Many businesses are struggling with the costs of running a sales team. Keeping up with an ever-growing customer base is difficult. Did you know that there are simple ways to save money? A few tips to help you save money without sacrificing quality. The following will help you save money in the long term:
- Create a sales budget for the sales team
- Be flexible
- Be transparent
- Hire an Accountant
- Utilize sales automation to reduce costs
Step 1: Create a sales budget for the sales team
Keep a strict budget. Assure the team knows what they can and cannot buy. Include the following in the sales budget:
- Travel expenses – sales teams frequently travel, but can combine trips to save money. Provide company cars to employees who need them. If you already have a fleet vehicle program, assign those cars to the salespeople who need them.
- Meals – feed your team! Ensure the meal is modest and that everyone contributes equally to the bill. This saves money for everyone and shows teamwork.
- Office supplies – group purchases or bulk orders can help you save money on office supplies. Also, no one will run out of pens at the same time!
- Advertising – If your sales team has a budget for advertising, consider buying it as a group or through one person to get better deals and more options.
- Equipment costs- In order to do their jobs properly, your sales team will need specific equipment. For example, if your sales team uses tablets for presentations and notes, make sure everyone has one so no one is stuck with the bill.
- Holidays – not related to expenses, but a great time to gather your team. Everyone needs a break, and this can help bonding!
- Software for sales team – Software can be expensive, but companies often have group deals.
Keep track of all expenses. Whether by email, spreadsheet, or physical ledger, make sure everyone has access to the data and updates the team weekly. This is important for future budgeting and keeping your company’s bottom line healthy.
Step 2: Be flexible
Allow your sales team some leeway with expenses. Don’t send an alert if you have a well-deserved charge that isn’t budgeted. This will prevent ruffled feathers and excessive red tape.
Step 3: Be transparent
Transparency is key. Don’t let your sales team be surprised at the end of the month by not telling them how much money they have to work with! This will keep everyone happy during current projects and after new financial goals are set.
Your sales team is your best resource and they know how much money you have available to them each month! Make sure everyone on the team knows their boundaries, but don’t micromanage the process. If you follow these suggestions, your sales team will be able to do their jobs without breaking the bank or feeling micromanaged!
Step 4: Hire an Accountant
Other responsibilities or inexperience with finances may necessitate this step.
This will ensure proper financial management and an objective view of the situation. This is important if your sales team has gone over budget in the past.
Maintain a positive relationship with your accountant to avoid unpleasant financial surprises! This will help everyone feel more at ease moving forward, budget or not.
Remember taxes! Hire a good accountant who understands your sales team’s processes so they can help minimize tax bites by properly documenting their work from the start. You want to maximize your profits and tax breaks to grow your business. The right accountant can also help you develop a sales budget.
Step 5: Utilize sales automation to reduce costs
Sales automation helps control spending. If someone needs your latest presentation, they can access it online and use it right away! This will save unnecessary printing fees and time spent waiting for copies while other tasks wait.
Make sure everyone knows what can be accessed this way. This will save you money and keep you from micromanaging your sales team’s behavior.
Tools are used in sales automation. Instead of configuring an on-premise phone system, invest in online, remote solutions like cloud-based call center software, click-to-call or click-to-chat. It will help you cut costs without compromising sales team performance.