A successful man once said, ” There are three real problems in business, Revenue, Revenue & Revenue”.
He went on to explain it is easier to turn down the dial on costs, than it is to turn it up on revenue . His point being, that if you really focus on cost control and cost cutting, it is largely under your control and you don’t have to rely on anybody else.
Of course controlling / minimising cost is not easy , maximising and improving productivity is very hard, but sustaining revenue growth is tougher and if the wheels come off the revenue wagon, it takes much longer to fix. Events recently seem to support that theory.
Look at the household names that have struggled or worse, gone under. All have seen a collapse in their turnover which has outstripped THEIR ability to take costs out. One in 213 companies fell into liquidation , equating to 17,243 last year. A rise of over 4%. Big name examples include, Carillon, Toys R Us, House of Fraser, over 50% of all insolvencies were in Administration, Wholesale, Retail and Construction , over 100,000 individuals also became insolvent.
The point is most of these were predictable in advance. People check their physical health with diagnostics ( blood pressure, cholesterol levels, check ups etc) and when the diagnostic flags a problem arising, they modify their behaviour (diet , exercise, medication), so why dont businesses check their revenue health.
Balcroft has designed a simple to use, simple to administer sales diagnostic that flags existing and future problems. Reviewing the sales function over a couple of days, any gaps can be identified and the three big business problems of ‘Revenue, Revenue and Revenue’ CAN be avoided moving forward. If you would like to learn more about our Balcroft Sales Diagnostic and how it can help your organisation, please email firstname.lastname@example.org.