Why Your Company Should Put Sales Outsourcing in the Budget
You're sold on the benefits of outsourcing your company's sales, and you have a good idea of how it will work, but to actually implement sales outsourcing, you still need the go-ahead from the CEO, the Finance Director, the Board, or someone else in your company who is not yet quite as convinced as you. How do you make a persuasive case for sales outsourcing, and explain how it will fit into your company's budget?
Sales outsourcing makes good business sense for a number of reasons, including consolidating expenses, generating consistent revenue, and reducing waste from internal sales efforts that aren't running smoothly. Here are some points you can bring up to help any recalcitrant members of your executive team see the financial benefits to your company of sales outsourcing.
Sales Outsourcing Reduces Costs in Other Areas
While the fee you pay your sales outsourcing company will take the place of your current expenditures on whatever sales initiative you are replacing, it will also have a positive effect on other parts of your company's budget.
Because your outsourcing company will take care of every aspect of the sales function, including recruiting, hiring, and on-boarding of new sales representatives, your company will not need to worry about accounting separately for recruiting and human resources expenditures. Similarly, since your sales outsourcing company will provide a sales office, fully equipped and furnished, as well as taking care of technology and licensing, and IT support, all the expenses involved in running a sales office can be deducted from your company's budget. The sales outsourcing company may also take over some sales support roles that are currently being managed in other departments of your company, as well as payroll and perhaps other roles.
If you have an executive at your company who is resisting sales outsourcing because of budgetary concerns, he or she may not realize just how much your company's current sales efforts are actually costing, because many of those costs are hidden, even possibly within different departments. Where the cost of outsourcing is a serious concern, it is worthwhile making an itemized list of all of the budgetary sales outsourcing will replace from all departments. Often, the cost for sales outsourcing is similar to or less than existing sales expenditures, but with more control over the process, and better results.
Sales Outsourcing Pays for Itself
You have a significant advantage when pitching sales outsourcing to the company tightwad. Sales, more than any other function in a company, is the one that literally, and very visibly, pays for itself. The sales function is what drives revenue for your company, so if you can present compelling evidence that a sales outsourcing program will generate such impressive growth that it will pay itself off quickly and dramatically, you will powerfully improve your chances of getting the go-ahead.
One of the best angles to approach it from is starting your outsourced initiative with a pilot program. That way you don't have to push any kind of long-term budgetary commitment. The perceived financial risk is contained and defined, not open-ended. Once the pilot program is successful, you will be in a much stronger position to present a more long-term sales outsourcing initiative, because you will have concrete evidence of its success and budgetary feasibility.
Consider Other Sales Outsourcing Options
If worse comes to worst, and you cannot get approval to implement a full sales outsourcing program, you may be able to outsource at least part of your sales function--maybe the part that is giving your company the most trouble at the moment. Many sales outsourcing companies offer customized sales outsourcing solutions for different situations.
If you're having a hard time hiring on and retaining enough qualified sales representatives, consider outsourcing your sales recruiting. If your training program could use some revitalization, hire a sales outsourcing company to provide a one-time training seminar, or ongoing remote or on-premises training. You can also engage a sales outsourcing company for more consultative projects, such as developing a more effective compensation plan or sales process, or designing customized sales reports and analytics to support your sales program.
Need extra help selling your company on sales outsourcing? Contact Netpique today. We'd be happy to assist you in coming up with a winning strategy.