8 Key Areas in Your Business that can have a Negative Impact on Marketing
In business, it is my belief that NOTHING happens without SALES. If you think about it for a second…it’s the primary reason why businesses start in the first place. Then the next question usually is: Can I make money selling it? And if the answer is YES, you try and figure out how much of X you can sell. You do a bit of research and if it supports your theory you give it a shot.
In my 15 years of working with Small / Medium Enterprise (SME) I’ve seen businesses take-off flying, sputter, stagnate, and fail.
Below you will find 8 key areas that SMEs need to address to achieve sustained growth in Sales:
Capital
It’s very rare to encounter a business that is so flushed with cash that capital concerns are non-existent. Even if lack of capital was not a concern a business should still operate within a reasonable business model. At the end of the day, businesses are started to earn a reasonable profit. How a business deploys its capital to achieve that profit is still a very valid question. From a marketing standpoint, marketing is often viewed as an expense and is often one of the first things to get cut in economic downturns. Cutting back on marketing is not the answer, a more strategic efficient approach to marketing is…see other steps below. Cash is KING in business…businesses that use it most efficiently win in the long run.
Management skills
Lack of management skills is often a major stumbling block to growing SMEs. Usually due to lack of capital, SMEs typically start with a limited human resource base requiring individuals to wear multiple hats. This leads to a “Jack of all trades, master of none” scenario. Often in smaller SMEs, the sales & marketing function is left to the owner or the president of the company. The challenge is the individual is also juggling 20 other different tasks and responsibilities…and studies have shown – humans are not well equipped to multitask. Successful growing businesses recognize core deficiencies and address those needs by hiring, training or getting outside help. Hiring a consultant can be a logical intermediate step to hiring a full-time dedicated marketing employee – cost is less, risk is lower. You could also use the expertise of advertising sales reps that knock on your door…be wary though. The Sales Rep is ultimately responsible for increasing sales for the company they work for…which means your interest might not be aligned with their interest.
Information
Lack of information about what is working, and what is not working is a common issue for SMEs. Most things in life have a cause and effect relationship. Sales and marketing operates on the same principle, marketing is the cause and the effect is sales. Developing a measurement and tracking system of key performance indicators (KPIs) is key to making sound business decisions on challenges and opportunities that arise. If you don’t measure it, you cannot manage or improve it.
Planning
Many SMEs suffer from this fundamental flaw – a lack of a plan. As the saying goes, failure to plan is planning to fail. Getting from point A to point B can be done many different ways. Planning helps mitigate risk. The lack of a plan allows for potentially large deviations that can lead to failure. A well devised plan allows for modification and flexibility to achieve the end goal.
Poor procedures
An efficient disciplined approach to running a business is the hallmark of a well oiled machine. Businesses that adopt procedures enjoy economies of scale, better sales processes, happier employees, less error correction, better customer service and the list goes on. Well documented procedures invested up front produces dividends and profits in the long run.
Ignoring risks
To some the word RISK is a four letter word to avoid at all costs. In business and in life, RISK is a fact of life and is something that cannot be eliminated but can be managed. Risk is managed through research, follow up and utilizing the correct internal or external resources. Ineffective marketing for example, can be a risk for businesses. The lack of knowledge, planning or measurement of marketing is a threat to sales and profitability.
Lack of focus
As mentioned earlier, limited human resources is a big challenge for smaller SMEs. The end result can be a lack of focus. Short term priorities often compete with focus on long term objectives. Marketing is often a discipline that is left unchecked. SMEs often take an unplanned approach to marketing…trying various tactics to support the goal of increasing sales. Without focus one cannot become proficient at anything and marketing is no different.
Time Management
The scarcest resource for many is time. It’s the ultimate barometer to success. We are all given the same amount of this depleting asset. The most successful businesses and individuals know how to leverage their time and energy. Marketing can be leveraged to save time and money by addressing the most common key issues noted above. Furthermore, marketing done correctly can help your prospects make a buying decision quicker. The customer you can sell to quicker is one less customer your competition has available. Is your marketing good enough to help you out sell your competition?
