CEO Advisor Newsletter September 2021
Focus on Growth and Metrics for Success
B) Inorganic Growth - Business expansion through acquisitions (this will be covered in future articles) CEOs that put strategy, sales and sales management as their top priority outperform their competitors in revenue and profits by up to 80%. While CEOs and presidents of small and mid-size companies play a key role in driving performance improvements across all aspects of a company, sales has traditionally not been the main focus of CEOs and business owners for many companies. This is a very costly mistake. CEOs, presidents and business owners of top performing companies are very hands-on in driving their businesses forward. Setting budgets and sales goals are just the beginning. The best CEOs pinpoint a specific sales strategy, tools, sales management processes, analytics and metrics or key performance indicators (KPIs) to ensure substantial growth (at or above industry growth rates) in revenues, gross margins, and profits in order to substantially increase shareholder value. Similar to marketing, sales is both an art and a science. Here are 5 key sales and KPI initiatives that will create a tremendous return on your investment and grow your business to the next level. If sales and sales management are not your strengths, gain the help you need from a seasoned business advisor as failing in these important aspects can cost you millions of dollars in sales, profits, value and your ability to sell your company in the future. 1. Sales Goals to Increase ResultsWell managed sales teams produce big results. CEOs should demand more than monthly sales goals for each member of the sales team. CEOs must require sales goals that produce heightened, consistent results to meet company goals. A direct sales team should have clearly defined goals for each salesperson that include: Dials per dayLive contacts per dayOpportunities created in your customer relationship management (CRM) software per week and monthNew sales appointments per week and monthProposals presented per monthClosed sales per monthClosed sales in dollars per monthUpsells and cross-sells in dollars per monthRenewals per monthReferrals received per month 2. Key Performance Indicators (KPIs) to Drive Sales and Profits
Additional goals that can be readily tracked monthly (in real time if possible) will be the difference in a proactive, results-oriented sales team vs. a sales team that is always behind the curve. You should monitor and track the following KPIs: Average dollar size of each sale (ensure you are selling to larger customers with larger budgets)Average length of contracts in yearsRenewal rates of contractsAmount of sales to your top 25-50 customers per month, quarter and year to ensure you are properly servicing them and hitting sales goalsAverage Number of Days to Close a Sale (Ave. Sales Cycle)Gross Profit MarginsNet Profit MarginsCustomer ChurnRevenue ChurnIndustry Growth RateYour Total Market ShareMarket Share of your key competitorsGrowth Rate (quarter over quarter and year over year) 3. Build a Sales and Marketing Machine to Optimize Sales and Value of your Business
By building a sales and marketing machine within your company, you will optimize your gross and net profit margins and tremendously increase the value of your company. As part of your sales strategy, expand your direct sales efforts with indirect sales by formulating a Reseller Channel Program and then recruit, build, train, motivate and support these Resellers and Referral Partners. This takes planning, focus and attention to details to put in place and manage, so gain the needed outside help from a business advisor to get this right the first time. 4. Get Out of the Office and Visit Customers
As the CEO of your company, get out of your office and go with sales managers and individual salespeople and visit your major customers quarterly or at least annually. Understand the customers' needs and satisfaction level, understand how you can help them by upselling and cross-selling additional products and services, renew annual contracts and secure a tighter relationship by demonstrating real interest and commitment to your customers. 5. Focus on Sales and Account Management Strong sales management should be part of the fabric of your companyMaking top sales performers heroes at your business should be paramount to youTraining your sales team should be exciting and part of every weekly sales meetingDesigning the right sales compensation plan and retention of your best performing sales team members should be a top priorityConsistently held weekly sales meetings that are motivating, numbers driven and training-intensive should be a weekly occurrence like clock-workEnsure Account Managers focus on large customers weekly, mid-size customers at least monthly, and smaller customers quarterly Creating a written, disciplined Account Management Program will enable you to create loyalty amongst your customers, increase renewals, generate upsells and cross-sells, and increase sales, profits and the value of your business substantially. Sales are the lifeblood of your business and will be the difference in reaching your goals and a successful exit in the future versus strained cash flow and diminishing value of your business over time.
CEO Advisor, Inc. has the expertise and experience to help you focus on the growth of your business and achieve your goals. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
CEO Advisor, Inc. Advises Credder, Inc. on Growth, Strategy and Funding
Credder’s APIs and editorial review technology is revolutionizing the media and content industry. Chase Palmieri, CEO states, “For online platforms, having an editorial solution that prioritizes credible sources and doesn’t risk Section 230 compliance is a critical issue today. Credder will forever change online news and content by providing added accountability to publishers, and gives consumers the ability to read, rate and comment on articles from any website.”
Mark Hartsell, President of CEO Advisor, Inc., states, “Credder is a rating and data technology company that has squarely addressed the credibility issue facing online news. Their ranking, rating and reviews software is revolutionary, and the opportunity to hold publishers and media platforms accountable for credible, trustworthy information is tremendous.”
CEO Advisor, Inc. is advising the company on all aspects of strategy, growth, growth capital and scaling the business worldwide. Our financial, sales, marketing and operational expertise will drive the business forward and provide the added management support to accelerate growth.
About CEO Advisor, Inc.CEO Advisor, Inc. provides growth consulting, growth capital and mergers and acquisition advisory services to effectively meet the specific needs of small to mid-size companies in the software, technology, media, healthcare, and other industries. CEO Advisor's mission is to advise CEOs, presidents, business owners and principal executives with the needed expertise and focus, coupled with hands-on advice to grow your business to the next level and realize your life’s dream through a successful exit.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.