Don’t be the sacrificial lamb that takes down your business

If your business is not growing it might be entering a slow and painful death rattle. Many business owners refer to their business’s either as a “growth company” or a “mature” company. These terms are generally used to describe one of two things:

  1. A growth company refers to an organization focused on an accelerated revenue trajectory. These companies often have a large cash burn to generate topline revenues but typically either loose money to get there or operate on a very thin profit margin sometimes for a prolonged period of time. This is primarily due to the cost associated with the activity to generate growth.
  2. A mature company refers to a company that has hit its stride and has matured and as a result, leveled out in growth. These companies typically have more operating income and look for operational improvements to drive the bottom line. Mature companies do see some moderate growth but its typically within the bounds of the inflation and or market segment growth.

One thing is certain in business though, if you’re not evolving and engaging new customers you are dying, and you just don’t know it yet. What is not talked about is the average attrition rate of customers. When talked about by entrepreneurs many tout the ability to maintain a prolonged relationships with their customers. The reality is, while this may be your secret formula, statistics don’t lie and customer turnover is inevitable. While there are many contributing factors to this, I would argue that the market seeing relevance in your products or services will drive business and consumer behavior. This is further supported through market visibility and traction.

If we have established growth and customer acquisition are important to the very existence of any business, even from a revenue maintenance standpoint, then shouldn’t we evaluate the cost to stay relevant through marketing and sales activities? The answer is a resounding yes! Many entrepreneurs think there isn’t much more than going out there and earning sales. Most would agree that the entrepreneur is usually the best salesperson in most organizations. They are the most passionate about their companies’ products/services and customers buy when they are selling. But does this translate when you have others within the organization doing the same activity? The great companies understand this challenge making adjustments in support of the sales and marketing activities the company with a measured approach.

Understanding the cost benefit of your sales and marketing activities through forecasting or projecting sales and the correlation to expenses over time is the first step. The second is to review the cost benefit as it relates to actual overall performance of the organization. This will allow you to make micro and macro adjustments to your strategy and spend, which will keep you on target.

It’s up to you as the entrepreneur to drive change and stay relevant. Don’t make the mistake of entering the phase of the slow death rattle… Recognize the opportunity for failure, don’t wait until it’s on your doorstep.

Contact Data

Name: Chris Jones

Organization: UrbanLink Media

Phone: 1-855-730-5465

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