There are two types of business owners:
1. Those who view their sales team as an asset.
2. Those who view their sales team as an expense.
Type 2's do not understand the value and contribution of their salespeople. They do not realize that every other function in their company, from accounting to maintenance, is pre-determined by the sales function. If there are no sales, and related profit contribution, there also is little or no operating capital to operate the business. It is a simple model.
In a recession, particularly a long and nasty storm like we are currently experiencing, Type 2's are quick to reduce what they perceive to be a high-overhead item on their balance sheet... cost-of-sales. They want to immediately slash sales commissions, sales expenses and perks for these "non-essential" tasks. This a sure method of losing market position and ultimately experiencing business failure.
"While radical surgery may be financially prudent in the short term it becomes a self-fulfilling prophecy: first sales decline, then performance suffers and finally moral drops, completing the downward cycle" -says Steve Rosen.
What Type 2's fail to realize is that they will ultimately lose all of their experienced and well-trained salespeople and customer service people to new employers. These new business owners are typically Type 1's who will truly value their contribution and reward it accordingly. These owners view their salespeople as valuable assets to their company.
Stop and think. We all know that many businesses are suffering, revenues and profits are declining and companies are struggling. Running off your sales force by making foolish decisions is operational suicide, both in the short and long term. If you selfishly deprive your salespeople of the means to make a living, a living that they determine by their own selling efforts, you are certainly ensuring your own business ruin.
Get aggressive. Buck traditional thinking. Provide additional selling incentives, training and coaching and watch your sales performers do what they do best...sell.
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Daniel Sitter
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