Yesterday, I had the opportunity to attend a seminar for a top company seeking Business Development Executives – Sales Representatives. The presentation was enlightening and informative as it highlighted the rigorous industry and the need for companies to go beyond their expectations to be profitable.
This blog article will explore the risks and the general feel of operating a business in a recession. I do not feel that management teams in firms understand how to operate a business in a recession. We all know how to manage our firms when everything is going well, sales are coming in and the market is there for our products or services. I feel though that companies should always be operating to expect a slow period. This way, all the strategies we were employing before will even make business flourish.
So, we are now in a deep recession with countries worldwide all now in a bid to ensure our budgets and deficits are erased trying to have surpluses. We all created this huge mess, spending more and not investing for the harsh economic times. Most companies now are employing Sales Teams in a quest to get new sales to ensure businesses stay afloat this low period.
Companies operating in today’s business environment think that lowering prices on products or services is the best way out. It may help some firms but certainly this won’t work for all. Most firms employing sales teams are doing so on commissions. This has its risks as new employees are so desperate to make quotas that sometimes real business strategies are not enforced with the need to make a sale the highest priority. Therefore, firms are at a huge disadvantage because the quest for building relationships is not important.
Employees need job security. Once employees feel that they are secured in their jobs they operate with a different mindset and purpose. Companies must be able to translate this purpose in Sales Teams in organizations. Clearly, because sales reps are paid based on commissions, sometimes they see themselves as outsiders; most times away from the confines of the firm on the street trying to make a sale.
Companies are in business first and foremost to make a profit. There are secondary objectives but primarily they are there to make a profit. All the strategies businesses use must be well developed with the business in mind. The world economic crises is not only affecting companies but also governments as they have bigger budgets to fill and huge demands internationally especially those with debts.
Companies who seek to employ sales teams in the form of Sales Representatives must be very careful as this could be the company’s worst nightmare. Sales Representatives must feel like they are apart of organizations. They must feel important and critical to the success of the firm. Anytime an employee feels secondary, they will employ different tactics to achieve their own agendas. Management is key is leading a company out of a recession into a period of constant productivity. For companies seeking Sales Teams it may seek wise but it may be disadvantageous for your company if not managed wisely.