Latest / The Start, Scale & Succeed Podcast / Stop Hiring Salespeople Like Everyone Else with Jorge Chavez (stage 3) - Ep. 398
Transcript
- 0:00Scott Ritzheimer: Hello, hello, and welcome. Welcome once again
- 0:02to the Start Scale and Succeed podcast, the only podcast that
- 0:05grows with you through all seven stages of your journey as a
- 0:09founder. I'm your host, Scott Rettheimer, and today we're
- 0:11tackling one of the most expensive mistakes that
- 0:15relatively new founders make on the way up, and that is hiring
- 0:19salespeople the same way you hire everyone else, especially
- 0:23those who are in the reluctant manager stage and are the sales
- 0:26team themselves and are looking desperately for help to shoulder
- 0:30the burden, and you don't want to hear me talk about this,
- 0:34because I'll probably just jump on a soapbox for 30 minutes. So,
- 0:36instead, we have with us today Jorge Chavez, who is the
- 0:40president and co-founder of Topaz Sales Consulting in
- 0:43Austin, Texas. With over 30 years of sales expertise, he
- 0:46developed the buyer facilitator philosophy and process,
- 0:50empowering CEOs, founders, and sales leaders to build teams
- 0:53that deliver revenue through trust, clarity, and mutual fit,
- 0:56through targeted sales training, executive coaching, and proven
- 0:59hiring systems. Jorge and his team enables organizations to
- 1:05scale effective sales cultures. He's also a keynote speaker and
- 1:09mentor committed to transforming how companies approach sales and
- 1:13leadership. He's here with us today. Jorge, welcome to the
- 1:15show. Very excited to have you on. We were chatting for a
- 1:19couple of minutes here ahead of time, and I was telling you
- 1:22literally how excited I'm to be able to cover this topic this
- 1:25way, because our reluctant managers, those folks in stage
- 1:28three, have heard us talk about this transition to sales before,
- 1:32but we've never really talked about arguably the biggest
- 1:36problem of them all in this stage, which is hiring those
- 1:39salespeople. How do you pick winners? How do you find the
- 1:42right ones, and then what do you do with them once you've got
- 1:44them? So, let's start there. How do you hire salespeople, and is
- 1:50it different from the way you'll hire the rest of your team at
- 1:52this stage?
- 1:53Jorge Chavez: Yes, 100% different. And how do you do it?
- 1:58That's a great question. It's so why would the way we hire
- 2:04salespeople be different than the way we hire everybody else?
- 2:09Any one of us who have hired a salesperson before, or as we
- 2:14think about salespeople, they're really good at telling us what
- 2:18we want to hear, and their best sales job is selling an
- 2:24unsuspecting, ill-equipped owner on that they can sell, but then
- 2:31we hire them, and then we find out they can't sell. So that's
- 2:35it's a big challenge, and the reason that they're different is
- 2:39because a lot of folks don't know how to interview sales
- 2:43people, because sales people, so there's the here's really the
- 2:49magic question, or the magic answer, if you will. I have to
- 2:53get to this right away, which is this: people oftentimes it's not
- 2:58a, it's not that they're hiring bad people. They don't know what
- 3:02to fix. A lot of people, when they hire salespeople, they'll
- 3:06either use a recruiter and say, "Oh, they hire salespeople, and
- 3:11then they trust the recruiter screening process, or they hire
- 3:15internally using the same hiring process they use for everybody
- 3:18else, and it doesn't lead to the right results. The issue is that
- 3:23they have a hiring process problem, and so the way we want
- 3:29to hire salespeople, you want to use a different process.
- 3:33Traditional or normal methods of hiring don't really screen for
- 3:39sales competencies, and so, for instance, a lot of people, when
- 3:45they interview somebody, they may start talking to them and
- 3:52both contributing to the interview conversation, and
- 3:55because now I'll put myself in the shoes of the owner who's
- 3:59doing the selling and needs a salesperson. We're in a lot of
- 4:03pain, and so we start telling them about what we're looking
- 4:08for and what we need, and then we start painting a vision of
- 4:12how great the opportunity is here, and how if they really
- 4:17work hard, all the upside, and how much money they're going to
- 4:20make, and here's what's happening. We're telling, and
- 4:24we're giving them all of the things we want them to do, and
- 4:28we're not learning anything about them. What we need to do
- 4:33as owners, as we're looking for those sales people, is get our
- 4:36questions answered before answering their questions, and
- 4:40we actually, and this is very counterintuitive and difficult
- 4:44for many people, we have to treat the whole process like a
- 4:48cold call, so that we can screen for sales competencies. So, what
- 4:55does that look like, Scott? If I called your office, who would
- 4:59answer. Answer the phone,
- 5:01Scott Ritzheimer: it would be me.
- 5:02Jorge Chavez: Okay, if you had an EA and I called your office,
- 5:06who would answer your phone?
- 5:07Scott Ritzheimer: My EA,
- 5:08Jorge Chavez: Exactly. That's fair. And maybe a lot of us
- 5:10don't have EAs, but let's say someone else answers the phone.
- 5:13But to highlight the importance of what does that mean, hiring,
- 5:17and treat it like a cold call. So, if I called you, Scott, and
- 5:19you had an EA, and she answered the phone, and I'd say, 'Yes, is
- 5:24Scott there? And she'd be like, 'Can I ask who this is? And then
- 5:29I'd give her my name, and she'd say, 'Can I ask what this is
- 5:32regarding? And I'd say, 'Well, I'd given a thing, is he
- 5:36expecting your call? And she's cool, or he's cool, whoever your
- 5:40EA is they're cool, they're curious, and they're trying to
- 5:44see if this person is a good use of their time. Well, that's how
- 5:48we want our interviews to be. We want to force them to bond and
- 5:52rapport with us, we want to force them to ask us questions,
- 5:57we want to force them to have pressure and resistance
- 6:02immediately to see how they deal with it. That's a good
- 6:05interview. That's what I mean by the sales hiring process has to
- 6:10be a unique, more uniquely tailored to uncover sales
- 6:15competencies, and a lot of people don't even realize they
- 6:18have a sales hiring process issue, so they're not screening
- 6:22correctly, and they're not learning the things they need in
- 6:26order to make the right hire.
- 6:28Scott Ritzheimer: Yeah, there's so much to unpack in there,
- 6:31because so many founders would be like, "I don't even know what
- 6:33sales competencies are, I just pick up the phone and hope that
- 6:35they close, you know? Yeah, I want to, I want to address
- 6:40another challenge that I think comes into the sales hiring,
- 6:44especially at this stage, and, and it is very different than
- 6:48how you hire other folks, and that is when to hire, right?
- 6:51When can you afford to hire a sales rep? Because if you're
- 6:55looking at when can I afford to hire an admin assistant, or you
- 7:00know, hire somebody for production, it's kind of like
- 7:03when you have the cash flow to do it, or you already have the
- 7:06work to do it, but hiring in another sales rep brings in that
- 7:10work, and so how do you help folks figure out the timing on
- 7:14this hiring decision?
- 7:16Jorge Chavez: That's a great question. The it really comes
- 7:19down to if so, as an owner, and I'm looking to decide, should I
- 7:24hire another salesperson. Owners have to decide, well, what is
- 7:28the greatest use of their skills? They should do what they
- 7:31do best, enjoy most, that brings the greatest value to their
- 7:35company. If they just want to be a salesperson, then they
- 7:39shouldn't necessarily be a business owner, they should sell
- 7:42and maybe hire a business owner, you know, or a CEO, or a
- 7:45president, or something like that, because that's their
- 7:48greatest passion, and that's really what they want to do.
- 7:50They don't really want to hire or manage a salesperson or have
- 7:53a sales team, because that's a whole different set of skills,
- 7:57but if you start, if as an owner, when you start realizing
- 8:02I don't have enough time to do other very important things in
- 8:06my business, I need to delegate some of my work. Well, what is
- 8:10the work that you can delegate? Maybe hiring a salesperson is
- 8:14the last you can, you delegate. So, we have a lot of clients
- 8:17that are these people we're talking about right now, and
- 8:20it's the complete gamut. Some have no sales background, but
- 8:24they need sales, and others have a sales background, and they
- 8:29love it, and they don't want to let it go. So, they figure out
- 8:33and hire every other position they can, eas technical people,
- 8:38proposal writers, all these other roles, because they really
- 8:42like selling, they get to 10 plus million, and they're the
- 8:45sales engine, and they're running the company, but when
- 8:48they just, they start realizing, like, I need help supporting all
- 8:52these clients, and then they start to see an opportunity to
- 8:56mentor someone along, they hire somebody they can teach, and
- 9:00they can start delegating some of the work as they build up
- 9:03skills, so maybe over time they can take stuff off their plate.
- 9:06So I think a great time is when you can't get all the other work
- 9:10that's essential to running your business done, and you have to
- 9:13start delegating and hiring somebody if you want to run a
- 9:16business. Then you just decide which one do you enjoy least, or
- 9:22you bring no incremental value, replace those things first, and
- 9:25at some point it's going to be a salesperson.
- 9:27Scott Ritzheimer: Yes, yes. Let me tell you what I think is a
- 9:30mistake, and correct me if I'm wrong, because you know a lot
- 9:33more about this than I do, but one of the things that I think
- 9:35is a mistake that that a number of sales reps that are on the
- 9:39side of that spectrum of saying, hey, I'd like to get out of
- 9:41sales. The founders who say, I want to get out of sales. I'm
- 9:44not a salesperson. I have dreams about this. I want to invent
- 9:47that. I want to do the actual work, whatever it might be. And
- 9:52they hire somebody, and immediately they say, like, here
- 9:54you go sell, and it's like, here's the leads, here's the,
- 9:57you know, everyone, here's all of it, sell. Because you're a
- 10:00salesperson, I'm not. Is that a mistake? And if so, what's a
- 10:05better way?
- 10:06Jorge Chavez: It's a huge mistake. A lot of times people,
- 10:09and we're talking, you and I right now, about like, let's say
- 10:12we're hiring that first one and we want to hand off the keys.
- 10:16I've seen this play out also, and sometimes we don't get
- 10:19involved until after this mistake is made, and then if we
- 10:22are involved, we can try to prevent it. A lot of times,
- 10:25people will hire a sales manager, they get a few sales
- 10:28people, but they don't want to manage. That's the coaching, the
- 10:31motivating, the training, the holding people accountable,
- 10:34pipeline management. They don't want to do any of that kind of
- 10:37stuff, so they hire a title, a VP. Oh, you've been a VP, you
- 10:41must, and ran a sales team, you must be good. So, there's very
- 10:44little screening. They hire someone with a title, they pay
- 10:47them a lot of money, and then they want to hand it off. Huge
- 10:51mistake. You have to inspect what you expect. So, once you
- 10:55make that hire, you have to make sure they're executing all the
- 11:01things that you need done and done to the expectation of that,
- 11:06what the business needs, you can't let it go. You got to
- 11:09inspect what you expect. So that means that you're having
- 11:12meetings with them, you're reviewing their, their
- 11:14pipelines, their activities, their results, and you're
- 11:18digging into and making sure that business and sales are
- 11:21happening, cash flow is happening, clients are
- 11:23satisfied. You can't let that go, that would be a huge
- 11:27mistake.
- 11:28Scott Ritzheimer: Yeah, it's so interesting because it's so like
- 11:32other areas of the business, but so different at the same time,
- 11:36and it's easy to think of managing sales as just managing
- 11:40another aspect of operations, or administration, or development,
- 11:42or whatever it might be, but it is such a distinct part of the
- 11:47business, and really does require a different skill set.
- 11:51Jorge Chavez: They do well, sales, you know, in some
- 11:54respects it's different. Sales people tend to think
- 11:58differently, but I would actually say we have some really
- 12:01great sales professionals that aren't sales-minded, like sales,
- 12:06like what we think about sales people. Let me give an example.
- 12:10There's a gentleman I know who is a project manager and got
- 12:14promoted his way up to a branch manager, so he had operations
- 12:19initially and then got into overseeing operations and sales,
- 12:22and was ran the P and L. Well, they had to go through sales
- 12:26training and sales leadership training in their role, and they
- 12:30ended up being really effective at sales and closing a lot of
- 12:35sales, and they got to this place where they said, I don't
- 12:39know what all you, I don't see what's so hard about sales. I
- 12:42don't see what the problem is. All you got to do is follow the
- 12:46process, and so let me share what I mean by that. There's a
- 12:52lot of questions that we have to ask in sales, so the skills that
- 12:56you want to look for are listening skills, infinite
- 13:00curiosity, questioning skills, being present, caring about
- 13:05people, being trustworthy, having humility, being
- 13:08coachable. Those are hard to find in a hiring process, but
- 13:12the hiring process has to allow you to learn how to look for
- 13:14those. So, so you look for those. Some of the tough
- 13:18questions are, you know, hey, do you have a budget? People are
- 13:21afraid to ask questions because they want to get a yes, and
- 13:25they're afraid if I ask how much money they have, they might give
- 13:27me an answer that might lead me to no, I don't have enough
- 13:31money, and now I'm going to lose a sale. Well, so a lot of
- 13:34questions don't get asked because sales people are wired,
- 13:37I got to make money, I got to go sell stuff, they read all those
- 13:40sales books that I, by the way, you said that this has to be for
- 13:44no, no worse than a five year old, like five years, so I won't
- 13:47even tell you how I feel about most of those sales books. Is
- 13:50toxic appropriate? Okay, that's what they are. They just poison
- 13:55the mind of sales people, and they don't help, they get them
- 13:59to operate from a place they're outcome-based, they're not about
- 14:03building trust, they're not about building relationship,
- 14:05they're not truth seekers, they just want what they want, and
- 14:09and so sales people tend to struggle to ask some hard
- 14:12questions, they're hard because they're trying to get a yes, but
- 14:16if you don't have all that garbage in your head, which, by
- 14:18the way, our training, we get rid of that garbage, and then
- 14:21put good. We just clean out your mind and have open, honest
- 14:25conversations with people. Then sales isn't so hard, and just
- 14:28follow the process. You don't, you're not afraid to ask those
- 14:31questions, because they make sense, and you want to know, and
- 14:35you don't want to waste your time. So, you don't have to be
- 14:38so great and be all salesy. You just have to be coachable, have
- 14:42a passion to help people learn a process and execute it
- 14:45consistently, and you can do wonderful things.
- 14:48Scott Ritzheimer: Yeah, that's excellent. That's so, so very
- 14:51good. Jorge, there's a question that I have for you, and I think
- 14:55you've alluded to it a little bit earlier, but the question
- 14:57that I want to ask is this: What. Is the biggest secret you
- 15:00wish wasn't a secret at all? What's that one thing you wish
- 15:03every founder watching or listening today knew?
- 15:06Jorge Chavez: I would love people to know, and I kind of
- 15:08gave a little bit of this early, and I said I was going to jump
- 15:10ahead. It's the fact that the problem they're having is they
- 15:13have a sales hiring process problem. If I were going to hire
- 15:18somebody, and I've never hired a salesperson before I would get
- 15:22equipped on help on what are the sales competencies that I need
- 15:27to look for, and I'd equip myself on a process on how to
- 15:31find them, and that's absent that you're gonna fly blind, and
- 15:37if you can afford the long learning curve to figure it out,
- 15:41to hire the fire. If you have runway, it's expensive. Then I
- 15:46wish everybody knew they have a hiring process problem, and they
- 15:51should get skilled up and learn, get a process and learn what
- 15:55they don't know they don't know before making that next hire.
- 16:00And I would encourage people. Here's let me add a second part
- 16:03to it. Don't wait till you run out of time and you run out of
- 16:06money. Be proactive while you still have time and you still
- 16:10have money. The ounce of prevention of equipping yourself
- 16:14will save you a fortune on the back end, because that money,
- 16:18there's no budget for the bad hire, the cost of a bada hire.
- 16:21Scott Ritzheimer: So true, so true, so true. Jorge, this has
- 16:26been amazing. I know there's some folks who'd love to hear
- 16:28more. They want to connect with you and find out more about the
- 16:31work you all do. Where can they connect with you? Where can they
- 16:34reach out to find out more?
- 16:35Jorge Chavez: Yeah, truly, our website is got a lot of great
- 16:39information, hiring resources, videos on on many of the things
- 16:45that we, they're just good tips and techniques, and even
- 16:49prospecting guides. Just go to our website, it's a Topaz Sales
- 16:54consulting.com and from there, if you want to have a
- 16:58conversation, just go on our contact form, and fill it out,
- 17:02and we'll reach out to you within 24 hours, and set up time
- 17:05to talk and learn.
- 17:06Scott Ritzheimer: Excellent, that's excellent. Excellent,
- 17:08Jorge. Thank you so much for being on the show. It really was
- 17:12a privilege and honor. I loved this conversation. I love the
- 17:15way that you approach hiring sales folks, and it is
- 17:18different. We have to approach it differently, and I think
- 17:20you've helped a lot of folks today, so thanks so much for
- 17:22being here. For those of you watching and listening, you know
- 17:24your time and attention mean the world to us. I hope you got as
- 17:26much out of this conversation as I know I did, and I cannot wait
- 17:30to see you next time. Take care.