Consultants, particularly independent ones, face the same issues a start-up Entrepreneur has to deal with. They get work, they bill their client and at some point the engagement ends. They then have to hustle up another job. Sometimes it takes a while to get billable again. The gap in revenue is a scary and dangerous place to be.
Apply Pressure
I am against start-ups hiring salespeople too soon for a bunch of reasons already noted. The answer to keeping the revenue gap closed is for small business owners and consultants to continue prospecting for business at all times, including, and most importantly, during the billable periods.
Get Control
It takes discipline, great time management skills and a priority system to juggle your week, wear numerous hats and keep a sales pipeline full.
Be Faithful
My suggestion is to reserve some time to hunt for new business each week. Do it without fail and you will keep your income wheel turning. Specifically, make a commitment to do a number of business development activities each week, without fail.
Try Everything
Try writing a newsletter, writing a blog, sending out some mail, making some phone calls, attend relevant networking events, work a trade show, host a lunch and learn or even host a weekly Webinar. And, always speak to groups whenever possible.
Gap Closed
Once you get this system tuned up, you can make adjustments, depending on what is working for you. The most important thing is to spend some time each week on business development. If you faithfully continue prospecting, the next job will start when the last one ends.
Good Hunting!
Monday, June 21, 2010
Friday, June 4, 2010
Start-Ups: Don't Hire Salespeople
Salespeople are the heart and soul of business. No sales calls = no sales. It’s hard to imagine a business growing and thriving without a competent sales force. More salespeople, making more sales calls, landing more orders is a formula for success. That is unless you are an Entrepreneur getting a start-up business off the ground.
Wait
My advice is to wait until your company is off the ground and running before entertaining the idea of building a sales force. There are a handful of reasons to be careful beefing up your sales department.
They Don’t Understand
First of all, most businesses are founded on a great idea. The great business idea is typically a byproduct of the founder’s subject matter expertise. Most start-ups know something that others don’t. They solve problems and are then paid to deliver their products or services. Over the last few years, I have worked with dozens and dozens of new businesses and most of the founders, owners, entrepreneurs do not understand the ins and outs of employing salespeople. They shouldn’t hire salespeople because they don’t know what they are getting into.
Risk
The risk facing a company when hiring salespeople early in the life of the enterprise is great. First of all, like other employees, they want to be paid. Unlike other employees, there is no guarantee that a salesperson will deliver a return on investment. An investment in recruiting, hiring, and training, equipping and managing a salesperson is a one that can backfire on a start-up company. The setback in money, time and lost opportunity could be fatal.
Disruption
When a salesperson is hired the first thing an entrepreneur will find out (the hard way) is that salespeople are needy. They will make work for their bosses. That’s just how it is. So, instead of relieving some of the workload burden they become extra burden on their time and checkbook. Again, not only will the entrepreneur be answering questions, asking questions, helping with proposals and running sales meeting with their new salesperson, i.e. doing it all themselves anyway, but there is still no guarantee that he or she will sell their products or services anytime soon, if at all.
Message
Unless a salesperson is schooled in the subject matter being sold, it is unlikely that they will be able to correctly tell the story or the value proposition. They won’t likely be able to answer questions and could probable get some facts distorted. Again a start-up business doesn’t need problems like this.
Later Than Sooner
Make some sales, get some traction, get off the ground and then hire salespeople.
Wait
My advice is to wait until your company is off the ground and running before entertaining the idea of building a sales force. There are a handful of reasons to be careful beefing up your sales department.
They Don’t Understand
First of all, most businesses are founded on a great idea. The great business idea is typically a byproduct of the founder’s subject matter expertise. Most start-ups know something that others don’t. They solve problems and are then paid to deliver their products or services. Over the last few years, I have worked with dozens and dozens of new businesses and most of the founders, owners, entrepreneurs do not understand the ins and outs of employing salespeople. They shouldn’t hire salespeople because they don’t know what they are getting into.
Risk
The risk facing a company when hiring salespeople early in the life of the enterprise is great. First of all, like other employees, they want to be paid. Unlike other employees, there is no guarantee that a salesperson will deliver a return on investment. An investment in recruiting, hiring, and training, equipping and managing a salesperson is a one that can backfire on a start-up company. The setback in money, time and lost opportunity could be fatal.
Disruption
When a salesperson is hired the first thing an entrepreneur will find out (the hard way) is that salespeople are needy. They will make work for their bosses. That’s just how it is. So, instead of relieving some of the workload burden they become extra burden on their time and checkbook. Again, not only will the entrepreneur be answering questions, asking questions, helping with proposals and running sales meeting with their new salesperson, i.e. doing it all themselves anyway, but there is still no guarantee that he or she will sell their products or services anytime soon, if at all.
Message
Unless a salesperson is schooled in the subject matter being sold, it is unlikely that they will be able to correctly tell the story or the value proposition. They won’t likely be able to answer questions and could probable get some facts distorted. Again a start-up business doesn’t need problems like this.
Later Than Sooner
Make some sales, get some traction, get off the ground and then hire salespeople.
Subscribe to:
Posts (Atom)
