The Importance of Sales for an Entrepreneurial Organization


By definition, an entrepreneur is a person who organizes and operates a business and is willing to take on greater than normal financial risks in order to do so. Practically speaking, an entrepreneur is required to wear many hats including Chief Revenue Officer. One of the key aspects of being an entrepreneur and operating a business is the ability to conduct Business Development. Creating Revenue through sales is the ultimate Catalyst for any entrepreneurial endeavor. The existence of sales place important aspect in many ways for an organization.

Sales equates to revenue and revenue covers expenses. The ability of a business to cover its expenses create stable operations and the opportunity for growth. Without sales the organization will often struggle and have a difficult time attracting talent and actually growing the business.

Sales appears as the top line number of any financial document and usually gives an indication as to the health of the organization. Watch an episode of Shark Tank and you will hear the number one asked question, "How much have you done in sales?" Investors will always want to understand the revenue model that is in place for a business and also to see if there is any traction in the organization to demonstrate the ability to have cash flow, and possibly increase of cash flow.

Sales do another thing for an organization; It creates a system, or process for growth. When an entrepreneur is able to define the method by which they identify a customer, present to the customer, and are able to close the customer in a duplicatable and scalable manner, then they can build a sales team around this process. Most often an entrepreneur will figure out this process internally through a trial and error method to build the sales funnel for their organization. When resources are available, it is valuable to bring an organization such as Paradigm 5 who assists with building the sales funnel and a sales department. According to its founder, Charlie Winn, "Selling is always a critical component of being an entrepreneur because there are never any guarantees in either endeavor. Thus, the ability to deal with that uncertainty and move forward towards defined goals is a skill that directly transfers." Once this is established, it is a matter of resources in order to grow the company.

Sales is based on an individual's ability to connect and influence another decision-maker. An entrepreneur must, as Stu Heinecke talks about in his book How to Get a Meeting with Anyone, first identify the person who is the CEO (Center of Enterprise Opportunity). Then create a strategy for connecting with them. Through this connection, a relationship can be established. Ultimately a sale can be made based on the perceived or actual value provided by the entrepreneur.

Success as an entrepreneur is about being focused on your outcomes and producing results in all areas. Your ability to develop business and create sales for your organization will have a direct impact on the success and growth of the business over time.
Michael S Melfi
ABOUT THE AUTHOR
Michael S Melfi> website | all articles
Michael S. Melfi is an Intellectual Property attorney and Digital Entrepreneur. Michael has a dynamic background that allows him to provide insightful legal services, while creating business development strategies for funding and growth.

Over the last decade Michael founded and led a national multi-media company. As COO & General Counsel, Michael pioneered various experiential and digital marketing campaigns for Fortune 500 clients. As a thought leader and innovator, Michael began utilizing the Internet and various social media platforms to develop an online presence for his company in the top 1% of all websites globally. Since then Michael has worked with numerous national industry leading products and brands to monetize and grow their business digitally.

With the advent of mainstream crowdfunding, Michael has become an expert in the Crowdfunding Industry, helping small and medium-size companies achieve funding goals and business objectives.

Most recently, as a certified Team Advisor in the 45 Day Challenge, Michael has successfully guided individuals on dynamic journeys of personal growth and discovery, utilizing the 6 Steps to Lasting Change and Cycle of Growth. As an Advisor, Michael has encouraged and inspired individuals and teams to:

- Utilize commitment and consistency, taking small actions every day towards their desired outcomes
- Develop compelling visions and challenge perceived limitations
- Leverage the dynamics of intelligent accountability within the program
- Understand and integrate the principles and models of growth, change and conditioning
- Foster connection and support from each other on the team
- Successfully move through the resistance/deception phase of change
- Align their visions and habits with their Identity
  • /data/userPictures/EA3F7998-26A2-4607-8A6A-D3BA5239F0BA.jpgRobert Melendez11/30/2016 2:31:32 AM
    My favorite quote from this article, "Without sales the organization will often struggle and have a difficult time attracting talent and actually growing the business"

  • /data/userPictures/2DA3CBAC-7737-45A3-9713-D2756BDDD565.jpgCassandra Light1/6/2017 2:05:36 PM
    As he said, "Sales is based on an individual's ability to connect and influence another decision-maker" not only externally but also internally.

  • /data/userPictures/852102A0-79A1-4516-B78D-6EA591889EB3.jpgJennifer Verdon1/11/2017 12:58:16 PM
    "Ultimately a sale can be made based on the perceived or actual value provided by the entrepreneur." - Something good to remember

  • /_ckcommon/images/blanks/userPictureMale.jpgKorey Aukerman1/27/2017 6:36:05 PM
    I completely agree with this article. My dream in life is to become an entrepreneur and open up my own business. I'm not really interested in sales but this program I can tell already it will help me become very successful. This article made me realize that sales and revenue are directly correlated and being an effected sales person can grown your business greatly.