Executive Summary
A $1.8 million calibration company, in business for twelve years, had declined from a $3.4 million revenue company a few years prior. The owner recognized he needed an outside sales consultant to help due to a key vertical market change that impacted revenue, as well as the lack of internal processes and communication.
The Big Win
Generated 12% in new business within 90 days and increased margins.
Challenges
- Declining annual sales of 10+% for the past few years
- Key industry vertical took a big hit, reducing revenue
- Largest client went to skeletal crew, shutting down 80% of their business - did not renew contract
- Smaller clients weren’t paying bills in a timely manner
- No sales goals
- Head engineer butting heads with sales team - not identifying/quoting properly - elongating sales cycle
- Majority of revenue came through past clients
- Leads were placed into CRM, but never followed up on (over $500k in lost revenue)
Solutions
- Identified Sales Manager as a key problem and let him go
- Poor performing sales rep left
- Hired a new sales rep
- Created corporate sales goals
- Implemented quotas for reps
- Redefined new client focus of selling to a new vertical market
- Developed a quality standard that sales reps were required to follow
- Created internal sales process with timeline, resulting in collaboration between sales and engineers
Hiring an Outsourced VP of Sales to determine how to overcome a variety of obstacles we were facing internally to turnaround declining sales revenue enabled me to pull my head out of the sand. I am truly excited about work again for the first time since the very beginning of the company.
Results
- Generated 12% in new business within 90 days
- New client focus resulted in higher margins, due to greater industry regulations
- Internal sales process now involved engineers, which resulted in faster turnaround times
- Management now can identify where the “ball was dropped” and address execution issues
- Sales team and engineers working together and communicating well
- Identified new industries to pursue
- Owner confident in business and doesn’t feel pressure to be present every day
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