Entrepreneur Best Practices; #1 “More” Sales or “Create Sales Velocity” ?

Posted by on September 14, 2009 with 25 Comments

[youtube=http://www.youtube.com/watch?v=2uK96eqVggw]

For the past 25 years I have helped entrepreneurs realize what I refer to as Explosive Sales Growth, or said another way;

I help organizations Create sales velocity.

 

Sales velocity occurs when you connect your product or service to a market need, and create messages that clearly tells them how you solve those needs for your buyers.

Sales Velocity is Sales Acceleration, with Direction and creates Momentum.

 

Creating Sales Velocity is one common need every business has, particularly in 2009.

A few nights ago I attended the local TIE event here in Phoenix. As I mingled with entrepreneurs before our guest speaker I heard a constant need;

I have an amazing product (service) but we need “more” sales…now!

 

I met with a number of entrepreneurs and their passion for creating something bigger than themselves seemed dampened by the immediate need for sales. I shared some “quick win” techniques that always work for me, but I went on to explain that what they really want is to create Sales Velocity.

Sales Acceleration

I have helped entrepreneurs and their teams grow businesses and what they often need first is sales acceleration. What I mean by this is a number of quick wins in new accounts or new products placed in existing accounts. A big part of sales acceleration is intentionally driving the sales you want to grow. When entrepreneurs mistakenly say they want “more” sales, by default they are saying “any sale will do”.

Not all sales are good sales if they strain your team to “slightly” change your product or service.

 

These “slight “changes slowly pull you form the core of your business and distract focus.

I have served a variety of industries and the best way to create intentional sales acceleration is always they same; talk to your customers and others in your market. In doing so you must determine “current truths” because your gut and intuition alone will not drive the growth you desire.

Direction

 

I think we have all seen the monthly sales charts that resemble a heart rate versus a market leading organization. Sales are up, and then off, up, plateau, then drop.

As an entrepreneur you need sustainable, repeatable sales or your personal heart rate will fluctuate as you try to plan cash flow.

When you implement a ; creation of sales velocity mind set, you have specific targets that support your overall vision, road map and serve market needs.

Momentum

 

One of my favorite classes in high school was Math and Physics. (odd for a sales guy huh?) The concept of momentum always fascinated me. How a body of mass moving with direction creates an energy of its own, and that energy can be transferred to other things that the mass bumps into.

Sales momentum occurs when your sales pick up in a positive, intentional direction with velocity.

 

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Now the fun part, if you have two particles ( sales) , with masses clip_image002and clip_image003and velocities clip_image004and clip_image005, the total momentum of these particles , clip_image006is

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However, if you have one particle (sale) going to the right, the other to the left they cancel each other out. ( how sales and marketing often act) Once you pay commission you have a net negative effect on your bottom line for the energy produced. If you sum the two momenta together, you get a total momentum of zero. ( this is what often occurs when sales teams are asked to …”hit your numbers and make it happen” …because that is what we “sales guys” are wired to do. However if not directionally focused and aligned with your road map the net result over time is zero added value to your bottom line( and often reduces the value of your business).

The real fun begins when you have a number of particles (sales) bouncing around in the right direction. The equation gets a little sophisticated and the total momentum of N particles (sales), of masses clip_image008and velocities clip_image009as

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The net result is increased sales and the valuation of your business increases if done correctly.

(Thanks to Joshua Deutsch for the above equations.)

 

As an entrepreneur and future market leader you do not want “more “sales you want “sales velocity”. When you realize sales velocity you experience sales acceleration with direction that builds a sustainable momentum over time.

 

Sustainable momentum provides predictable cash flows and helps you find willing investors for future expansion.

 

How about your team?      heart rate 2

 

Do your sales look more like a heart rate monitor?

 

Do you have salespeople “making it happen” but the way they are making it happens seems to cancel each other out?

 

Are you or your salespeople running in many directions, getting your organization exhausted …without building momentum?

 

 

Over my next series of posts I will be discussing entrepreneurial best practices. I will be sharing personal experiences of what worked as well as did not produce in hopes of helping entrepreneurs shorten their sales cycle and accelerate their revenues and profits, and most importantly the value of their business. I am always looking for thought leaders to contribute as it is my goal to add value to the entrepreneur community.

If you have thought leadership for entrepreneurs, please contact me.

Comments

  1. Mark’s words and views should be listened to by more companies. No one can do business in the same old way anymore, and expect to survive. Those who can strategizie quickly will take market share.

  2. Rich Bilby says:

    It’s a whole new world out there. New thinking and new approaches are going to invaluable to survivors

  3. markallenroberts says:

    additional thought leadership can be found at http://www.salesperformance.com/why-is-sales-productivity-so-hard-to-improve

    Mark

  4. [...] About « Entrepreneur Best Practices; #1 “More” Sales or “Create Sales Velocity”&nbsp… [...]

  5. Hi Mark
    Thanks for sending me the link to this post in an email.
    Great insights and well put advice.
    Do you mind if I quote you once again on my blog?
    Cheers
    Paul

    • markallenroberts says:

      feel free to share my content with your followers, they may also enjoy my new eBook ; 50 ugly truths…

      Let me know if you would like additonal help

      Mark

  6. [...] 2009 Mark Allen Roberts @markaroberts from nosmokeandmirrors.wordpress.com wrote an interesting post, which I broke down a bit to actually understand it better myself: Mark Allen Roberts: “[...] [...]

  7. [...] When sales are scary you must leverage what you have and get creative to; “create sales velocity”. [...]

  8. One thing most of the entrepreneurs you work with probably don’t even realize is just how important it is to start with the right message.

    The right message gets the people most likely to buy your stuff interested in what you sell.

    The right message removes defensiveness and replaces it with interest.

    The right message triggers action.

    The right message opens the door to new relationships that transform into business.

    The right message sets you up for more closed business, business you can’t save at the closing table.

    The right message is the beginning of EVERYTHING.

    • markallenroberts says:

      great comment!

      thank you, as the message should not need a salesperson to translate it. It should speak in the form of the problems you solve for your market and your various buyer types.

      Mark

  9. [...] numbers. Yes this may drive some momentary, fear driven results, but this is not how you create sales velocity. In 99% of the cases I have been asked to help figure out why sales objectives were being missed it [...]

  10. [...] As the owner, leader,you are the boss… so if you want to try to micromanage the fruit (sales) of your new products ripe… go for it. I have seen many try ( heck, I have tried) and I have yet to see this approach correct new product sales below plan and create sales velocity.  [...]

  11. [...] Salespeople require a market driven value proposition for the products and services they sell. This should explain the problems you solve for your buyers and not just what you do. It should help your sales team understand who they should target. To insure your value proposition resonates and continues to connect with buyers you must listen and observe the market on a continual basis. Focused CEO’s are flying at 45,000 feet above your market and often become frustrated when sales teams share new roadblocks to achieving their goals. What CEO’s want is sales velocity. [...]

  12. [...] Market leaders create sales tools to help their sales teams close a greater percentage of sales leads and create sales velocity. [...]

  13. [...] overcome this buyer concern and ultimately improve sales close percentages and increase sales velocity. I coach salespeople to add a “requirements summary” in their proposal. So what is a [...]

  14. [...] become lifetime customers with current and future revenue opportunities and contribute to creating sales velocity. In addition, they make up for account attrition, you know …customers who go out of business or [...]

  15. [...] is a living sales road map that insures your team meets and exceeds sales quota and creates sales velocity in the [...]

  16. [...] long as I have been in sales and sales leadership I have heard sales management and creating true sales velocity is about carefully balancing the carrot and the stick to manage your salespeople. If your sales [...]

  17. [...] numbers and we want to insure our teams are working the sales process to insure they are creating sales velocity. However when we travel with sales people making sales calls it often becomes apparent they need [...]

  18. [...] an urgent problem someone is willing to pay to solve. How do market leading teams create repeatable sales velocity each year? Why do market losers keep kicking their sales team’s in the butt and getting no where [...]

  19. [...] of the reasons sales plans fail to create sales velocity is “Politically Incorrect Market Secrets” salespeople are afraid to share with you. Trust me, [...]

  20. [...] salesperson of the future will embrace technology and leverage its capability to create sales velocity working smarter not [...]

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