Establishing a clear and compelling “why” for your business, understood and embraced by both employees and customers, is crucial for driving sales, achieving profitability, and ensuring long-term success.
Primary Implication
Losses, not profits, mount when there is no exchange of value. Fail to generate sales because people decide not to buy from you, and you will go out of business.
Failure to have cash inflows from sales greater than cash outflows will also result in a deceased business. Ultimately, the challenge for every business is what can you do better, smarter, or more to generate higher sales at above-average profits?
Overview
Until you know who your customers are, what problem they are trying to solve, when they will most likely need your help, and where they will want to transact business, you can’t confidently define why they should value what you do. The higher the reason to believe in what you do for your customers and employees the higher your sales and profits.
Fact. Every business operates with risk. One area of greatest risk involves money being sent out to get consumers to buy with no operating cash coming back in until they choose to buy. Couple this with profits only coming after delivery of a customer’s purchase and payment received at a cost less than what they paid is the only way operating profits are earned.
Reality. Before business profits begin to form, a purchase must be made involving an exchange of value between the buyer that serves a need or satisfies a want and the seller. When customers decide to buy, they agree to transfer their money to you in exchange for ownership of your product or to secure your service delivery. It is their purchase from you that represents cash inflow that you have the potential to earn a profit on.
Truth. If your prospect’s end experience through your sales process is a pass, there is no exchange of value. There is also no value exchange if you don’t profit from their purchase. Consequently, business profits originate with customer sales.
The difference between sales success and failure is the failure to use a persuasion process to guide the prospect from awareness to purchase. A lead that fails to become a sale will always contribute to business losses, not profits
Losses, not profits, mount when there is no exchange of value. Fail to generate sales because people decide not to buy from you, and you will go out of business. Failure to have cash inflows from sales greater than cash outflows will also result in a deceased business. Ultimately, the challenge for every business is what can you do better, smarter, or more to generate higher sales at above-average profits?
No purchase transaction, no profits. The secret to higher sales and profits lies in the reason to believe in what you do for your employees, which leads them to pull together to break through the noise that keeps your target customers from knowing what you do, how it helps them, and where they can buy it. Do this, and you will move into a straight-line sales transaction because there is an affinity for your why.
Fail to establish the why and you will have a never-ending noise battle trying to persuade people to buy. Successfully helping your employees understand exactly why your business exists will reduce the strain on your assets and the drain on you and them, leading to higher sales with superior profits.