“It’s all in marketing’s hands”, or “the sales team needs to be more proactive.” These statements, although may be somewhat true, are rather dismissive of some even greater opportunities for improving your company’s revenues. It can go deep—product selection and design deep, but combine these strategies with your high-performing marketing and sales teams and your business will flourish.
What Does The Market Want?
This is a question often not asked by managers leading organizations which are more than twenty or thirty years old. There’s a certain level of comfort in creating a process or product and “lather, rinse, repeat” until the end of time. But what if your sales are slipping? This is a two-part problem: 1) listen to the customer—send surveys, ask distributors, contact peers, and 2) innovate your products or solutions for where the market is headed.
Take for example auto accessory manufacturing. In the 70’s through late 2000’s, most consumer vehicles used hydraulic power steering pumps, and with personal vehicles market only growing, seems like a great opportunity to get into manufacturing and distributing. However, by the late 2000’s into 2010+, more and more manufacturers have turned to electric power assistance. The market leaders in this industry worked with manufacturers early on, listening to their needs and innovating alongside the customer.
How Will I Fund Growth
Managing cash flow in regular operations can be a challenge, now add in an influx of new customers and and expected 10-20, even 30% revenue growth, now you have a new problem: funding the new business operationally. Growth-minded business leaders secure outside funding through a variety of means: investors, banks, and capital solutions companies. The funding source you choose may look different based on the particular needs for your business during the season of growth.
Ongoing Growth often can be funded by either taking on investors or through cash flow solutions such as asset based lending, factoring,
Weathering a Big Sale is often best served through invoice factoring, where there is no borrowing, but rather an advance on payment for a small fee.
Expanding/Upgrading Equipment is often best served with an equipment lease or loan.
Change Up What Or To Whom You Sell
While you’ve created a niche market to serve, considering an expansion in the suite of products or services you offer may be better for both you and your customer. By either investing in new tooling or acquiring another business, the opportunity with existing customers and acquiring new business grows. As your warehousing and fulfillment capabilities advance, consider selling through additional channels to reach new customers.