As a salesperson, you are faced with decisions that can affect both your and your prospective clients’ business finance every day. A strong financial acumen is something that you can’t afford not to have if you want to be a top sales performer. Here are eight reasons why every salesperson needs to know business finance:
1. You will know your own business better
The sales process is wrought with financial implications for your company. Understanding these implications will better help you to understand the impact that each new customer could have on your employer – both good and bad. This will ultimately improve your company’s bottom line, making both you and your employer happier.
2. You will better understand your customers’ needs
By being able to recognize your customers’ business structure, costs, and objectives, you will be able to sell more strategically, targeting your customers’ hot issues and gearing your pitch towards their goals.
3. You will have a competitive edge
Understanding basic finance will put you ahead of your competitors who don’t understand customer economics the way you do. Simply put, you will be able to show understanding and empathy for your client’s business challenges better than the competition.
4. Customer meetings will be more efficient
Preparation for customer meetings will be faster and easier, saving you and your company time and money.
5. You will be able to climb the career ladder faster
As you progress in your career, you will be increasingly exposed to financial decisions. Having adequate background knowledge will enable you to make the right choices and move up in your career.
6. You will be better equipped to study company reports
Basic finance skills will help you to better understand balance sheets, and thus present more accurate company analyses.
7. Your prospecting will become more efficient
You will be able to assess the financial health of your prospects and be aware of pressure points that a client is under before you make your sales call.
8. You’ll get better at pricing
You’ll know which factors affect pricing decisions, and thus be able to use different strategies for different industries and sectors.