Selling For Small Companies
Jeb Blount offers advice for managing sales teams in small companies.
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Selling For Small Companies
Selling for small companies is different from selling for big companies. This week we answer a question from a sales manager who has just taken over a sales team for a small company and is looking for advice on how to compete with his larger competitors who have more resources and name recognition.
We received this question from a sales manager from Scotland named Stuart:
I’m an avid listener. After several years as a sales manager working for a large, blue chip company I have a new challenge. I have taken over the Sales Director position at a small internet marketing company with a great product. I have to set up the sales operation and then develop and run it. However we are playing in a field with big companies who have ten or even a hundred times the resources we have -sales staff, brand, and money. My questions are what is the best way to organise a smaller business’ sales strategy and operation and how do we then go out and compete with the ‘big boys’.
Stuart, first let me say that I am an avid consumer of fine Scotch whiskey so please let the folks back in Scotland know that the Sales Guy actively supports the Scottish economy.
Your question is relevant and timely. In this economy many talented sales managers like you have been downsized by larger companies and are being picked up by smaller companies who are eager to put your talent and experience to work. The problem men and women like you face though is getting out of the large company culture and into the small company, entrepreneurial mindset. I’ve been there myself and it can be a tough transition because it is hard to get used to not having the seemingly endless resources and divisions of labor inherent in the large company bureaucracy. The key is making the mental and emotional decision not to spend any time thinking about how it used to be at your old, big company. That kind of thinking gets you nowhere and frankly just makes you miserable.
The great thing about small, entrepreneurial companies is you have freedom. Sure, you have to do a lot of things yourself, you have to work harder, smarter, and longer hours, but there is virtually no bureaucracy standing in your way. You can move fast, make decisions, take risk, and implement new ideas in a way that is simply impossible in large organizations. And because you have worked in a large organization you have an added advantage that allows you to build your sales team on a foundation that takes advantage of the best of both worlds. There are few times in your career that you will have as much influence and control as you do working in the small company, entrepreneurial environment. And best of all, your talents and skills will be put to the test daily which will keep you engaged and challenged.
Of course, in your question, you point to one of the biggest issues facing sales managers in small companies: How to compete with the big companies in your market. While I was thinking about how best to answer your question, I received a call from Scott Runkle. Scott is the Senior Vice President of Sales and Marketing for a progressive new company called ResumeFit.com. Scott has been pitching me on integrating his company’s product and service on my website SalesGravy.com. While we were brainstorming possibilities Scott said something encapsulated what was to be my advice to you. He said, “We are a small company and we have to be fast, flexible, creative, and imaginative. That is the only way we can grow and survive because we don’t have the luxury that our larger competitors have to say, ‘This is the way we do it – take it or leave it.’”
Now just consider that statement for a moment because in this profound message Scott explains the real competitive advantage you have in sales with small company competing against large, established competitors: Flexibility, Creativity, Imagination, and Speed. You see, as the underdog it is easy to spend time just looking at what the large companies have that you don’t. They’ve got more money, more people, better name recognition, and extensive advertising. And as a sales manager for a small company you are going to consistently hear this from your salespeople. These will be their favorite excuses for missing quotas, losing deals, and failure to achieve activity targets.
If you think about it though, flexibility, creativity, imagination, and speed all make your offering stronger and more appealing than your large competitors. Customers want personalized solutions to their problems and you are your team will be uniquely positioned to provide those solutions.
So as you develop your sales team and sales strategy you will want to build on the foundation of flexibility, creativity, imagination, and speed. Your hiring profile, sales process, positioning and business plan should all be built on and around these competitive advantages. As you work with your company’s leadership to create your strategic business plan review each competitor and target those whose offering can most effectively be challenged with your competitive advantages. Develop a profile of your ideal customer and go after the businesses that will be most likely to appreciate flexibility, creativity, imagination, and speed. Create a sales process that is both flexible and positions your service in a way that delivers indivualized, custom solutions. And hire sales professionals who have the ability to use your competitive advantages to convert prospects into customers because like you they believe they can go toe-to-toe with a big company anywhere, anytime and anyplace, and walk away a winner.
This is Jeb Blount, the Sales Guy. If you have a sales question please send it to salesguy@quickanddirtytips.comcreate new email.
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