PICTURE IT: YOU and I are looking at buying a jewelry store that is making $1.5 million in revenue, has an inventory of $500,000 or less on average, and no debt. It’s a healthy sounding business so far.
Uh oh, the owner does 50% to 60% of sales each month. Bad news for us. If we buy this business and the owner retires or exits, our top salesperson is gone with no one in the wings to take on those big sales seamlessly. The profit of the business is being made, essentially, by one person.
Owners, be cautious of wearing the “top salesperson” hat. If sales are lopsided in favor of one person, and they are away from the store for any reason, those sales will often go with them.
This title may feel great to the ego. Not so great if you ever want to take a vacation, retire, or simply work less so you can go to more of your kid’s t-ball games. You’re now potentially sacrificing profit every time you leave the store.
For owners and managers currently in this pickle, consider becoming the third or fourth best salesperson in the store. This frees you up to run the business, take time off as wanted/needed, and ultimately become a part-time or absentee owner if you wish.
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Here’s a few ways to work yourself out of the top salesperson role and grow a healthier sales team:
Share more sales
The next client that you work with, invite a salesperson to join you at the sale. Ask for their input and feedback. Split the sale when it goes through. This is a great way to mentor new salespeople and help them feel the success of a sale go through.
Hand off more sales
Start with the easy ones. Repairs have the highest closing ratio, so start with those. Lower ticket or low risk sales come next. Keep this up until your team builds confidence on the sale and you’re just there to smile and shake hands with customers.
Leave the office during slower times
Check your traffic patterns for when business is quietest. Physically leave the store at this time, giving the staff a chance to work the floor without your help. It’s great practice at a less risky time to know they can close the sale without handholding.
Have a strong training plan in place
A good training plan should be practical, ongoing, and promote steady growth in a person. As a leader of your business, you stand to make exponentially more sales by training and equipping great salespeople than you ever will by running the salesfloor on your own.
Consider ways you can sell less this month. It might be just the ticket for your company to sell a lot more.
