Sales are sales, and Business is Business BUT Sales alone is not Business
You started a business because amongst other things you wanted to free up your time. You want freedom and flexibility to do the things that you love and enjoy running your business.
Business is simple if you know the basics to get off the ground and grow. It is interesting how people view business and although everyone has the right intentions, there seems to be a vast difference in knowledge on how to set up, manage and exit a business. I often see tips, tools and knowledge shared that leave me asking if we are all talking the same language.
So, let's start with what everyone knows – Without sales, you don’t have a business, but sales alone, is not a business. The other components of a business help fulfil the customer expectations and business requirements. Without these, sales will eventually ‘dry’ up.
Contrary to the belief that “Sales is what enables a business to grow”, sales alone do not enable growth.
You may not know what you don’t know, so we will cover the critical components needed at the beginning of the business to enable growth and make a difference.
Purpose:
Every business begins with someone, and that someone needs to know where they are going and why they are doing what they are doing – Their purpose!
Purpose alone is not enough without considering the impact. The impact needs to have you really think about the WHY. When we understand our choices, we have clarity, (although simplistically framed, this is the grounding of your business framework). Without this, every other component is weakened.
Business is not “theory”, it is about the realities of today with the intentions of tomorrow and the future, to better equip yourself.
If you are serious about growing your business and developing a team, going national or international, don’t dismiss this step. It is the beginning of the process of building the structure.
It also gives you the vision to think about your exit strategy, which is also important.
Strategy and Business Plan
Strategy in a nutshell is about looking at what you have, and how you can deliver more with less; or looking at diversification that will benefit your target audience but not stretch you to the point you burn out or worse still fail or have to fold. This is a balance and needs to be clearly thought out and aligned with the numbers.
Your Business Plan should incorporate a cash flow with your budget. Many business owners don’t add numbers to their strategies and plans. Having the numbers helps to make decisions.
Business plans are dynamic and should be broken down into quarterly goals and looked at often. Going through your strategy and business plan is worth the time and effort.
‘According to a survey of 350 small and medium business (SMB) owners, 50% do not have a marketing plan’ – Outbound Engine
A business plan helps you work with intention and purpose so that you are ‘steering the ship’ as opposed to allowing the tide to drift you down or upstream.
I want to note whilst this survey focuses on a marketing plan, I point out that marketing plans need budgets and need to know the Return on Investment otherwise they are just aimlessly creating social media posts or randomly doing podcasts, advertorials etc.
Structure
The structure is one of the keys that hold it all together. The process of setting up the structure is driven by the purpose. Processes evolve over time as the business grows. A framework of continuous improvement is always good practice for a business to adopt.
Budget and Cashflow
To be able to make responsive decisions you need to understand your numbers.
Numbers may not be ‘your thing’ but as a business owner or CEO, you need to understand them and take ownership and accountability. Shift your mindset. A good coach or advisor can help you read the numbers to make informed decisions on the real profit and the amount of money you are making.
The numbers help to know:
When to afford to increase your marketing drive.
The return on investment (“R.O.I”) that you are making.
When you can increase your wages.
When to Increase staff or outsource work.
What you need to do to increase sales, or reduce costs.
What your true profit is – your true margin
Surround yourself with the right people
Think about the story you have been sold. Think about your contribution and the foundations you have laid. Have you surrounded yourself with the right people?
Invest in You
Time and money upfront investment in yourself can deliver the long-term plan. Investment can be education, online programmes and Coaches / Advisors. When you invest in yourself, you can have the life that you deserve.
As you succeed you can look at how you want to contribute to shaping a better world. Paying it forward and the Circular Economy is something you may want to play a part in.