Tery Larrew called with a question. Tery is a founder and principal in Caddis Capital (www.caddiscapital.com) , a private equity firm in Denver. As usual, we checked in with each other and he was as giddy as I have heard him in twenty years. It seems they are having one of their best seasons ever and they have had some good ones, delivering ROI's in the past of 30% and more.
 
Like Caddis Capital, you can be enjoying better results than ever, even during a recession. Making this happen is more than being in the right place at the right time. So, here are two factors for you to consider in adjusting your sales efforts during lean times.
 
1. Increase Your Numbers
 
Sales is a numbers game. To succeed in lean times we need to manage the numbers. Closing ratios are going to go down.
 
For instance, in some selling situations, a certain number of contacts will result in a certain number of presentations. A certain number of presentations result in a certain number of closes. In good times, the numbers are lower; in lean times the numbers are higher.
 
Example: Acme Widgets has needed ten contacts to result in four presentations and four presentations to result in one sale. In lean times, Acme might need six presentations to close one sale and twenty contacts to result in six presentations. The numbers have to increase.  
 
Instead of cutting back on your sales activities, now is the time to accelerate them.
 
Doing the same activities with fewer people might seem like the right way to improve profits. It isn't. Doing the same things in a lean market will result in less sales.
 
Doing more activities with the same people is a better alternative. Use what you have been learning to automate and accelerate more of your sales activities.
 
 
2. Find the Buyers
 
People are still buying; Caddis Capital is not alone. In lean times the sales of essentials continue - and often increase. Who do you know that is selling essentials and what could you do for them?
 
For instance, because some families are under financial pressure, they are eating out less often. The sales of cereal and soup are rising rapidly! They are "fast food", they can be prepared at home and they actually cost less than typical fast food.
 
Gas and oil continues to be a strong buying sector. Most people must drive to work and the oil companies have made record profits. Their margins have not gone up, just the raw numbers of revenue times margin have resulted in huge dollar figures. They have money to spend. Even with the recent price decreases, gas and oil continue to be an attractive sector.  
 
 
Summary
 
Who are the survivors of this current economic downturn? What can you do for them (why would they buy from you)?
 
Who is thriving during this time and what can you do for them?
 
How can you automate, delegate and otherwise accelerate your sales efforts now?
 
Spend time with your salespeople and your marketing team looking for non-traditional answers to these questions.
 
 
May I help?
 
Sometimes an outside set of eyes and ears can help you uncover those non-traditional opportunities. As of today, I have eight open days in 2008 - how can I help?