The sales person as an entrepreneur and a business man

L/O/G/O

Anonymous

Nothing happens until a “good sale” takes placeNothing happens until a “good sale” takes place

Competitive Economy ChallengesCompetitive Economy Challenges

• Exclusive representation is a thing of the past.

• Effects of global economy changes are felt faster and more profoundly


• Product supremacy is short lived.

• Short product life cycle – products fall in commodity trap


• The sales person is not the only conduit of Information• Competition drives price wars

• Shareholders’ expectations are higher than ever (monthly and even weekly target review).

Sounds familiar?Sounds familiar?

• Unqualified hires & inherited sales reps

• Extended sales cycles

• Bad forecasts & inflated pipelines

• Unqualified prospects and premature proposals

• Unnecessary discounts!

1. Performance measures are not set OR not communicated:• Quota (revenue + profit).• Key Sales Objectives (KSO)• Quota attainment review (annual, quarterly, monthly)• Average deal size, LTR and RTR (lead to revenue & revenue to

remittance)• Closing & conversion ratios

2. New sales person ramp-up takes a long time (2 years).

4. Sales managers spend time validating pipeline information

5. Forecasting based on unrealistic optimism or historical figures

Typical Sales Challenges

Evolution of businessEvolution of business

Early in history Till 1950’s 1960’s 1970’s & later

21st century

Trading

Production

Selling

Marketing

Holistic Sales & Marketing

Marketing, Sales and FinanceMarketing, Sales and Finance

• Marketing:– Analyze current position and opportunities.– Gain info about the market.– Prepare the ground for customers to buy.

Brand awareness - Demand generation5 P’s

Product, Price, Promotion, Place, packaging

• Sales:The action of prospecting and qualifying potential opportunities to provide a certain segment of buyers with means to :

• Achieve a goal, • Solve a problem, • Capture a lost opportunity • Satisfy a need.

Using the seller company’s product or service


• Finance:– Managing the time, money and risk

associated with a specific business. – Finance works on the accounting information

to make decisions about the future.– Money not in the bank is not money


The new and improved Sales Person The new and improved Sales Person

Sales

Finance

Service Fulfillment

Marketing

The Sales WorldThe Sales WorldProspecting

Qualification

Initial meeting

Needs analysis

Product/Service demo

Proposal presentation

Objection handling

Negotiation

Closing

Order processing

Follow up

Sales Sales

BuyingCompany

Prospecting

Qualification

Initial meeting

Needs analysis



Objection handling Negotiation

Closing

Order processing

Follow up

ProducingCompany

SellingCompany

ProducingCompany

Materials acquired and coordinated to deliver

an end product that will deliver a greater value

Larger than the sum of parts

BuyingCompany

Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

ProducingCompany

SellingCompany

ProducingCompany

• Achieve a goal, • Solve a problem, • Capture a lost opportunity • Satisfy a need.

• Feature 1• Feature 2• Feature 3• Feature 4

Value proposition

A bigger PictureA bigger Picture

Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

SellingCompany

ProducingCompany

• Achieve a goal, • Solve a problem, • Capture a lost opportunity or • Satisfy a need.

• Feature 1• Feature 2

Value proposition

ProducingCompany

• Feature 3

ProducingCompany

• Feature 4

BuyingCompany

A bigger bigger PictureA bigger bigger Picture

Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

SellingCompany

Brand Owner

Order placement conditionsProduction lead timePayment (advance, LC, Payment BG)Delivery time.Installation & implementation.Credit rules.Fiscal/financial year

Brand Owner Channel model

Channel model

Channel model

Brand Owner

A realistic PictureA realistic Picture

Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

SellingCompany

Brand Owner

Brand Owner Local distributor

Multiple Value add resellers

Brand Owner

Support / renewal through international

Order placement conditionsProduction lead timePayment (advance, LC, Payment BG)Delivery time.Installation & implementation.Credit rules.Fiscal/financial year

Payment against LC

50% advance & 50% upon delivery

50% adv. , balance after 60 days

A realistic PictureA realistic PictureRegional Master Distributor (new purchase)

Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

SellingCompany

Brand Owner



Regional Master Distributor (new purchase)

Brand Owner


BuyingCompany

• Achieve a goal, • Solve a problem, • Capture a lost opportunity• Satisfy a need.

Different

set of

T’c & C’s

BuyingCompany


Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

SellingCompany

Brand Owner




Brand Owner


BuyingCompany

Different

set of

T’c & C’s

BuyingCompany

PO

PO

PO

PO


Prospecting

Qualification

Initial meeting

Needs analysis




Closing

Order processing

Follow up

SellingCompany

Brand Owner




Brand Owner


BuyingCompany

Different

set of

T’c & C’s

BuyingCompany

Invoice

Invoice

Invoice

PO Invoice


Problem?Problem?

Cash-out before Cash-in

Or

Pay others before you get paid

Sales Forecasting90% under the waterSales Forecasting

90% under the waterTo determine how much of their product they believe

the market will purchase

• Drive plans for :• Suppliers payment.• Bank guarantees.• Inventory.• Hiring.• Outsourcing.• Marketing. • Manufacturing.

360 – 24X7 security & safety project for XYZ industrial company360 – 24X7 security & safety project for XYZ industrial company

• Review entry & exit points.• Strengthen existing weak points.• Install access gates.• Detection of intruders.• Intruder prevention by alarms and lights. • Recording of activities.• Generate alerts.• Generate reports (logs).• Allow remote access.

Main suppliers (construction)Main suppliers (construction)

CON-MAN• Reinforce factory gates’

concrete foundation• Increase walls’ height.• Build a new wall to

increase the perimeter.

Doors “R” us• Replace external

perimeter windows with reinforced glass ones.

• Replace wooden doors by steel ones.

• Replace main gates by GWC 6100 ones.

Main suppliers (security)Main suppliers (security)

Sense & sensibility• Infrared motion detection• Magnetic proximity for

doors/windows• Glass integrity sensor• Temperature sensor

Sensitive sensors Inc.• Glass Break Detector• Temperature: Analog or

Serial• Infrared Sensor: Self-

Designed • Magnetic sensors: HALL

effect switch

Main suppliers (electronics)Main suppliers (electronics)

Control System Inc.• Main control processor:

ATMega128• RF link: ZigBee Wireless• Internet: TBD Ethernet

module• Data Storage: SD cards• Alarm Trigger: Standard IO• Programming: C/C++ using

Eclipse • Visual Station: Connected via

Serial

• .

Electric works & beyond• Provide separate feeder

line for security system• Provide AC hot backup• Electrical wiring • Signal wiring • switchboards

Main suppliers (implementation)Main suppliers (implementation)

1. System level design.

2. Detailed component design.

3. Material order.

4. Construction work.

5. Doors & windows.

6. Sensors’ installation

7. Programming

8. Cameras & Alarms

9. Testing

10.Training

11. Documentation and handover

12.Warranty 1 year

Payment plan with customerPayment plan with customer

Deliverable1. System level design.

2. Detailed component design.

3. Material order.

4. Construction work.

5. Doors & windows.

6. Sensors’ installation

7. Programming

8. Cameras & Alarms

9. Testing

10. Training• Documentation and handover• Warranty 1 year

Percentage1. 10% Adv.

2. 10% after construction work.

3. 15% after doors and windows installation.

4. 20% after camera & sensor installation

5. 20% after testing and training

6. 15% after handover

7. 10% after warranty and final acceptance

Payment plan with vendorsPayment plan with vendors

50% Adv., 50% after 4 weeks

60% Adv., 20 upon delivery and 20% upon

installation

Con-Man

Sense &

sensibility

Doors “R” us

100 % Adv. HW 100% Adv., SW

100% upon delivering

license and installation

50% Adv. and 50% upon

completion)

Sensitive

sensors

Inc.

Electric

works &

Beyond

Control

System

Inc.

80% Adv. 20% upon installation

30% Adv., 30% upon delivering cables and materials, 30% upon electrical cables work and 10% upon signal cables work)

Financial pictureFinancial picture

Cash flowspreadsheet

Sales

Ecosystem

Sales Human Capital

Internal Processes

Supporting Infrastructure

Marketing & product

Sales mgmt. leadership

Customers’ circumstances

Offerings

Sales Excellence

What is a Sales EcosystemWhat is a Sales Ecosystem

Sales Ecosystem AssessmentSales Ecosystem Assessment

Sales Human Capital

Internal processes

Supporting infrastructure Admin

Supporting infrastructure Accounting HR

Supporting infrastructure AccountingMarketing & Prduct Management

Customers' segment circumstances

Sales Leadership

Offerings

0

5

10Your company

Initial

Repeated

Defined

Managed

Optimized

The sales person as an entrepreneur and a business man

Business

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