In times of crisis, there are two ways to survive: reducing costs or increasing revenues. Unfortunately, many entrepreneurs only see the cost-cutting side.
In fact, it’s much easier for an inexperienced manager to fire than to redesign processes and make the company more efficient. After all, the biggest success cases around us are linked to 3G fund companies, famous for their cost reduction policy.
But what no one thinks is that to get where they are, 3G companies needed to sell A LOT. And more than that, they only got there through a well-established sales culture.
This fact, in addition to clarifying the success of the fund’s companies, ends up leaving a doubt in the minds of entrepreneurs. How do they manage to sell more for less?
Just to give you an example of the cost savings generated by the Lemann fund, that year, Kraft Heinz laid off more than 2,500 employees without losing any efficiency. Now think with me: the results of this company have only improved. Right?
What happens is the following: Jorge Paulo Lemann knows that it is possible to sell a lot by taking advantage of a lean structure. In his companies, he manages to accomplish this feat by inserting a culture of goals and results.
But when the sale is complex, what can be done? In fact, selling a monthly R$1,000 ticket for 12 months is not the same as distributing ketchup. It takes a very well-crafted speech and an extremely structured process. So how selling plots in Taj islamabad is can be done with less possible in complex sales?
How to sell more with less? The Million Dollar Question!
How to sell more is the question every entrepreneur needs to find the answer to. And how to do this, without incurring high costs, is the way to scale any SME.
Reaching up to R$ 1,000,000.00 in terms of ARR, with a good profit margin, is the dream of any startup. But how to achieve this is the question we are trying to answer in this text.
Let’s work on 2 scenarios. We’ll talk about a company that already has a business process designed and about a startup, right in its beginnings.
The biggest difference is that Startup, when it comes to how to sell more, is less likely to make mistakes than a company that is already in the market. This happens due to the following fact: in the Startups ecosystem there is a lot of information exchange. And most successful entrepreneurs rightly preach that the path to success is linked to a well-designed and scalable process.
And we have the aggravating factor that commercial practices, especially in Brazil, are very archaic, all companies that have been in the market for a long time have already committed (or committed) many mistakes in their commercial processes.
It is common to find places where sellers perform all the functions of the business process, from prospecting to closing. It is logical that it is possible to thrive under these conditions, otherwise, we would have few companies that make billions today.
But the difference is that it is practically impossible to achieve predictability in such a process. Lead generation by the sales executive is extremely fickle. We always emphasize that sellers are focused on generating revenue in the short term, so prospecting will always be a neglected point for them.
And today, mainly, all venture capital funds (venture capital) seek companies that have constant results and good growth potential. Therefore, a small/medium company that cannot show its capacity to grow will hardly be able to go to the market to look for new partners.
A Startup, on the other hand, if it does not have a spectacular product, which works in a self-service model, has a great possibility of going broke if it cannot sell more. How to sell more to them is the essential question, not only to climb, but also to survive.
A segmented and structured process is a must have for this type of company. Just stop and think. If you were an investor, what would be the chance of putting your money into a small business that can’t scale?
Climbing is essential. No investment fund will put your money in a business doomed to fail, even if the solution that Startup has is very good. More important than the solution is the execution of the idea. If not Orkut would still be alive today. Right?
Structuring your commercial area like any other area of your company, must be based on science!
How to sell more with less? The secret of all startups
I read a text by Reid Hoffman, co-founder of LinkedIn recently. He says that the Silicon Valley differential is in the speed at which companies there scale. With easy access to multiple investors, they quickly structure their companies and are able to build extremely robust sales areas.
In fact, I agree with him on several counts. The big difference in that small area of California in relation to the rest of the world lies in the ease of obtaining large investments, in addition to the easy access to quality labor.
But we cannot ignore North American excellence in selling. Silicon Valley isn’t the only place in the world with a lot of money. If it were just from this perspective, we would be filled with giant Startups in Europe.
In my opinion, the big difference in terms of success from North Americans to Europeans is the ability to do more with less. Americans, pioneers in the segmented and scalable sales process, created the possibility of measuring future sales results (the famous predictable result) by delegating each part of the sale to a specific person.
With the possibility of prospecting and qualification being carried out by junior professionals, the costs of the process were greatly reduced. Now, sales executives, the most expensive figures in the process, are playing only one role, that of closing, while receiving a steady stream of opportunities.
Therefore, a seller, who used to close only one business per month, is able to close up to 10. His operational capacity was increased by 10x just by segmenting the process.
In my eyes, this is the difference between the US and the rest of the world. The ability to do more with much less. No wonder that most successful startups, from Tesla Motors, which sold cars without the need for dealerships (a fact later prohibited by the government), to Salesforce, have very well-structured business processes.
While in Brazil, we only rely on Ambev as a reference, there they have more than 100 companies to be inspired by. If this isn’t a successful culture, I don’t know what is!
The difference between a Startup and a large company is that they can sell the same amount of money with an infinitely smaller team. Just stop and think: Uber, with a very lean team, generates similar revenue to Grupo Pão de Açucar.
Tell me now: do you, as an entrepreneur, prefer to own Pão de Açúcar or Uber?! With all due respect to Abílio Diniz’s company, but every businessman seeks the company with the greatest profit margin!
Every entrepreneur looks for the company that knows how to sell more for less money
It’s no mystery today that everyone who starts a company, unless it’s an NGO, seeks to earn a lot of money.
But, in addition to making money, we are all looking for businesses that have a lean operation and are capable of generating great profitability. Therefore, how to sell more basically involves adopting a business model similar to that of a Startup.
Yes, structuring a traditional business so that it makes a lot of money is something quite complicated. It’s pretty hard to build an oil company from scratch. But it’s possible to set up your tech company with very little.
So here’s the tip. If you want to earn money, open your eyes to the world of technology!
In conclusion: making money goes hand in hand with innovation
Innovation is not just about creating new technology. Using a disruptive business model is also about innovating!
Creating a business that has a segmented sales model and that generates predictable results, especially for Brazil, is quite an innovation. If your company is still using archaic sales strategies, it’s time to change!
If you want to get a sense of how to start structuring a replicable process, check out our manual on how to increase your revenue by up to 30%. In them we explain a little bit of our mistakes and successes to achieve reasonable growth in the complex sales scenario.
If you want to increase the speed of implementation of the process, please contact our team of consultants. We will help you to innovate in sales even faster.