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

By Sean O'Shaughnessey

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%

By Sean O'Shaughnessey

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
Two Tall Guys Talking Sales Podcast – Manage the Expectations of Upper Management for a Sales Turnaround Effort – Episode 18

Two Tall Guys Talking Sales Podcast – Manage the Expectations of Upper Management for a Sales Turnaround Effort – Episode 18

By Sean O'Shaughnessey

In this episode, Sean and Kevin discuss the struggle of a sales turnaround. 

It is important to define what a turnaround means for your specific sales department, as the definition may vary depending on the nature of the business, the industry, and the competitive landscape. Once you have a clear understanding of what constitutes a successful turnaround for your team, you can start outlining a plan of action that meets or exceeds the expectations of upper management. This plan should be based on a thorough analysis of the current sales process, customer needs, and market trends and should be realistic and achievable within a specific timeframe.

Communication is key to any successful turnaround. You must share your plan with all sales team members and get their buy-in. This involves explaining the rationale behind the plan, outlining their specific roles and responsibilities, and addressing any concerns or objections they may have. Once everyone is on board, you can start executing the plan and tracking progress on a regular basis. Celebrating successes along the way is important to maintain team morale, but you should also stay focused on the ultimate goal and be prepared to adjust course as necessary based on feedback from management and results achieved. Following these steps can increase your chances of achieving a successful sales turnaround and positioning your department for long-term growth and profitability.

Build a Path to More Sales

Build a Path to More Sales

By Sean O'Shaughnessey

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/

Happy New Year!

Happy New Year!

By Sean O'Shaughnessey
Happy New Year!

Happy New Year!

Published: Tue, 01/03/23

—
Sean O’Shaughnessey
CEO and President
New Sales Expert LLC
[email protected]
513.348.8700

6561 Bluegrass Way
Mason OH 45040
US

Unsubscribe | Change Subscriber Options

Start The New Year STRONG!

Start The New Year STRONG!

By Sean O'Shaughnessey

I published a video series on how to start the year strong for this new year. You can see the twelve video episodes here.

If I summarize all the videos, the common theme is that you must try something new. If you don’t evolve, you lose.

That should be your new year’s resolution for your business life:

If you don’t evolve, you lose.

Some suggestions were on what you can do between the holidays to be better at sales. The goal was to be better than you were. To improve on where you were from last year.

Salespeople and sales managers have long been responsible for driving organizational growth, but they can’t continue to do so effectively without evolving their strategies. To keep their organizations ahead of the competition, salespeople need to be aware of changes in customer demands, technological advances, and the buying behavior of today’s customers. Without staying tuned into these factors, they may find themselves without a job altogether because outdated methods can no longer deliver on expectations.

Your competitors are constantly trying to get better. In fact, your competitors might be watching my videos and reading my blog posts.

It can be daunting to keep up with the competition in today’s ever-changing business landscape. Every day, your rival companies are doing everything they can to get ahead—and you need to stay ahead of the game if you want your sales team to thrive. Whether it is finding new ways for lead generation or investing in better technology, the new year is a great time to improve your skills, strategies, and tactics.

There’s no way you do everything correctly. There’s always something you did wrong and could have done better.

Nobody ever played a perfect game of basketball. Nobody ever played a perfect game of football or tennis. And nobody ever had a perfect sales campaign, either.

Salespeople need to understand that sales campaigns always have room for improvement. With the dynamic sales process and ever-changing customer needs, salespeople must continuously revisit their sales tactics to improve results. Reviewing sales campaigns regularly and identifying areas where improvements can be made is essential. Learning from past mistakes and making the necessary adjustments will help salespeople achieve better success in their sales efforts and build confidence, giving them more motivation to reach higher goals.

You didn’t do everything correctly. You may have done it well enough to win the deal, but maybe you didn’t do it often enough. I challenge you to find one thing you will do better in sales this new year that you didn’t do last year. Try something new that you didn’t do last time, make it better, and be as professional in your sales career as possible.

Be successful, and have a great new year.

Header Photo by Pavel Danilyuk
Tip #12 of 12 – How To Start The New Year STRONG! – Try something new

Tip #12 of 12 – How To Start The New Year STRONG! – Try something new

By Sean O'Shaughnessey

As sales professionals, staying ahead of the curve is essential. You need to consistently leverage emerging trends and acquire new skills. The modern marketplace is ever-evolving, with dynamic demands and vast opportunities. By taking ownership of your personal growth in the industry, you can ensure that you have the necessary tools to continue succeeding as a salesperson.

Adaptability is key—though it would be great if there was an easy formula for success that never changed, it’s time to recognize that modernization requires us to continuously refine our skill sets and take chances on innovative approaches.

From customer relationship management (CRM) software to sales enablement tools, salespeople and managers have never had a better time taking advantage of the latest technology. The days of carrying around bulky spiral notebooks and juggling between emails, spreadsheets, and file folders are officially over, as technological advancements have made it possible for salespeople to access powerful yet intuitive tools to help them work smarter, close more deals faster, and grow their business.

The sales industry is quickly evolving, and it’s no surprise that innovative new tools are appearing on the market for salespeople. With so much potential value at their disposal, successful sales professionals must stay up-to-date with the latest developments and solutions designed to help them close more deals faster. A savvy salesperson will constantly be looking to increase productivity and efficiency. Some of the new tools on the market might just be the edge you need to stand out from your competitors.

Watch this video post for tips on prioritizing continual learning and remaining agile in a constantly changing landscape!

  • If you don’t evolve, you will lose
  • There is no way that you do everything correctly.
  • What are you going to change this year?

You can check out all of the 12 tips here.

Tip #11 of 12 – How To Start The New Year STRONG! – Reward Yourself For Small Wins

Tip #11 of 12 – How To Start The New Year STRONG! – Reward Yourself For Small Wins

By Sean O'Shaughnessey

In any career, it’s important to recognize and reward yourself for your small successes along your journey. Salespeople are often guilty of pushing themselves too hard and forgetting to celebrate their smaller accomplishments. As a salesperson or manager, you will increase your motivation to keep pushing forward by recognizing those moments of progress. Celebrating said wins helps you stay focused on achieving larger goals and fosters a healthy corporate culture that validates individual growth within a team setting.

In this video post we’ll cover how celebrating successes can help professionally and personally while giving tips on how salespeople can reward themselves without losing sight of what’s important.

  • Sales is a marathon; reward yourself for the sprints
  • One special thing that you only do for significant wins
  • Give yourself a special and unique gift for deals that are 5%, 10%, or 15% of your annual quota

You can check out all of the 12 tips as soon as they are published here.

Tip #10 of 12 – How To Start The New Year STRONG! – Learn more by reading more

Tip #10 of 12 – How To Start The New Year STRONG! – Learn more by reading more

By Sean O'Shaughnessey
  • Read Sales Blogs
  • Make the most of your commute by listening to sales podcasts.

Earl Nightingale said many years ago:

One hour per day of study in your chosen field is all it takes. One hour per day of study will put you at the top of your field within three years. Within five years, you’ll be a national authority. In seven years, you can be one of the best people in the world at what you do.

If you are unfamiliar with Mr. Nightingale, he was a famed radio broadcaster and motivational speaker. As a Depression-era child, Earl Nightingale was hungry for knowledge. From the time he was a young boy, he would frequent the Long Beach Public Library in California, searching for the answer to the question, “How can a person, starting from scratch, who has no particular advantage in the world, reach the goals that he feels are important to him, and by so doing, make a major contribution to others?” His desire to find an answer, coupled with his natural curiosity about the world and its workings, spurred him to become one of the world’s foremost experts on success and what makes people successful.

Throughout his life, Earl Nightingale explored the subjects of meaningful existence, motivation, and human character, and all his works primarily take their inspiration from these topics. In the ’50s, Nightingale played the voice of ‘Sky King’. He also worked as a radio host at WGN for over half a decade.

Earl Nightingale remained a follower and disciple of Napoleon Hill all his life. It is said that the great American radio speaker attained his enlightenment in 1949, at the age of 29, while perusing Hill’s ‘Think And Grow Rich.’ Such was the book’s influence on his life that later, in the ’60s, Nightingale published its audio version.

Earl Nightingale’s incomparable contribution to the radio industry earned him a position in the National Speakers Association Speaker Hall of Fame in 1976 and The National Association of Broadcasters National Radio Hall of Fame in 1985. In addition, Nightingale’s book ‘Earl Nightingale’s Greatest Discovery’ won the Napoleon Hill Gold Medal for Literary Excellency.

You can check out all of the 12 tips as soon as they are published here.