When growing a business you will need revenue winning staff. Whatever you do, don’t hire a salesperson. This may sound counter intuitive. In my opinion you need someone more strategic. Someone who chases more than just revenue. Once you’ve read my three reasons I think that you’ll agree.
A Salesperson is Transactional, Not Strategic
Popular culture today portrays a salesperson as some who is hyper focused on the win. Often at the expense of everything else. In some extreme cases at the expense of the truth. This can lead to some issues.
Focussing only on the sale can lead to valuable relationship building opportunities being ignored or at worst torched. Instead of carefully listening to a customer they are gunning for the sale, the revenue and the commission.
Why not hire a business development professional. They understand the strategic nature of business and are looking to develop long term customer relationships.
A Salesperson Chases Revenue, Not Profit
Many salespeople are incentivised by the dollars that they bring through the door. Therefore their focus is purely on the top line revenue. Profitability is not considered. This often leads to a mindset of drop the price, get the sale.
Revenues may go up. But if profitability is low or non-existent high revenues are effectively meaningless. Your business will shrivel and die.
Why not hire a business development professional. Someone who understands the commercial levers to pull and how hard to pull them. They have an eye on profitability at all times ensuring every sale adds to the bottom line.
A Salesperson is a Lone Wolf, Not Integrated With the Team
Obviously the title is a broad generalisation but I’ve seen more than a few salespeople in small organisations behave like lone wolves. Jealously guarding their customers. Not telling anyone what they do and distancing themselves from the rest of the team. They are often good at bringing in revenues but at what cost? The delivery team don’t know what projects are pending. The customer contacts are all held by one person. The damage a lone wolf can cause is immense. The book “The Challenger Sale” goes into more detail on this.
Why not hire a business development professional who understands the importance of integrating with teams inside and outside your organisation. They take other members of the business to meet customers. They openly share customer and market feedback. They’ve developed strong relationships with the delivery and technical teams. Ultimately this leads to a better experience for the customers and the team.
Don’t Hire a Salesperson. Do You Agree?
Obviously I have made some extremely broad assumptions around sales staff. But my point still stands. Hiring someone for sales skills alone could end in disaster, especially in smaller companies where the bulk of the revenue is won by one or two people.
Instead look for business development skill and experience. Someone who understands the commercial aspects of your business. A developer of relationships who is aligned to your purpose and goals. Hunting revenue is one thing, but someone actively growing your business in the long-term is a keeper.
What do you think? Should you hire a salesperson or a business developer? Let me know in the comments below.
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