Game of Sales (2)-Build An Entrepreneurial View and Strengthen Your Personal Owned Inference

In today's dynamic and competitive business environment, excelling in sales and crafting a strong personal brand is essential for long-term success. These twin objectives require a blend of financial acumen, trend awareness, and people skills. This article explores how to enhance your selling capabilities while building a personal brand by focusing on three key pillars: Money, Trends, and People.

Part 1. Mastering the Money Metrics

Sales professionals must understand financial principles to deliver measurable results and command respect in their organizations. This goes beyond achieving quotas/KPI; it’s about comprehensively managing and optimizing the financial levers that drive overall success. Remember that NOT every business deal has the same priority! The questions here are what to judge if the deal has priority and how to judge. I suggest five factors: Revenue, gross profit, net profit, released orders, and cash flow.?

• Revenue target and revenue Growth: Existing revenue targets are the foundation of a company’s stability. They reflect commitments to stakeholders and ensure the organization’s immediate financial health. Meeting these targets also means building credibility with investors and partners, ensuring sufficient cash flow to fund operations, and reinforcing a reliable track record for future endeavors. Revenue growth, on the other hand, represents the future. It signals market expansion, innovation, and competitiveness. Pursuing growth doesn’t only attract new investments and broaden market opportunities, encourage innovation and product development, and enhance the company’s valuation and industry standing. No matter what position you are, a junior salesman or a business owner; no matter what product or service you are selling, you need to have an overall view of the situation and find the balance between revenue and its growth.???

1. Evaluate market conditions to determine if the focus should shift towards stability or expansion.
2. Align team efforts to meet immediate revenue goals while setting the groundwork for scalable growth.
3. Monitor key metrics like profitability, customer acquisition costs, and market trends to adjust strategies dynamically.

• Gross Profit and Net Profit: For sales professionals, achieving revenue targets is important, but true success lies in understanding and leveraging key profitability metrics like gross profit and net profit. These indicators not only reflect financial health but also guide on optimizing sales strategies for long-term success. Gross profit is the revenue remaining after deducting the cost of goods sold (COGS). It highlights the efficiency of production or service delivery and directly impacts a company’s ability to fund operations and growth. For sales professionals, focusing on gross profit means: Promoting high-margin products/services, negotiating favorable terms and conditions, and avoiding heavy discounts. Net profit is the final profit after accounting for all expenses, including operating costs, taxes, and interest. It represents the company’s overall profitability and sustainability. Sales professionals should focus on net profit by: Considering optional costs, targeting sustainable (Consistent and long-term profitability) deals, and ensuring the deals contribute positively to the bottom line. A low- low-net-profit example is if a salesman brings in a rush order which will cause a lot of OT (Overtime) whose operating cost will be higher than the regular order. The sales team and the company must build up clear communication on the following topics:?

1. Short-term v.s. Long-term goal: The best option is to meet revenue targets without compromising future profitability. However, conflicts always happen in the real world. For example, a sales team may sacrifice the margin in nurturing a new client relationship that promises significant future business opportunities. Whether what situation you are in, be known the position (Both your party and the counterpart) and what could be a tradeoff.????
2. Drive strategic decisions: Find a way to identify deals that maximize both gross profit and net profit to strengthen financial stability. For instance, a sales team could analyze a deal that initially appears low-margin but, when paired with a long-term supply agreement, ensures steady profitability and strengthens client loyalty.
3. Enhance credibility: I often see the arguments between the sales team and HQ, such as, the sales team saying the product spec doesn’t match what the customer wants, LT is too long, the price is too high, etc. On the other hand, HQ said the sales team doesn’t want to commit to the forecast or frequent rush orders and/or aging inventory caused the forecast inaccuracy. To build up the trust between the regional sales team and HQ, leadership, and stakeholders, a comprehensive communication/proposal that balances immediate revenue contributions with long-term profitability can position a salesperson as a strategic thinker and a reliable contributor to organizational goals.?

• Cash Conversion Cycle (CCC): A critical yet often overlooked metric in sales is the time it takes to convert sales into cash. Think about the following two cases: Case A: To complete the deal, we have to buy the raw materials with more than 52 weeks LT, then build to product to product. Then the average selling period of this product is another 6 months. Case B: We simply purchase the machine from ODM vendors. Machin LT is 8 weeks. The average selling period of this product is 2 months. In case A, the total days of capital invested is more than 76 weeks. It turns to 16 weeks in case B. Obviously, case B has higher capital efficiency than case A.

To shorten this cycle:

1. Negotiate favorable payment terms with customers and suppliers.
2. Minimize inventory levels without sacrificing service quality.
3. Streamline order-to-cash processes using technology and automation.

Key takeaway: By focusing on these metrics and carefully evaluating the quality of deals, sales teams can make informed decisions that contribute to immediate revenue success while ensuring long-term financial health. This balanced approach not only supports organizational goals but also elevates the role of sales within the broader business strategy. A deep understanding of financial metrics enables sales professionals to evaluate the quality of deals beyond surface-level revenue targets. Achieving sales goals is essential, but salespeople must also anticipate the consequences of their deals for the company. An excellent deal should:?

1. Support Revenue Targets and Future Growth: Ensure the deal aligns with current financial objectives while laying a foundation for sustained success.?

2. Offer Strong Margins with Stability: Focus on deals that provide not only good margins but also consistent demand, avoiding scenarios that lead to rushed orders or excessive inventory buildup.?

3. Prioritize Shorter Cash Conversion Cycles (CCC): Aim for deals with quicker cash flows compared to other products or services, enhancing liquidity and competitiveness against market players.

Part 2. Riding and Building Industry Trends

The ability to align with industry trends positions you as a forward-thinking professional, while actively shaping trends elevates your status as a leader. Agility and vision are indispensable. Identifying industry trends and leveraging them effectively can give businesses a competitive edge. But beyond just following trends, the true entrepreneurial mastery lies in creating them. Here’s how entrepreneurs can find, ride, and even make industry trends.

Finding Industry Trends

1. Monitor Industry Leaders and Innovations: Pay attention to what market leaders and innovators are doing. This can provide insights into emerging patterns and ideas that have the potential to become trends.
2. Leverage Data Analytics: Use tools and platforms to analyze market data, customer behavior, and industry reports. Identifying spikes in demand or shifting customer preferences can highlight upcoming trends.
3. Engage with Customers: Customer feedback, reviews, and social media interactions are valuable sources of insight into what consumers want and where the market might be headed. Forecast and transaction data are key indicators for verifying true customer future movements.?
4. Attend Trade Shows and Conferences: These events are hubs for unveiling new technologies, products, and ideas. Networking at such venues can provide firsthand knowledge of what’s trending.
5. Keep an Eye on Adjacent Industries/Supply Chain: Innovations often spill over from one industry to another. Cross-industry observation can reveal opportunities to adapt trends to your niche.

Riding the Trend

1. Act Quickly: Timing is crucial. Once a trend is identified, move swiftly to position your business as a relevant player. Early adopters often gain a big share of market benefits.
2. Tailor Offerings: Customize your products or services to align with the trend while maintaining brand authenticity. This ensures relevance without losing your unique identity.
3. Invest in Marketing: Educate your audience about how your offerings fit into the trend. Use digital marketing, influencer collaborations, and targeted campaigns to maximize visibility.
4. Collaborate Strategically: Partnering with established players in the trending space can amplify your reach and credibility.
5. Measure and Adapt: Continuously track the performance of your trend-related initiatives. Be prepared to pivot if the trend evolves or begins to wane.

Making the Trend

1. Identify a Gap/Need/paint point: Trends often arise from unmet needs or unaddressed pain points. Invest in research to uncover what the market is missing.
2. Innovate Boldly: Introduce a unique product, service, or approach that disrupts the status quo. Be the first to address the gap with a compelling solution.
3. Leverage Storytelling: Build a narrative around your innovation that resonates emotionally with your target audience. People are more likely to adopt trends that feel meaningful and relatable.
4. Engage Key Influencers/Leverage the BIG GUY: Collaborate with influencers, thought leaders and industry experts to champion your innovation. Their endorsement can accelerate trend adoption.
5. Create Communities: Foster a sense of belonging among early adopters. Encourage them to share their experiences and advocate for your trend, amplifying its reach organically.

Key takeaway: Finding, riding, and creating trends require a blend of observation, agility, and creativity. One must strike a balance between riding existing trends and pioneering new ones. Following trends ensures short-term relevance while making trends establishes long-term authority and differentiation. By mastering these skills, entrepreneurs can position themselves not just as participants in their industries but as influential leaders shaping the future.?

Part 3. Engaging the Right People

Building an entrepreneurial mindset requires not only strategic vision but also a strong network of the right people. Success depends on your ability to engage effectively with three key groups: customers, employees, and investing stakeholders. Let’s explore how to foster meaningful connections and create value for each of these groups.

1. Customers: The Lifeline of Your Business

Customers are the cornerstone of any entrepreneurial endeavor. Understanding their needs, preferences, and pain points is critical. Here’s how you can excel in customer engagement:

• Develop Deep Insights: Invest time in understanding your target audience through surveys, interviews, and data analysis. Tailor your solutions to address their specific needs.
• Build Trust: Deliver consistent value and maintain open communication. Transparency in pricing, policies, and processes can significantly enhance trust.
• Personalize Experiences: Leverage technology to offer personalized interactions, from product recommendations to customer support.
• Act on Feedback: Regularly seek feedback and show your customers that their opinions matter. Use this input to improve your offerings and service quality.

2. Employees: The Heart of Execution

Your employees are the backbone of your business. Engaging and motivating them ensures smooth execution of your entrepreneurial vision. Here are some best practices:

• Foster a Strong Culture: Create an environment where values, purpose, and collaboration are prioritized. A positive culture attracts top talent and boosts morale.
• Invest in Development: Provide opportunities for professional growth through training, mentorship, and career advancement programs.
• Empower Decision-Making: Encourage employees to take ownership of their roles by giving them the autonomy to make decisions within their scope.
• Recognize and Reward: Acknowledge contributions through rewards, recognition programs, and regular appreciation. Employees who feel valued are more engaged and productive.

3. Investing Stakeholders: Catalysts for Growth

Investing stakeholders—whether they are venture capitalists, angel investors, or corporate sponsors—provide the resources needed to scale your business. Building strong relationships with them is vital. Consider these approaches:

• Communicate Clearly: Share your vision, strategy, and performance metrics in a transparent manner. Regular updates build confidence and demonstrate accountability.
• Showcase ROI Potential: Highlight how your business aligns with market trends and how investments will translate into returns. Use concrete data to support your case.
• Foster Collaboration: Treat stakeholders as strategic partners. Engage them in brainstorming sessions and decision-making processes to build alignment.
• Deliver Results: Consistently meet or exceed targets to reinforce trust and credibility.

Key takeaway: Engaging with customers, employees, and investing stakeholders is not just about building relationships; it’s about creating win-win partnerships that drive growth and success. By understanding the unique needs of each group and tailoring your approach, you can build a resilient entrepreneurial framework and strengthen your personal influence.