It’s midnight. Your recycling bin is overflowing with rejected resumes. Your eyes can barely focus on the letters in front of you — and you have this uneasy feeling that you are about to invest in another candidate who just isn’t going to work out. This has been a vicious cycle over the past several years, and you find yourself asking yet again,” Why can’t I find the right salespeople?” You’ve spent an excessive number of hours and are well into six figures in budget dollars hiring, training, firing, and rehiring. You’re losing credibility in the marketplace because your customers are continually being introduced to new reps. With each salesperson that doesn’t work out, you can feel your employees questioning your leadership and the direction the company is headed. And this last candidate… they checked every single box. An ideal candidate with a promising start. Industry experience. Excellent references. High performance everywhere they went. You gave them everything they wanted only to discover they weren’t what they appeared to be. How could you have been so wrong about yet another candidate, a supposed “A-Player” who just couldn’t deliver the level of success they promised in the interview. Instead of burying yourself in another pile of seemingly perfect resumes, it might be time to take a step back. Key Article Takeaways: ·       Pitfalls that prevent A-players from performing in a new sales environment ·       How to lay out a sales roadmap to generate consistent results ·       Key sales leadership focus areas that pay dividends Time to Slow Down to Speed Up Some organizations seem to have it all figured out: low sales turnover; tremendous growth; happy employees doing what they love. Sure, when things go right, everyone is happy. But when issues continuously arise that take your top salespeople away from their outbound calls to chase down problems or they are struggling to know where to focus their effort, there’s likely a more significant issue at hand. By all means, keep searching for the best and brightest salespeople – the ones you know have the talent and desire to excel in your organization. But before you get too far in the process, take a step back and examine your sales readiness. · Are you setting your salespeople up for success right off the bat? · Are there things you know you could do better but haven’t had the time to fix? · Are you doing everything you should be to create a sales culture that allows anyone you hire the opportunity to see success? Structure: Another pitfall that can derail even the best A-Player is when an organization does not have the proper infrastructure to support its sales efforts. This encompasses a wide range of elements from staff structure to the necessary systems to measure and manage performance. For example, creating clear lines of accountability for all roles and functions that interface with the customer will bring clarity to performance expectations. This prevents time-consuming distractions and fosters a customer centric culture. Another area of structure involves the method in which your prospect and customer segments are designated and managed. This provides your customers with a consistent experience and enables your sales resources to be positioned in their areas of strength. These best practices create a solid platform for your salespeople to work from. Then, layering on the appropriate systems to capture sales activity, report on key metrics, manage sales pipeline, etc., allows you and your leadership team the critical visibility needed to keep a pulse on how the business is progressing toward its goals. As you assess your performance in this area, consider the consistency of your weekly one-on-one sales meetings for individual planning and mutual accountability. Given the reliance of the salesperson on their sales manager, powerful outcomes are produced when both sides are willing to be accountable to the other. Another important area to review is the level of value your sales meetings deliver to the team. Lastly, keep track of how often you participate in sales calls — both in-person and video calls, and how often you are creating powerful learning moments for your reps through these interactions. Are you struggling to find the time to apply this level of focus? Do you recognize there are times when you aren’t sure how to confidently lead and develop your salespeople? These common needs in small to mid-sized businesses were the driver behind my decision to transition my extensive VP Sales background to help top executives on a fractional or interim basis. If you’d like to have a preliminary discussion about the sales challenges you are facing, please feel welcome to contact me through any of these methods: 413-626-7040 , kdonovan@salesxceleration.com or book a call through my

Some astonishing advances in information technology have made big headlines in recent months. You probably don’t need me to recap those headlines… but I want to ask you to pause to consider a single, sobering question those headlines have given rise to among sales professionals. Some of us ask this question out loud. Some of us don’t. But spoken or unspoken, the same question seems to be on a lot of people’s minds: Are good salespeople now, or will they ever be, irrelevant? I say no. I believe that no matter how powerful and transformative this technology may become, it will never, ever be able to replace a real-time human-to-human conversation between a potential buyer and a professional seller. Consider the definition of the word conversation: “A talk between two or more people in which thoughts, feelings, and ideas are expressed, questions are asked and answered, or news and information is exchanged.” There are three important words I want you to notice in that definition. The first word is people. Translation: No interaction is a conversation unless it includes real, live people! Next, look at the second critical word in that definition: feelings. Human buyers have feelings. There is simply no room for debate on that point. It follows that effective human sellers are the ones who can understand, empathize with, and respond authentically to those feelings. That’s something human beings do, not something robots do. Could robots do it twenty years from now? Ask us then. Our bet, though, is that this dynamic is not going to change. The third key word I want to draw your attention to in that definition is questions. Human buyers will always have questions, and effective human sellers will always be rewarded for helping them to identify the best answers to those questions. Not only that: The best sellers will always have questions of their own! All of this was true in the age of the telegraph; none of this is going to change in the age of AI. It’s a good idea to remind ourselves every now and then just how fundamental the act of asking and answering questions is to the world of the sales professional. Every question, after all, is a shift. Shifts are what we are paid to notice and respond to. In real-world conversations between buyers and sellers, unexpected issues always arise, and each time they do, they will invite the opportunity to engage in a different conversation than the one that either side could have foreseen as the interaction began. Conversations, in other words, are dynamic. If both sides already know what is going to happen, then there are no meaningful questions being asked, and the exchange is not a conversation. It’s a script. And our experience is that scripts – you know, those words and sentences that can be memorized and recited verbatim ahead of time – do not lead to optimal revenue production for sales teams. Human-to-human connection is what does that. Why? See word number two: feelings. As long as human beings make decisions emotionally and justify them intellectually – and they can be relied upon to do that in any and every purchase situation – salespeople will have a role to play and will be rewarded for performing that role well. What’s really interesting is that Sandler’s definition of selling connects directly to this concept of human-to-human connection. We teach our clients that selling is a conversation between adults to uncover the truth. And this way of looking at selling really is the key to understanding how AI fits into sales as a profession, in 2023 and in the years to come. People still buy from people… people always have had, and always will have, questions about what they are considering buying… and people still have feelings about the commitments they are considering making to other people. As long as all of that is true, salespeople who know how to lead effective conversations and know how to use the latest technology will be in heavy demand. Data is great, but it’s not everything. Meaningful person-to-person connection calls for more than useful data, which is what artificial intelligence provides. A real person-person dialogue calls for empathy, an understanding of the other person as a person, and the ability to pose questions that respect and support the emerging relationship. All of those are prerequisites to an actual connection between human beings. Consider any relationship that really matters: spouse and spouse, parent and child, teacher and student, coach and athlete, doctor and patient- and, yes, salesperson and buyer. Each of these relationships constitutes a situation where people need to be able to communicate effectively with one another. In each scenario, meaningful conversations are essential, which means both sides need to be able to think and respond in the moment based not only on the topic, but also on the tone of the discussion and the complex interaction of variables like shared experiences and shared goals. ChatGPT has a lot going for it, but I have yet to have a conversation with it in which I felt I was discussing specific goals that were as important to the software as they were to me. Yet that is precisely what great sales conversations uncover. Scripts do not uncover those goals. Prompts do not uncover those goals. People do. Relationships do. One of the things we hear consistently from our clients in the sales and sales management training industry is that they don’t want their salespeople to come off sounding like robots. And yet, if we start relying on machines to feed us the right things to say to clients, that could easily become the reality! We often see salespeople reading negative tonality (such as sarcasm or disinterest) into emails and text messages where there was no intentional negative tonality. Then a new string of texts and emails begins, based on tonality that was never part of the initial message. Before you know it, the communication escalates to the point of anger and disagreement. The big what if question is: What if we found a way to humanize the exchange? What if we just picked up the phone and had a conversation to clear the air and quickly resolve any misunderstanding? The lesson here is a simple one: Our goal as professional salespeople is to humanize interactions, and that means having better, deeper, richer, and more authentic conversations. Think about the best conversation that you ever had with a salesperson (or anyone else, for that matter). What made it work? I’ll bet that conversation was awesome because it was a true dialogue, not a monologue, or a pair of monologues proceeding more or less simultaneously. I’ll bet you enjoyed that great discussion because you felt you could trust the person you were speaking with, and because there were great questions you couldn’t possibly have predicted ahead of time, questions that took the conversation to a deeper and more meaningful level. I remember listening to Denis Waitley, one of the greatest authors and motivational speakers of our time, share his story of hosting a dinner party to get to know his neighbors as he and his family had just moved into the neighborhood. As the evening went on, he socialized with everyone and got to know each of the guests. As it happened, though, he never really got the chance to share his own story. He was fine with that. He was there to get to know them. When the party was over, as he took the trash out, he overheard one of his neighbors saying, “That Denis sure is an amazing guy — he was so interested in us!” Let’s look at that story through the lens of today’s seller. Even with instant access to oceans of data, to industry information, to insights about a buyer’s communication style and preferences, even with powerful artificial intelligence tools like ChatGPT at their fingertips, sales professionals still need to listen as well as Denis Waitley! They still need to begin earning trust, building upon that trust, furthering that trust, and then figure out the best way to be sure they always maintain that trust. When it comes to winning business and protecting that business, there always needs to be a strong relationship with all the key stakeholders. Relationships always have been, and always will be, forged through commitments made and fulfilled because of meaningful conversations. Relationships always have been and always will be built on trust and communication. Knowing how to lead a conversation that helps both the buyer and the seller determine the right solution is the key to success in selling, and it is also a uniquely human skill that will never go out of style. Just as Denis Waitley found out, authentic curiosity and the ability to ask personalized, spontaneous questions really pays off when it comes to building and sustaining relationships. The very best salespeople recognized a long time ago just how important it is to ask situationally and personally relevant questions in real time… and to operate, consistently and empathetically, on the principle that telling is not selling. A resource like ChatGPT may be able to repeat and/or rephrase those important lessons, but, as of this writing, it is unable to live by them. For that, you will need an effective salesperson. And we don’t see that changing any time soon.  

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  The 2023 Sales Dilemma Susan Powers, Peak Sales/Sandler   Salespeople have never had a greater advantage and opportunity than they do today. They can secure even greater advantages and opportunities with each passing day. That’s because artificial intelligence, machine learning, and technology continue to make advancements that help salespeople develop closer and stronger relationships with their clients and prospects. Yet a lot of salespeople and sales leaders don’t see it that way. They see their main dilemma as one of getting, not just more leads, but more qualified leads. Fortunately, the sales-enabling and marketing-enabled technologies now driven by AI are making this goal much easier to attain– at least, for organizations that grasp the power of these technologies and leverage them. But for many salespeople, there remains an underlying, and far more serious, dilemma, one of attitude. They are stuck in the 21st-century version of a very old problem, one that has been known for decades as the Scarcity Mindset. They fear that artificial intelligence, machine learning, and technology will replace them. These salespeople worry that buyers will no longer need them around to make an intelligent buying decision. They fear there will not be enough to go around. The reality we face is simultaneously more encouraging and more challenging than that. AI will not replace salespeople… but AI-empowered salespeople will replace those salespeople who choose not to embrace the future of selling. Selling is still about choosing abundance over scarcity, and it is still about trust and honest communication– the two most important ingredients in any relationship. Today’s sellers need to remember that when their organization’s marketing technologies deliver those sought-after high-quality leads, their job is to initiate trust, build trust, maintain trust, and further trust. And the best way of doing this is to lean into, not away from, the revolutionary sales-enabling technologies that have been made available to us. To initiate trust, show up fully prepared for the first call or meeting, leveraging AI to know as much about the prospect, their industry, and their competition as possible. To build trust, use what was discovered in the first call or meeting and continue researching the solutions that will best meet the needs of the prospect– even if it means that you are recommending a competitor or other solution that is not your own. This approach goes a long way indeed in building trust. Once we have received a qualified lead, initiated trust in the first call, and built trust through honest adult-to-adult truth-based communication to create a relationship that wins the business, we must also maintain trust. All too often, this responsibility gets left out of the equation. We lose track of the relationship once the deal “closes.” So: Stop thinking in terms of closing! There will inevitably be delivery or other customer service issues; there will probably also be price increases at some point; there be unexpected shifts in the buyer’s world that neither side can predict right now. These and other events will require a strong relationship if they are to be handled properly and if the relationship is to grow over time. As sellers, we need to stay more informed than our competition, and if you think AI isn’t part of that, you’re not reading the horizon well. We need to get out in front of the challenge that shows up in our buyer’s world, whatever form it takes, and we need to share relevant information with our buyers and their stakeholders. That means delivering difficult information when necessary, and in a way that strengthens, rather than weakens, the relationship. Humans will always have an advantage over computers in this regard. When clients know that they can count on us to deliver honest but difficult news, they know that they can also trust us to take care of their needs as a customer. Furthering trust means that as sellers, we are leaning into AI and other information technology as much as possible, so we can make sure we see trends and shifts in the business and/or industry we serve before they impact our clients. When we can proactively bring information and insights to our clients that could help bring about advanced solutions, or help them to mitigate risks that connect to potential changes in their industry, this furthers the trust between the buyer and the salesperson. I began this article with the dilemma that most sellers care about: filling their funnel with qualified sales leads they can pursue. However, the real dilemma today’s sellers face has to do with a decision: embracing either the Scarcity Mindset or the Abundance Mindset. In 2024, embracing the Abundance Mindset means embracing artificial intelligence, machine learning, and sales enabling technologies with everything we’ve got. Gone are the days of Chief Revenue Officers or Chief Sales Officers accepting the excuse that part (or all!) of their sales force can’t even open an email or use a laptop. If you choose not to adapt to the world in which you now live and work, you will be left behind. That’s not scare talk. That’s reality. Here, then, is a wake-up call for today’s seller, regardless of tenure, age, or perceived influence within the company: We must all get on board the train and become AI-empowered sellers. If we don’t find our seat on this train, we will be replaced by salespeople who are leveraging all that AI, machine learning, and sales-enabling technologies have to offer. If you doubt this, compare the recent commission checks of those who are embracing the AI revolution with those who are not. I predict that you will instantly see the difference! Sales leaders: Are you certain you and your sellers are on board the train that’s heading toward the future of selling? Or do you feel like you or your team may have been left behind at the station? If you’d like to know more about how to make the shift, and/or how to get buy-in and adoption from your team on the ideas I have shared here, I would love to hear your story.

INTRODUCTION Effective sales strategies are crucial for success in the dynamic landscape of modern business. Business owners recognize the pivotal role that sales teams play in revenue generation and customer acquisition. As a result, they must invest in training programs to enhance the skills and capabilities of their sales force. Two complementary approaches are “Sales Skills Training” and “Sales Training Platforms.” The first half of this article focuses on the distinction between “Sales Skills Training” and “Sales Training Platforms,” the second half focuses on which types of Sales Training Platforms and Sales Skills Training align better with certain types of businesses. I’ll also leave you with a table listing the various sales-related business attributes (relationship vs. transactional, long sales cycle vs. short, etc.) to illustrate which types of sales training platforms align best with your business. Sales Skills Training: Fostering Personal Mastery Sales Skills Training programs, often illustrated by the offerings of Dale Carnegie, Franklin Covey, Huthwaite’s SPIN Sales Training, and many of the Sandler Sales Training programs, typically focus on honing an individual sales representative’s skills and capabilities. These programs often focus on developing interpersonal skills, communication techniques, and emotional intelligence. While some emphasize developing a relationship and becoming a “trusted advisor,” most promote more direct sales techniques to motivate a customer to sign. The core premise of most sales skills training is to equip sales professionals with the training, tools, and finesse to navigate diverse customer personalities and tailor their approach to identify and quickly develop solutions that meet specific customer needs. Dale Carnegie’s program, known for its enduring legacy, emphasizes relationship-building as a cornerstone of successful sales. It teaches participants how to establish rapport, handle objections gracefully, and foster genuine connections with prospects. Sandler Sales Training takes a more direct approach, emphasizing the importance of customer pain points while probing and quantifying the impact of inaction while trying to persuade the customer to take quick action. Both are effective given specific circumstances but are not interchangeable because they rely on different approaches. Each is most effective when aligned with the type of sale you’re executing. For example: Is it transactional- or relationship-based? Is it an indirect sale with a standard contract or a complex deal with a highly engineered solution, customized agreement, and multiple decision makers/influencers? Sales Training Platforms: Systematic and Comprehensive Approach Contrasting with, and yet supplementing, the individual-centric Sales Skills Training described above, Sales Training Platforms like Miller Heiman’s “Strategic Selling,” Holden International’s “Power Base Selling,” and Wilson Learning’s “The Counselor Salesperson” all provide a more systematic and comprehensive approach to sales training. These platforms offer structured methodologies and frameworks that guide sales teams through various stages of a more complex, relationship-based sales process. Individual Growth vs. Team Alignment One of the primary distinctions between Sales Skills Training and Sales Training Platforms lies in their focus on individual growth versus team alignment. Sales Skills Training programs prioritize enhancing personal skills, allowing sales representatives to refine their ability to engage and persuade clients effectively. These programs are particularly beneficial for developing rapport and trust one-on-one. In contrast, Sales Training Platforms emphasize a collective approach. They provide a unified framework that ensures sales teams operate cohesively, following a structured process that aligns with organizational goals. This team-oriented approach is especially relevant when dealing with complex, multi-stakeholder sales scenarios where coordinated efforts can make or break a deal. Adaptability vs. Systematic Consistency Another key difference revolves around adaptability versus systematic consistency. Sales Skills Training programs often equip sales representatives with a toolkit of interpersonal skills, allowing them to adapt to various customer personalities and situations. These programs empower sales professionals to think on their feet and adjust their approach as needed, fostering flexibility. Conversely, Sales Training Platforms offer a consistent methodology that guides sales teams through standardized steps. While this approach may appear rigid, it can be highly effective in maintaining quality control, especially in organizations with a large and diverse sales force. It provides a common language and process that everyone follows, ensuring a streamlined and predictable sales process. Conclusion One of the most critical aspects of developing an effective sales training program for your business starts with understanding the distinction between Sales Skills Training and Sales Training Platforms. While Sales Skills Training focuses on enhancing individual sales representatives’ interpersonal skills and emotional intelligence, Sales Training Platforms offer systematic methodologies that guide teams through the sales process with consistent and coordinated efforts. Both approaches have their merits, and the choice between them should be based on an organization’s specific needs, go-to-market strategy, and the complexity of the deals they pursue. Ultimately, whether through the personal mastery cultivated by Sales Skills Training or the systematic consistency of Sales Training Platforms, the goal remains the same: to empower sales teams to achieve unparalleled success in a competitive business landscape. If your business needs a comprehensive, customized sales training program to elevate your Sales Team’s performance, let’s

INTRODUCTION To maximize performance, it is essential that sales leaders provide comprehensive ongoing training and coaching to their sales team to become a high-performance sales organization. In this article, we will explore the 8 types of sales training high-performance sales leaders deploy to ensure their teams have the knowledge and skills necessary to excel. These training types include Company, Industry/Competition, Products, Systems, Sales Processes, Sales Skills, Sales Management, and Artificial Intelligence (AI). 1. COMPANY TRAINING Comprehensive knowledge of the company’s vision, mission, values, and culture is essential for sales professionals. Company training familiarizes sales teams with the company’s unique history and story, the organization’s goals, unique value proposition, target markets, and overall business strategy. This training helps salespeople align their efforts with the company’s objectives, effectively communicate the value of their offerings, and build trust with customers. By understanding the company inside-out, sales professionals can better represent its brand and deliver a compelling sales pitch. 2. INDUSTRY/COMPETITION TRAINING Understanding the industry landscape and competitive landscape is vital for sales professionals. Industry/competition training equips sales teams with knowledge about market trends, customer preferences, and the competitive landscape. This training allows salespeople to position their products or services effectively, address customer pain points, and differentiate themselves from competitors. By staying up-to-date with industry trends, sales teams can adapt their strategies and remain ahead of the competition. 3. PRODUCT TRAINING Product knowledge is the foundation of successful sales. Product training ensures that sales teams have a deep understanding of the features, benefits, and applications of the products or services they are selling. This training equips sales professionals to effectively communicate product value to customers, address specific customer needs, and handle objections. By being well-versed in product knowledge and high-impact use cases, sales teams can build credibility, instill confidence in customers, and close deals more effectively. 4. SYSTEMS TRAINING In today’s digital age, sales teams rely on various systems and tools to manage customer relationships, track sales activities, host video meetings, conduct webinars, query databases, generate pricing requests, and efficiently navigate sales processes. Systems training provides sales professionals with the necessary skills to leverage these tools effectively. Whether it is a customer relationship management (CRM) system, ERP system, order entry system, sales automation software, sales analytics, or a mobile platform, understanding how to navigate and utilize these systems optimally enables sales teams to work efficiently, enhance collaboration, and make data-driven decisions. 5. SALES PROCESS TRAINING A structured and standardized sales process is essential for consistent sales performance. Sales process training guides sales teams through the steps involved in a typical sales cycle, from lead generation to deal closure and post-sales support. This training helps sales professionals understand the importance of each stage, develop effective sales strategies, and improve conversion rates. By following a defined sales process, sales teams can identify bottlenecks, optimize workflows, and deliver a seamless customer experience. 6. SALES SKILLS TRAINING Sales skills training focuses on enhancing core selling skills such as communication, negotiation, objection handling, relationship building, and closing techniques. These skills are fundamental to establishing rapport with customers, understanding their needs, and influencing their buying decisions. Sales skills training provides sales teams with practical techniques, role-playing exercises, and real-world scenarios to improve their ability to engage customers, overcome objections, negotiate, and close deals. Continuous development of sales skills is essential for long-term success and adapting to changing customer expectations. 7. SALES MANAGEMENT TRAINING A well-structured and comprehensive training program equips sales managers with essential skills and knowledge to lead their teams effectively, resulting in improved sales outcomes and business success. Organizations can create a culture of excellence that fosters collaboration and consistency by providing managers with strategic planning, motivation, and performance management tools. According to a study by the Harvard Business Review (2018), companies that invest in sales management training experience a substantial increase in revenue and profit margins. Therefore, investing in sales management training is a wise and proven approach to elevating sales performance. Sales Xceleration offers an outstanding sales management training program called the Certified Sales Leader (CSL). It covers the foundations of successful sales leadership, including Sales Strategy, Business Planning, Hiring, Onboarding, Managing a Team, Motivating & Getting the Best from your Sales Team, Creating an Environment of Sales Success, Coaching & Sales Culture, Improving Poor Performance, Sales Meetings, Ride-a-longs, Roleplays, Understanding Customers, Forecasting, CRM, Compensation, and Mentoring. In addition to a certification exam, the CSL program includes practical tools, documents, and templates to improve all aspects of sales leadership. 8. ARTIFICIAL INTELLIGENCE (AI) TRAINING As technology continues to advance, sales teams need to harness the power of AI to gain a competitive edge. AI training equips sales professionals with knowledge about AI-driven tools and applications that can enhance their sales effectiveness. This training helps sales teams understand how AI can automate routine tasks, provide insights, and enable predictive analytics to improve customer targeting, lead generation, and sales forecasting. AI can be especially beneficial when developing templates, refining sales scripts, and improving marketing automation flows. By leveraging AI effectively, sales teams can optimize their workflows, identify new opportunities, and drive revenue growth. CONCLUSION To maximize your sales team’s performance, sales leaders and business owners must deploy a comprehensive range of training programs. Company, Industry/Competition, Products, Systems, Sales Processes, Sales Skills, Sales Management, and AI training are crucial elements that ensure sales professionals are equipped with the necessary knowledge and skills to excel in their roles. By investing in these training types, business owners can empower their sales teams to stay ahead of the competition, effectively communicate value, and drive revenue growth in an ever-evolving sales landscape. If your business needs a comprehensive, customized sales training program to elevate your Sales Team’s performance, let’s

The Dual Imperative: The Significance of Having a Business Plan and a Sales Plan for Startup Success Introduction Launching a Startup is an exhilarating journey that requires careful planning and execution. Entrepreneurs must develop two crucial blueprints to establish a solid foundation for success: a comprehensive Business Plan and a focused Sales Plan. While the Business Plan outlines the overall strategy and direction of the venture, the Sales Plan acts as a roadmap for achieving revenue targets. Business Plan vs. Sales Plan – An Important Distinction. The Business Plan and the Sales Plan are critically different yet complementary elements of a successful business launch. Business Plans are typically developed for a particular audience like C-Suite Executives, CEOs, CFOs, etc., and focus on raising funds with a Banker or conceptually pitching other funding sources like Private Equity or Venture Capital investors. Business Plans are developed from the “top-down” based on broad, industry-level market assumptions and often rely on the addressable market size, projected market share, average selling price, renewal rates, annual revenue projections, inflation adjustments, etc. Sales Plans are typically developed by the Sales Leader to validate the Business Plan and verify the resources required to achieve the Business Plan’s revenue projections. The Sales Plan is a detailed, “bottom-up” sales forecast that uses a reiterative process to confirm the sales resources (people, processes, systems, infrastructure, etc.) needed to ensure the timely delivery of projected Sales Revenue. In this article, we will explore the importance of having both a Business Plan and a Sales Plan in the Startup ecosystem and how they work together to drive sustainable growth. Beyond Startups, this article offers a very effective approach that can be deployed in other business situations, such as Mergers, Acquisitions, Divestitures, Integrations, Reorganizations, and Turnarounds. The Business Plan: Charting the Course Strategic Vision and Mission The Business Plan serves as a strategic compass, providing a clear vision and mission for the Startup. It outlines the long-term goals, target market, and value proposition of the business. By defining the purpose and direction, the Business Plan helps align the efforts of all stakeholders toward a common objective. Market Analysis and Competitive Landscape A thorough market analysis is a crucial component of the Business Plan. It involves studying the target market, identifying customer needs, and evaluating potential competitors. Market research helps the Startup understand its customers, anticipate trends, and position itself effectively in the market. Operational and Financial Planning A robust Business Plan includes detailed operational and financial strategies. It outlines the organizational structure, key responsibilities, and operational processes necessary to achieve the business goals. Additionally, it projects top-down financial forecasts, including revenue projections, expenses, and funding requirements, which help the Startup plan for contingencies, manage resources efficiently, and attract investors or lenders. The Sales Plan: Planning to Grow GTM Strategy & Sales Tactics The Sales Plan details the Go-To-Market (GTM) strategy and sales tactics needed to drive sales growth. This may include sales channel selection, lead generation techniques, pricing strategies, and promotional activities. By mapping the sales process, Startups can streamline operations, optimize resource allocation, and enhance the customer experience. Target Customer Identification Understanding the target customer is crucial for Startups to tailor their sales strategies. The Sales Plan outlines the Ideal Customer Profiles (ICP), including demographics, pain points, and buying behaviors. By identifying the target customer, Startups can refine their messaging and design effective sales processes to maximize conversion rates. Clear Sales Targets A Sales Plan is essential for Startups as it clarifies sales objectives and targets. It defines measurable goals, such as revenue targets, customer acquisition numbers, the number and types of salespeople, experience levels, hiring plans, ramp-up time, sales quotas, the number of marketing qualified leads, projected calls/meetings per week, RFPs/month, win-loss projections, estimated conversion rates, manufacturing constraints, product availability, margin expectations, KPIs, etc. By setting clear sales objectives, the Sales Plan enables the Startup to focus its efforts and allocate resources effectively. The Symbiotic Relationship: Business Plans and Sales Plans Adaptability The symbiotic relationship between the Business and Sales Plans allow for agility in adapting to changing market dynamics. As Startups navigate uncertainties and unexpected challenges, the Business Plan can be revised to accommodate strategic pivots, while the Sales Plan can be adjusted to capitalize on emerging opportunities. This flexibility ensures that the Startup remains responsive to market trends and customer demands. Ensuring Alignment The Business Plan and the Sales Plan must work in harmony to ensure alignment between the strategic vision and sales execution. The alignment enables the organization to maintain cohesiveness in its messaging, branding, and customer interactions. An aligned Sales Plan ensures that the Startup’s sales efforts support the overall revenue goals. Ideally, the Business and Sales plans need to meet in the middle. Once aligned, the Sales Leader can develop a sales budget for the Sales Organization. How much does it cost to build and maintain a sales team capable of delivering the desired results? Performance Tracking Both plans provide a framework for performance tracking and evaluation. The Business Plan allows Startups to assess their progress toward the overarching business goals, while the Sales Plan enables tracking of sales targets, conversion rates, and customer satisfaction metrics. Regular evaluation of Key Performance Indicators (KPIs) empowers Startups to identify areas of improvement, refine their strategies, and make data-driven decisions. Conclusion The best way to validate a Business Plan is by creating a “bottom-up” Sales Plan that incorporates known variables to generate monthly/quarterly/annual Sales forecasts that align with the “top-down” revenue projections in the Business Plan. Any disconnects found during this process will allow the Company to address potential flaws pre-launch, which can save the company millions of dollars without having to rework the Business Plan, delay the launch, miss sales projections, or negatively impact the Company’s valuation. It can also provide Operations with an accurate monthly sales forecast to order raw materials, plan inventory, and develop manufacturing schedules. Bottom Line. Market Reports and Market Data are excellent sources of general industry information and trends when building a Business Plan; however, engaging a strong Sales Leader to develop and execute an actionable Sales Plan will ensure you have the necessary sales infrastructure and resources in place to launch and grow a profitable business. If this article describes some of the challenges your business is experiencing, why not engage a Sales Advisor who can help elevate and accelerate your business? Book a confidential, no-obligation meeting with

Although there’s a strong parallel between creating a winning culture in Sports and Sales, winning cultures come in all shapes and sizes. There’s an important yet subtle distinction between creating a winning culture centered around winning at any cost and winning the right way. The difference between the two is often overlooked and dealt with reactively rather than proactively. The solution typically involves recruiting the right people that fit your organization’s culture, ongoing coaching and training, and how your leadership team communicates their vision, sets expectations, and deals with discipline. As the Business Owner, Visionary, or Integrator, I want to equip you with new concepts that help you create a Winning Sales Culture. Winning a single championship is the goal of most teams, but winning back-to-back titles is the goal of only one team each year. Last year, the

Many relatively new macroeconomic and socioeconomic factors have changed how companies recruit, engage, and retain top talent. Factors include: Highly competitive labor market Wage inflation The Remote Workforce The Gig Economy The Great Resignation Has your recruiting process kept current with the changing business landscape? What does your strategic sales recruiting process look like, and how has it performed recently? When was it last updated? Is it time to reassess the effectiveness of your strategic sales recruiting process? I recently spoke to a sales leader struggling to find a new sales manager after his last sales manager left to join a competitor. He was frustrated because he had been unable to fill the position for over six months and had no qualified candidates in the funnel. To his credit, his sales team turnover was low, but it also revealed that because they hadn’t needed to use their recruiting process in years, they were unprepared when they needed to find this critical replacement. The market changed while they weren’t looking. They needed to update their entire strategic sales recruiting process – from where they looked for candidates, how to engage candidates, and the compensation plan they were offering. We discussed several options he hadn’t considered, including: Benchmarking his Sales Compensation Plan (see Amplify Article). Hiring outside his industry (“14 Techniques For Onboarding New Remote Employees”

Happy New Year – and may 2023 be a prosperous and fulfilling year for you and yours! With that aspiration in mind, I’d like to pose an important question about goals, a big question we make a habit of sharing with our clients at this time of year. Every December, it seems, we set goals for ourselves (sometimes also known as “resolutions”) in a well-meaning effort to create sustainable positive change in our lives. And every January or February (or maybe March in a good year), most of us look back on those goals with a mixture of stress, denial, and regret because we know we didn’t follow through on them in the way we’d hoped we would. So the big question is, how do we break that cycle and set goals that stick? Here are seven powerful goal-setting tips we share with our clients that turn “resolutions” into results.   Tie the goal to something truly important to you as a person. (Spoiler alert: It isn’t money.) Each of us has at least one unique life goal that means a great deal to us on a deeply personal level. I don’t know what that goal is for you: it might be a trip around the world, a significant charitable contribution that helps you honor the memory and legacy of a loved one, a fabulous new present you and your significant other can enjoy together all year long – something you know will bring you closer together. The possibilities are endless. I do know, though, that we all work harder for our personal goals than we work for somebody else’s. This year, let’s make a change. Instead of setting a goal based on depositing a certain amount of money, instead of setting a goal based on attaining a business goal that someone else has set for you, why not take the time to identify a goal that motivates you personally in a profound way? Then you can find a way to connect that powerful personal goal to a financial or business goal. For instance: Don’t just make the goal to earn your bonus; make the goal to earn the bonus so you can take that trip around the world that’s on your bucket list. Take a well-rounded approach. There’s nothing wrong with financial goals, of course. All the same, it’s important to set goals in several different areas of your life. Think of multiple goals that will motivate you to change the status quo for the better in terms of sales, health, spirituality, work, creativity, friends, mindset, and family. And once you have a sales goal that motivates you, you will also want to consider setting sub-goals that support your larger sales goal (such as daily behavioral and activity goals, account management goals, upselling goals, and cross-selling goals). Do this for each of the categories. Take some time to create a list of goals that goes both wide and deep! Once you’ve set a specific goal, break it into actionable, measurable chunks. Breaking the goal into smaller numbers allows you to identify the activities necessary to achieve it and track your progress toward attaining it. For example: To make my bonus, I want to secure twelve new clients, each with an average sales of $X. That means I need three such clients each quarter, which, based on my current numbers, I need to talk to Y number of new decision-makers each week and deliver Z number of presentations each month. Write your goals down and speak about them often. This simple step dramatically improves the statistical likelihood that you will achieve the goal. Build accountability. Once you have identified goals that genuinely matter to you, it’s a good idea to share your list with others you trust and discuss it with them. You may also want to consider creating an accountability-partner relationship with someone willing to share their goals with you, hold you accountable, and be held accountable in turn. Adjust as necessary. If you reach a point where you’ve exhausted your motivation and willingness to attempt to reach the goal, or if you find the goal you set was unrealistic, revise your goal. In the present tense, what you’re after is a goal that makes you feel that you are working toward something important. Find a goal that inspires you and that yields measurable signs of progress over time. Reward yourself. Sheryl Crow once sang, “Making miracles is hard work – most people give up before they happen.” Those words are essential reminders that much effort goes into achieving a meaningful goal. When you hit one, be sure to do something to celebrate! Follow these simple guidelines, and your experience with ineffective New Year’s “resolutions” that start fading on January 1 will be completely transformed.

Since selling your business is likely the most significant and financially impactful transaction of your life, I share the Top 3 Sales Priorities every business owner must take to maximize their company’s sales price at Exit. Background – Unfortunately, Sales has been one of the most impactful, yet overlooked, aspects of Exit Planning. Exit Planning Horizon  According to Laying the Foundation By now, you’ve already hired a solid management team, including an experienced COO, CFO, CPA, CMO, and CHRO. You’ve begun to forge long-term relationships with experts who will help guide you through the M&A labyrinth. You’ve likely engaged an experienced M&A Lawyer, an Investment Banker, a Wealth Planner, and a Business Insurance Broker, in your personal network of Advisors. Strategic Value of an Exit Planner One of the most important M&A professionals you can have in your corner is an experienced Exit Planner. Some will have a Certified Exit Planner Advisor (CEPA) credential. Interview a few, and find someone you like and trust. I’ve found that most tend to understand the tremendous value a Fractional Sales Leader can provide as they prepare a client for exit or transition. Three Critical Sales Priorities There are many things a business owner can do to help prepare for an exit. In my opinion, here are the three most critical Sales Priorities a business owner can take to maximize their business’s value: Confirm You Have the Right Sales Leader. Make sure your Sales Leader (CSO/CRO/VP of Sales) has a track record of achieving the company’s weekly/monthly/annual sales goals and hold that individual accountable. Has he/she consistently achieved their annual sales goals? If not, why not? If their track record of delivering results has been inconsistent, your exit may be at risk. If you don’t have the right Sales Leader, hire one. If you can’t afford to hire one, engage a Fractional Sales Leader until the transaction is complete. If you’re unsure your Sales Leader is the right one, hire a Fractional Sales Leader to help with the evaluation. It always helps to have a second set of eyes on a critical hire, and this one might be your most critical of all. Develop and Execute Your Sales Plan with a Laser-like Focus. One of the keys to achieving your desired exit is developing a realistic Sales Plan. Keep it simple and focused, while being detailed enough to provide insight across the organization. You don’t need to measure everything, instead, focus only on the variables that matter. Refer to my article,

Does your B2B Sales Team need help generating leads? There are many different types of B2B Sales teams. Direct Sales, Field Sales, Territory Sales, Indirect Sales, Channel Sales, Solution Sales, National Accounts, Global Accounts, etc. Most sales organizations create segments based on a few distinguishing client characteristics that delineate customer types so that sales teams can be organized, trained, and managed to pursue a particular market segment based on a similar set of customer attributes. One thing B2B sales team types have in common is that they all sell Business-to-Business or, depending on the organization’s size, Enterprise-to-Enterprise (E2E). They engage corporate customers directly and are skilled at working through a complex sales process rather than a B2C sales team focused on selling to an individual consumer. B2B Salespeople Not all B2B salespeople are created equal. Some are naturally gifted at generating leads (i.e., “rock turners”) but need help advancing or closing deals, while others are naturally-gifted “closers” but need help generating leads. Some salespeople prefer to manage customer accounts (i.e., “farmers”) rather than turn rocks or close deals. These different types of sales personnel tendencies are quite common. In an ideal world, you’d have a balanced team of hunters, farmers, and closers that align precisely with your business needs. Today’s sales organizations are multi-dimensional, multi-location, and multi-generational, with many different characteristics – including varying levels of industry experience, educational backgrounds, training, personalities, priorities, etc. As such, it’s often challenging to align and balance a sales team’s skills and preferences with organizational needs. Suppose you’re running a B2B sales organization consisting primarily of experienced salespeople. They have proven to be excellent closers but do poorly in developing new customer opportunities (i.e., lead-gen or “turning rocks”). In this case, hiring a third-party appointment-setting organization may make sense to help your closers become more efficient by generating, qualifying, and developing actionable leads. This approach is a variation of the traditional “Fronter-Closer” sales model. Rather than trying to recruit, hire, train, and develop this lead-gen capability in-house (or worse yet, attempt to retrain your “closers” to be “hunters”), you could hire an external firm specializing in Appointment Setting to generate and qualify leads for your closers. As most SMB businesses have learned, it’s often quicker and more efficient to “Hire than Build” this capability in-house. I’ve used this approach in the past with great success. Before you decide to implement this approach, I wanted to share with you a few tips and some of the lessons I learned along the way: Vendor Selection Experience. Make sure the vendor you’re considering has B2B appointment-setting experience rather than B2C experience. Don’t worry about the vendor having specific industry experience. Experienced B2B appointment-setting vendors will adapt to your B2B campaign’s needs. Low Employee Turnover. Look for low turnover on the attack teams. High turnover is a red flag as it takes valuable time to replace a productive appointment setter. Training. Make sure you understand how your team will be established and managed. Ask the vendor to explain their processes for recruiting, onboarding, training, ramp-up, handling violations, retraining, reassignment, etc. Price. Many different pricing models are available, depending on the program’s goals. The cheapest solution is not always the best fit for your needs. Vendor Capabilities & Structure Management Team. Know who you’re dealing with and ask for references. Organizational Structure. Learn how the vendor is structured and how to escalate a client issue if necessary. Resources. Where are their resources located? How long does it take to launch? Lead Lists. Clarify who provides the lead lists. How much do they cost? Scripts. Clarify who provides the call scripts and the process for making changes. Sales Process. Understand how they nurture each prospect and the cadence between customer interactions. Request a flow chart of the typical sequence of events, including phone calls, emails, follow-up calls, voicemails, newsletters, blogs, whitepapers, etc. Call Recordings. Who audits calls for compliance? Where are recordings kept? QA Reporting. Ask for sample QA reports, exception logs, templates, etc. Vendor Relationship Relationship Type. Understand the difference between contracted, outsourced, and offshored. Partnership Approach. Both parties must be willing to invest in developing a solid working relationship that can create and continually improve the reporting, processes, and tools needed to be successful. Often this takes at least one year, so be prepared to invest and don’t expect instant results. Get to know the Appointment Setters. Know the names and experience levels of each member of the group of experts developing qualified leads for your team. Part of the Team. Treat them as members of your sales organization. If possible, include them in sales contests, campaigns, etc. Appointment Setters: Special Requests “The Producer.” Request a minimum of one experienced sales “producer” to be assigned to your appointment-setting team. Ideally, you want an entire group of top-producing “A-Players” assigned to your account, but that’s nearly impossible with most vendors because the industry has notoriously high turnover, low pay, difficult working conditions, etc. Start with one producer, and as that one becomes successful on your account, producers on other teams will want to transfer to your team. Notification of Team Changes. Insist that the sales team leader notify the client of any personnel turnover or changes to the assigned appointment-setting team. Surprise Visit. Fly to the vendor’s location unannounced 2-3 months post-launch. Just show up to see how they are doing. Bring swag. Introduce yourself and get to know the team calling on your behalf. Have lunch delivered, or take them out for dinner. Ask how things are going and what they need from you, and then deliver on their requests. Sometimes they may require changes to the script, a second case study, updated product brochures, or a new email template they can quickly send to highlight your key differentiators. Whatever it is, follow up asap to get them what they need, and keep the door open for more feedback. B2B Appointment Setting Program – Leverage Your Investment Most sales leaders understand that the direct sales model is one of the best ways to close B2B business because customer-facing meetings are usually very effective if done correctly. Unfortunately, these face-to-face meetings also consume time, money, and resources. Layering the cost of a B2B Appointment Setting program on top of the existing cost of a B2B Sales team can add up quickly. One way to lower your average investment per Appointment is to leverage each confirmed customer appointment into 2-3 additional leads. How do you do that? Start by launching the B2B Appointment Setting program as an opt-in for your Sales Team. Explain the program’s intent, duration, distribution mode (round-robin, zip code, etc.), notification mechanics (email, Calendar invitations, etc.), and the sales rep’s participation requirements, which are simple: The lead associated with the Appointment must be entered in CRM and kept updated. Before or after the Appointment, the sales rep must make a minimum of two cold calls to neighboring businesses in an attempt to gain an additional meeting or two. Both companies are entered into the CRM referencing the initial client meeting. If both of these requirements are not met, the Sales Rep can be dropped from participating in the Appointment Setting program, and all future leads will be redistributed to other sales reps. This approach has multiple benefits: It acts as a lead multiplier. It leverages limited resources. It expands the sales pipeline. Every dispatched sales meeting is converted into additional lead gen activity for your B2B Sales Team, which lowers your average cost per meeting while expanding your sales pipeline. Uses neighborly familiarity as a door opener – “Hi, I was just talking with your neighbor about “X,” and since I’m in the neighborhood, I thought I’d introduce myself and ask to talk to your VP of Operations about this popular program.” Potential Sales Contest. It can be used as the basis of a sales contest that improves activity levels while driving results. It can be a fun source of friendly competition around most appointments, causing even more activity. This month, I’ve posted three valuable resources on

As the end of the year quickly approaches, many sales leaders are beginning to develop Sales Plans for next year, but it is also essential to benchmark Sales Compensation Plans to help your business reach sales goals. A well-structured Compensation Plan can By not updating the Sales Compensation Plan for so long, they find themselves boxed into a corner – the changes they need to make will seem significant and antagonistic to their top producers. These long overdue adjustments would not only change the status quo but would likely be viewed negatively by the sales team. They may even result in the loss of top producers. If the company had updated its Sales Compensation Plan more regularly, the changes would seem much more incremental, thereby minimizing the risks to the company. Sales goals change, so your compensation plan should, too. I highly recommend updating your Sales Compensation plans regularly, preferably annually. Sales Team Strategy and Planning Resources I’ve posted three valuable resources on StrategicElevation.com to help business owners, sales leaders, and other involved functions (e.g., Finance, HR, and Marketing) to update your current Sales Compensation Plan and incentive structure to attract and retain top performers. These resources were developed by industry experts and can provide valuable insight on ways to improve your Sales Compensation Plan and incentive structure.  They also provide insight into how much sales and marketing positions are being paid (by function, by region) around the country. There have been many changes to the business environment over the past year in regard to compensation, flexible working arrangements, and employee satisfaction that should be taken into consideration. It is crucial that your Sales Compensation Plan is developed thoughtfully. Working with a Sales Performance Advisor can help sales leaders make the best choices for your organization. If you’re ready to update your Sales Compensation Plan,

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As an advisor, your role is to help clients prepare to exit their business, yet many people resist thinking about the future because it involves so many unknowns, decisions, and choices.  And emotions typically complicate matters further, sometimes derailing the process altogether.  Here are some questions that can help you establish rapport with your clients, learn more about their concerns, and move the conversation forward. How are you feeling about your work/profession/business these days? Which aspects of work are you still enjoying, and which are you ready to leave behind? Do you envision retiring from work at some point, or are you contemplating an encore career? What part of planning for your future feels most challenging? How do you imagine your life in retirement will be different from how it is now? What process are you using to figure out what you’ll do next after you retire? What would you like to see happen with your business long term? What options have you considered for the transfer of your business? What steps have you taken to make your business more attractive to a potential buyer? What are your concerns about transitioning your firm to new ownership? What would be your ideal scenario for transitioning out of your company? What topic(s) have we touched on today that we should put on our agenda to revisit? So, what happens after you pose a few of these questions and your clients open up about emotional matters?  Remember, the most helpful thing you can do is to listen attentively.  You’ve created a valuable opportunity for them to talk about things they may not share with other advisors.   Here are some tips for managing the conversation when clients raise emotionally loaded topics: Don’t try to “fix things” by immediately offering suggestions. Doing so sends the message that you’re uncomfortable hearing their concern.  You can offer suggestions but do so later. Don’t say anything that conveys the message that their feeling or concern is unwarranted. “There’s really no need to feel that way” or “I’m sure it will be just fine” may sound reassuring to you but could be experienced as dismissive by your client. Don’t immediately offer a logical counterpoint to your client’s emotion. Remember, feelings don’t have to make sense; they’re “as is”.  Put another way, if feelings made sense, they would be thoughts. People report concerns and characterize their feelings differently from one another, so it’s in your best interest to seek amplification and clarification by inquiring as follows . . . “I want to make sure that I understand exactly what you mean by ___.  Can you tell me more?” “People sometimes mean slightly different things when they talk about ___.  What does ___ mean for you?” “Before I suggest anything, I’d like to learn more about it from your perspective.” It’s possible that during early conversations your client may hint at mixed feelings about exiting their business.  That’s perfectly normal, but you need to bring it out into the open.  You want to foster an atmosphere such that your client keeps you apprised about where they’re at.  If they keep their ambivalence to themselves, it has greater potential to blindside you and complicate the sale.  You can say: “In my experience, it’s normal to have some mixed emotions about selling.  Those thoughts may not always be top of mind, but when they do pop up let’s be sure to talk about them.  Believe it or not, they can help inform our process and alert us to aspects of the sale that are important to you.” You may also find that your client is overly risk averse.  If so, consider saying the following: “Our work together won’t be comprehensive if we only plan for what could go wrong.  That’s just half the equation.  It’s fine to be conservative and err on the side of caution, but to be truly realistic we should also consider a range of possibilities both good and bad.”   Author’s Note:  The concepts in this article are derived from Robert Leahy’s book, Overcoming Resistance in Cognitive Therapy.  New York:  Guilford

For five decades, the southern United States has been an attractive location for automakers to open plants thanks to generous tax breaks and cheaper, non-union labor. However, after decades of failing to unionize automakers in the South, the United Auto Workers dealt a serious blow to that model by winning a landslide union victory at Volkswagen. In an effort to fight back, three southern states have gotten creative: they passed laws barring companies from receiving state grants, loans and tax incentives if the company voluntarily recognizes a union or voluntarily provides unions with employee information. The laws also allow the government to claw back incentive payments after they were made. While these laws are very similar, each law has unique nuances. If you are in an impacted state, you should seek local counsel. In 2023, Tennessee was the first state to pass such a law. This year, Georgia and Alabama followed suit. So why this push? In 2023, the American Legislative Exchange Council (“ALEC”), a nonprofit organization of conservative state legislators and private sector representatives who draft and share model legislation for distribution among state governments, adopted Tennessee’s law as model legislation. In fact, the primary sponsor of Tennessee’s bill was recognized as an ALEC Policy Champion in March 2023. ALEC’s push comes as voluntary recognition of unions gains popularity as an alternative to fighting unions. We recently saw this with the high-profile Ben & Jerry’s voluntary recognition. Will this Southern strategy work to push back against growing union successes? Time will tell. Brody and Associates regularly advises its clients on all labor management issues, including union-related matters, and provides union-free training.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

I once had the thrill of interviewing Jerry West on management. He was “The Logo” for the NBA, although back then they didn’t advertise him as such. Only the Laker followers knew for sure. In 1989 the “Showtime” Lakers were coming off back-to-back championships.  Pat Riley was a year away from his first of three Coach of the Year awards. 

Can you Offer Too Many SKUs to Your Customers? The short answer is YES! A SKU, or Stock Keeping Unit, defines each different product version that you sell and keep inventory of.  There may be different SKUs of the same overall item based on size, color, capacity (think computer or cellphone memory), features, and many other parameters.  For build to forecast businesses, that number of variations can quickly explode and become difficult to manage. Your customers are busy and want ordering simplified. Of course, they may need (or want) more than one variation of a product. That is reasonable and a common aspect of business – one size does not fit all! But there is a point where too offering too many SKUs is not value added either for your customer or your business.  In his April 30, 2013 article “Successful Retailers Learn That Fewer Choices Trigger More Sales” in Forbes, Carmine Gallo discusses his experience and a study about “choice overload” by other authors. He writes about a retailer that “has discovered that giving a customer more than three choices at one time actually overwhelms customers and makes them frustrated…when the customer is faced with too many choices at once, it leaves the customer confused and less likely to buy from any of the choices!” Choice overload is well-documented in consumer studies but can apply in B2B as well. While customer satisfaction is important, another key concern is the often-hidden costs associated with a business offering and managing a large number of SKUs for a given product type. These costs include holding inventory, S&OP (Sales and Operations Planning) team time, small production runs, and scrapping inventory. Holding inventory takes up space, which may come with a cost or utilize racks that could be used for other products. Scheduled inventory counts take up employee time and may result in blackout periods when the warehouse is not shipping product.  The more SKUs there are, including extra SKUS, the greater the potential impact. The Sales team’s forecasting and the Operations team’s purchasing reviews that are part of the S&OP process can occupy more of their valuable time if they need to consider these times. If small orders or forecasts require a new production run, this could be costly and create excess inventory. Whether from this new production or past builds, eventually it will make sense to write off and scrap old inventory, another cost impact to the company. How do you know which SKUs to focus on if you wish to look at reducing your total number of SKUs? Start by examining SKUs that have: Low historic sales over a period of time Small variations between SKUs that customers do not value Older technology or model when newer option SKUs are available This requires a true partnership between Sales and Operations. It starts with educating both teams on the costs involved – neither group may be aware of the money and time impact to the company. Periodic (such as quarterly) reviews of SKUs that meet the above descriptions should become a fixed part of the calendar. A review of the data and other available for sale options should result in the identification of SKUs which may not be needed. At that point, it is helpful to have a customer friendly EOL (End of Life) Notice process by which you inform customers of last time buy requirements for this SKU and alternates available. It is usually best to provide some time for the last time buy in the interest of customer satisfaction, although that may not always be necessary. At a company that designed and sold electronics, a robust SKU rationalization process was implemented to help address these issues. A representative from the Operations team analyzed SKUs that met a version of the above criteria and suggested candidates for the EOL process. Next, a member of the Sales team reviewed them and, where appropriate, issued product change or EOL notices to customers, providing them time for last time buy orders when needed. These steps helped reduce the work involved in maintaining these SKUs while not leading to any customer complaints. A final note – sometimes it makes sense to continue offering low selling SKUs – to support customers buying other items (hopefully in larger quantities). It may be worthwhile to encourage them to keep coming back to you for all of their product needs and this may be a way to accomplish that. But it helps to understand that this is truly the case and not assume that this customer would not be equally happy with another, more popular, SKU.   Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive.  He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.

When it comes to careers, business owners are a minority of the population. In conversations this week, I mentioned the statistics several times, and each owner I was discussing it with was surprised that they had so few peers. According to the Small Business Administration (SBA), there are over 33,000,000 businesses in the US. Let’s discount those with zero employees. Many are shell companies or real estate holding entities. Also, those with fewer than 5 employees, true “Mom and Pop” businesses, are hard to distinguish from a job. The North American Industry Classification System (NAICS) Association, lists businesses with 5 to 99 employees at about 3,300,000, and 123,000 have 100 to 500 employees (the SBA’s largest “small business” classification.) Overall, that means about 1% of the country are private employers. Owners are a small minority, a very small minority, of the population. Even if we only count working adults (161,000,000) business owners represent only a little more than 2% of that population. So What? Where am I going with this, and how does it relate to our recent discussions of purpose in business exit planning? It’s an important issue to consider when discussing an owner’s identity after transition. Whether or not individual owners know the statistics of their “rare species” status in society, they instinctively understand that they are different. They are identified with their owner status in every aspect of their business and personal life. At a social event, when asked “What do you do?” they will often respond “I own a business.” It’s an immediate differentiator from describing a job. “I am a carpenter.” or “I work in systems engineering,” describes a function. “I am a business owner” describes a life role. When asked for further information, the owner frequently replies in the Imperial first person plural. “We build multi-family housing,” is never mistaken for a personal role in the company. No one takes that answer to mean that the speaker swings a hammer all day. Owners are a Minority We process much of our information subconsciously. If a man enters a business gathering, for example, and the others in the room are 75% female, he will know instinctively, without consciously counting, that this business meeting or organization is different from others he attends. Similarly, business owners accept their minority status without thinking about it. They expect that the vast majority of the people they meet socially, who attend their church, or who have kids that play sports with theirs, work for someone else. There are places where owners congregate, but otherwise, they don’t expect to meet many other owners in the normal course of daily activity. This can be an issue after they exit the business. You see, telling people “I’m retired” has no distinction. Roughly 98% of the other people who say that never built an organization. They didn’t take the same risks. Others didn’t deal with the same broad variety of issues and challenges. Most didn’t have to personally live with the impact of every daily decision they made, or watch others suffer the consequences of their bad calls. That is why so many former owners suffer from a lack of identity after they leave. Subconsciously, they expect to stand out from the other 98%. “I’m retired” carries no such distinction.       This article was originally published by John F. Dini, CBEC, CExP, CEPA on

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