Why Small Business Fails
Written by Drew Stevens PhD
I am noticing a trend developing across several industries. It is not only a systemic issue which will create depletion of customers and revenue but foundational. The reason why the issue seems to be more apparent now then prior to the recession is simply most organizations did not focus on rudimentary practices that assisted to retain and acquire new clients.
The fundamental issue that continues to escalate is a lack of attention to marketing and sales. Organizations simply did not focus on sales efforts prior to and during the recession. Nothing happens without a sale. It was great in the years 2005 to 2008. The phone was
ringing the orders were continuously coming in and many people were not concerned. As the bubble grew so did profits and so did egos; many individuals simply forgot the reason why they were in business. More importantly what originally got them there would not continue to get them to their end result.
I find now organizations in panic as revenues and subsequently clients have decreased. Yet when questioned about branding efforts or investments into the sales teams I am negated. If there is not investment in marketing and sales where is the money going. And more importantly, now that times are a bit slower, it is a terrific time to educate, stimulate and grow these imperative efforts.
It is vital in any economic cycle every company to invest a good percentage of its income on the sales and marketing efforts of its organization. Therefore it is necessary to understand that you are not only in your individual businesses but the marketing business. This requires pre-engagement marketing opportunities and post-engagement follow - up.
The tactics that businesses employ will assist in creating the allureand cache necessary that then develop brand. The concept of brand development is vital to be heard amongst the cacophony of competitors. Brand helps to create competitive differentiation. Consumers purchase because of the allure and trust. It is necessary that to concentrate all efforts on daily basis in building trusting relationships that create emotion and value. Consumers invest in brand and buy on emotion not from the bromide of features.
Consider this, the foundation of every business is the acquisition and retention of clients. The roof protecting the business is its strategy. There are than four pillars that connect the roof to its solid core and these include marketing, accounting, sales and service. If you truly want to build a profitable, productive and passionate business with less labor and more revenue than focus on these vital principles. Continually review you strategy in every economic cycle and I guarantee that your profits will be higher; your labor less as well is your stress.
Take the time now to retool your strategy, refocus your core energies and rekindle the energies of your organization. I'll look forward to hearing your stories as you accelerate your business strategies!
©2010. Drew Stevens PhD. All Rights Reserved.
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Drew Stevens is one of the world’s leading authorities on business development and customer satisfaction. Drew is the author of the successful sales process book Split Second Selling. He is also the creator of the Sales Leadership Certificate one of only 14 programs in the United States offering an accredited degree in the profession of selling and has a top ranked podcast called Sales Fitness. To discover how Dr. Drew can assist your organization to increase their business development skills visit him at www.stevensconsultinggroup.com