Welcome to the certified million-dollar podcast. I'm Sean fine, and I'm in micros Allie Whitfield. This show is brought to you by articles of vanilla soft company, receives guests, or even better or talked about today.

Shobha. Before we do that. Why are you you're in a different background? This is new to me, what's going on. I decide to take the winter and by storm, literally, and come to first three months, some with the family. So I can get away from the snow and into this beautiful weather for a few months.

Barber Shop North the next time, if you could be like with a pool in the background, that would be awesome, but woke up with this. That's all right, let's go.

All right, so you have a different one today, not much of a debate, I wanted to pick your brain and see what time, what kinds of things you've seen, and what you think we should do. So I'm a founder and I'm starting to grow sales and things of science, pricing in Celestine, for resting in bed, head count. So I was supposed to push the business for you. Chris rapping, when does the sales team have a project ffo? So I always say, things like that site, we wanted to buy all of us meant to say, was to budget, is that come out of a normally Marcus has always had a budget and they can spend whatever they liked things, it's not like a contact. I told like if those engagement so like a loads of things does if ever a company have a proper sales budget, only do it. Every every company small business medium-sized presented by should have a sales budget. But what I sound actually is very interesting. They're all he was a sales budget and the only things that you mention for sale.

Tool.

Okay. Now the one thing that accompanies right off of the bat, make a mistake is if they take that million dollars that you're saying, you're going to for a sales budget, and you're spending it on sales tool sales. Tools are only as good as the people that are using the tool, processes the other place for the tools, the planning with those tools. So if I was, I would set up my team with the sales tools, but I would do a lot more even before I even started looking at what sales tools you need. Because the first thing I would look at is

Sales enablement training in the processes that you're going to be doing how you exactly want. No sales people to go from A to B from Top, the fall down to the bottom and build up that post before you choose it. Because there's so many different tools out there, but you never know which one is the best for your company. People think. I know why you just said I'm going to Salesforce will Salesforce is good friends, surprise. But I think that's one of the biggest mistakes people do a jump right into the chorus. All the other ones that you just name

I got so I agree. But what I've seen is is besides that. So often times people are saying that the budget includes headcount anime salaries and bonuses and all that stuff. I measure for sales team, you have to be a bit on the consensus other things because you going to have hopefully people exceeding quite so and you don't know why how much you can't have a set. Watch it. And then spend the round, that someone might have a crazy. I go over if they might seem that way. But we do have those things go on so we can spend whatever we think and that's okay, or if we're going to go over what? We just pulled out, I'll spend a little bit. So how often is it that people do not have headcount in so that was it because for example here we don't cross the mounting team has budget cost that's called the business cost so we don't say that. I've seen it done but it all depends. So there's two different. There's two different types of cost. You have your sales tools like you said but isn't your sales people because you need those people to be able to use those tools so if you're given a million

And you're trying to build out a sales team. Those people will be people. I do want to know who do you want to hire the first thing that comes to mind? When I think of I have a budget, I need to sales team is I want to attract good talent.

OK, now how do you track good talent? And I'm talking the A and B players. Maybe not the A but at least the B players. And how do you attract a good talent with that million-dollars? So first thing that comes to mind for me is you know, the benefits plan, the health benefits plans. How how did Facebook and all these Silicon Valley get good talent? They had ping pong tables, pool tables, half-day Fridays. All these extra stuff that they give you to attract that good talent. You know, free lunches on Thursday. So what you want to do is with that million-dollars initially, when you're looking at, specifically the people, you want to make sure you are tracking the right people for your company. Because your building a team, or you actually have a team of your given the million dollars.

Craigslist website from scratch. And it's probably for the most part people are going to have this unless they're very involved and then I get a mini does investment than they only want to do this way. But for argument's sake million lb mini dolls lines in your lap and you go to start from zero in terms of sales, team for the clothes open up. So, if you pick a number on a number of dollars a year, almost by the love, you can have some wiggle room hopefully by 1 shades, by a long way. One kind of hits a hundred percent of states. That one maybe hit a voice and they don't get more. So you've already got some variation that and then you got other things like toes off to it. So how do you cut a budget for that and account for that variation performance? The first thing I do is look at my verticals. What is articles do I want to hit?

60% of our Revenue software's, 20% and 20%, okay. I would then say, okay I might have it on. My goal is to have no spies sales people. I would 3 people in the vertical of insurance, one person in the vertical of healthcare. And one person, do you want to make sure that you are putting your eggs in the right basket? Meaning you're putting your eggs in the ones in the vertical to give you the most Raffia. When you get those people, make sure that you have, you know, I like to call a reputable scalable Pro staff meeting. You also, you also bench players on inside those companies that can actually jump it. So, if I had to get diagnosed at 5 people to start, make sure I've approached them place and then continue as Revenue comes in use at million dollars, but also continued to expand inside those articles, as sober as it as it comes. And as the revenue comes from a specific verticals,

You just said, what is roughly think you might have spent outside because hopefully you're not going to say, I'll spend a million and then if something goes wrong, you go to play. Somebody else was on that yarn. You can a cat catch a flight back and says the wages that you would have paid for the next month. So I'll be off the revenue over the budget. I would say, I'm looking to spend it on people and then the other 60% would obviously put the pee pee towards like Technologies. I'm building a sales Playbook on building analytics the tracking tire sales person. Basically you want to have

No. 60% has to Cachuma Lake to something that will say, okay, I can get those five people.

Can you return a repeatable process, take your retained earnings and it was our training reinvest, wasn't a comp smallest smaller start, a small business business but have that were people process that you say, okay, if I get another two sales people, this is the process to spell any pizza place next to the okay. So how much is that time? Will I see how much of your time if you're not going to do this? Would you divide two coaching or trading in those things? You said people is one big portion of it and then Technologies the other how much coaching at Stonewood Vice and training. Are you going to put in maybe in the year of school a year? Because I was kind of a

While number, you know going to have training once a week or so maybe it will if you really need it. But I know if you're not going to do that that's a big white on your time. If you were going to do it and if you don't then that's that's a whole other topic. But how much you got a new account in full.

So, I would probably say, in the first year, you have to be looking at 5 - 10% of that revenue of, of that to be put towards coaching, building the sales playbook, and building that repeatable process. So, I'd be saying you could probably, in a year, at least get a decent, probably a pretty good one, for $50 - $100,000 that will coach your sales team. Now, those are expenses that you'll have in your first year. I don't believe that you'll need that moving forward. Once you can build out that process - because you know everyone has their strengths and weaknesses. I know what my strengths are. And one of my weaknesses is, you know, exactly I can build out what the playbook should look like, but how exactly is everything going to integrate with everything to make the landing forms of sales SQL vs MQL going down the pipeline to get the account manager, to basically automate as much as possible to make the process as easy for that salesperson to succeed. So, I would say, you'd look at, you're looking at about 40% for salaries - base salaries, then looking at another 5 - 10% for the sales coaching, sales pipe. That's 50% of my budget already gone.

said about that was some of our guests on this podcast before of said, probably 10 of them. At least a few more than I could chew individual.

They hired a VP of sales to Ali and I was a massive mistake early on in the life of a company and you didn't say anything about that. So I was going to ask why do companies do that? So I can see a little bit logic salesperson by strange. So I'm going to have a salesperson come in and do that. But if you think about it, anyone can be a vice president of sales at any point. In time, I can stall, a limited company myself. Right now for about a hundred pounds, a month will be whatever I say. So I can be one, you could be one, anyone could be one, it doesn't mean anything. I tried to think of it, if you would join me a company and you will device prison since I was over 1 million dollar org.

You're, you're selling something and you taking something on, would you know, radio Vice President of Sales or try to sell, whatever it says, 1,000 in a row. So, you know, vice president sales you're trying to sell us manage, but there is anything to manage was trying to build it. I'll tell you when I start a my first, my first car was a VP of sales and my VP of sales was literally on a bigger but that is building. A scalable process is analyzing and strategizing is looking one year, three years that have quota is making sure motivating those. Those silk when you start up in the stage that you said all we you're not a VP of sales. You are literally a sales rep, and AT&T is still a sales, rep is well.

Early on at the same time is it in startups and small businesses? If you want to make the company with bigger than

A perfect example, was I was trying to get Rogers, which for some people might not, who might not know, is like the the Verizon, the T-Mobile in the US. I was trying to get them, I was going up at that point versus insidesales.com. And, Inside Sales was out of Utah, hundreds of employees, and at the point, when I was walking to the office to do the demo at Rogers, there was three employees at my company. So, you know there was a CEO, VP of Sales, etc. So, what did I have to do? I actually had to creat fake LinkedIn accounts to make my company look like we had over 30 people or else they would even look at us. So it's the same thing as people doing a VP of sales. You're just trying to make yourself look way bigger than you actually are, but at the end of the day that VP of sales is doing the exact same demos as that AE. It's not a bad strategy, but if I'm given a million dollars, I'm not hiring a VP of sales. I'm going to get the process in place and then I'll hire the right person to come in and manage the people, manage the process, manage the game plan, manage the playbook. But, until then, you're just throwing away titles if you just start giving people VP of Sales.

Yeah, well if if you came to me now, you know then said come be my CMR, I think see him earlier and it looks great on paper, for me. It's really too much. I said, it's a bit too much for jumping look wet, but you can see why y'all on the personal side is attractive. But, but yeah, I know what you mean. You know why she going to perform that job? I gave him the title. And now she's one of the biggest mistakes, a younger brother who had no sales experience and he came out as my director sales within the first few months, the company. And he's never even sold the things. So I was just kind of titles to make the copy, look bigger, it works, but it only works so long until you actually, you know, you have to start school the company.

So when do we get a sales manager along that you sent you is Maggie spent half the money and we're getting every 6 months in and if things are going kind of well, I'm looking like, we might I add to the headcount is it that point or is it later on or not. You need a sales manager, some people sales coming out the way, it doesn't come down to the what they need is that person that's behind them and motivating them, and pushing them and always on them and say, hey, what's going on? What's going on with this. You want that, you know, you want that purse. Do you want this or else? People? Just sit back. Relax, get used to the life snow on the sales rep. Nobody's manager mean nobody's telling me what to do, and nobody

Hold me accountable for Dakota and one of the things I found those companies has the biggest turnaround in the company. I don't have the right leader in there who might not be in the hands on micro manager but might be that person that in their ear, talking to them and motivating them on a daily basis. And if you don't have a manager on the person who is your fly manager hasn't necessarily done. What you were doing like functioning the company if it's Arlene or if it's whatever, after a while, you can start to think.

You're not going to say anything or even if they do, I'll give you some steak for a human score, a little bit while you're behind on your own. The calls. Are you? My God? Yeah. But you haven't done that, but you got to a certain point. Do you think you need for any wraps, you need someone to bother, you just look up in your note on this and you're going to miss it. I know you are Galaxy these three things in my reports about why you going to do about it and then all the sudden you game comes right out through the race. You, right. You came. And I still think any more people get young stagner to get too comfortable. And then, once there's that rules, it is a very small change. They really step up and start to really be successful, good stuff and I think we're about out of time. So if you want to wrap up, I want to thank everyone for joining us today. This has been on

Weather on the great episode. Also, thank you for everybody listening, if you enjoy the show today, don't forget to give us a 5-star review wherever you listening from subscribe. So you don't miss the next show and we have some brake dust coming on the next week. So stay tuned and we'll see you on the other side.