We're back on our journey through the ABCs of Sales, and today, we're landing on the letter that changed my career: 'B' for Business Acumen.
When I first started, I thought knowing the ins and outs of business was just a basic survival skill. I figured, just know enough to get by. But as I learned more, I realized this knowledge isn't about surviving; it’s about having a strategic superpower.
đź’° Your Strategic Superpower: Where the Money Is
Business acumen is simply taking a keen interest in two crucial things: how your organization makes money and how you make money. Let’s break down that first part.
Your company sells a product or service. Easy, right? But between your company having the item and the client buying it, there's a vital process—a series of steps that, if handled smoothly, create profit. If they’re mismanaged, the company loses money, and the whole sale can fall apart.
The Journey from Pitch to Payment
This process is a blueprint for your success. Here’s what it typically looks like, and why each step matters:
The Pitch: You present the item.
The Quotation: You send this document, which itemizes the cost of the service or good.
The Proforma Invoice (sometimes): This is often used by large organizations for budget approval or to secure the funds internally before they commit.
The LPO (Local Purchase Order): This is a huge commitment! This document tells you, the seller, that the funds have been budgeted and reserved. If you're selling to an individual, this step is replaced by an upfront payment.
Delivery: The service or good is delivered.
The Invoice & Delivery Documents: You generate the final invoice, proving the item was delivered and asking for payment.
I want to pause here for a personal confession. When I started, I was lax about sending out that final invoice. I’d finish the job and then take my time. What I didn’t realize was that this was causing my company (and my eventual commission) to lose money due to delayed payment.
Once the client receives the invoice, they have their own process, which can take anywhere from 7 to 30 days before the payment is made. My lazy two-day delay on the invoice was pushing my payment date two days further away! A sale is only complete when the money is collected.
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Strategic pitch, sharp minds. This is where business acumen thrives, driving insightful conversations and smart decisions. |
The Strategic Lens
This entire process is why knowing your company’s product is essential. For instance, if your item is perishable (like unused advertising slots or an opportunity that expires), your conversations should focus on urgency and speed of implementation. If it’s a high-margin custom solution, your conversations will center on the value and long-term partnership. This knowledge guides every word you say.
🎯 Wearing the CEO's Cap (and Getting Paid!)
So, the organization has executed the process and made its money. Great! But as the salesperson, you are yet to make your money.
This brings us to the second pillar of business acumen: understanding your own financial structure.
For a few minutes each day, you need to wear the cap of a CEO. You need to look at your deals and decide if the sale is worth your time because you understand the Profit and Loss implications.
Know Your Commission Structure: Be crystal clear about what sales trigger what benefits, and at what point in the process you get paid. Ensure this is all captured and clear in your portfolio.
Embrace the Follow-Up: Because commission is often tied to collected funds, you might find yourself having to gently follow up on payments—in a way, becoming a debt collector. Instead of resenting this, see it as the final, crucial step in securing your hard-earned commission.
Posing with business acumen means you are prioritizing the right deals, having deeper and more credible conversations with clients, and ultimately, ensuring you get paid what you’re worth. It ensures a win-win for both the organization and your bank account.
Do you know the average time it takes for your clients to pay their invoices?
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