Why do Businesses Fail? Part X


Courtesy of Shutterstock.com

It’s All About Sales & Marketing, And Watching Expenses!

Thus, this is the end of a ten-part series on “Why do Businesses Fail.” If you have been following the series, you have found there are a variety of reasons why businesses fail, but one thing for sure, without sales and marketing and watching expenses, in your business, it will inevitably fail in time. For many years there were rebellious attitudes between these two departments (sales & marketing)when, in reality, they should have been working together due to they were working for the same common goal. Just think about it; if you are having a cash flow issue, increasing your sales and watching your expenses can be the elixir to bring you out. Now, let’s break down these three separately to drive home a point on how important these three are to the stability of your business.

Sales

Out of all the departments in a business organization, sales is the one department that drives revenue for business right now. It is sales that pay the bills, keeps the organization solvent, and out of bankruptcy. This one area entrepreneurs and small business owners should focus on getting more sales for their business organization. Therefore, believed more consistent sales in business organizations would bring down the large percentage of businesses going out of business each year. As a business owner, one must continuously focus on new persistent sales, and this must be translated throughout the organization; everyone must think sales from all departments; if not, there could be an opportunity lost for the organization.

There are a variety of sales and marketing methods, as one who holds a Doctorate of Business Administration in Entrepreneurship and Business Management. I use a Direct Marketing approach. The four pillars of this marketing approach are simple and cut out the middlemen, such as advertising and the likes. They are 1) email, 2) direct mail, 3) telemarketing, and 4) meetings. Thus, the first two deals with content development in driving home a message that is well received by the intended prospect or target market.

 And the last two deals with getting on the phone calling them up and setting up a meeting. I have found this quick and to the point. However, the key here is knowing how to prospect and develop an ideal prospect persona that is used in the sale process. To get all the data that I need to build my prospect list, I use Salesgenie, which includes getting an email address to send to my prospects; without an email address, I can’t consider them a prospect for I send the emailer first as a form of introduction followed by direct mail. Then the telemarketing to qualify the prospect and move them through the sales process to set up a meeting, which done virtually.

Marketing

So what is marketing? Marketing is all the activities within a business that brings about awareness of a company. And its products, services sold in the marketplace. Advertising, market research, and marketing research are part of marketing. If consumers don’t know about your company, how can they buy from you?

So, it is the purpose of marketing to bring about awareness of a company and its products or services they wish to sell in the marketplace. Now one thing marketing is not, and this is the opinion of marketing professionals, are the sales act its self is the results of marketing. Marketing is a way of engaging one’s prospects through content about the services, or products that your organization offers, to relevant information that could be of benefit to the consumer that they don’t know and make it enjoyable. In today’s digital environment, the use of social media is a place to engage with one’s customers. Through engagement, this gives your customers a sense of belonging and a feeling that your company is interested in them in what they think, and they feel engaged.

Marketing helps to build a relationship between the company and customers or prospective customers. Thus, the building of trust and relationships comers from marketing, which is essential in developing brand awareness. Marketing is a communication channel of letting customers know not only of the offering the company has but its mission statement that is a creator of brand awareness and loyalty.

Expenses

Finally expenses. Expenses are an area where entrepreneurs and small business owners focus on that will keep them abreast of the income coming in, and the expenses or income going out. Consequently, the knowledge of income and expenses, where the money is going will help the entrepreneur in knowing in advance if there are any financial issues. Of the economic well being of the business. Then when found, what to do. Is cutting the budget to stay inline with sales or revenue and pinpointing unnecessary expenses is vital to maintain profitability.

So, with bringing all three together with the entrepreneur, the small business owner has a better opportunity to stay in business. Therefore, beating the odds of two-thirds on new companies failing with in the first five years of starting. Which goes back to what researchers have found, the top two reason why businesses fail 1) marketing, 2) finances.

Conclusion

So it is hoped that you have enjoyed the ten-part series on “Why do Businesses Fail.” Hopefully, you will continue to this site each week and read our blogs. As always, we encourage your comments as we seek to know if we are supplying you with content and topics that interest you. And with that said, thank you for reading.

Dr. Dem.