More sales is not always the solution

February 22, 2008

Small business owners are passionate about the product they’re selling or service they’re providing.  They’re typically the best salesperson in the organization.  When times are good, it’s full speed ahead!  But when sales start to drop off for no apparent reason, many owners are lost on what to do.  When faced with adversity, we all tend to look for the type of solution we feel most comfortable with , given our personality and skill set.  Engineers will look for technical solutions, whereas salespeople will look for a sales solution – even when the problem has nothing to do with sales.  I’ve worked with owners who thought that the solution to every problem was to grow sales – even when the margins on those sales were so low that they were losing money on the bottom line.   I don’t know about you, but the BOTTOM LINE (Net Profit) is more important to me than the TOP LINE (Revenue).

Taking the “easy road” will not solve the root problems.  Dealing with the details is not usually the fun part of running a business.  Sales is much more fun!  But in order for a business to be successful and maintain its success over a long period of time, an owner needs to hire and surround himself/herself with people who are more detail oriented and enjoy doing the mundane administrative tasks.  In my experience, entrepreneurs coming from the sales side of the business typically view bookkeepers, accountants and other clerical staff as non-productive employees.  But what these people do for your business is almost as important as getting sales in the first place.  They make it possible for you to keep the customers you already have.  They help you maintain the positive relationships you have with vendors and lenders.  But more importantly, they allow you to focus your time and energy on doing what you do best.  Happy Selling!