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As the New England economy continues to struggle,
we have to ask ourselves, "Is there anything we can do to counter
this trend?"
How about refocusing your company and its executives
on sales?
I know, a number of you are thinking that is
an oversimplified solution. Our nation is currently faced with
corporate corruption, a stumbling stock market, terrorist threats
and dwindling consumer confidence. However, sometimes it's the
simple answer that is the correct one, and many parts of the
country are already recovering much more quickly than New England.
Let's look at New York City, which was devastated
by the worst terrorist attack in U.S. history last year. According
to the U.S. Department of Labor, unemployment after the attack
has leveled off and never rose by more than one percentage point
- impressive when one considers the mass destruction the city
and its businesses endured.
However, Massachusetts' unemployment has risen
0.7 percentage points since January 2002, and venture capital
investing has dropped by more than 50 percent over the past
year and by as much as 12 percent since the first quarter of
2002. Furthermore, according to the National Venture Capital
Association, New England companies managed to collect only 13.5
percent of U.S. venture capital investments last quarter, well
below Silicon Valley's take of 34.6 percent.
What do these number suggest? One simple reality
- New Englanders are not as strong in sales as we should be.
If we could sell our products, technology and services more
effectively, we would be recovering from this economic downturn
quickly.
One would think that a region like New England,
which is filled with some of the world's most competitive colleges
and universities and most innovative technology companies, could
easily recover from difficult economic times. Yet that is not
happening. Despite the area's deep tradition of education and
innovation, a high number of local companies have closed or
relocated in the past year.
It seems we can start businesses and create
technology, but selling is a problem. Maybe it's New England's
culture that thwarts sales success. In New York City, for example,
people are conditioned to be extroverted, aggressive and resilient.
I'm not saying that New Yorkers are tougher than New Englanders
- we did start the Revolutionary War and win the last Super
Bowl, after all - but New Yorkers seem to expect difficulty
more often than we do. It's part of their culture.
New York is the town that people come to from
all over the world to achieve the American Dream. It's competitive
every day of the week, and New Yorkers' toughness and ability
to handle obstacles was only fortified last September. Whether
it's a street vendor, a concierge, a public relations associate
or an investment banker - New York is filled with people who
are constantly competing for your dollar.
New Yorkers are not afraid of the hard sell
or of speaking their mind. When was the last time you walked
down a New York street and weren't asked to buy something -
a watch, a hot dog, Broadway tickets?
You are rarely faced with that type of culture
in New England. We don't have street vendors on every corner
flashing fake Rolexes, hot pretzels or "I Love Boston" T-shirts.
Boston is not considered "The City that Never Sleeps" and people
don't shout "If I can make it there, I'll make it anywhere"
at Red Sox games. As a matter of fact, giving someone the "hard
sell" is considered a major faux pas in New England.
In a culture based on Puritan ideals, where
politeness is of paramount importance, many New Englanders believe
selling is beneath them or demeaning in some way. Adjectives
like "pushy," "abrasive" and "manipulative" come to mind for
some when describing salespeople.
However, that belief could not be further from
the truth. Salespeople are often the most innovative, important
and influential people within an organization. Their efforts
and achievements can sometimes decide whether a company dies
or survives. No other group of employees has a bigger influence
on a company's revenue or more contact with a company's clients.
Being a solid salesperson requires not only
intelligence, but versatility. Strong salespeople are a unique
breed, and they all have certain characteristics that enable
them to succeed, including motivation, perseverance, honest,
personality, fearlessness and toughness.
So what can area executives do to find or train
the right salespeople? Can they change their company culture
to increase sales?
Even if you give your salespeople access to
potential customers, you can't make them sell. No matter how
talented, aggressive or immune to rejection someone is, they
have to want to sell and take risks in order to be successful.
They can't be afraid of upsetting or losing a potential customer
- they can't be afraid of anything.
Before focusing on your sales staff, you should
look at your company culture. Is it a typical New England business
culture, filled with engineers, scientists, MBAs and academics?
If so, that might be the first thing you need to address. Add
some rainmakers who are thin on the degrees but strong in sales
experience.
And selling should be a company-wide endeavor;
requiring all your employees to undergo sales training might
give them a better understanding of the business culture needed
to survive today.
You should also be quick to identify problems
within the sales team. If your sales people are constantly offering
excuses or blaming the economy for their failures, they are
not the type of people who will help you succeed. Also, avoid
staff members who have limited activity or are constantly writing
proposals but never closing deals. Train your sales staff to
listen to your customer's needs first and ask perceptive questions
that identify their problems and needs quickly.
Finally, make sure you have tough, motivated
and fearless people on staff who are not afraid of the hard
sell.
JONATHAN FREEDMAN is president of Mage LLC
in Needham.
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