BUSINESS KILLING MISTAKES #12 – TRIPLE YOUR SALES WITHOUT WORKING HARDER – FOR FREE

What were your sales revenues for the last twelve months? Now, triple that number. Make that your new growth goal. Read this article to learn how to hit three times bigger sales growth without working any more hours or spending any more time or money doing it. 

YOUR BUSINESS HAS THREE- TO TEN-TIMES MORE SALES EASILY AVAILABLE – FOR FREE!

Every business – let me repeat that – every business and sales team that has come to us for help has been proven to be able to triple or even hit twenty times more sales – using the resources they already have. What’s the secret, and how have we helped them produce so much more in new sales without spending more money or hiring more salespeople? What can your company do right now to shatter your sales numbers?

There are dozens of proven strategies to achieve record growth; however, in this article, I’m going to cover one that is absolutely ridiculously simple. Not easy, but quite simple once you understand it. And it is how I have made so many entrepreneurs, salespeople, and employees millionaires so ridiculously fast. 

Make sure everyone on your team reads this, as it will take everyone in your company working together to achieve this higher level of optimized performance. At the end, I will share the exact action steps you need to take right now to get you and your team started on maximum sales production. 

BUSINESS KILLING MISTAKE – SIGNING WRONG SIZE CONTRACTS

Recently I asked a CEO what their team’s sales conversion (win-to-loss ratio) rates were. They said about 60%. Now, that is quite an impressive number because most companies only convert (some people use the term “close”) about 25% of their pursuits. However, after I “scrubbed” their real wins and losses (including “non-decisions”), what I usually find is most companies have a conversion rate of almost half of what they believe. 

To further that point, I asked the CEO, “What is your average size contract?”

She replied, “About $250K.”

I probed further, “What is your sweet-spot, perfect size contract, and why?”

NOTE: Read in the book Entrepreneur to Millionaire, Chapter 5: Targeting Your Sweet Spot to further master and implement this concept of “sweet spot”. 

She replied with a smile, “Just over a million,” and added, “At a million, we are able to leverage some economies of scale, use resources differently, and the contracts are just so much more profitable.”

I asked, “Do larger contracts require longer and more expensive sales cycles?”

After thinking about the question, she replied, “No, not always.” 

Here was the acid test question. “What is your sales conversion rate on sales pursuits over a million?” She didn’t know.

Her team quickly looked through their reports, ran the calculations, debated for a few minutes, and then all looked at me and said in unison, “About 15%.” 

I summarized, “Your overall blended sales win rates you believe are about 6 out of 10. However, the deals you want, the game-changing contracts, the way your company will make a ton more in profits is less than 2 out of 10, right?” The team nodded. 

I added, “Transforming your business to three times more sales will be simple. You just need to sign bigger and better margin deals. All I have to show you is how to win more of the larger contract pursuits you’re already working.” 

And most importantly, the benefits will be huge, including using less time, making more money, using fewer resources, lobbing fewer proposals, and requiring less marketing and sales support. 

WHY DO LEADERS AND SALES TEAMS PURSUE AND SELL SMALL DEALS, NOT BIG DEALS?

There are multiple reasons that companies settle for smaller and lower-margin contracts when they should be signing bigger agreements. Here are five common myths of small deals that you must learn to avoid.

1. Small deals are easier – not really. Small contracts can take a lot of time and resources. In addition, you have to sign dozens to hundreds of them to make up for a larger size contract. 
2. Small contracts will close or convert faster. Spend a day with me “scrubbing” sales pipelines, and you will see how many small deals become “zombie” deals, eating the flesh of your profits (sorry to be gory, but trying hard to prove a point) and wasting resources.
3. Small deals have easier or fewer competitors – not at all. As a matter of fact, as the contracts become really large, there are few competitors who can truly compete because most companies aren’t willing to become “Revenue Ready.” See “Phase I – Revenue Ready” in the book. 
4. Small contracts will require less support. They do. However, because you will need many more contracts to make your numbers, all new contracts need support, which is always more than just one agreement. 
5. There is too much risk in large contracts. I agree. If you only have one or two big clients, which is high risk, but in a balanced portfolio, you must have some smaller contracts or a mix that cover expenses. 

All of these myths come from the major premise and false myth that is shattered in my book Entrepreneur To Millionaire – “more from more” is never a good thing. You must learn the concept of “more from less,” as explained in the book. 

WHAT is the impact of not winning large contracts?

Until you become ready, competent, AND confident to pursue and win large major business-changing contracts, you will never come close to your sales potential. You will remain stuck in “Smallville,” grinding it out.

As you read in the book Entrepreneur To Millionaire, every chapter is designed to help you and your team move from “more from more” to “more from less.” When your business can generate more sales, revenue, and profits from fewer contracts, you are on the fast track to creating business wealth. 

If you stay stuck selling small contracts, you are adding more headaches, more employees for support, more sales cycles, more sales hires, more marketing, and more bureaucracy. If you like stress and not making money, then keep doing it this way. 

CHANGE – WHAT MUST YOU DO INSTEAD RIGHT NOW

From reading so far, I hope you are excited about how to hit three times or even ten times more sales – and maybe even ten times faster. 

But to do that, you have to change. The first thing you must do is determine what a major contract is for you. Is it a million, ten million, a hundred million – or a billion? Yes, I’ve had clients who pursued and won billion-dollar contracts. Those are definitely game-changing and competitor-destroying. 

Now, analyze your wins to losses to total pursuits on major contracts. Have you even pursued the large contracts you’re thinking about? Why not? Not ready? I’ll show you the actions you need to take to fix that. 

What was your win rate? Take the number of wins divided by total pursuits? For example, one win divided by five pursuits, is 20%. Imagine winning one or two more? That doubles or triples your sales. WITH NO MORE EFFORT AND NO MORE EXPENSE! 

KEY LEARNING POINT

The fastest way to double or triple, or even hit ten times your sales numbers from a year ago, is to pursue and win large or major contracts. There are about half-a-dozen client stories in the book about how companies sold contracts up to twenty times larger than their normal contracts, generating millions to tens of millions while using the time and resources they had already spent or would spend. 

TAKE ACTION NOW

1. Analyze your sales win-to-loss ratios, then double the number. If your win rate is 20% on major contracts, then set a goal to double that this year
2. Read the book Entrepreneur To Millionaire Phase I and II. The number one reason companies pursue but then lose on major contracts is that they “were never ready”! It is not how hard you sell or how much you spend on the sales cycle; it’s all about “being in position to win.” 
3. Then work through the “Go To Market Phase III” and chapters to develop competence and create confidence. You and your team will need both. Your prospects can tell whether you are “acting out of your league” or you’re really ready to deliver on your promises and strategic-value proposition.
4. Contact us now for help. We have assessments and workshops that can show you where the holes and blind spots are in your “Readiness” that are preventing you from attracting and closing major contracts. And those are the things you must fix right first. 

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AUTHOR BACKGROUND

Kent Billingsley is the founder and president of the Revenue Growth® Company, LLC (TRGC). He is a published author, international keynote speaker, and business transformation expert. He has become America’s Revenue Growth® Architect by helping thousands of entrepreneurs and CEOs (representing over a million employees) generate several billion in new sales, as well as tens of billions in new revenue and profits for large corporations. He has personally designed, built, transformed, and turbocharged several thousand organizations in 36 countries. Over the last 20 years, his proprietary content and trademarked programs have helped thousands of entrepreneurs and employees become millionaires and multimillionaires by “creating wealth” inside their companies. He can be reached at [email protected].