04: Selling – an Essential component of Business
- Ajay Khare
- Nov 1, 2023
- 3 min read
Is your business in good health?
Are you ready to take a giant leap in your business?
Let me take an analogy.
Are you in good health? Are you in good health to climb Mount Everest? If you are not so sure, how do you find out? Of course, how you feel in itself is an important criterion. If not, you don’t decide to rush for coronary angiography or MRI or such tests. You just look for any signs of inflammation. You simply use a thermometer to check out if there is any fever. Blood tests, X-rays, etc etc come later, only if required.
The point is, in your business the simplest, fastest and most affordable way to gain insight is Sales. A problem in sales could be a manifestation of a deeper malaise elsewhere. Therefore, a close watch on sales and order books by the top management is an absolute must. For a frontline sales guy, it may be a functional requirement but for top management, it is a precursor of the future.
Selling is an essential component of Business.
In the dynamic world of business, selling is not merely a function; it is the lifeblood that sustains an organization's health and propels it toward a prosperous future. From startups to established enterprises, selling is an essential component that permeates every aspect of business operations.
The Health of a Business
Let us explore the fundamental role of selling in the health of a business. How sales serve as a diagnostic tool for assessing its condition, the necessity of top management involvement in sales planning, and the strategies required to make a business future-ready.
If you have invented something new and novel but have not discovered an effective way to sell, it is a serious business challenge to achieve success. You may have an excellent product with terrific features and incomparable benefits, but in the absence of a relevant and suitable sales process, it will always have a handicap in the marketplace. Needless to say, it is an area that requires investment of time and critical attention of top management as well.
Sales as a Diagnostic for Business Health
Sales are not just numbers on a balance sheet; they are a diagnostic tool for evaluating the overall health of a business. When sales figures are strong, it is an indication that the business is effectively addressing customer needs, marketing its products or services well, and managing its operations efficiently. Conversely, declining or stagnant sales can signal underlying issues such as market saturation, changing consumer preferences, or operational inefficiencies. By closely monitoring sales, businesses can identify areas that require attention and make necessary adjustments to ensure their continued health and growth
Poor order books, sloppy collection, pressure for price reduction, demand for longer credit periods, etc are some of the symptoms which should not go unnoticed. Whether it is an attempt by the customers/prospects to negotiate or a change in the dynamics of the market, the symptoms and hence feedback from the sales force are the same. The top management has the insight to discriminate between the desire of customers/prospects to attempt to negotiate, and any structural changes taking place in the business environment and competitors’ strategy. It is the latter that falls in the domain of the top management. A stitch in time by way of proper analytics and creativity can extend the Lifecycle of the products and thus their ROI.
The most common cause of business failure is not bad products but poor sales.
The health of a business is determined by several key factors, including profitability, growth, customer satisfaction, and market share. At the core of these factors is the business's ability to generate revenue, which hinges on its selling efforts. Without sales, businesses cannot generate the income needed to cover expenses, invest in growth, and ultimately thrive. A healthy business depends on consistent sales to remain viable and competitive in the market.
In conclusion
Selling is more than just a transaction; it is the pulse of business health and a diagnostic tool for assessing its condition.
Top management must actively engage in sales planning and understand the intricacies of the sales process to steer the company toward success. By embracing technology, fostering innovation, and staying adaptable, businesses can ensure they are future-ready and equipped to thrive in an ever-changing business environment. In sum, selling is not just an essential component of business; it is the linchpin that holds the entire structure together, enabling it to flourish and endure.
Business Lessons
Selling is an essential component of business management.
Sales is a dynamic and live diagnostic of the business health.
The sales process can run on auto mode. However, sales strategy & planning requires the involvement of top management.
What is your view? Are there any changes, you would like to bring in your sales process? Please do share your comments on:
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