Risk Taking and Decision Making in Sales
Risk taking and decision making are key parts in the context of selling and sales. The goal for everyone is to make the best decisions and right decisions to get where you want to go, as quickly and efficiently as possible. Sometimes, it requires risk-taking activities in order to arrive at your goals. Caspar Berry, interviewed by John Golden, explores lessons on risk.
This expert sales interview explores:
- The role that risk-taking plays in sales
- How to consciously manage risk
- Three key skills to have when managing risk
Risk Taking in Sales:
Every decision is an investment decision, be it buying a car, investing time in a relationship, you’re allocation resources, be it reputation, time, or money. When we make this investment and utilize these resources, we want a return on our investment. This is a process that everyone makes and goes through. Looking at it from the lens of a salesperson, the goal is to become in control of that process, instead of the process being in control of you.
Risky activities are necessary in the sales world. Things like being honest, or hiring salespeople, are all considered risk-taking activities. But, managing these necessary, risky activities are very possible. Risk is often thought of as this impulse decision to do something risky, but in the sales world especially, this isn’t the case. You can be intentional about the risk-taking behaviors you use, and ensure that you are more likely to get the return on investment from the risk. It involves analyzing the process and weighing the pros and cons of taking the risk and allocating the right resources. It’s a much more conscious, thoughtful process. Creating a system for managing risk is dependent on the market, what you’re selling, and other factors that Berry explains.
Patience, Resilience, and Discipline:
There are three important skills for salespeople to have when navigating the risky world of sales. The first is patience. Patience is about waiting for the right opportunity to come along. There is a tendency of salespeople to jump into the first prospect without qualifying them and ensuring they are in the target market. Like poker where you have to wait for the right hand, you have to be patient and right for the right prospect and deal to come along. The third skill is resilience. There is a lot about the sales world that isn’t controllable. You could be the best salesperson and have the hottest lead, but if you catch that person on the wrong day, you still might not get the sale. There is a gap between what we do and the result that salespeople can’t always control. Resilience is the ability to push through that uncertainty. The third skill is discipline. In poker, the way that you win money is to prepare to take a risk. To make a profit in poker, you have to be prepared to fold. There is a taboo around quitting, especially in the sales world. But every moment that you spend working with a client that isn’t going to buy from you because you want to see the process through is a moment you waste that could be spent on a client that you could actually close a deal with.
To learn more about managing risk and making better decisions in sales, watch the expert sales interview!
About our Host:
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the Worldâ€™s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.