Capitalizing on their extensive coverage may dovetail with a strategy for
growing your business.
you should investigate the other product lines that they represent. Ideally,
the rep’s existing lines will complement your offerings.
salespeople, who, in many cases, are more effective than direct employees,
because if they don’t sell, they don’t eat. That’s powerful motivation.
can enjoy several advantages when you use independent reps. Without incurring the
additional costs of a direct employee, you can generate new sales and expand
your coverage to new territories. To reap
the benefits of outsourcing a field sales force, you must provide the support that
they will need to be successful. Expect to invest additional time preparing
quotations, answering questions, and making joint sales calls. In dealing with
independent sales reps, here are some additional recommendations:
promote your business, you have a right to expect agreed-upon sales performance.
You do not have the right, however, to control their activities, which is one
guideline that the IRS uses to distinguish a direct salesperson from an independent
sales rep. Another factor in the IRS determination is whether the employer or
sales rep provides the equipment needed in the performance of the job. Whether
you report the rep’s income on a 1099 form versus a W-2 has no bearing on the IRS
classification.
that the IRS will reclassify an independent rep as a direct employee. If the
IRS reclassifies an outside salesperson, you could face serious legal consequences,
such as fines and seizure of assets, because you must withhold income taxes,
Social Security and Medicare taxes and unemployment taxes for employees. Be careful that you do not classify a direct
salesperson as an independent rep employee to avoid paying payroll taxes or
Workers’ Compensation Insurance.
rep, provide them with ability to make a good living, pay them promptly and
support them with an effective marketing support program, that provides them
with training, sales leads and marketing literature.
considerable time. To support their efforts in a specified geographic
territory, you should allow them to manage any existing accounts in that area. The
commissions from these accounts will help defray the rep’s expenses as they plough
new ground. Claiming existing business
as “house accounts” often creates resentment.
rep owns his long-term customer relationships, not you. You make a big mistake,
if you think that you can terminate a rep, who has brought you new business,
and appropriate his accounts. The rep will usually shift those accounts to one
of your competitors. You not only lose
that business, but you potentially jeopardize your reputation and create an enemy.
Rep Agreements
relationship with an independent rep, verbal agreements are worthless. Some
famous last words are “my word is my bond.” Whether you are dealing with
someone honorable or not, handshake deals often result in disputes. To avoid potential
legal conflicts, you and your independent rep should put your agreement in
writing. That contract should cover the following topics:
relationship to the independent rep. The rep is an independent businessperson
and is not an employee nor is he a partner in your business. Making this distinction
is important, because not doing so, can have tax withholding and other legal consequences
for your business.
specify the geographic territory that the rep will cover. You may also want to
list the products and services that the salesperson is responsible to sell.
include an exclusivity agreement. In other words, the independent rep should agree
to only represent your shop for the agreed upon products and not concurrently represent
a competing shop.
your commission scale.
include a provision regarding nondisclosure of confidential information.
parties can terminate the agreement. In the case that your shop wishes to
terminate an independent rep, your contract should also provide for a specified
period of notice.
independent rep should sit down and review every single provision of the
agreement. It is much better that both parties fully understand the contract
and resolve any issues upfront. Ideally, you should have an attorney draw up
the rep agreement so that it complies with the laws in your state.
salesman is difficult. Because they are in short supply, the demand is high. If
you are running a smaller business, you must compete with larger companies that
can offer a generous benefit package, paid expenses and a comfortable salary. If
you want to keep a good salesman, you will need to treat them right and give
them the opportunity to make a great living.
is straight commission. Some companies have compensation plans based on the
profitability of the job. Selling jobs with greater the profit margins earn higher
commissions.
by commissions only, deserve everything they get. In many regards, they work as
if they are independent salespeople. They must pay all of their expenses and if
they don’t sell, they don’t eat. Because these salesmen assume a significant
amount of risk, never begrudge them the commissions that they rightfully earn. If
they land some lucrative accounts, pay them what you agreed, when you hired
them.
sales commissions after a salesman starts to earn a comfortable living. This just
creates bitterness. As a result, many of these high performers leave one shop
and go to work for another, taking many of their accounts with them. Can you
blame them?
you must go through the time and expense of finding a replacement and training
him. What’s worse, is when the word gets out that you are a bad employer.
many ways ranging from straight commission to salary as well as a mixture of
salary and commission. The value of weighting pay more heavily on commission
than salary provides salespeople with greater motivation to work harder.
depend on your overall business goals. In
some cases, a shop may want to compensate new business at a higher rate than sales
to existing accounts. I have worked for graphics companies which compensated
their salespeople based on the profitability of the individual sale. Basing pay
in this manner requires more accounting work, but it rewards salespeople when
they sell at a higher markup. In my mind, this is win-win because both the shop
and the salesperson make more money.
not only depends on your business objectives and the type of behavior you want
to incentivize, but also on the difficulty of implementing the plan. You certainly
do not want to create a plan so complex that it involves an inordinate amount
of time for your bookkeeper to calculate. The plan should be easy for your salespeople
to understand as well as being fair and sufficiently rewarding to keep them
motivated. A generous compensation plan will also help you attract and retain
topnotch salespeople.
might make sense, if your business establishes a firm selling price. On the
other hand, this does not allow the salesperson any flexibility in negotiating
price.
it allows the salesperson to adjust the price as needed to close the deal. At the
same time, it discourages someone from giving away the store. As an example, if an independent rep writes $600,000
in business at a 40% profit margin, your plan could be structured to pay 20% in
commissions or $120,000. On the other hand, sales at a 30% profit margin, may
only pay 15% or $90,000.
you need to keep in mind that salespeople, who are paid in this way, operate an
independent business with overhead expenses and they must invest a significant
amount of time, money and energy to generate those commissions.
as much of your failure as an employer as it is theirs. In some cases, you may
have hired someone who is just not cut out for sales. More likely than not, an
employer has not provided a salesperson with the right training, the right guidance
or the right marketing support for them to be successful.
graphics sales job, the training was extensive. For three weeks I worked in the
shop, in each of the departments. During the fourth week, my hands-on training continued
at a trailer manufacturer, where I installed vinyl graphics.
joint sales calls with several veteran salesmen. Obviously, this initial
indoctrination to the business of printed graphics did not make me an expert in
the field. It did, however, serve as an invaluable foundation upon which I could
build on my industry knowledge.
the benefit of this type of education from their employer. Generally, after a
few days in the shop, many are set loose on the streets to fend for themselves.
Should you be surprised when they fail to make the grade?
newbies, you must devote a considerable amount of time, early in their employment,
travelling with them until they get up and running.
provide any meaningful training or guidance from behind a desk. It just doesn’t
work! This holds true even if you form an agreement with an independent rep,
who has years of experience.
salespeople up and running, you will need to spend a significant amount of time
with them out in the field. If they have never sold graphics before, they will
need see how to conduct a vehicle or site survey and listen to you as you
interview a prospect. If you have hired well, they will pick up on the questions
that you ask and words that you use. Eventually, they will make your sales
techniques their sales techniques.
a Sales Plan
success that you and your salespeople will enjoy depends on the sales plan that
you develop. You may have heard the maxim: plan your work; then work your plan.
That’s sound advice! In applying this rule to your sales plan, here is a more
elaborate explanation of how to put it into practice:
Establish a specific goal for your shop, such as to increase annual sales by
150%. A large goal may appear to be daunting to your salespeople. For this
reason, you may also want to set monthly revenue targets, which may seem more
attainable.
Determine which activities you need to engage in to achieve your goal. As best as
you can, you should quantify these activities. Here are some specific
activities that might be part of your sales plan:
a target account list. For each account, you should identify its sales
potential and the probability of successfully closing a sale. This account list
could take the form of a sales forecast. One of the simplest ways to capture
this information is to create a spreadsheet. If you have several salespeople, you
could have a separate worksheet for each person.
Make a specific number of cold calls each week to qualify the prospects, identify
opportunities and ultimately to acquire new accounts.
leasing salespeople, to pursue new accounts.
Call current customer base to limit account attrition and to uncover new sales opportunities.
on your plan daily. By continually identifying
new prospects, conducting customer research, cold calling and pursuing opportunities
that you have uncovered, you will ensure that your sales funnel is always full
and generating the number of sales that you will need to attain your goals.
week, you should measure your progress
against your goals and milestones. Remember the old adage: “what gets
measured, gets done”. If you are
not staying on track with your sales plan and generating desired results, identify
the shortcomings and problems and decide what corrective actions that you need
to take.
prospects, you also should identify your competitors in your sales plan and
assess your competitive situation. If your
salespeople are doing their jobs, they will provide with detailed input and
insight about your prospects, customers and competitors.
the past year, which competitors did you compete with? How successful were you
in competing with these companies? If a competitor was effective, what
strengths accounted for their success? What were your competitor’s weaknesses?
Marketing
Support Plan
your sales plan. Instead, your marketing program supports your salespeople. The
first step in developing your plan is to establish your goals. These goals could
include generating sales leads, setting appointments, following up on sales
meetings or maintaining contact with your account base to minimize attrition.
develop specific and quantifiable activities designed to achieve your goals. Your goals may include generating a specific number
of sales leads, which result in quotes and ultimately lead to an increase in
sales. By recording your results, you can evaluate the effectiveness of your sales
people based on quotes generated, closing percentage and revenue. You can also
use this information in forecasting sales.
program may include activities such as entering leads into your database; mailing
direct mail packages; or making telemarketing calls to qualify leads. Each of
these activities must have specific targets.
follow up calls to your existing customer base to uncover new opportunities and
to prevent attrition, publishing a monthly newsletter, updating your website
and social media platforms.
program could also include telemarketing to uncover prospects, email or direct
mail to acquaint your audience with your product offerings, social media
platforms to showcase programs that your shop has handled and your website.
you should analyze your results.
would you do differently?
just doesn’t work out. Either you hired the someone who was not cut out for
sales or they did not fit in with others in your shop or failed to meet your
sales goals. Whatever the reason, one of the most emotionally difficult aspects
of business for an employer as well as the employee is termination of employment.
“you’re fired” makes for entertaining TV. Termination of employees in the real
world requires a little more empathy. In the first place, showing another person
respect is the right thing to do. More importantly, parting on good terms
avoids creating an enemy, who would go out of their way to pay you back.
remember. Through this experience, I discovered what to do as well as what not
to do. Here’s what I learned:
should never fire an employee over the phone or in an email or via snail mail. Instead
you should meet with the person face to face. If you have a second in command
or an office manager, you may want to include that person to sit in as a
witness rather than as an active participant.
to your employee upon his departure. As you are severing ties with the employee,
you should remind them of any nondisclosure or noncompete agreements, which are
in effect. You should also explain any benefits which will continue and for
what period following termination.
standards, you should have documented any assessments whether it is in a performance
review or in criticism. Ideally, you should put everything in writing and include
it in the person’s employment file. This way if it becomes necessary to fire
someone, it should come as no surprise. Documentation of any corrective action should
help if the employee initiates legal action.
with an explanation for the termination, you should nevertheless prepare a response
if the employee asks for a reason. Be respectful in how you phrase your explanation.
Keep your reply and the meeting short as possible.
CEO, Jack Welch, believes that if you have been candid and fair with an employee
in regularly appraising his performance, termination should come as no surprise
to someone, who has not delivered on his sales objectives. In fact, Welch felt
that failure to terminate an underperformer creates resentment among productive
employees, which ultimately undermines team cohesion.
a laptop, or other equipment, ask for them to return it in the meeting. If the
employee wants to remove their possessions from their desk or locker, accompany
them to their workspace to ensure that they do not remove any documents or
company property from your premises or has an opportunity to access and
possible sabotage your computer system.
conduct the termination meeting in a public place, such as a restaurant, to
avoid a scene in your place of business. In my experience, this is a terrible idea.
It is embarrassing for you and your employee, if he begins to cry in a crowded
public setting. Believe me; it happens. A better idea is to terminate someone in
your shop at the end of the day or after hours, so you don’t upset your other
workers.
not to discuss the details of the termination with your other employees. If another
company calls in the future inquiring about past employment of a terminated
employee, limit your comments to the essentials.
to be plow horses, a few may be racehorses, and some will be nags. There is
nothing wrong with plow horses. They may not set the world on fire, but they do
their jobs day in and day out and generate a respectable piece of business.
they will reward you with the sales numbers that will fulfill your
expectations. The racehorses represent that 10% to 20% of professional salespeople
that produce 80% of results. You need to reward them with the compensation to keep
them happy and productive as well as to ensure that they don’t seek greener
pastures.
of graphics is often time-consuming both before and after the sale. Selling fleet
graphics and building graphics requires that the salesperson spend time surveying
the vehicles or building sites or interviewing the prospect or overseeing the
implementation of the installation.
their time and effort, especially if you cannot afford to be out of the shop. Professional
salespeople can bring in the new business that you will need to grow and free
up your time so you can manage your business. They can also provide you with the
information that you need to combat competitors and respond to unmet market
needs as well as alert you to the changes and challenges in your business
environment.
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