Fractional Executives: The Cost-Effective Solution for Small Businesses in Need of Expertise

Fractional Executives: The Cost-Effective Solution for Small Businesses in Need of Expertise

Fractional executives are experienced professionals who work part-time or on a project basis, providing expertise and guidance to help businesses achieve their goals. Often, small businesses need more resources and expertise, making it difficult for them to achieve growth and success. While hiring a full-time executive may not be feasible due to the costs involved, fractional executives can provide a cost-effective solution to this problem. 

A fractional executive differs from a consultant, but the difference may confuse some. Typically, a consultant will provide advice and guidance, but they are separate from your company. A fractional executive works alongside your team, helps in company operations, and is responsible for the outcomes of those operations. They are an extension of your existing leadership team. In most instances, a fractional executive provides all of the responsibilities to your company as a full-time executive.

Cost-effective Expertise

One of the most significant benefits of using fractional executives is cost savings compared to a full-time employee with a similar amount of experience. Hiring a full-time executive can be expensive. Fractional executives work on a part-time or project basis, meaning companies can save money by only paying for the services they need. Additionally, businesses can avoid the costs of recruiting, hiring, and training a full-time executive.

As explained in the FRACTIONALS UNITED BLOG, it is essential to explore the cost of an FTE (full-time employee) compensation plan compared to fractional monthly retainers. The data is eye-opening!

According to data gathered (March 2023) by Salary.com, the median (50th percentile) core compensation (salary+benefits*) for the following C-Suite leaders is as follows:

  • Chief Financial Officer (CFO)- $558,999 ($46,583/mo) + 22% bonus
  • Chief Operating Officer (COO)- $622,672 ($51,889/mo) + 23% bonus
  • Chief Marketing Officer (CMO)- $464,651 ($38,720/mo) + 25% bonus
  • Chief Revenue Officer (CRO)- $408,619 ($34,051/mo) + 12% bonus
  • Chief Technology Officer (CTO)- $387,001 ($32,250/mo) + 15% bonus
  • Chief Human Resources Officer (CHRO)- $449,340 ($37,445/mo) + 25% bonus
  • Chief Talent Officer (CTAO)- $337,197 ($28,099/mo) + 20% bonus

Bonus comp and equity cash totals were excluded from this comparison since both are variable compensation, only sometimes guaranteed. The average percentage offered was noted instead.

The average monthly retainer for fractional executives starts at around $5,000 and goes upwards to $15,000 per month. Retainers vary depending on the experience, scope of work, and level of hourly commitment per month (i.e., 25%, 50%, or 75% commitment to the team/company). The retainer may be higher if the professional has more years of experience, is in high demand, or if the organization is in a large metropolitan area.

If we assume that any given fractional executive discipline is $10,000 per month, then:

  • Fractional CFO – 21% of an FTE
  • Fractional COO – 19% of an FTE
  • Fractional CMO – 26% of an FTE
  • Fractional CRO – 29% of an FTE
  • Fractional CTO – 31% of an FTE
  • Fractional CHRO – 27% of an FTE
  • Fractional CTAO – 26% of an FTE
(more…)
Sales Coaching: A Key Tool for Achieving Business Growth in B2B Sales

Sales Coaching: A Key Tool for Achieving Business Growth in B2B Sales

Sales coaching has become integral to the modern business environment, particularly in business-to-business (B2B) sales. The sales coaching process enhances salespeople’s skills, knowledge, and capabilities to achieve their goals, deliver value to customers, and improve organizational performance. In this article, we will examine the importance of sales coaching in B2B sales organizations, explore the best practices for effective coaching, and discuss the key benefits that result from a well-executed sales coaching program.

Sales coaching has become increasingly critical to the success of B2B sales organizations. Equipping salespeople with the skills, knowledge, and resources they need to deliver value to customers and drive business growth is essential. Here are three reasons why sales coaching is critical in B2B sales organizations.

Firstly, sales coaching helps salespeople to develop the necessary skills and knowledge to engage with customers, understand their goals or priorities, and provide tailored solutions. In a B2B sales environment, customers’ goals are often complex and unique, making it challenging to identify the best strategies for engaging with them. Effective sales coaching helps salespeople identify the most effective ways to engage with customers, build rapport, and establish trust. Through regular feedback and guidance, sales coaches can provide salespeople with insights on approaching different customer scenarios, offering valuable insights, and delivering a superior customer experience.

Sales coaching provides salespeople the necessary tools to improve their communication skills, such as active listening and effective questioning techniques. This active listening capability enables salespeople to understand customers’ unique goals and motivations better, allowing salespeople to provide tailored solutions that meet prospects’ expectations. This skill is essential in B2B sales organizations, where customers’ needs are complex and varied.

Secondly, sales coaching is essential for enhancing the performance of sales teams. Sales coaching helps salespeople to focus on their strengths and weaknesses, set clear goals, and develop strategies for achieving them. Coaching provides salespeople with performance feedback, identifies improvement areas, and provides guidance on addressing these areas. This, in turn, leads to improved sales performance, increased productivity, and higher levels of job satisfaction.

Effective sales coaching can help salespeople identify areas where they need to improve, such as their communication, time management, or presentation skills. Sales coaches can provide their teams with targeted feedback and guidance, offering practical solutions for improving performance. This not only helps salespeople to become more effective at their job, but it also helps them to feel more confident and engaged in their work.

Thirdly, sales coaching helps to create a culture of continuous learning within B2B sales organizations. Sales coaching enables salespeople to develop new skills, learn about new products and services, and keep up-to-date with industry trends. Continuous learning is vital for B2B sales organizations that operate in a dynamic and fast-paced environment, where the ability to adapt and learn quickly is essential for success.

Sales coaching allows salespeople to learn from their experiences and mistakes in a safe environment that doesn’t affect their revenue production. Sales coaches can guide how to approach different customer scenarios, offer valuable insights, and help salespeople to develop new skills. By fostering a culture of continuous learning, sales coaching can help B2B sales organizations to stay ahead of the curve and remain competitive in their industry.

Best Practices for Effective Sales Coaching

To ensure that sales coaching is effective, B2B sales organizations must adopt best practices aligned with their organizational goals and objectives. The following are some of the best practices for effective sales coaching:

  1. Provide Timely and Relevant Feedback: Feedback is critical to effective sales coaching. Managers and team members should provide feedback in a constructive manner that focuses on improvement rather than criticism. Feedback should be timely, relevant, and focused on specific behaviors or actions.
  2.  Focus on Skill Development: Effective sales coaching should focus on developing the skills and knowledge necessary for success in a B2B sales environment. This includes communication, negotiation, problem-solving, and product and industry knowledge.
  3.  Use a Coaching Framework: To ensure that sales coaching is consistent and effective, B2B sales organizations should use a coaching framework that provides a structured approach to coaching. A coaching framework should include a straightforward process for setting goals, giving feedback, and developing skills.
  4.  Measure and Evaluate Coaching Effectiveness: B2B sales organizations should measure and evaluate revenue generation to ensure that sales coaching is effective. This includes tracking sales performance metrics, such as revenue, customer satisfaction, and retention rates.

Critical Benefits of Sales Coaching in B2B Sales Organizations

Effective sales coaching can deliver a range of benefits to B2B sales organizations. The following are some of the key benefits that result from a well-executed sales coaching program:

  1. Improved Sales Performance: Effective sales coaching can lead to improved sales performance, increased productivity, and higher levels of job satisfaction. Sales coaching provides salespeople the necessary skills, knowledge, and support to achieve their sales goals and deliver customer value. This, in turn, leads to increased sales revenue, higher customer satisfaction, and higher customer retention.
  2.  Increased Employee Engagement: Sales coaching can help to increase employee engagement and motivation. When salespeople receive regular feedback, guidance, and support from their coaches, they feel more valued and invested in their work. This, in turn, leads to higher levels of job satisfaction and lower turnover rates.
  3.  Enhanced Customer Relationships: Effective sales coaching can help salespeople build stronger customer relationships. Sales coaching can help salespeople to identify customer needs, provide tailored solutions, and establish trust. This leads to stronger customer relationships, higher customer satisfaction, and greater customer loyalty.
  4.  Continuous Learning: Sales coaching helps create a continuous learning culture within B2B sales organizations. Sales coaching provides salespeople opportunities to learn new skills, develop their knowledge of products and services, and keep up-to-date with industry trends. This, in turn, leads to more significant innovation, improved performance, and competitive advantage.
  5.  Aligned Goals of the Company and the Team: By doing an adequate job of sales coaching, the salespeople are working toward the same goals as the company. This prevents wasted activities that don’t serve the purposes of the company. Let’s discuss this a bit more.

Setting Clear Goals and Objectives

Setting clear goals and objectives for salespeople is crucial to the success of any B2B sales organization. These goals and objectives provide a framework for salespeople to work within and help to focus their efforts on achieving specific outcomes. Here are some reasons why setting clear goals and objectives is essential for salespeople:

Setting Clear Goals and Objectives: Coaching provides a sense of direction and focus.

Setting clear goals and objectives helps salespeople to understand what they are working towards and what they need to do to achieve success. Having a sense of direction and focus is essential for salespeople as it helps them to prioritize their tasks, make informed decisions that align with their company’s needs, and stay motivated.

Setting Clear Goals and Objectives: Helps to measure progress and success.

Setting clear goals and objectives allows salespeople to measure their progress and success. This is important as it provides a sense of achievement and helps to maintain motivation. Tracking progress will enable salespeople to adjust their approach to get on track to meet their goals.

Setting Clear Goals and Objectives: Creates accountability.

Setting clear goals and objectives helps to create accountability for salespeople. When goals and objectives are clearly defined, salespeople are more likely to take ownership of their work and strive to achieve their targets. This sense of ownership and accountability helps create a performance culture and can increase job satisfaction and employee retention.

Setting Clear Goals and Objectives: Aligns salespeople with the organization’s overall objectives.

Setting clear goals and objectives ensures that salespeople align with the organization’s overall objectives. This alignment is crucial as it helps to ensure that everyone is working towards the same goal and that the organization is moving in the right direction, as defined by company leadership. This can help create a sense of purpose and meaning for salespeople, increasing motivation and engagement.

When setting goals and objectives for salespeople, it is essential to ensure that they are specific, measurable, achievable, relevant, and time-bound. These SMART criteria help to ensure that goals and objectives are meaningful and actionable. Here are some tips for setting SMART goals and objectives for salespeople:

  • Be specific: Clearly define what you want salespeople to achieve, such as revenue targets or the number of new customers.
  •  Make them measurable: Ensure that goals and objectives are measurable so everyone can track their progress and adjustments can be made if necessary.
  •  Make them achievable: Set goals and objectives that are challenging but achievable. Setting unrealistic goals can lead to demotivation and disengagement.
  •  Make them relevant: Ensure that goals and objectives are relevant to the salesperson’s role and the organization’s overall objectives.
  •  Make them time-bound: Set a clear timeframe for achieving goals and objectives. This helps to create a sense of urgency and ensures that salespeople are focused on achieving their targets.

Effective sales coaching that includes setting clear goals and objectives is a critical component of success in B2B sales organizations. It helps salespeople develop the skills, knowledge, and capabilities needed to engage with customers, enhance their performance, and create a culture of continuous learning. By adopting best practices for effective sales coaching, such as using the SMART criteria to set goals and objectives, B2B sales organizations can realize a range of benefits, including improved sales performance, increased employee engagement, enhanced customer relationships, and continuous learning. Therefore, sales coaching should be a top priority for any B2B sales organization that wants to achieve long-term success and growth.

If you are unsure how to create an atmosphere of great coaching in your organization, please contact me. You can reach me by filling out the form on this site or by emailing Sean@NewSales.Expert.

Header Photo by cottonbro studio
Maximizing Sales Performance: The Power of Coaching

Maximizing Sales Performance: The Power of Coaching

As a small business owner, you know that your company’s success depends on your sales team’s performance. That’s why providing your team with the tools they need to improve their skills and achieve goals is crucial. Regular coaching sessions help your sales team grow and perform at their best.

Identify Areas of Struggle and Success

Coaching allows you to identify areas where sales team members are struggling; while recognizing areas of success. You help your sales team focus on growth areas by acknowledging what works well or needs improvement. This effort fosters a culture of continuous improvement and provides sales team members with the tools they need to be successful.

Be Specific and Constructive

It is essential to be specific and constructive when providing coaching and feedback and providing actionable feedback that focuses on particular areas for improvement. By focusing on specific areas for improvement, you can help your sales team make changes to improve performance.

Provide Support and Guidance

Regular coaching and feedback sessions allow sales leaders to work closely with each sales team member, providing them with the guidance and support they need to improve their skills and achieve their goals. This coaching can include setting individual sales targets, providing training resources, and offering personalized support for each team member’s unique needs. By providing this support and guidance, you can help your sales team to succeed and contribute to the overall success of your business.

Regular coaching and feedback sessions are essential for improving the skills and performance of your sales team. By identifying areas of struggle and success, being specific and constructive in your feedback, and providing support and guidance, you can help your sales team achieve their goals and drive success for your small business. Remember, investing in your sales team is an investment in the future success of your business.

20 Activities That a Virtual Assistant Can Perform To Help a Sales Leader Be More Effective

20 Activities That a Virtual Assistant Can Perform To Help a Sales Leader Be More Effective

A Vice President of Sales plays a critical role in the success of a business by overseeing and leading the sales team to achieve revenue targets. To be effective in their position, the VP of Sales must be able to focus on strategic decision-making and high-level planning while delegating operational tasks to a capable team. One way to facilitate this delegation is through a virtual assistant, who can perform various functions that support the VP of Sales and the sales team.

A virtual assistant is a professional who provides a range of administrative, technical, or creative assistance to clients remotely. Utilizing digital tools, they can handle tasks such as email and calendar management, data entry, event planning, and more complex tasks such as market research and report creation. This remote support allows business leaders and teams to delegate routine tasks, freeing them to focus on strategic responsibilities and higher-level work. Virtual assistants can work with individuals or organizations across various industries, offering flexibility and efficiency that can significantly contribute to productivity and business growth.

A virtual assistant can alleviate the routine tasks that often sidetrack a VP of Sales from their pivotal duties. Such an assistant could oversee the VP of Sales’ agenda, arrange meetings, and undertake administrative tasks like managing emails and inputting data. This delegation of duties allows the VP of Sales to concentrate on higher-level tasks, such as crafting sales tactics and nurturing relationships with critical clients.

Administrative and operational support to the sales team can also be delegated to a virtual assistant. They can contribute to tasks like lead generation, research, and qualification. They’re also capable of assisting with creating sales reports, managing the CRM, and conducting follow-up engagements with prospective clients post-sales meetings. By rendering these services, the virtual assistant permits the sales team to devote their efforts to their primary responsibilities, including fostering client relationships, closing sales, and driving revenue.

Virtual assistants can also be instrumental in helping VPs of Sales maintain organization and manage their responsibilities effectively. They can aid in preparing for meetings, orchestrating events, and arranging travel. They can also lend a hand in managing expenses and delegating tasks. This support enables the VP of Sales to remain on top of their obligations, leading to increased productivity and effectiveness.

VAs can inform the VP of Sales about industry trends and market intelligence. They can perform market research and competitor analysis, scrutinize sales performance metrics, and deliver insights to facilitate informed decision-making by the VP of Sales. By supplying this crucial information, the virtual assistant empowers the VP of Sales to make strategic decisions that bolster revenue growth.

Most importantly, a virtual assistant can assist the VP of Sales in fostering a robust sales culture. They can contribute to training the sales team on industry best practices, product knowledge, and sales techniques. They can also aid in organizing team-building activities and other initiatives to promote collaboration and teamwork. Through these efforts, the virtual assistant supports the VP of Sales in establishing a successful and efficient sales organization characterized by a powerful sales culture.

20 productivity-enhancing activities that a virtual assistant can perform to help a sales leader be:

  1. Scheduling and managing appointments: A virtual assistant can schedule appointments, manage calendars, and set reminders.
  2.  Lead generation and qualification: A virtual assistant can help with research and identify potential customers, contact them to qualify them, and keep a record of progress.
  3.  Data entry and management: A virtual assistant can manage and organize customer data and sales records, keeping them up-to-date and accurate.
  4.  Email management: A virtual assistant can manage and filter email correspondence, respond to routine inquiries, and forward important messages to the sales leader.
  5.  Social media management: A virtual assistant can manage social media accounts, create content, and monitor engagement.
  6.  Sales report creation: A virtual assistant can create reports on sales performance, market trends, and competitor analysis.
  7.  Proposal and contract drafting: A virtual assistant can help prepare client proposals and contracts.
  8.  Conducting market research: A virtual assistant can conduct market research on industry trends, competitor analysis, and customer preferences.
  9.  CRM management: A virtual assistant can manage the sales leader’s customer relationship management (CRM) system, update records, and track sales activities.
  10.  Call screening: A virtual assistant can screen incoming calls, filtering out cold calls and telemarketing solicitations.
  11.  Meeting preparation: A virtual assistant can prepare meeting materials, including agendas, presentations, and reports.
  12.  Client communication: A virtual assistant can communicate with clients, respond to inquiries, and provide updates on sales progress.
  13.  Sales follow-up: A virtual assistant can follow up with potential customers after sales meetings, and track leads through the sales funnel.
  14.  Sales training: A virtual assistant can help train sales teams on best practices, product knowledge, and sales techniques.
  15.  Event planning: A virtual assistant can assist with planning and coordinating sales events, such as trade shows or conferences.
  16.  Travel arrangements: A virtual assistant can assist with booking flights, hotels, and transportation for sales trips.
  17.  Expense management: A virtual assistant can help manage sales expenses, keep track of receipts, and create expense reports.
  18.  Task delegation: A virtual assistant can delegate tasks to sales team members, follow up on their progress, and ensure timely completion.
  19.  Lead nurturing: A virtual assistant can help nurture leads and build relationships with potential customers over time.
  20.  Analytics and performance tracking: A virtual assistant can help track sales performance metrics, analyze data, and provide insights to help the sales leader make more informed decisions.

A virtual assistant can add significant value to the role of VP of Sales by providing support and assistance that allows the VP of Sales to focus on their core responsibilities. From managing day-to-day tasks to supporting the sales team, providing market insights and analytics, and promoting a strong sales culture, a virtual assistant can help a VP of Sales build a successful and effective sales organization.

Photo by Kari Shea on Unsplash
92% of Small Companies Don’t Do Much Sales Training

92% of Small Companies Don’t Do Much Sales Training

As a small business leader, you know that sales are the lifeblood of your company. Training your salespeople and non-salespeople on the best practices in B2B sales is crucial. Unfortunately, a recent study by Sales Xceleration® revealed that 92% of all small companies surveyed do not do sales training. This lack of investment is a concerning statistic.

The benefits of sales training for your employees are numerous. By providing training on best practices in B2B sales, you’re investing in the skills and knowledge of your sales team. This can translate into increased sales, higher revenue, and a more robust bottom line. Additionally, a well-trained sales team can improve customer relationships, build trust with prospects, and increase customer loyalty.

But sales training isn’t just for your sales team. Your non-salespeople, including your customer service representatives, marketing team, and even your receptionist, can benefit from sales training. When everyone in your company understands your sales process, they can work together to support your sales team and contribute to your business’s success (I assume you have a documented sales process, but that is the subject of another post). By providing training on best practices in B2B sales, you’re creating a company-wide culture that prioritizes customer satisfaction and sales growth.

Various sales training resources, including online courses, workshops, and in-person training programs, are available. Consider bringing in an external sales consultant such as myself, Sean O’Shaughnessey. Additionally, you can leverage the expertise of your existing sales team by having them lead internal training sessions or mentor other team members.

It’s important to note that sales training isn’t a one-time event. To truly reap the benefits of sales training, you need to make it an ongoing priority. This can mean offering regular training sessions, providing resources and support for employees who want to continue learning independently and incorporating sales training into your onboarding process for new hires. This has been the subject of the last Two Tall Guys Talking Sales podcasts, so it would be good for your team and you to subscribe to that resource.

Sales training is an essential investment for any small business that wants to grow and succeed in today’s competitive marketplace. By providing training on best practices in B2B sales, you’re investing in the skills and knowledge of your team, creating a customer-focused culture, and setting your business up for long-term success. With so many resources available, there’s no excuse for not providing your team with the training they need to succeed. Don’t be one of the 92% of small companies that don’t prioritize sales training – take action today and start investing in the future of your business.

95% of Companies Ranked Themselves Below Average or Worse

95% of Companies Ranked Themselves Below Average or Worse

Market share is an excellent indicator of the overall health of an industry. It can give valuable insight into the performance of other competitors in the same field. Still, it should not limit your approach to your sales strategy.

In fact, the opposite is more accurate, as the world is your oyster if your market share is minuscule.

As salespeople, we must remember that even if our market penetration is small, it’s still possible to make a significant impact. The broader economy cannot affect us enough to make a difference in selling our product or service. Instead, focus on what you can control:

  • building relationships with customers and 
  • honing sales practices

The Power of Relationships

Building long-term customer relationships will ensure success no matter how big or small your market share may be. And as customer needs evolve, they will come back to you when they need help making decisions related to your industry and product. You can quickly become an invaluable part of their buying process by establishing yourself as a reliable resource for honest advice and guidance.

Fine-Tuning Your Practices

In addition to focusing on customer relationships, another way to maximize success regardless of market size is by fine-tuning your sales practices. This means looking hard at whom you’re targeting, what strategies are working best for closing deals with those prospects, and what areas need improvement to reach more people within your target market.

It also means analyzing processes such as lead scoring and qualification criteria to understand which leads will most likely convert into paying customers. Finally, take some time each quarter or year (or whatever works best for you) to review metrics such as conversion rates and average deal sizes so that you can identify trends over time and adjust accordingly if needed.

It would be best if you were quite critical of your confidence that your sales team and company are executing their revenue generation capabilities well. A recent study by Sales Xceleration® shows that 95% of companies ranked themselves below average or worse. In fact, the last research saw that 4% more companies rated themselves as Poor. You can learn more about this study (and how to avoid the worst pitfalls) by attending a Special CEO Workshop by Kevin Lawson and me on March 1, 2023. (https://lnkd.in/e6gtbDd5)

When it comes down to it, market share numbers should never be used as an excuse when determining whether or not it’s worth pursuing a specific segment or area within the industry – instead, focus on what matters most: improving customer relationships and honing sales practices to maximize success regardless of size or scope. By taking advantage of these two powerful tools – relationships and processes – any salesperson can be successful no matter how small their piece of the pie may be!

95% of Small Business Say They are Below Average or Worse in Their Sales Performance

95% of Small Business Say They are Below Average or Worse in Their Sales Performance

We are almost done tabulating the results for the grading of small businesses. Every year, Sales Xceleration asks the CEOs and owners of small businesses to grade themselves on how well their company is running its sales operations.

Like last year, 95% of all companies couldn’t get to the “average” level of execution.

But 2022 was worse than last year since more companies graded themselves as “Poor” rather than just “Below Average.” 

It is okay that small business owners or executives at small businesses do not know how to create a great sales organization, however …

… it is not okay for them not to fix it.

The reality is that most small business owners excel at many things. That is why they started their business. Perhaps, they are experts at:

  • manufacturing
  • design
  • software creation
  • operations
  • logistics

Or any of the hundreds of essential skills required to create a great company. But even though the small business owner is best-in-class in one or many of these disciplines, they still need to be better-in-class in producing or managing a sales organization. 

It may be okay that the small business leader cannot create an excellent revenue generation machine. Still, it is not okay that they don’t address the problem. The company and all of the people working for the company (along with their families) depend on that company. The owner needs to fix this problem.

But it is very hard for the small business owner to fix this problem.

They may not be able to find or afford an executive to at least get the “Excellent” rating. Let’s face it, that type of executive is in very high demand by companies that are much larger than small businesses.

The solution, of course, is to look for a Fractional Sales Vice President to help them. I am here to help. I help company owners realize the maximum value of their company by improving their revenue generation capability. ​To accomplish this, I help owners enhance their sales management, methodologies, processes, teams, and messaging. 

You can learn more about how small businesses are doing in generating revenue for their companies at two upcoming events.

If you are in Cincinnati, I will present on this topic at the Beers & Biz networking event on February 23. You can register for this event at https://www.eventbrite.com/e/beers-biz-b2b-networking-tickets-451941468097 but make sure that you arrive at 3:30 (I start on time) and sign up for the Revenue Growth breakout session.

You can also watch Kevin Lawson and me go through the study’s highlights, explain why the various grades are a problem, and then offer potential solutions to the issues. Kevin and I will be presenting at a special session of our monthly CEO Workshop on March 1, and you can register at https://www.linkedin.com/video/event/urn:li:ugcPost:7027766861027008512/

The company owner may be unable to make a best-in-class revenue generation engine within the company personally, but that doesn’t mean the owner shouldn’t create one. Fractional executives are available to fill in the gaps in the expertise that exists within the company.

Fractional Sales Leadership Increases the Value of My Client by 167%

Fractional Sales Leadership Increases the Value of My Client by 167%

A common question that I receive is about the value of adding fractional sales leadership to their company. I typically answer their concern with a story about one of my clients who had a fantastic experience and increased the company’s value by 167% in about 12 months.

The true benefit of the efforts of fractional sales leadership is that revenue and pipeline will increase your company’s value.

Several years ago, I was hired by a fantastic software startup company in the artificial intelligence industry. Their technology had roots in original research by one of the founders at MIT. I was connected to one of the founders, and he approached me to be his Fractional Vice President of Sales as they felt that their technology had progressed to the point that they needed to find early adopter customers.

It was a young company with a small client base and very little revenue, but it clearly understood its offering and the value it could deliver to new clients. I started the engagement with my standard discovery process to identify what value they were providing to their clients or prospective clients. We developed a target persona, and I helped them identify potential clients that fit their use cases.

As I worked with them, I learned more about their backstory. A significant chip manufacturer had wanted to buy the company just a few months earlier. The founders were eager to sell, but the parties couldn’t agree on a price and parted ways. The large chip manufacturer valued the company at about 75% of the valuation that the founders wanted. This offer reminded me of the popular TV show Shark Tank, where entrepreneurs try to arrange investments from 5 individual investors. They rarely agree at the beginning of the segment on the startup’s value; sometimes, they compromise, and sometimes they do not. In this case, the giant chip manufacturer didn’t see the value, just like the Sharks didn’t see the value of Ring.

The owners of my client did what any sound company executives would do. They pushed harder on their business to build its value. They realized that nothing drives the company’s value like revenue and pipeline, so they brought me in to help them.

Fast forward ten months after hiring me, and our pipeline, messaging, sales team, partnerships, and methodologies have improved dramatically. At this point, another chip manufacturer enters the picture and wants to acquire the company and its technology. But now everything in the company is more proven, and the risk is less for the acquiring company. The owners and the new acquiring company agreed quickly on the company’s value. The company was now worth 200% of what the founders initially thought just the previous year. The deal closed quickly and efficiently, with most employees finding great jobs at the new owner while some continued with new and exciting adventures.

New customers, pipeline growth, and team growth caused a dramatic increase in the company’s value. Undoubtedly, the software improved during that year, but much of that improvement was because of customer and prospect feedback. The new chip manufacturer thought the company was worth 267% compared to the previous suitor.

According to the Exit Planning Institute, 76 percent of business owners who sold their businesses profoundly regretted selling within a year. I contend that this is because they agreed to a Shark Tank deal which devalued their company. I think most feel they didn’t get the value out of the company they spent years, decades, or maybe a lifetime building. The solution is to have such a great sales engine that the buyer is begging you to take the offer. Small business owners need to build a sales engine that is so strong that multiple offers are coming in to buy the company. For a while in the US after COVID-19, selling a home commanded over-asking-price offers all over the nation. This seller’s market is the environment you need to create for your company if you want to exit the company in the next 3-5 years.

I help company owners realize the maximum value of their company by improving their revenue generation capability. ​​I help owners enhance their sales management, methodologies, processes, teams, and messaging to accomplish this. Reach out to me so that I can help you maximize your company’s value the way I helped my former client.

Header image by Paul Loh
Build a Path to More Sales

Build a Path to More Sales

I was interviewed by Subkit. You can read the full article here: https://gosolo.subkit.com/new-sales-expert/, but they were nice enough to allow me to reproduce it here.

Interested in starting your own entrepreneurial journey in business development but unsure what to expect? Then read up on our interview with Sean O’Shaughnessey, CEO and President of New Sales Expert, LLC., located in Mason, OH, USA.

What’s your business, and who are your customers?

I am a fractional Chief Revenue Officer. I help small and medium-sized businesses accelerate their revenue growth.

Tell us about yourself

I realized a few years ago that many companies struggle to develop a revenue stream that is predictable and sustainable. This is primarily because the people in those companies that are in charge of sales are not sales professionals. They needed help creating the sales messaging, methodology, and processes to repeatably sell their product. However, they couldn’t afford someone with my skills full-time, nor did they need me full-time. A fractional relationship allows me to help them grow without burdening them with a cost that is crippling.

What’s your biggest accomplishment as a business owner?

There is nothing better than seeing salespeople that were struggling or not appreciated start to be successful in their positions.

What’s one of the hardest things that come with being a business owner?

My biggest challenge is balancing selling with delivery. I work on relatively short engagements, so I am always talking to new potential clients about what I do. I cannot let that activity affect my ability to deliver great service to my clients. The balance of selling and delivery is a weekly challenge.

What are the top tips you’d give to anyone looking to start, run and grow a business today?

Since my job is to help small companies create more revenue, I will focus my advice on sales (which is the lifeblood of any new company):

  1. Talk to at least 40 prospects monthly about their needs and goals and how you might help them.
  2. Develop your value selling proposition (VSP) that creates a strong message to those 40 prospects.
  3. Tell your story as loudly and as often as possible. Don’t hide. Put your VSP out on social media. Tell everyone what you do.

Is there anything else you’d like to share?

Your company’s job is to sell your product or service. It isn’t to make a product or service. Treat sales as a complicated and difficult profession (it is). Hire the best people to run sales, and you will succeed.

Where can people find you and your business?

Website: http://newsales.expert/
LinkedIn: https://www.linkedin.com/in/soshaughnessey/

Presentation to FocusCFO meeting

Presentation to FocusCFO meeting

I was honored to present “The States of Sales in Small Businesses” at the annual meeting of FocusCFO. This presentation compiles data from the survey of thousands of business owners regarding their sales practices. Sadly, very few small businesses excel at sales, which is why they need to hire high-quality fractional Vice Presidents of Sales, like the services provided by New Sales Expert, LLC.

FocusCFO provides CFO services on a fractional basis, meaning clients get all the advantages of a full-time CFO on flexible and affordable terms, working under a recurring schedule that fits within their budget. With a CFO on the management team, the entrepreneur is free to focus on what they do best: building great products and services and growing revenue.

Small and mid-sized businesses benefit from FocusCFO’s industry-leading model.

(more…)