Every company has hidden costs and lost revenue that result from wrong decisions, failing to make decisions, not taking action, acting too slowly, and acting too quickly. While we know this, not enough time is spent quantifying those costs and revenue losses. This is because generally accepted accounting principles do not require companies to include those figures in income statements. For many companies, the lost revenue and expenses could be 5 to 10 times what a company’s actual net income is at the end of the year.
One of the most common revenue sinkholes is the cost of hiring the wrong salespeople. How many business owners do you know who will tell you that:
- All of their sales people are consistently meeting the upper levels of performance.
- They fired all of their poor performers quickly.
- They rarely have a poor performer.
- They can quickly find top performers.
- Other companies would die to have every person on their sales team.
If they can’t make the statements above, their sales force has been costing them money. Some of the costs such as recruiting and training are reflected in their income statements. However, there are other costs that are not. Have you ever calculated these costs? Are they large enough where you need to take serious action? Do you want to know? If so, Objective Management Group provides a useful, free calculator you can use to find out. The average company that has completed the calculator found their cost of hiring the wrong people to be $464,000. Click on the following link to find out your cost Cost of Sales Ghosts Calculator.
Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm, please contact Howard Shore at (305) 722-7213 or [email protected] .