Do you need to turn around a company and increase sales?
Turning around a company and increasing sales is sometimes not an easy task. Many companies at some time or another go through a restructuring and tough decisions need to be made. Take Cincinnati based P&G for example, they have shed over 100 brands recently and have cut thousands of jobs. How will they end up when the dust settles? We will have to wait and see. P&G is a large company but small businesses go through the same things, just on a different level. So, how do you turn around a company and eventually increase profit? Let’s take a look at the different types of turnarounds.
Company Sales Are Low
Small businesses often find themselves complacent when times are good and they fail to keep marketing to current and potential customers. They are focused on fulfilling orders and the staff is doing everything they can do to keep up. When a company contacts us and says, “Sales are low, what should we do?”. The often blame the lack of sales for the problem. Nine times out of ten it is not necessarily the sales team’s problem. It is usually a marketing or lack of lead generation problem. We like to think that our sales teams are magicians but they need to have qualified prospects to talk to in order to move them through the sales process. Without a sales funnel or a sales system we are just hoping for the best…
How do you fix low sales? Start out by looking at your company as a whole. Write a strategic plan and find out ways to improve and plan for the future. By starting with a strategic plan you will be able to either update or write a new marketing plan to reflect your new business goals. Remember, nothing happens fast and if something sounds too good to be true, it probably is.
Lack of Marketing
Most small businesses are operating on a shoestring budget. Weather they do 500k in sales or 5MM in sales, marketing is an important part of keeping sales moving in the right direction. The most common situation we find is a mature company that does not have a marketing department. They have a Sales Manager that has been with the company and does the best he/she can with picking what marketing tactics can use. They tend to be behind the times and slow to develop consistent marketing strategies because they are trying to wear multiple hats within the business. It’s not their fault, it is usually time to get them a little bit of help.
Trying To Do Too Much
We all like to think that we can do anything but in reality there are only so many hours in a day. Here at DIYSB we know exactly how many clients we can help before we need to bring in another marketing professional. A small business needs to do the same thing. This is usually addressed in the strategic plan. By completing a through strategic plan you will learn important aspects about your company and your competition. Remember, don’t try to sell too many products! Learn what your best products are and who your ideal customer is. Then, get really good at selling to them.
How Long Should A Turnaround Take?
- Within 3-6 months you should have a plan in place and start to implement your new plan.
- From 6-12 months you should see a sign that company culture is changing and sales momentum is picking up.
- Months 12-18 you will see a clear improvement and your business future should be looking bright.
What Are Your Next Steps To Turnaround Your Company?
- Find out the “real deal”! You might think you know why your company is failing and sales are low. Have you asked for help from someone outside your organization yet? It is probably time to start NOW if you are reading this article…
- Get everyone “on board”! This is the time to pick your crew. Your business will need everyone to buy into turning around this sinking ship or a ship with a tiny hole. These will be the people that either help you get where you want to be or bring the ship down with them.
- Get a Plan! But then you need to work the plan. Just creating a plan and hoping things will happen will not work. You will need ONE person in charge of leading the TEAM. It can be yourself, another leader within the company or an outside consulting firm. You pick, then stick with it. Again, nothing is going to happen overnight.
Things To Avoid!!!
- Cutting costs does not solve everything!
- You need to figure out ways to cut costs and still grow your business.
- Look for ways to make strategic leaps for your company. It might be a different way of manufacturing or developing a new product.
Still wondering where to start? Schedule a FREE Business Marketing Strategy Session TODAY!