How To Build Your First Sales Team (Pt. 3) – Sales Performance
Welcome back to our multi-week series, How To Build Your First Sales Team: The 4 Ps Of Sales! In Part 2, we talked all about the first of the 4 Ps, Process, and gave an overview of 10 straightforward questions that will help you evaluate your current sales process and identify any gaps. If you haven’t read that part, we recommend doing so before continuing on.
Now, it’s time to dive into the second of the 4 Ps of Sales: Performance.
Performance is shorthand for the simple question: “How many sales do you need to make to be successful?” Let’s break that sentence down into two parts.
To Be Successful?
No one can define your success other than yourself. What does being successful mean to you? Does it mean revenue? Free cash flow? Social impact? Doing what you love? Making the world a better place? Give this some thought and write it down. Make sure you’re thinking long-term, not short-term success.
Once you’ve decided on your definition of success, you’re ready to go back to the first part of the question and figure out “how many sales” you need to hit your goals.
Let’s use this example: For my business to be successful means profits of more than $100,000.
How Many Sales?
Let’s use the example above: How many sales do I need to make to generate profits of more than $100,000 this year? To figure out the answer to this question, you need to first answer the following:
1. Where are you now?
What’s your current profit and how many sales did it take to generate that this year?
2. Where do you need to be?
How many sales do you need to make your definition of success happen? To find this number, start with your profit goal of $100,000. Divide your profit goal by the profit from your typical sale to determine how many sales are needed.
3. What’s the difference?
Subtract the number of sales from this year that you expect to make again next year, from the number of sales you need to make next year to hit your profit goal. And there’s your answer!
This calculation can be tricky to understand at first, which is why we have a ton of supporting documents to go along with this lesson in our full online sales training course, Sales 102: How To Build Your First Sales Team. It makes it easy to run through this process for your own business. Make sure to take a look.
‘Til next time!
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