Why Salespeople Should Care About the 10-K (But Don't Anymore)

Why Salespeople Should Care About the 10-K (But Don't Anymore)

Let’s be real -  when was the last time you, as a salesperson, sat down to read a 10-K report?

70% of a salesperson’s time is spent on non-selling activities (Salesforce) and nearly 60% of sales reps spend too much time on non-selling activities (Forrester)

Reading a 10-K probably feels like one of those tasks.
It gets passed around but rarely gets opened. Its importance is acknowledged, but avoided.

It’s a missed opportunity.

What’s in the 10-K, and Why Does It Matter?

The 10-K is essentially a deep dive into a company’s financial health, risks, opportunities, and overall strategy.

It's filled with everything a salesperson could use to tailor a pitch or proposal to a prospect's specific situation. It contains insights about what’s working for a company and what’s not, but even more important to a salesperson - where they are planning to invest next.

This is a roadmap to a company’s priorities, pain points, and future goals.

Think about finding out that a prospect is struggling with outdated technology or a non-productive department that your product caters to.

Having that information turns you into a problem-solver who truly understands their business.

Why Aren’t Salespeople Reading It?

1. It’s too damn long: A typical 10-K report is around 100 pages long. Most of what’s there is irrelevant to most salespeople.
No one has time or patience to do this when you’re trying to reach your quota.

2. It’s Written for Investors, Not Salespeople: The language is off-putting. Legal jargon, financial terms, and complex reporting make it difficult to extract insightful information. 

3. Information Overload: Even if you manage to get through the report, you’ll feel overwhelmed by the amount of data. Figuring out what’s actionable versus what’s just background noise takes even more time.

Why Salespeople Should Rethink the 10-K

But here’s the big BUT:
94% of buyers want sales professionals who understand their needs, but only 19% of buyers feel salespeople truly offer insights tailored to their business (LinkedIn).

Also, 51% of top-performing salespeople regularly use company financials, such as the 10-K, in their sales process (Salesforce)

That’s because a 10-K includes management’s outlook, risk factors, and future strategies. These often make or break a deal, when used correctly.

The Salesperson’s Edge: How to Use the 10-K Smartly

So, what we have discovered so far:
1. 10-K is crucial for your success.
2. You’re not going to read it.

Fortunately, you don’t really have to.

You can skim through the report, focus on key sections and pay attention to financial health.

But you can also use platforms like Clearitty that do all the leg work for you - they summarize the 10-K into actionable insights, so you get the information relevant to cutting deals, with no fluff or noise attached.

A complete win-win

Sales Depends on Understanding the Business

Sales is no longer about pushing a product, everyone in sales pretty much knows that by now. It’s about solving problems.

Buyers want to work with salespeople who understand their business, their challenges, and their industry. The 10-K is one of the best tools you can use to get that understanding.

10-K used to be a huge chore. Now, with solutions like Clearitty, it’s not. 

When you are fully aware of the company’s challenges, their strategic direction, and their financial health, and you use that information in a pitch, in a meeting, in an email, in a DM -  you’ll stand out from competitors.