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 soshaughnessey1 Comment

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.

Business, Sales Management, Sales Professionalism, Training, , , , , , , , , , , ,
Fractional Sales Leadership Increases the Value of My Client by 167%

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

By soshaughnessey2 Comments

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
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Build a Path to More Sales

Build a Path to More Sales

By soshaughnessey0 Comments

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/

Business, Sales Management, , , , , , , , , , , , ,
Presentation to FocusCFO meeting

Presentation to FocusCFO meeting

By soshaughnessey0 Comments

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.

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Two Tall Guys Talking Sales Podcast: How Do You Determine Your Company’s Sales Objectives Each Year?

Two Tall Guys Talking Sales Podcast: How Do You Determine Your Company’s Sales Objectives Each Year?

By soshaughnessey0 Comments

In this episode, Kevin and Sean discussed the importance of setting appropriate sales goals for a company. They suggested starting with the end goal in mind and then working backward to set achievable but challenging targets. They also advise avoiding pitfalls such as not considering attrition or overstating possibilities when setting goals. Finally, they emphasize the importance of dedicating resources to new markets or initiatives to grow the business rather than only replacing lost customers.

You can subscribe to our podcast by searching in your favorite podcast player for “Two Tall Guys Talking Sales,” or you can listen to the embedded version here.

The following is a transcript of the podcast above. It has been sparsely edited to increase its readability, but many of the idioms and poor spoken grammar have been left in place. Fireflies.ai automatically generated the transcription, and, as capable as that product is, there are times when words are missed or the sentence structure is incorrectly interpreted. We have tried to catch all of these software misses, but we are confident that some still remain. The below text is provided for those that would rather read than listen to a podcast.

00:00

Kevin Lawson

Hello, and welcome to episode two, not eight, of “Two Guys Talking Sales.” I’m one of your hosts, Kevin. 

00:10

Sean O’Shaughnessey

And I’m Sean. 

00:11

Kevin Lawson

We’re glad you’re here on this Two Guys Talking Sales episode. 

This podcast tackles real sales issues, big and small, for salespeople selling situations and sales leadership. We’ve individually built successful sales careers around the problems and solutions in B-to-B selling, from software and services to manufacturing distribution. We have sold to and for many of the world’s most recognized brands as well as some you have yet to hear of. We know LinkedIn says this is a 30-minute time slot. Still, we’ll only take 15 minutes—nothing like under-promising and over-delivering. For roughly the next 15 minutes, we invite you into our world of experience. We’ll dig into one issue. You’ll have a solution should you encounter a similar situation in your career. Let’s dive in. 

Sean, let’s set the stage. 

01:07

Sean O’Shaughnessey

This topic should be about setting your sales plan objectives for this year. 

01:15

Kevin Lawson

Setting objectives for the year. Like not being tongue-tied on a public broadcast. How about that? 

01:21

Sean O’Shaughnessey

At least you tried to plan ahead and had it written. Now that’s better than I did. I’m just winging it. 

01:25

Kevin Lawson

Our last episode was all about planning your year. Why not have a plan? Well, so you’ll know how you’re doing? 

01:32

Sean O’Shaughnessey

There you go. 

01:33

Kevin Lawson

Today, we will talk about how to determine company sales objectives. Yes, let’s do that. 

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Determining Your Company’s Sales Objectives Each Year

Determining Your Company’s Sales Objectives Each Year

By soshaughnessey0 Comments

As a company owner, one of the most important aspects of running a successful business is setting and achieving sales objectives. But how do you determine what those objectives should be? Here’s a step-by-step guide to help you set realistic and achievable sales goals for your business.

Sales objectives are goals a company sets for its sales team to achieve over a certain period. These objectives can be anything from increasing revenue by a certain percentage to selling a certain number of products or services. Sales objectives should be set annually, but they can also be set for shorter periods such as quarters or months.

Let’s talk about the basic steps first.

  1. Define your overall goal.
  2. Break down your overall goal into smaller, more manageable goals.
  3. Create a timeline for each goal.
  4. Assign responsibility for each goal to a specific team member or department.
  5. Measure progress and revise objectives as needed.
  6. Celebrate accomplishments and learn from failures.
  7. Define your overall goal.

Sales goals are essential for any company regardless of size. They give you a target to aim for and help to motivate your sales team. Without a goal, getting complacent and falling into bad habits is easy.

It’s essential to clearly understand your company’s sales process before setting a goal. You need to know your closing rate, average deal size, and how many leads you need to generate to hit your target. Once you have this information, you can start to play around with different numbers to see what’s realistic.

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4 Ways to Make the Most of Your Training Budget

4 Ways to Make the Most of Your Training Budget

By soshaughnessey2 Comments

Every company wants its salespeople to be well-trained. After all, better-trained salespeople mean higher quality products and services, which leads to happier customers and increased sales. But with the training costs averaging $1,459 per salesperson, it’s important to ensure that your training budget is being spent in the most effective way possible. Here are four tips for getting the most out of your training budget.

  1. Prioritize Your Training Goals
    The first step in making the most of your training budget is prioritizing your training goals. What skills do you want your employees to learn? What knowledge do they need to be able to do their jobs effectively? Once you’ve identified your goals, you can create a training plan to help your employees achieve them.
  2. Invest in eLearning Programs
    eLearning programs are a great way to train your employees without breaking the bank. Many different eLearning platforms are available, so you can find one that fits your company’s needs and budget. Plus, with eLearning, your employees can complete their training at their own pace and on their own time, which means they’re less likely to get overwhelmed or frustrated.
  3. Use Technology to Your Advantage
    Many types of technology can be used for training, from virtual reality simulations to online learning portals. By taking advantage of the latest technology, you can create a more immersive and effective training experience for your employees. Plus, using technology for training can help you save money by eliminating the need for travel and lodging expenses.
  4. Consider External Training Programs
    If you’re looking for more comprehensive or specialized training than what you can provide internally, consider partnering with an external training provider. These companies have the resources and expertise to develop custom training programs that meet your specific needs. And while external training programs can be more expensive than other options, they can also be more effective in helping your employees achieve their goals.

    External training providers also offer the added benefit of scaling up or down as needed, which can help you save money in the long run.

To increase retention and effectiveness, companies should offer reps additional training at times of need, provide them with access to supplemental material that reinforces what they’ve already been taught, and allow them opportunities to practice their skills in time frames connected to actual buying processes. They can do so by using the same technologies that are “disrupting” their customer-contact activities: videos and mobile apps that reps can view on their devices before, during, and after training initiatives.

Role-Playing: The Secret to Sales Training Success

There’s one secret ingredient that can make all the difference: role-playing. Role-playing allows trainees to practice their new skills in a low-stakes environment by simulating real-world sales scenarios. Not only that, but role-playing also helps trainees to better understand their customers’ needs and how to best meet them. As a result, role-playing is essential to any successful sales training program.

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Business, Sales Management, Training,
Are You A Player, Or A Coach?

Are You A Player, Or A Coach?

By soshaughnessey1 Comment

March brings March Madness. March Madness is the college basketball tournament where the 64 teams battle to find out who is the best college basketball team of the season.

While you are watching your team this year, I would like you to learn a lesson that every basketball coach has had to learn. The easiest way to learn this lesson is to do a little analysis. I would like you to count the number of times where the game is tight, one team is on the free-throw line, and the coach makes a substitution – himself.

Yes, count the number of times the coach doesn’t trust the player he has been coaching all season and puts himself on the line to make that winning shot.

I can already tell you the number: zero.

During a game, the coach can rant, rave, coach, and cajole but he cannot play the game. He has to trust that the athletes that he has coached all season will take his instruction, remember the skills that they have practiced, and execute those plays as they were taught.

This doesn’t happen in sales. It is almost commonplace for the coach (the sales manager) to step in and drive the conversation. He puts his athlete, whom he has been coaching perhaps for years, on the bench. 

So, let’s explore what would happen if suddenly you were required to stay on the sidelines while you watched your salespeople sell and it was impossible for you to take over the sale.

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Business, Sales Management
CEO Workshop: Drive Revenue During A Crisis

CEO Workshop: Drive Revenue During A Crisis

By soshaughnessey0 Comments

The global pandemic has caused crisis after crisis to hit US companies. These crises include:

  • global supply chain problems affecting worldwide shipping
  • increased prices due to the shortage of components or subassemblies
  • labor shortages

To assist our clients, Sean O’Shaughnessey and Kevin Lawson teamed up to create the following webinar. The webinar originally aired on January 13, 2022.

The following is a transcript of the webinar video above. It has been sparsely edited to increase its readability, but many of the idioms and poor spoken grammar have been left in place. The transcription was automatically generated by Sonix.ai and, as capable as that product is, there are times when words are missed or sentence structure was incorrectly interpreted. We have tried to catch all of these software misses, but we are confident that some still remain. The below text is provided for those that would rather read than watch a video.

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Business, CEO Workshops, Finance, Sales Management, , , , , ,
In-person vs. virtual selling: How modern sales teams can operate after COVID

In-person vs. virtual selling: How modern sales teams can operate after COVID

By soshaughnessey1 Comment

The average cost of a face-to-face sales call is reportedly $250 – $500. With virtual sales calls, you can talk to your prospects for a much lower price. Virtual sales calls are an easy and inexpensive way to start building relationships and generating leads.

Virtual sales calls have become more and more popular in the past few years, especially during and now after the global pandemic. The most apparent advantage of virtual sales calls is that they can be conducted from anywhere and anytime. This means that companies can save office space while still conducting meaningful business conversations with customers and prospects. Salespeople can save time by using virtual sales calls to get on the radar of potential buyers or secure new leads.

Another advantage is the cost savings of not having a physical presence at an event or trade show. Virtual sales calls also offer a level of confidentiality. 

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Business, Sales Management,