Why do businesses Fail? Part V


Published: January 20, 2020

Courtesy of Newsmax.com

Today’s blog is a continuation of a 10 part series of “Why Do Businesses Fail?”. This week we shall continue with Sales & Marketing, which is the central focus of any successful business, and without it, there will ultimately be a failure within the organization’s lack of revenue and then bankruptcy. My name is Donald E. Mitchell, and I am an entrepreneur and have been for over 40-years. And within that time, I have learned failure and success; thankfully, the victories were more than the failures; however, it is a learning process that most entrepreneurs must go through to get to where they want to be-continues success. In 2008 after the mortgage crisis here in the U.S., I made a conscious decision to reinvent myself.

So I went back to school and finished up all my degrees and finished with my terminal degree of Business Administration in Entrepreneurship and Business Management, 8-years and $160,000.00 later. I hold the distinction of a Professional Doctorate of Business Administration. If one is serious about reinventing themselves, then they invest in themselves to acquire new knowledge in the 21st Century on how to do things differently. My objective now a day’s is finding a business problem and solve it as a practitioner, not a theologian on how it should be, and to that end, is why we are talking about the sale is the tail that wags the beast of business.

Let’s be clear the difference between Sales & Marketing; marketing is the driving or developing of qualified prospects to the sales team. The sales team takes these prospects and moves them through its sales process to come out on the other end as a closed deal, which is revenue in the organization’s bank account. Sales are the process of moving various goods or services through a variety of channels to get to the end consumer for a profit. This process of liabilities minus enough sales equals a profit will, in the end, a successful, prosperous business that can sustain its self and not be overtaken by its competitors provided it has found a niche that it can serve better than the competition.

Sales

Here in the U.S., we have a uniform code of conduct on how the sales process should move; it is called the “Uniform Code of Business Law” and excepted in all 50 States. This code of conduct is for buyers’ protection and what the sales organization can and can not do and stay within ethical boundaries to the buyer. Sales are part of the marketing process; however, sales is the persuader of this exchange to solving the buyer’s economic needs with the product the salesperson has to offer will exchange will enable to the buyer to obtain the financial goal that the buyer sees as an economic win for them in their organization pursuit for profit.

The Relationship with Marketing

Sales and marketing due differ significantly; nevertheless, they do have a common goal. Management of both departments (sales and marketing) should work together to overcome any biases they may have with each other and focus on the overall goal that is good for the company, getting more qualified leads over to the sales department to close. This analogy can be that of sprint racers that hands off the baton to another for them to finish the race. They are both on the same side, and so it is with sales and marketing of marketing passing off to the sales department to close the deal with marketing assistance in providing the qualified lead to the sales department, thus a good one-two-punch. There should not be any disharmony between these two departments, for as they both need each other to be successful in the business process of profitability to the company in which they both serve.

The Sales Process

The sales process is considered a map to better the performance of sales organizations. Without it, the sales organization will falter and not achieve the results that it could with a planned objective. Now let’s go into what is a sales process. It is repeatable steps used to get results quicker and to close the deal. It is the process of guiding a prospect through a journey of acknowledgment of them having some need for a product or service that handles their economic need.

The sales process is a journey for the prospect it a road map for the sales organization. Typically, the sale process will consist of 5-7 steps: 1. Prospecting & Qualifying 2. Approach 3. Delivering a presentation 4. and overcoming objectives 5. The closing of the deal. 6. Followup and 7. Asking for referrals. This process is a continuing process and done once the deal is closed, you start all over again with the next prospect going through the same 5-7 named sales process.

Conclusion

Developing a sales process for your organization is essential, for it eliminates wasted time, and one knows what to do next. Now one equipped with this knowledge can reduce making the same mistakes over and over again and focus on what works and drives sales that pay the bills. One final thought on developing a sales process NEVER SET IN STONE; it evolves as the business climate evolves and needs to reviving constantly. This process should always be a work in progress and not stall or stagnant. So the question do you follow some sales process? If not, why not?

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