Every entrepreneurial manager needs to have a workable framework for sales management.

While there are reams of articles written about even the smallest detail of this process, it really is not that complicated nor difficult. Over the years I have developed a formula that allows anyone to become a more effective manager of sales.

It applies to any industry or customer group.

Simply write the following in the middle of a sheet of paper: “Opportunities => results.” Please understand that “opportunities” are defined as those activities which result in qualified leads.

“Qualified leads” are defined as those customers who currently have the need for our product or service and have the capacity to pay for them. “Results” are those actions we can take to improve the quantity of opportunities that actually result in sales.

The next step is to draw a series of vertical lines above and connected to “Opportunities.” Once completed, it is a matter of defining and listing just what are the major activities you and your company are pursuing to drum up qualified leads.

It may be advertising in certain publications, trade show attendance, a new selling process, an idea for a new use/market, a direct mail campaign, etc.

Whatever you choose to list must be activities that you can manage, that you can choose, impact, or control and you have to have a feel for some way to quantify the benefits.

An easy one to understand, but not always easy to determine is cost per lead. If you spend $1,000 for a magazine ad and get 10 qualified leads from it, then your CPL is $100.

A trade show that costs $10,000 would have to generate at least 100 qualified leads for the same value. Once you start to have a feel for these costs, you then are in a much better position to apply some creative thinking to reducing these costs while minimizing any negative impact on the business.

An easy example is booth sharing for non competitors at trade shows. Please keep in mind that in tough times “best use” of precious dollars takes on even more meaning and critical importance.

Once you have completed the “opportunity” side, we move over to the “results.” Do the same with drawing the lines as you did before but now have the connected vertical lines below “results.”

Again, list those activities that are important for conversion of leads into sales. These might include time management, selling skills, better listening skills, improved product knowledge, etc.

Once this is completed, you need to evaluate where you are the strongest in this list and where improvement can generate the most impact.

Then go, improve.

For those of you who manage a sales force, one of these lines will also include reduction of quantity of salespeople. Again, the goal is to match up qualified leads with those that have the best skills at turning these leads into bonafide sales.

As with most business undertakings, the conceptual part is not terribly difficult to understand. But in the implementation, this is where the professionals separate themselves from the amateurs. This is where successful businesses separate themselves from those that thought they were successful.

This is professional sales management in tough economic times.

John F. Riddell Jr., director of the Center for Entrepreneurial Growth-Hamilton County, writes each Tuesday about entrepreneurs and their impact on companies and the marketplace. Submit comments to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at business@timesfreepress.com

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