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Grace Under Fire: How to Prepare Your Sales Pipeline for 2021

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September 28, 2020 6 min read

Opinions expressed by Entrepreneur contributors are their own.

Due to the havoc wreaked by the twin crises of 2020 — the global health emergency and the economic recession — every business has been forced to change the way it approaches sales.

More specifically, the crises completely upended businesses’ sales planning. Economies around the world are cautiously reopening, but business in four specific sectors — restaurants, manufacturing, retail, and travel — could face a long and difficult recovery. These industries, which were hardest hit by the recession, could take more than five years to bounce back to previous GDP levels.

Businesses that lacked a flexible contingency operations plan were significantly impacted. It’s always easier to establish a plan before there is a problem and make adjustments as you go rather than try to create a plan amid a crisis — or just try to wing it. That said, there are lessons to be learned from those examples that you can apply to your own sales strategy and contingency plan for the future. 

Related: 4 Ways to Prepare Now so Your Business Survives the Unexpected Later

The importance of communication with customers

Businesses that were quick to adjust their sales plans have faired far better over the past few months than those that didn’t pivot. They reached out quickly to their partners, customers, and suppliers; worked with agility; set new expectations; and found different ways of driving revenue. By communicating early and often, these businesses were able to focus on new opportunities, products, and customer segments.

As a result, they limited their losses and even realized positive gains in some cases. Those that kept operating under a “business as usual” approach for too long, however, were left in the dust by competitors that did a better job of adjusting their planning and execution.

In response to our present crises, it’s imperative to redirect your sales efforts to align with the new ways of driving sales in a recession. The more adjustments you make now, the better prepared you’ll be for 2021. Here are four suggestions to get you started:

Build a crisis recovery sales plan with “what-if” scenarios

The businesses fairing better today were able to respond quickly and nimbly to the crises of 2020 because they had plans in place and leadership that could execute those plans. By building a crisis sales recovery plan now, you’ll ensure your company can move quickly should things become more severe. It typically takes too long to figure out what you should do in the middle of a growing crisis, so effort spent optimizing your sales strategy today will allow you to save time and money in the future. 

According to research from Deloitte, only 49 percent of respondents to a survey said their companies had plans in place for likely crises. Further, that research showed about a third of respondents were not sure whether they had a crisis management plan outlined. Preparedness is too critical to be uncertain about.

This is the time to step back and take a 30,000-foot view of your business and its potential weak spots. A thoughtful approach to risk management will pay dividends in protecting your employees, clients, and stakeholders when turbulent times come calling.

Related: 3 Steps Effective Leaders Take When Dealing With Crisis

Create a sustainable remote sales environment

Most businesses have developed some sort of virtual work environment, but many of them are chaotic short-term fixes that aren’t set up for longevity. Evaluate your company’s virtual work standards and see what changes you can make to ensure your employees will be successful in the future, no matter how long they will need to work virtually.

Are your virtual meeting tools of high quality? Are your salespeople using them to their fullest potential? Have you found any specific training to maximize the value of your virtual solutions?

Many companies are saying they’ll make remote work an option for employees, even after the economy fully reopens and it’s safe to return to office spaces. Twitter, for example, said it would allow its employees to work from home permanently. While the company plans to keep physical offices open as an option for workers, remote work will be an option as long as the associated position allows for it.

Related: 6 Tips to Make Remote Work Actually Work

Evaluate how effectively your customers can “try” your product

As part of any selling strategy, it’s vital that potential customers can experience your product before they purchase —whether it’s physically through a demo account or by reading reviews and talking to other satisfied customers. Ask yourself how well you can replicate that in-person testing with your digital tools. Do your salespeople know, for instance, how to provide virtual demos in a way that helps them move prospects through the funnel more quickly? 

When the global health crisis forced the world to shut down, retailer West Elm took an innovative approach to connect with customers and let them interact with its products. The company started offering virtual design consultations and created a new virtual “room planner” on its website, enabling users to interact with products and visualize them in their homes. Find ways to connect with consumers and let them feel engaged with your product and brand, and you can transition successfully to the new normal without losing steam.

Give your sales team the training it needs to close deals in a recession

For most salespeople, the idea of being chained to a desk 24/7 is an absolute nightmare. The reason they went into sales in the first place was to get out in the field, talk to people, and build relationships — all of which are next to impossible during a quarantine or lockdown situation.

Help them adjust by training them to divide presentations into multiple calls. While you’re at it, coach them on how to use monthly assessments to track how well certain tactics are working. Then, make sure you use technology to highlight your team’s successes through all-hands meetings and executive drop-ins.

The more agile your business is, the more quickly it can bounce back amid turmoil. By taking time now to assess your company’s readiness for a recession or volatile market conditions, you can set it on the right course. This will allow you to empower your sales team for success with a contingency operations planwhich should save you even more time and money down the road in preparation for the current and future crises. Ultimately, these proactive steps will help your company survive and succeed — no matter what happens.

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The Trump campaign celebrated a growth record that Democrats downplayed.

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The White House celebrated economic growth numbers for the third quarter released on Thursday, even as Joseph R. Biden Jr.’s presidential campaign sought to throw cold water on the report — the last major data release leading up to the Nov. 3 election — and warned that the economic recovery was losing steam.

The economy grew at a record pace last quarter, but the upswing was a partial bounce-back after an enormous decline and left the economy smaller than it was before the pandemic. The White House took no notice of those glum caveats.

“This record economic growth is absolute validation of President Trump’s policies, which create jobs and opportunities for Americans in every corner of the country,” Mr. Trump’s re-election campaign said in a statement, highlighting a rebound of 33.1 percent at an annualized rate. Mr. Trump heralded the data on Twitter, posting that he was “so glad” that the number had come out before Election Day.

The annualized rate that the White House emphasized extrapolates growth numbers as if the current pace held up for a year, and risks overstating big swings. Because the economy’s growth has been so volatile amid the pandemic, economists have urged focusing on quarterly numbers.

Those showed a 7.4 percent gain in the third quarter. That rebound, by far the biggest since reliable statistics began after World War II, still leaves the economy short of its pre-pandemic levels. The pace of recovery has also slowed, and now coronavirus cases are rising again across much of the United States, raising the prospect of further pullback.

“The recovery is stalling out, thanks to Trump’s refusal to have a serious plan to deal with Covid or to pass a new economic relief plan for workers, small businesses and communities,” Mr. Biden’s campaign said in a release ahead of Thursday’s report. The rebound was widely expected, and the campaign characterized it as “a partial return from a catastrophic hit.”

Economists have warned that the recovery could face serious roadblocks ahead. Temporary measures meant to shore up households and businesses — including unemployment insurance supplements and forgivable loans — have run dry. Swaths of the service sector remain shut down as the virus continues to spread, and job losses that were temporary are increasingly turning permanent.

“With coronavirus infections hitting a record high in recent days and any additional fiscal stimulus unlikely to arrive until, at the earliest, the start of next year, further progress will be much slower,” Paul Ashworth, chief United States economist at Capital Economics, wrote in a note following the report.

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Black and Hispanic workers, especially women, lag in the U.S. economic recovery.

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The surge in economic output in the third quarter set a record, but the recovery isn’t reaching everyone.

Economists have long warned that aggregate statistics like gross domestic product can obscure important differences beneath the surface. In the aftermath of the last recession, for example, G.D.P. returned to its previous level in early 2011, even as poverty rates remained high and the unemployment rate for Black Americans was above 15 percent.

Aggregate statistics could be even more misleading during the current crisis. The job losses in the initial months of the pandemic disproportionately struck low-wage service workers, many of them Black and Hispanic women. Service-sector jobs have been slow to return, while school closings are keeping many parents, especially mothers, from returning to work. Nearly half a million Hispanic women have left the labor force over the last three months.

“If we’re thinking that the economy is recovering completely and uniformly, that is simply not the case,” said Michelle Holder, an economist at John Jay College in New York. “This rebound is unevenly distributed along racial and gender lines.”

The G.D.P. report released Thursday doesn’t break down the data by race, sex or income. But other sources make the disparities clear. A pair of studies by researchers at the Urban Institute released this week found that Black and Hispanic adults were more likely to have lost jobs or income since March, and were twice as likely as white adults to experience food insecurity in September.

The financial impact of the pandemic hit many of the families that were least able to afford it, even as white-collar workers were largely spared, said Michael Karpman, an Urban Institute researcher and one of the studies’ authors.

“A lot of people who were already in a precarious position before the pandemic are now in worse shape, whereas people who were better off have generally been faring better financially,” he said.

Federal relief programs, such as expanded unemployment benefits, helped offset the damage for many families in the first months of the pandemic. But those programs have mostly ended, and talks to revive them have stalled in Washington. With virus cases surging in much of the country, Mr. Karpman warned, the economic toll could increase.

“There could be a lot more hardship coming up this winter if there’s not more relief from Congress, with the impact falling disproportionately on Black and Hispanic workers and their families,” he said.

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Ant Challenged Beijing and Prospered. Now It Toes the Line.

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As Jack Ma of Alibaba helped turn China into the world’s biggest e-commerce market over the past two decades, he was also vowing to pull off a more audacious transformation.

“If the banks don’t change, we’ll change the banks,” he said in 2008, decrying how hard it was for small businesses in China to borrow from government-run lenders.

“The financial industry needs disrupters,” he told People’s Daily, the official Communist Party newspaper, a few years later. His goal, he said, was to make banks and other state-owned enterprises “feel unwell.”

The scope of Mr. Ma’s success is becoming clearer. The vehicle for his financial-technology ambitions, an Alibaba spinoff called Ant Group, is preparing for the largest initial public offering on record. Ant is set to raise $34 billion by selling its shares to the public in Hong Kong and Shanghai, according to stock exchange documents released on Monday. After the listing, Ant would be worth around $310 billion, much more than many global banks.

The company is going public not as a scrappy upstart, but as a leviathan deeply dependent on the good will of the government Mr. Ma once relished prodding.

More than 730 million people use Ant’s Alipay app every month to pay for lunch, invest their savings and shop on credit. Yet Alipay’s size and importance have made it an inevitable target for China’s regulators, which have already brought its business to heel in certain areas.

These days, Ant talks mostly about creating partnerships with big banks, not disrupting or supplanting them. Several government-owned funds and institutions are Ant shareholders and stand to profit handsomely from the public offering.

The question now is how much higher Ant can fly without provoking the Chinese authorities into clipping its wings further.

Excitable investors see Ant as a buzzy internet innovator. The risk is that it becomes more like a heavily regulated “financial digital utility,” said Fraser Howie, the co-author of “Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise.”

“Utility stocks, as far as I remember, were not the ones to be seen as the most exciting,” Mr. Howie said.

Ant declined to comment, citing the quiet period demanded by regulators before its share sale.

The company has played give-and-take with Beijing for years. As smartphone payments became ubiquitous in China, Ant found itself managing huge piles of money in Alipay users’ virtual wallets. The central bank made it park those funds in special accounts where they would earn minimal interest.

After people piled into an easy-to-use investment fund inside Alipay, the government forced the fund to shed risk and lower returns. Regulators curbed a plan to use Alipay data as the basis for a credit-scoring system akin to Americans’ FICO scores.

China’s Supreme Court this summer capped interest rates for consumer loans, though it was unclear how the ceiling would apply to Ant. The central bank is preparing a new virtual currency that could compete against Alipay and another digital wallet, the messaging app WeChat, as an everyday payment tool.

Ant has learned ways of keeping the authorities on its side. Mr. Ma once boasted at the World Economic Forum in Davos, Switzerland, about never taking money from the Chinese government. Today, funds associated with China’s social security system, its sovereign wealth fund, a state-owned life insurance company and the national postal carrier hold stakes in Ant. The I.P.O. is likely to increase the value of their holdings considerably.

“That’s how the state gets its payoff,” Mr. Howie said. With Ant, he said, “the line between state-owned enterprise and private enterprise is highly, highly blurred.”

China, in less than two generations, went from having a state-planned financial system to being at the global vanguard of internet finance, with trillions of dollars in transactions being made on mobile devices each year. Alipay had a lot to do with it.

Alibaba created the service in the early 2000s to hold payments for online purchases in escrow. Its broader usefulness quickly became clear in a country that mostly missed out on the credit card era. Features were added and users piled in. It became impossible for regulators and banks not to see the app as a threat.

ImageAnt Group’s headquarters in Hangzhou, China.
Credit…Alex Plavevski/EPA, via Shutterstock

A big test came when Ant began making an offer to Alipay users: Park your money in a section of the app called Yu’ebao, which means “leftover treasure,” and we will pay you more than the low rates fixed by the government at banks.

People could invest as much or as little as they wanted, making them feel like they were putting their pocket change to use. Yu’ebao was a hit, becoming one of the world’s largest money market funds.

The banks were terrified. One commentator for a state broadcaster called the fund a “vampire” and a “parasite.”

Still, “all the main regulators remained unanimous in saying that this was a positive thing for the Chinese financial system,” said Martin Chorzempa, a research fellow at the Peterson Institute for International Economics in Washington.

“If you can’t actually reform the banks,” Mr. Chorzempa said, “you can inject more competition.”

But then came worries about shadowy, unregulated corners of finance and the dangers they posed to the wider economy. Today, Chinese regulators are tightening supervision of financial holding companies, Ant included. Beijing has kept close watch on the financial instruments that small lenders create out of their consumer loans and sell to investors. Such securities help Ant fund some of its lending. But they also amplify the blowup if too many of those loans aren’t repaid.

“Those kinds of derivative products are something the government is really concerned about,” said Tian X. Hou, founder of the research firm TH Data Capital. Given Ant’s size, she said, “the government should be concerned.”

The broader worry for China is about growing levels of household debt. Beijing wants to cultivate a consumer economy, but excessive borrowing could eventually weigh on people’s spending power. The names of two of Alipay’s popular credit functions, Huabei and Jiebei, are jaunty invitations to spend and borrow.

Huang Ling, 22, started using Huabei when she was in high school. At the time, she didn’t qualify for a credit card. With Huabei’s help, she bought a drone, a scooter, a laptop and more.

The credit line made her feel rich. It also made her realize that if she actually wanted to be rich, she had to get busy.

“Living beyond my means forced me to work harder,” Ms. Huang said.

First, she opened a clothing shop in her hometown, Nanchang, in southeastern China. Then she started an advertising company in the inland metropolis of Chongqing. When the business needed cash, she borrowed from Jiebei.

Online shopping became a way to soothe daily anxieties, and Ms. Huang sometimes racked up thousands of dollars in Huabei bills, which only made her even more anxious. When the pandemic slammed her business, she started falling behind on her payments. That cast her into a deep depression.

Finally, early this month, with her parents’ help, she paid off her debts and closed her Huabei and Jiebei accounts. She felt “elated,” she said.

China’s recent troubles with freewheeling online loan platforms have put the government under pressure to protect ordinary borrowers.

Ant is helped by the fact that its business lines up with many of the Chinese leadership’s priorities: encouraging entrepreneurship and financial inclusion, and expanding the middle class. This year, the company helped the eastern city of Hangzhou, where it is based, set up an early version of the government’s app-based system for dictating coronavirus quarantines.

Such coziness is bound to raise hackles overseas. In Washington, Chinese tech companies that are seen as close to the government are radioactive.

In January 2017, Eric Jing, then Ant’s chief executive, said the company aimed to be serving two billion users worldwide within a decade. Shortly after, Ant announced that it was acquiring the money transfer company MoneyGram to increase its U.S. footprint. By the following January, the deal was dead, thwarted by data security concerns.

More recently, top officials in the Trump administration have discussed whether to place Ant Group on the so-called entity list, which prohibits foreign companies from purchasing American products. Officials from the State Department have suggested that an interagency committee, which also includes officials from the departments of defense, commerce and energy, review Ant for the potential entity listing, according to three people familiar with the matter.

Ant does not talk much anymore about expanding in the United States.

Ana Swanson contributed reporting.

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