As a small business owner, at some point in time, you will most likely decide to hire your first salesperson. This process can be exciting and rewarding but only when the proper planning is completed. It is important to keep in mind the old saying; proper planning prevents poor performance. This new sales department needs a plan for performance. Listed is a performance process you want to have predetermined and in place before you hire your new superstar.



1. Hire a recruiter first.

Recruiters may cost a few thousand dollars or so, but a good recruiter will save you that plus tens of thousands of dollars or more that it would cost you if you hired the wrong candidate. Not only do recruiters take the time screening candidates and finding you the best performers but a good recruiter will help find you the person whom will work with you the best.

2. Decide on the level of experience needed.

Is it optimal that the first salesperson becomes the sales manager of other hires? Not only do you want the new sales rep to be a true performer for you, you also want them to be able facilitate your future growth. At one point will you need to hire an additional sales person? You may consider hiring experience over inexperience for this very reason.

3. Formulate compensation plans.

Have a compensation plan that not only rewards your first salesperson but also allows for future growth of additional sales people. Think long term. Consider as an example, that your budget is factored at 4% of sales are allotted to sales compensation but your current sales levels can only afford one sales person. You need to have a plan in place that allows the liberty of hiring an additional salesperson as the situation demands, but also pays for them. Consider at what point the new salesperson will be overburdened and a new salesperson is warranted.

4. Create focus and goals.

Not only is the budget important but the sales goals should be clearly defined for the new hire. Some refer to these as focus plans; what is expected and when is it expected by. Focus plans clearly define what is expected and leave out room for interpretation. Salesperson activity reporting procedures should be developed. A company owner has a right to know what their sales staff is up to at any given time.

5. Salesperson activity reports.

Salesperson activity reports should be developed. They should be quick and to the point. A company owner has a right to know what their sales staff is up to at any given time. Each salesperson most likely will want to have a record of who they talked to and when.

6. Assesment Procedures.

Solid assessment procedures should be developed. Assessments determine the barriers to performance as well as show where success is being created. They are fair to all involved; the owner of the company and the sales team. A company owner has the right to know how well the sales process is working and the salesperson has a right to have the ability to improve on a daily basis. An assessment protocol that is based on fact ensures the best results. The information for these assessments are derived from the reporting procedures and information from the meetings. Not only are sales figures important in figuring out if your new sales department is working, but assessment is not limited to only that. A thorough assessment of; sales plans, sales skills, natural abilities, time management practices and organizational efforts should be looked at on a weekly basis. As the assessment process takes place reinforcement or correction should coincide.

7. Meeting formats and time should be predetermined.

A meeting format should be in place that will help facilitate communication between sales and upper management. Sales meetings should include; training; review and planning of the sales process. In addition chose a regular meeting day that can be adhered to on a regular basis.

8. Assessment Procedures.

Solid assessment procedures should be developed. Assessments determine barriers to performance as well as show where success is being created. They are fair to all involved; the owner of the company and the sales team. A company owner has the right to know how well the sales process is working and the salesperson has a right to have the ability to improve on a daily basis. An assessment protocol that is based on fact ensures the best results. The information for these assessments are derived from the reporting procedures and information from the meetings. Not only are sales figures important in figuring out if you new sales department is working, but assessment is not limited to only that. A thorough assessment of; sales plans, sales skills, natural abilities, time management practices and organizational efforts should be looked at on a weekly basis. As the assessment process takes place reinforcement or correction needs to take place as needed.

9. Review process.

Finally a review process should be developed. This process will align the focus plans and assessments that quickly enable the owner and sales rep to adapt for growth.

This may seem like a daunting task, but these steps stop the pains before they happen. The downside of not doing the above is miscommunication, under performance and eventually the utter failure of your new sales department. Following the above guidelines will help provide consistent sales growth without the growing pains.