- Posted by Steve Gruber
- On April 9, 2019
- 0 Comments
You have a business to business product and are looking to start selling or grow your sales. Whether you are a small business just getting started or a growing business with established sales channels looking at new markets, the question comes up about how to do it. You have two main alternatives to consider:
1. Hire a full-time sales person
2. Outsource your sales efforts
I am biased given the nature of what VA Partners does, however I would also argue that there are a number of compelling reasons to consider when outsourcing your B2B sales efforts to a trusted third party.
Let’s look at the key reasons why it makes sense to outsource your B2B sales and marketing.:
Focus on What You Do Best
Successful owners and managers know that focussing on what you are best at is what drives success. If you are a great product development or engineering company and you have no expertise in sales nor do you have the time or resources to build a sales organization, then utilizing a sales outsourcing company may make a great deal of sense.
Focus on your strengths, leverage an outsourced sales service to get things rolling, develop the sales strategy, messaging, process, sales methodology, infrastructure and do the executional work of selling. This is going to be a lower cost option with less risk than having you try to lead the sales effort blindly. Like anything though, choosing the right sales outsourcing firm is important so be sure to do your due diligence
Many owners and senior managers wear multiple hats so their time is stretched as it is. You are the solutions expert, the finance head, the client success manager and the key sales person. You are busy and what typically happens is that as you get busy the time you allocate for the sales effort dissipates. Utilizing an outsourced sales company to work on the outbound sales process for you fills that void and helps to drive fresh leads and new customer wins.
Oftentimes, an outsourced firm is built to provide you with a measure of flexibility. So in many cases these firms can scale up or scale down to meet your budgetary needs. Remember, in the B2B sales world it takes 6 to 18 months to close anything of significance and it normally takes 8 to 13 (or more) touches to close a deal.
Talent Acquisition is Challenging
A lot of business owners and entrepreneurs are not sales people. So one question to ask yourself is how experienced are you at hiring and managing a sales person if you do not have a proficiency in the position? It is easy to hire someone, just hard to hire someone good.
Hiring the right salesperson, just like any other key position can take a significant amount of time. So if you are not experienced in the role or have had success in hiring for the position before, it leaves a lot of room for risk. Also, your sales person will need a sales infrastructure in place to help support them in their sales role. Do you have expertise in sales CRMs? Do you know how they work? What reports you want? What should the expectations be? Have you managed a sales funnel? What are the expectations for daily activities and how they roll up into the larger revenue targets? Do you understand conversion ratios and average job size and how that plays into your targets and the likelihood of achieving them?
An outsourced sales resource is typically more flexible in their engagement model with you. An outsourced sales resource should provide the ability for their clients to scale up and down in hours per month as well as flexible commission structures where needed to ensure projects in competitive sectors are closed.
Cash Flow Friendly
Outsourcing a part-time B2B sales person can be much less expensive than hiring a full-time person. In addition to a lower costs per month, you don’t need to worry about additional benefits such as vacation pay or health benefits.
The largest challenge many owners and senior managers face is that because they wear so many hats, sales gets forgotten until they are in dire need of revenue. Then the work and time it takes to drive new sales is often a killer. Utilizing a part-time B2B sales resource can provide a level of consistency required to achieve long-term sales success. As I mentioned earlier, it takes 6 to 18 months to close anything of significance and upwards of 13 touches. Without an ongoing commitment to following up and pushing to close at each step, sales will be lost.
Ultimately, the main reason for brining on a B2B sales outsourcing company is to engage a specialist to help you more effectively than you could do yourself. If you’re looking for outsourced sales and marketing assistance, please don’t hesitate to contact us. For great insight into sales and marketing, feel free to sign up for our newsletter or follow us on Twitter.