The figure $20,000 is merely a number, but business leaders don’t always treat that number with the same level of scrutiny when spending it. In this episode of the Sales Management Minute, learn the $20,000 test that most business leaders fail.
As a sales leader, you develop a new idea which requires that the company spend $20,000 to implement it. You research, strategize, plan, get input from colleagues. After all of this preparation, the time has come for you to deliver a presentation to the leadership team so they can make an informed, educated decision. After all, a $20,000 expenditure is not an easy decision.
But, what if that $20,000 was not for a new initiative, but rather was the salary for a new hire sales person. Would that investment be looked at with the same level of scrutiny as with your new idea? In most companies, it would not. Not to mention, oftentimes a sales person’s salary is factors beyond $20,000.
The reason for the difference is that most don’t think of hiring sales people as an investment, but it is. It’s investment made in revenue. It’s no different than when the company spends $20,000 on a trade show. There should be careful decision-making when selecting sales candidates in which you should make an investment. And, there should be a detailed implementation plan, also known as a sales person onboarding program, to ensure your investment yields a fast return. And finally, there should be a performance evaluation so you know when to invest more…and when to end the investment.
Hiring sales people is one of the most costly investments made by companies. Make sure you treat your new hire sales people as the revenue investment that they are. See you next time on the Sales Management Minute.
Lee B. Salz is a leading sales management strategist specializing in helping companies build scalable, high-performance sales organizations through hiring the right salespeople, effectively onboarding them, and aligning their sales activities with business objectives through process, metrics and compensation. He is the Founder and CEO of Sales Architects, Business Expert Webinars and The Revenue Accelerator. Lee has authored several books including award-winning, best-seller “Hire Right, Higher Profits.” He is a results-driven sales management consultant and a passionate, dynamic speaker . Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.