To survive the economic downturn, many entrepreneurs are focusing on improving business performance.
But without proper guidance, businesses can easily end up on the wrong path and focus on areas that actually don’t need improvement.
For example, many teams may be embarking on sales training as a way of improving their sales and negotiation skills. But has anyone taken time to evaluate whether the product is appropriate for the market?
If it isn’t right for the market, then no amount of sales or motivational training can increase the business that staff can bring in as the underlying concept won’t be attractive to potential customers.
When businesses try to be all things to their customers they often fail simply because they don’t show enough understanding of their actual target audience, and end up hassling people who will never be interested in their product
In my experience, there are four main problems businesses encounter when seeking to improve:
1. A lack of proper differentiation and focus
2. A lack of lead generation activity
3. A lack of proper sales process
4. A lack of client development
Clarity of differentiation and focus
When businesses try to be all things to their customers they often fail simply because they don’t show enough understanding of their actual target audience, and end up hassling people who will never be interested in the product or service in question. For example, when you meet people at a networking meeting you usually get either the laundry list introduction or the long ramble (which takes about two minutes.)
So many entrepreneurs don’t really understand why their clients buy from them and are normally too afraid to ask! But if they did ask them then it would show customers that they are focused on what they are selling and how to make improvements.
I suggest that the business should take time out to examine its proposition and find a niche where they have credibility and where there is money. It won’t normally be a new niche, instead being an existing field where the business can offer something the competition can’t.
Differentiation is the key to success, so find out what makes you stand out and exploit it.
Lead generation activity
Many people think they are OK at sales, but you just have to look at the consistency of their sales activity to see if there is a problem.
The classic symptom is the ‘feast or famine’ cycle. The business owner realises they do not have enough sales coming in and something must be done about it.
They engage in a massive burst of activity that eventually leads to new work coming in. Eventually sales activity slows down and comes to a complete standstill. Now is the time to take charge of the sales pipeline, to ensure that there is steady activity.
Sales process
I was doing some training for Business Link recently and was amazed at how many, often large, businesses didn’t understand about sales processes and sales pipeline management. All businesses should look at sales processes and how to measure sales activity and track sales opportunities.
I find that when business owners properly learn sales skills and understand sales processes they feel more in control of their sales function.
