There are essentially a number of reasons why salespeople miss their quotas. Do you know what they are?
I've heard managers say "my salespeople aren't making enough calls" and "my salespeople make calls but they don't sell anything - I think they're just making friends with everyone of their prospects" and "my salespeople make calls but don't sell what I want them to sell" and all sorts of other things.
The truth of the matter is that most salespeople miss their quota for one reason:
MOST SALESPEOPLE FAIL TO PLAN.
It might sound silly, but it really is true. Do you know how I know this? Because whenever managers tell their salespeople they need an account review to write a sales territory plan of how they're going to hit their quota they all go into scramble mode! I recall the frantic "Scott, you know how to plan... can you please HELP ME!" phone calls I used to receive when I worked in the High Tech industry selling services. Oddly, I'd usually walk out of my own account review meeting beaming, having received kudos for a great plan, along with the words, "now just execute upon that plan and we'll all be even happier next year" (execution of the sales plan is the #2 reason people fail, coincidentally). And, yes, I'd go hit my numbers year after year after year.
"FAIL TO PLAN, PLAN TO FAIL."
My first boss out of college had a great expression: "Fail to Plan, Plan to Fail." He would often put this up on the slide projector at the start of meetings. It stuck. It's true! The guy knew what he was doing - he turned a $300K sales team into a $1MM+ sales team in ONE YEAR. I think if every manager copied his formula for success they'd have more success. His original formula used with that team was a winner. I'm going to put it into a program for sales managers later in 2010, so stay tuned on that one... anyway, my point is that planning is vital to success.
An often quoted statement is about the 3% of a graduating class at Harvard or Yale who wrote down their goals achieved more than the other 97% combined. I don't know if that story is true or not - it has not been substantiated from what I've seen. However, I did see a study from the Dominican University that there is an increase from 4.28 (unwritten goals) to 7.6 (written goals with progress reports to a friend or mentor). So, writing the goal down, including milestones, and reporting back on progress is a great idea if you want to be twice as good as the "typical" salesperson (who I've already explained is too lazy to write down their plan).
So, make a plan. If you're not sure how to write a territory plan, I've written instructions before on the blog and at AspireNow.com I think I posted an article in the past. You can hire someone to write one for you. But I believe there is value in writing your own plan. You may not work the plan (execute) if you don't write it. Take the time. Make the effort. Write a plan you can use to succeed.
If you want help with your plan, I've written a ton of sales plans and had CEO's and Sr. VP's tell me my plans are the best they've ever seen in their life. I've been hired off a sales plan I wrote for two different jobs. My plans are *that* powerful.
What are the keys to a good plan? Well, you must include the following:
1. Non-disclosure agreement & Executive Overview
2. Mission
3. Objectives
4. Understanding of Ideal Client
5. Definition of Product (what are you selling to them and why)
6. Strategy to achieve objectives
7. Territory - definition of borders, vertical, geographical markets
8. Ways you intend to differentiate and add value to prospects in that territory
9. The math of how you will achieve your quota
10. Milestones to hit to make sure you're on plan
11. Statement of known and unknown factors of risk
Only share #10 milestones with a boss if you intend for the boss to start measuring you on those milestones and you intend to hit them. If you're going to fluff your way through success, don't list that. But frankly, if you're going to succeed, you ought to list things you know you can achieve.
Most sales plans don't include #11 - but good business plans do. Why? Because this covers your butt if you MISS your quota, despite doing everything right, due to something weird happening. For example, if you missed a quota when the economy tanked. Some companies will give up on you if they think you aren't working your plan. But if you can demonstrate you are working your plan and can show prospects that indicate success is around the corner, that may buy you time to keep your job and thrive in the future. It's all about achievement of the numbers to most of these bosses, so you must show progress towards those numbers.
And, regarding achieving, it's all about your quota, in the end, for any boss. So, every boss will examine #6 with a fine toothpick and comb if they're worth their salt. Put the numbers they need to see there. But, for your OWN benefit, take THEIR quota numbers and then figure out how to DOUBLE that goal. Because that is the goal you ought to work for - reason being that if you miss YOUR quota you will still hit THEIR quota.
Besides the plan itself, doubling your quota is the #1 key to ensuring you always hit your quota. It proves that success is largely a MENTAL thing - you must condition your mind to BELIEVE YOU CAN. Take their quota, double it, figure out how to accomplish THAT goal, then work towards THOSE numbers. As long as you're adding value, selling the right number of deals to the right prospects, and focused on that higher number, you will pretty much always blow away your goals. There are other reasons salespeople miss quota I identify and discuss in Cold to Gold Mind Spark SessionsTM (my sales workshops). I'm offering these workshops for a limited time prior to selling Cold to Gold online, so don't wait if you're looking to explode your success in 2010 - many of the techniques I'm offering for a limited time and they are not offered anywhere else.
To register a group of 20 or more, send me an email to info@ARRiiVE.com. Otherwise, sign up directly at ColdtoGold.com
Check out additional articles on "Cold Call Tips For Effective Cold Calling"
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Apr 1, 2010
Why Salespeople Fail
Jan 6, 2009
Twine for Starting A Company
I just started a new "twine" for starting a company.
If you're starting a company and/or interested in advice and connections for information on the following subjects, you're encouraged to join, follow, contribute, and share with friends. Here's the link:
http://www.twine.com/twine/11rr86z2y-lq/starting-a-company
Subjects this twine will cover:
Business plan, strategy, funding, connecting with investors, sales plan, marketing collateral, logo design, website design, list building, business cards, and more!
ARRiiVE Business Solutions is a firm specializing in product launch and creating new company growth and also hosts a radio show called Innovations In Business.
Tags
Start A Company, Product Launch, Launch a Product, Starting A Company, Funding a Company, Find Investment Capital, Sales Plan, Business Plan For New CompanyCheers!
Scott
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Sep 3, 2008
The Importance of Being Different: The Savvy Entrepreneur Series, Part III
"Do Something Different: The Savvy Entrepreneur" on ARRiiVE: Innovations In Business Show
When: September 3, 2008 at 2:00 PM PST / 5:00 PM EST
Topic: "The Importance of Doing Something Different"
Host: Scott Andrews, CEO of ARRiiVE Business Solutions
Call In: Call in at (724)444-7444 and enter 37798 # 1 # Text chat online: http://www.talkshoe.com/tc/37798 to text questions or listen online.
Details:
Visit http://www.talkshoe.com/tc/37798 To hear Scott Andrews, CEO of ARRiiVE Business solutions, discuss ways to be different to increase your sales and grow more business today at 2PM PST / 5PM EST.
Stop butting your head against the wall and copying all your peers. Figure out why most companies succeed where others fail: by differentiating and offering a different look, product, or service, you can dramatically improve your sales results, starting right now! Don't miss this fun and educational call with Scott.
Show hosted by Scott Andrews, CEO of ARRiiVE Business Solutions (www.ARRiiVE.com)
It's simple and easy to join - call (724) 444 -7444 enter 37798#1# to dial in or visit http://www.talkshoe.com/tc/37798 OR http://www.ARRiiVE.com (see radio show link) to visit online and/or text chat questions to Scott.
Aug 8, 2008
Sales Training Services - Innovations In Sales Performance
Concepts of SellingSM 
Cold To GoldSM (Webinar, In-Person Mind Spark Sessions)ARRiiVE's ColdToGold teaches how to stop blowing cold calls and start blowing away your quota! Gain straight-talk insights on how to get appointments with C-Level contacts on a routine basis. http://www.coldtogold.com/
Sales Plan (Sales Plans, Strategy)Mar 6, 2008
How To: Better Business Plans
How to write better business plans
Are you starting a new company? If you are, it won't be long before someone asks you if you've written your business plan. This is especially true when you seek funding of any type. Gone are the dot-com wild-west days when snotty-nosed Stanford students could sit in a VC's office and mumble "We don't have time for a business plan" and still receive $20 Million Dollars.
Business leaders, today, ought to have their act together. And, part of having your act together is having a good plan.
What are the keys to writing a successful business plan?
Here I'm going to describe 12 Keys to Writing Better Business Plans:
1. Know your weaknesses and address them.
2. Make an impact.
Use a video, use a demonstration, anything to show why your product or service is superior.
3. Compete.
What type of competitive environments are you submitting your offering? Are you entering contests? Are you willing to put your name on the line? Are you submitting your ideas against the pack? Bill Gates would never have succeeding with Microsoft had he never got his basic disc operating system in front of IBM. Success often starts with the early competitive moments that define us.
4. Tell a story.
You have to tell a story. If your story isn't compelling, people won't buy from you.
5. Be doggedly determined.
Are you committed to making it work no matter what obstacles get in your way?
6. Make it fundable.
Great ideas aren't the only thing that matters. Often, the most fundable project that may get you funding. Set your business up with enough punch to attract funding.
7. Refine, refine, and refine your pitch.
A better elevator pitch - have someone catch you in an unsuspecting moment and ask: "Why you?" See how you answer... then refine it. Rinse, repeat, etc.
8. Management team ought to know.
What is your management team's record related to what you are doing? There ought to be a long-tail of related history tying what you did in the past with what you're doing now.
9. Determine your market, then sell to that.
If you can determine your market early, the better for you. The more you narrow your niche to the people who truly have the money, power, and desire to buy from you, the more you will win.
10. Put some of your own money in your company.
Do you have skin in the game? An entrepreneur who hasn't invested any of their own money probably won't be as committed. At least, that's the prevailing logic used by VC (venture capitalist) investors.
11. Know your risk.
What's your risk? In addition, are you aware of the risks to your business? Many investors want to know the exact risk of investing in your business. You ought to know your risk before and test your strength against it PRIOR to going after the money, if possible.
12. Know both break-even and ROI points for investors.
What's the projected gain? If you can't show a reasonable ROI (return on investment) within a reasonable period of time, you won't get the money you need to grow your business. As my Dad likes to remind me, "Cash Is King" and if you're getting cash you must realize there WILL be an expectation that you'll make MORE cash in a short amount of time. This will increase the pressure on you to succeed. So, have your act together when you ask for money.
When you design your business plan, consider these twelve steps to success. I probably could have added: 13. Know your exit strategy, because that will come up, too. Many business leaders don't understand that if they don't have the background for their company, they either need to hire it (get better managers) or sell their idea. Otherwise, they may be facing years of struggle.
If you need help, ARRiiVE's business planning team has an incredibly strong track record of writing business plans that get funded. In fact, ALL of the business plans we've written in the past seven years have received the desired funding.
Make sure you identify your strengths and weaknesses. And, if you don't need money now, still keep in mind that you may in the future. Raising money is often a part-time job for many new entrepreneurs. Get good at it, and you'll succeed much more wildly in the early years of your business launch.
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