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When companies have some success with their sales force, they often consider the next step is to hire more people. This will increase the top line revenue and grow the business, which will become increased bottom-line results.

Right? Unfortunately, we see this approach repeated over and over again, and it leads to disappointment. A larger sales force does not always mean increased revenue. It certainly does not always mean increased bottom-line either. Salespeople are expensive and require management. They are not always the right growth strategy for your company. Let’s look at the reasons why.

What expectations do companies have with an increased sales headcount strategy?

The strategy of new salespeople usually means a strategy for acquisition of new customers or greater revenue from existing accounts. The new personnel will be focused on new geography or customer groups with the intent of broadening the companies footprint. They may be sent to new markets away from the primary selling fields currently being serviced.

Some companies increase headcount with the intent of reducing the number of accounts each person will manage, therefore increasing the time with those customers and the expectation of growth. There may be an emphasis on new products, cross-selling, or increasing the overall penetration of existing products. The intention is sound so why does it not work out for so many companies?

There are four primary reasons for failure:

  1. Unrealistic timelines associated with the expected results
  2. Unanticipated expenses with adding and supporting increased headcount
  3. Unanticipated risks
  4. Failure to define and measure sales strategy implementation.

In this eBook we look at those points and what actions you need to be taking. Click on the image to download your copy now.

The Growth Strategy Most Like to Fail

While adding salespeople seems like a fast and logical way to increase revenue, more often than not, that strategy fails to crystallise. Simply because the executive did not follow the rigorous due diligence process from the outset. Adele Crane assists companies prepare for growth through Revenue Improvement Reviews.

We identify what actions you need to take, the financial impact and importantly the capacity and productivity of individuals within the existing team and new hires. We find the balance between marketing-driven growth and sales driven growth to ensure a cost effective growth strategy for your business.

Your company needs to make well-informed decisions before embarking on strategies for top-line revenue and bottom line growth. You need to minimise the risk and ensure the strategy will deliver the best investment return.

If you would like to discuss your implementation strategy for new products and markets, please reach out to the office and organise a 30-minute initial conversation with Adele.

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