For any small business managing expenses is essential, but in order to achieve success a focus on sales for sustainable revenue growth is paramount
There is a strong correlation between successful small businesses, sales and revenue growth.
Successful companies make sales the priority
- To improve your bottom line, focus on revenue growth rather than cost cutting and budgeting.
- While making operations more efficient might be easier, sustainable growth can only come from sales.
- Focus on your sales processes to continually acquire new clients and deepen relationships with existing customers.
In a competitive marketplace, every company is under pressure to improve the bottom line. And as every business owner knows, there are only two ways to do that: increase revenue, or decrease costs. Where a lot of companies go wrong, however, is in their focus. Instead of expense cutting and strict budgeting, your time may be better spent prioritizing sales.
When times get difficult, many companies instinctively turn inwards, focusing on streamlining operations and minimizing the expenditures needed to maintain those operations. This tends to be the case especially for smaller companies that do not have a sales department.
Of course, maintaining efficient costs and sticking to reasonable budgets is a healthy practice for all businesses. But what many companies lose sight of is the fact that true growth and success can only come from sales.
The reason so many companies turn to cost cutting is because growing revenue can seem like an insurmountable task in a slim marketplace. But with the proper sales processes in place, any business can leverage their unique market position to win new clients and extract more value out of existing business.
Just as every week your company strives to get your product out the door, the same focus has to be applied to bringing new clients in the door and developing deeper sales relationships with current customers.
When budgeting for the upcoming year, build your budget around the sales budget what youre forecasting for the next year, and what resources youll need to get there. That way, instead of pinching pennies youll be driving true growth and sustaining a thriving business for years to come.
About the author
Alexander J. Hart of Cuban American decent is principal and founder of Hart Vida Raffo. With over 25 years of experience, Alex specializes in the areas of tax strategy and planning, business process improvement, and capital consulting. Whether advising on capital and financing strategy or consulting for privately-held professional services firms, Alex has the expertise and practical know-how to help any company optimize their business processes and make tactical financial decisions. He began his career at IBM in sales operations and accounting. He was a Controller for the N.Y. Post, has been a CFO for a medical device company, and has written a tax column called “Ask the Tax Guys” for Micro-Cap Review. Alex is a professional member of A.L.T.A. (Affiliated Lawyers of the Americas), a member of the National Association of Tax Preparers, and is a contributing author and mentor at Latin Business Today. Alex graduated from St. John’s University with a B.A. in Spanish and his M.B.A. in Finance. He obtained his accounting degree from Pace University.Website