We ran across this article by a colleague, Bill Murray, CEO of Winning, Inc. and liked it so much that we got permission to share it on our blog.
Tired of Hearing: “Before the World Changed Business Was Good!??
Growth for most companies in the nineties was more a condition of economic explosion, rather than stellar sales ability. There is no doubt that we are now in a different economy. How we handle this different economy could be a question of corporate survival.
Ineffective CEO approaches to low sales production:
1.They accept excuses that poor sales performance is a result of the economy, and decide to wait out the storm rather than implementing new sales strategies.
2.Although a victim of expensive turnover, they continue to hire using the same criteria and processes, believing that a sales superstar is just around the corner.
3.They increase the amount of money spent on marketing and advertising so sales levels don’t continue to decrease.
4.They implement attractive bonus incentive plans to encourage the sales team to meet quotas.
And the most Dangerous Approach is…
…….they back off the sales team to avoid rocking the boat!
What are the results of using these common approaches?
1.The additional advertising dollars do nothing for closing ratios, but do decrease your operating margins and increase your phone bills.
2.Bonus incentive plans created to motivate sales people to do their job also further decrease margins.
3.Each sales person is doing his or her own thing and results from one to another vary greatly.
4.The time, energy, and money dedicated to locating the next sales star elicit high expectations but disappointing results for the company.
How these results impact the Business Owner or Sales Executive:
1. On one extreme you are working harder and longer hours for less profit. If you are on the other extreme, you are going to work merely to keep other people in a job.
2.Most other business owners spend too much effort trying to learn from their own mistakes – costing time, a lot of money, and sometimes the long-term viability of the company!
Maybe it’s time to focus on the real root of the problem: Your “cash flow” is NOT the problem. The real problem is not enough profitable sales!
If you’d like to discuss a PROCESS for profitable sales growth, simply ask us to put you in touch with a representative from Winning Inc, or call them directly and schedule a 20-minute phone appointment. Their number is 781-279-2355. Tell Winning Inc that Exclusive Concepts sent you!