Mature Sales Process Increases the Value of Your Business

Mature Sales Process Increases the Value of Your Business

by | Oct 26, 2023 | Sales

It’s no secret that a business with documented processes will sell for more than one that works from the hip. Sales is one of the last frontiers of process implementation and adherence for entrepreneurial businesses. One reason for this is that sales reps naturally resist process. The other side of the coin is that implementing a sales process can significantly impact a business’s value.

There are many ways that a sales process benefits an organization, both internally and externally. From a business owner’s perspective, there are four ways that a mature sales process can increase the value of a business:

  • Grow revenue by winning more
  • Predictability
  • Growing assets
  • Differentiation

Before we look at each of these further, let’s explore a “mature sales process”.

What is a Mature Sales Process?

Two process components are the steps and the metrics to measure effectiveness. Over time, the processes should evolve. Steps are added, edited, or changed to improve the performance of the metrics. Or, the metrics are changed to drive the desired business results.

So, a mature sales process is one that:

  • Is documented and followed by all (FBA)
  • Has evolved to the point where there is a degree of confidence that the proper steps and metrics are in place
  • Is a tool that leadership uses to manage reps and ensure they are taking the steps necessary to win

Win More

When properly crafted with supporting tools, reps are less likely to skip steps of the sales cycle that would increase their chances of winning. For example, we often see sales reps shortcutting the discovery process. It is not uncommon for a sales rep to present the solution before spending enough time uncovering the specific challenges and the impact of those challenges on the prospect’s business.  

A documented process with a tool like a simple Discovery Checklist can ensure that reps do a thorough job of assessing needs. Then, their proposals are much more likely to hit the mark.

So, the result is a higher close rate, more revenue, and higher valuation.

Predictability

Accurate tracking of the sales process in a pipeline tool helps a leader or business owner know what to expect in the coming months from a performance perspective. This is particularly relevant for a project-centric business that might have a lot of revenue fluctuation. 

Looking at the pipeline to know what is coming can be very helpful for business planning. Predictability drives business value.

Growing assets

Simply stated:

  • Assets drive business value
  • A sales process is an asset
  • Having a sales process as an asset increases the value of a business

That one is pretty cut and dry!

Differentiation

The last way that a sales process drives business value is in differentiation. This is particularly relevant for businesses selling commoditized products or services that are hard to differentiate. So, the experience that a customer has with the business can be the differentiator.

Implementing and following a tight sales process that looks at all customer interactions can improve the customer experience. This might be the difference in winning or losing for businesses that are otherwise hard to differentiate.

Conclusion

If the plan is to sell the business someday, then it seems like an obvious step to implement a sales process. These benefits increase the value of a business when it is sold and can help you realize significant benefits along the way. 

The good thing is that a sales process doesn’t have to be complex! The Pareto Principle applies to the sales process! When is the right time to implement a sales process for your business?

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The Secret to Scaling Sales and Growing Revenue: Ideal Client Profile

The Secret to Scaling Sales and Growing Revenue: Ideal Client Profile

by | Apr 17, 2023 | Marketing, Sales

As an entrepreneur, growing revenue and scaling sales is crucial to the success of your business. However, it can be challenging to achieve these goals if you don’t have a documented  Ideal Client Profile. This detailed description of your target customer will enable you to identify who your Ideal Prospects are and also serve as a filter to determine if a potential client will be a good fit. Knowing who your ideal clients are helps you pinpoint exactly where to focus your marketing efforts. When your marketing is pointed at those most likely to purchase what you’re offering, you have the most potential for sales growth.

Identifying Your Ideal Client Profile

Your ideal client profile (ICP) is not a one-size-fits-all solution. Ideal Clients are an intersection of the clients that:

  • You are operationally optimized to serve
  • Are the most valuable to your business
  • Align with your team and values.

The high-level components of an ICP are:

  • Description: One or two sentences that describe the characteristics of the companies who are a perfect fit for your solution.
  • Data Points: This includes demographic data such as size of the company, including number of employees and revenue, location, and other specific company traits.
  • Primary Personas: A primary persona is a fictional representation of your ideal clients based on market research and real data about your existing clients. At the very least, it should include: motivations, role goals, pain points, and preferred communication channels. The more specific and detailed your buyer persona is, the better you’ll be able to understand your target audience and tailor your marketing and sales approach to meet their needs.

Documenting your Ideal Client Profile (ICP) should enable you to pull “The List,” which is the actual businesses that meet the criteria in the ICP.  This should be an addressable market for your sales and marketing efforts.  If The List is too broad, reel in the data points on the ICP.  Then, you can operationalize your ICP to realize the following benefits:

The Role of an Ideal Client Profile in Scaling Sales and Growing Revenue

Once you’ve put the proper plan into action to develop your ICP, what results should you expect? What benefits come from identifying your ideal client?

Focuses your Sales and Marketing Energy and Spend

Spending time and money without focusing on an ideal Client is wasteful. Once you have an addressable market, 100% of your sales and marketing spend and energy can be focused on ideal prospects and clients instead of diluting the spend on the wrong prospects for your business.

Improves Your Message

Your ICP includes your target personas and their desired outcomes. Having a more narrow ICP enables you to craft a message more likely to resonate with your ideal clients and prospects. So, when your prospects see your message, they are more likely to engage.

Enhances Your Client Satisfaction

Depending on your business, when your sales and marketing efforts bring on the wrong clients, operational challenges can be created.  Your team should be operationally optimized to serve ideal clients in an efficient and effective manner.  So naturally, bringing on ideal clients improves client satisfaction.

Increases Your Revenue

Focusing your sales and marketing energy, improving your message, and enhancing client satisfaction will of course lead to revenue growth. Moreover, satisfied customers are more likely to refer others to your business, leading to a steady stream of new customers and revenue.

By identifying your ideal clients, you can better target your sales and marketing efforts and generate more revenue for your business.

Developing an ideal client profile is essential for any business looking to scale its sales and grow its revenue. It helps you focus on serving businesses that align with your values and expertise, ultimately providing the best possible outcomes for your clients. Following these tips, you can describe your ideal client and develop targeted marketing and sales strategies to reach them effectively. The next step to scaling your sales and growing your revenue is focusing on your messaging, which we will explore in the next blog.

To learn more, download our ebook, “5 Steps for Scaling Sales and Growing Revenue”, today!

5 Steps For Sacaling Sales and Growth Revenue