There are a lot of important things that every business needs to implement in order to survive.
What would you think would be the most important one?
Every person would answer this question depending upon the position they hold in the company. A production manager will answer proper training; the shipping department might answer about on-time delivery; the finance department might say something about better record-keeping, and the vice president of some department my say something totally different.
How you answer this question will tell you where you fit in your community and what your priorities are.
Number 1 job of every single business always must be to acquire more customers and make more Sales. Unless everyone in the company are aware, it is doomed to failure.
Except a business focuses its efforts on acquiring new customers it will eventually go out of business. It doesn’t matter how stable the company is at the moment, it must continue to try to find more customers. Your existing customers, that may appear loyal to you, can get lost over the silliest reason.
Have you ever heard the phrase, “if you’re not growing you’re dying?”
Let’s look around us: do trees ever stop growing? No. They will continue to grow and continue to send their roots and as far as they can, year after year. You don’t think that you should do the same?
A business needs to develop and follow strategic plan
Research with entrepreneurs shows that finding new sales and new customers is the hardest part of any business. That’s why so many people start relaxing once they have enough customers and stop growing. It’s the hardest work. Sales, marketing, advertising and promotion is endless, time-consuming and expensive. But to the CEO of the company, they don’t look at it as hard work, they look at it as absolutely crucial for their future survival. They don’t look at it as cost, they look at it as an essential investment.
What is amazing to me, in many examples I have seen during the year, sales and marketing expenses are the first thing that are cut off. Second thing that is cut is training for their employees. Like a turtle being attacked company withdraw into their shell and wait out the opposition.
But businesses aren’t Turtles. Every business must be in step in order to survive. Every company must keep producing something and have good sales force in order to survive on the market. Why cut expenses on the one thing that is going to help you achieve your goal? Probably because it’s reactionary. It’s going into survivalist mode.
But let’s think of another option? The next time you’re faced with a difficult financial decisions in your company ask yourself: “How many customers would I need to cover the expenses?” Let’s say that your average customer brings in 2000 per year in profits. Let’s imagine that you just got hit with a $20,000 bill or fine somewhere. By answering the question it would be easy to show that all you needed was 20 more customers to cover that problem.
But a lot of leaders will say “Where can I cut costs in the business that will save me those $20,000?” For some reason it seems to be easier to say, “Let’s eliminate several employees or let’s limit some of the supplies”.
On this way you will lost your two most valuable resources: a sales employee who understands your business or a vendor who has serviced you before. But first ask yourself, how much time did it cost you? How many times did that vendor give you deals in the past and what have they sacrificed before for your benefit?
I’m suggesting that the cost of those 2 options would be far more than just the $20,000 problem you face. Next time take a more proactive approach to cover that problem instead of the knee-jerk reaction of cutting things.