All I have to do is increase sales – right?
You probably hear and read about companies achieving amazing sales growth all the time. When you hear this do you wonder how they did it and think that you would love to do this for your own business?
There are so many posts, articles, seminars, training webinars etc about sales nowadays, so you’d be forgiven for thinking that all you have to do is increase your sales and hey presto, success!
But is it really as easy as all that?
If you’re looking for growth in your business, here are a few tips on what to watch out for so that the growth results in happy customers, happy team and happy you:
- Discounting might increase your volume of sales but actually decrease your profits – beware! Make sure that any discounts aren’t higher than your extra costs to deliver.
- Rapid sales growth may mean that you struggle to deliver what you’ve sold – you need to have everything in place to cope with the increase.
- Growing sales might mean shrinking cash flow – do the cash flow forecasts before you begin as one of the most common reasons for companies going bust is overtrading, i.e. not having the cash in the bank to cope with the increases in sales.
- Increasing your prices can be a great strategy but it may result in loss of customers if the market is price sensitive and if you don’t offer something different to your competitors.
- Finally, you all know the famous phrase, Turnover is Vanity, Profit is Sanity. Before you decide that growth in sales is the answer to all your prayers, take a long hard look at what this will mean to the bottom line. If it means you are losing money, then what’s the point? More work for less profit?
I’d love to hear what you think about this and if you have any experience of these or other scenarios where growing sales isn’t all it’s cracked up to be?
If you’d like a chat then do get in touch.