Nearly 60% of sales reps miss their quotas? This staggering statistic often stems from one key issue: business owners hire sales representatives too soon, without the necessary groundwork. Before you dive headfirst into hiring a Sales Development Representative (SDR) or Business Development Representative (BDR), let’s take a moment to consider what you need to have established first.
Let’s be honest: hiring a salesperson can feel like a breath of fresh air when juggling a thousand business owner tasks. You envision a superstar stepping in, taking over all the prospecting, and watching your
revenue soar while you finally get a breather. While this scenario is certainly possible, there’s a catch: do you know what your new hire will be doing day in and day out?
It might sound a bit wild, but many business owners don’t think through this process thoroughly. They often make the mistake of hiring too quickly, become frustrated with lackluster results, and then either start the hiring cycle over again or abandon the strategy altogether. Either way, the outcome is the same: stagnation and missed opportunities for growth.
So, how can you avoid this pitfall and ensure that your investment in sales pays off? Here’s a roadmap before you hit that “hire” button.
1. Establish an Effective Accelerated Marketing Plan
Before you bring someone on board, you must have a solid marketing plan. This plan should educate potential clients about your specific service or product. Even the most skilled salesperson will struggle to close deals if your prospects don’t understand your value. This means crafting compelling messaging, developing
valuable materials, and implementing strategies that attract and warm up leads before your SDR even picks up the phone.
2. Implement Effective CRM
A Customer Relationship Management (CRM) system is essential for managing and scoring your clients. Without a proper CRM, your sales team will flounder when it comes to tracking leads, following up, and measuring success. Choose a system that allows easy access to client data, helps score leads based on engagement, and provides visibility into the sales funnel. This will help your new hire and enhance your overall sales process.
3. Define Their Daily and Weekly Activities
Can you outline a successful SDR’s daily or weekly routine? If you can’t, then you’re not quite ready to hire. Consider creating a structured calendar that breaks down the ideal week for an SDR. This could include dedicated time for prospecting, follow-ups, meetings, and training. Alternatively, you could use a tiered task list that prioritizes high-value activities. The more specific you are, the better equipped your SDR will be to hit the ground running.
4. Show Them How to Execute
It’s one thing to hand over a list of leads and say, “Go get ‘em!” It’s another to demonstrate precisely how to do it effectively. Do you have scripts for outreach and follow-ups? Standard Operating Procedures (SOPs) or checklists for their daily tasks? Training videos that showcase key activities? Consider recording yourself doing various tasks so your new hire has a clear example. This speeds up their training, removes the guesswork, and sets clear expectations.
5. Define What Success Looks Like
If you can’t measure it, you can’t improve it. Before hiring, it’s crucial to define success in measurable terms. This involves clarifying both the expected outcomes and the inputs necessary to achieve them. Ask yourself these three questions:
1. Does your SDR know how many monthly appointments they must secure to keep their job?
2. Do they understand how many emails, calls, or direct messages they must send to reach that target?
3. Are these numbers realistic?
For example, if your minimum standard is one new appointment per day from outbound calls, break down the math: One booked call requires five pitches, which in turn requires 70 connections and ultimately leads to 100 phone calls. This breakdown clarifies what success looks like and allows your SDR to focus on what they can control—their efforts.
The Cost of Doing This Wrong
Bringing on an SDR without this level of clarity can lead to wasted time, lost money, and immense frustration. Many business owners rush into hiring only to backtrack and realize they weren’t prepared. But when this process is done right, it can transform your business trajectory.
Take, for instance, an IT company where the average client is worth $3,500 monthly and stays for five years. That’s a whopping $210,000 lifetime value! The return on investment is massive if an SDR can generate just a handful of new opportunities each month and even convert a tiny fraction.
The key takeaway? Be prepared before you hire. Setting the proper foundation will ensure that your SDR survives and thrives in its role.
If you’re contemplating bringing on an SDR or another salesperson and have questions, feel free to reach out! I’d be happy to help you navigate this journey and get you on the path to success.
http://alanwozniak.com/are-you-setting-up-your-sales-team-to-fail/
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