Actual sales training takes six months at Peregrine Contracting. First, Frost enrolls newly hired salespeople in a weeklong course on home design at a local design/build school so they can see how projects go from the conceptual stage through to construction drawings.
“During the first month of training, we review together all the design jobs we’ve done in-house,” he says. “We discuss the thought that went into the design on those projects. We’re big believers in Sarah Susanka and her [Not So Big House] concepts, so we all read three of her books and discussed what we learned from them.”
Next, Frost introduces newbies to his business one piece at a time: Together they review the company’s manual of preferred details and products used in the building process. Because his business is open book, Frost has the salesperson spend time with the accountant, reviewing numbers, from revenue targets to gross margin goals. Then there’s a huddle with the marketing director, who shares the marketing plan, brochures, and Web site; and with the draftsperson, who trots out examples of drawings she typically includes with projects.
Finally, Frost begins training the new salesperson on how sales calls are done. “I have them do some role-playing and give me a sample presentation,” he says, using a list of standard types of objections to address and overcome. After easing the salesperson into the process, Frost allows him or her to shadow on a sales call and, eventually, to go out on his or her own.
MEASURE WITH METRICS How long should it take before a new salesperson is fully up to speed? Streich says this depends on the individual and the company. One friend told him that his new salesperson took two and a half years to really get going. Streich says, “I’ve also heard people say they give new sales hires six months; they either get it or they’re out.”
As Streich’s newest salesperson begins her second year, he says, “I’m expecting a big step up in sales activity on her side. All her connections should start bearing fruit.” In her first 10 months, she did $100,000 in sales, with most of that time spent in training.
To launch her solo journey, Streich plans to give her all bathroom leads. “She has a really good understanding of what a bathroom project is all about, so this should get her comfortable,” he says. “Then she can apply what she learns to a bigger project, like a kitchen or an addition.”
Once a new salesperson is up and running, owners say, the key is regular monitoring using specific metrics that reveal whether he or she is on track or has veered wildly off-course.
“I’ve just begun doing a monthly one-on-one meeting with each salesperson where we talk about what their plan is for the month,” Mirando says. “For example, how many first appointments they have, how many prospecting calls they’re going to make, how many networking events they’ll attend, how much in sales they’ll present to prospective customers, and what they’re doing to get more referrals.”
To make the metrics more visible, Mirando launched a contest — something he learned about at a seminar, then immediately put into place. Every month, all measurable activities are tracked on a dry-erase board, which is hung in plain view at the office. Numbers are marked for each activity and each salesperson. Each month, the salesperson with the most points wins a prize.
In addition to one-on-ones, Mirando holds weekly sales meetings, encouraging his team to be consistent with the sales steps they follow, as well as having them role-play. After a pause, he adds, “There’s a reluctance to participate.”
For now, Mirando isn’t too worried. And he’s trying not to be pushy, since this is all new. “I’m trying to be encouraging. Maybe they feel awkward,” he says. “I mean, some of them have been selling a long time. But that doesn’t mean they can’t improve. I know I can continue to improve.”
For the owner-seller who successfully replicates himself — and casts himself in the role of sales manager — the rewards include having a big-picture perspective of the business, as well as the possibility of growth, diversification, geographic expansion, and sheer pleasure.
“I’m more like the owner of a professional baseball team,” Marrokal says. I get to sit back and watch the team, watch them play a game very well. There’s a reward in doing that. Most owners, when they get to that level, they really enjoy it.”
—Alice Bumgarner is a freelance writer based in Durham, N.C.