Thoughtful Thursdays - Breaking away...

... and I am not thinking about cycling.

Your first customers are not always, but in many cases, people you know or someone they know. Excellent outcomes as a result of networking and word of mouth. The business is up and running and off to a flying start. It does not get much better.

It is easy to get comfortable during this time, business is coming your way and it seems easy. Your customers are friendly and happy. It is a good feeling, not unlike being in bed on a cold winter day, toasty warm. It is so comfortable that you do not want to get out from under the covers.

Then something happens. Sales either flatten out or begin to decline. Your friends and friends of friends are tapped out, you have saturated the portion of your market that is your current network.

It is now time to make new friends. Breaking away and expanding your network is crucial to the long term health of your business. Time and time again new business owners are face with this. If your desire to achieve the vision you have for your business is not stronger than the fear of making the calls you need to, the consequences are easy to predict.

My suggestion is to take advantage of the good vibes and positive energy from the outset and do not wait for the lull. Begin to make the calls right away, build your contact list and continue to do it. The sales cycle for brand new customers is likely to be longer than with your current network. The sooner you begin, the greater the chances of mitigating any slow down in business.

Get out from under the covers, it is not as cold out there as you imagine.

Good selling,
Richard

Thoughtful Thursdays - Managing Sales Growth

Congratulations for exceeding company sales projections again for third quarter in a row! Even better news is that the growth trend is expected to continue.

 

So what will you do with this increase in cash flow - or is your cash flowing better? When was the last time you checked? Too busy to do it, assuming that it must be good because the top line is growing?

 

Assume nothing, especially when it comes to cash. There are questions that require answers:

• Do you know how the increase in sales activity has affected your variable costs?
• Operationally, are efficiencies what they need to be?
• When was the last time you reviewed business operations?
• Has fast growth created "hidden factories"? These are wasteful inefficient activities that may develop as a result of unchecked growth, in the name of getting product out the door to satisfy customer demand?
• Are your accounts receivable current?
• Are they increasing faster than sales? This is not good.
• Are your accounts payable current?
• Do you know why your business is growing so fast?
• If your growth is due to your customer's growth, have you run a credit check lately
• Do you know why they are growing?
• Is your customer list growing faster or slower than sales might indicate?
• How is your sales force dealing with the increase in business?
• Are they reaching capacity?
• Do they need help?

It requires more than good sales numbers to have a sustainable and profitable business. Each of the pillars of your business; Marketing, Operations and Finance, need sound management.

Block off time to review and analyze each part of your business on a regular basis. It will pay off in the long run.

Good selling,

Richard