The first step toward treating your sales people as business operators is to ask them to provide you with a business plan that shows how they will make their business successful. The plan should not be the second-coming of War and Peace, but should be thorough-enough to give the investors comfort in the plans for success.
If you provide the sales team with nothing more than the instruction to write a business plan, they will waste a lot of time trying to figure out what you want…and will still miss the mark. The best approach is to create a sales business plan template using the questions the investors have about their business strategy. The overall plan should "map back" to the revenue target you have set for the sales people. If you are asking them to generate a million dollars in revenue, the plans should clearly show how they going to achieve that target.
The plan should have five core components:
Accounts. The accounts section is the place in the plan to list clients/prospects and their expected revenue contribution toward the million dollar target. If the sales person's target includes both existing accounts and new ones, this section of the plan forecasts the expected performance of their portfolio and documents the new accounts that lead them to the target revenue number.
Prospecting. The prospecting section shows their plan to build a sales pipeline. If there are no prospects, there are no sales…so understanding their strategy to reach prospects is a key for business managers to sleep at night. This area should highlight both their pipeline development strategy and tactics.

Sales Metrics. The sales metrics section shows how their activities correspond to results (i.e., revenue). This is a statistical presentation of the sales activities that they will perform that leads them to achieve their financial goal. This should show their success formula that works backwards from the goal and corresponds to sales activities
Skill Development. This is area is often ignored by sales people, but should be important to the key business group. After all, if there is no commitment to continuous self-improvement, how will the business continue to grow? The plan should show what they will do to improve their skills and industry knowledge…with a time commitment.
Business Needs. The final section of the sales business plan asks what the sales people need from the company to succeed. This area of the plan provides each business operator with an opportunity to share his needs of their manager and the company. It also tells what would prevent him from achieving the dollar goal.
Once the plan is created, a conference call/meeting is scheduled with the key business stakeholders and each sales person. During the call, the sales person presents the sales business plan and the business stakeholders challenge it to make sure it is sound. On a quarterly basis, the sales people present an update to the plan to ensure progress is being made toward the dollar goal.
Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activity with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of “Soar Despite Your Dodo Sales Manager.” Lee is a columnist and member of the Editorial Advisory Board of Sales and Marketing Management Magazine. Look for Lee's new book in 2010 titled, "The Sales Marriage” where he shares the secrets to identifying, hiring, and on-boarding the right sales people. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321
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