How to Find Scale Factor: The Entrepreneur’s Guide
As a company dealing with the provision of essential products, you probably find it hard to scale up your sales. Scaling up your sales is a challenge because most probably your company is in operation in a very competitive industry and therefore market structure economics comes into play. There is the tendency for you to want to use the ‘blue ocean strategy’ which involves creating an uncontested market space and making competition irrelevant. What’s bothering you further is that you fear falling for one strategy and therefore the question concerning how to find scale factor in sales keeps bothering you day in day out. You have probably heard of the importance of your sales team having a ‘Sales A-list’. Coming up with a ‘Sales A-list- will require that your team meets to discuss, debate and also identify a definite list of the types of ‘must have’ customers. This will mostly assist in accelerating the growth of your business.
As the need to scale up bites hard, it hits you hard that besides doubling your sales, you also need to increase the value of your company. There is no need of trying to scale up your sales as an entrepreneur yet the value of your business is decreasing. It is the value of the company that will help set it apart from its competitors and with that edge above the competitors, the customers will be attracted to your business and this will assist you in scaling up your sales.
You probably remember the closing scene of The Wolf of Wall Street where Jordan Belfort poses to the audience one simple yet tricky challenge: ”Sell me this pen”. This challenge was meant to bring forward one key lesson in sales, the lesson of understanding what value the customer is after by using a certain product. Adding value to your products then becomes a priority. Also understanding your customer needs becomes necessary because knowing what your customer wants will help you add that need to your products.
As an entrepreneur, research is probably one of the activities you love doing. From your never-ending research, you have managed to find out some of the sure ways that you can follow to ensure that the scaling up of your sales is a smooth process. Firstly, you need to have a designated salesperson who will lead the sales team in achieving its set targets. Once there is the head of sales, a strong sales team needs to be in place. Just the same way we were taught how to find scale factor of a triangle in a mathematics class will this team require training, especially in field sales because a strong field performance ensures that your products get known to the market, and this is an important factor required in scaling up sales.
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The Sales Cycle
Coming up with a clear formidable sales cycle should be your next priority. From pitching to handling objections to closing sales, each of these steps needs to be outlined clearly. A clear sales policy outlining what is to be done and also the expected results at each of the steps contained in the sales cycle needs to be in place. A sales pitch needs to be short and to the point. The aim here is to avoid selling irrelevant information. Salespeople especially the field agents are one of the most patient people we have in the world. Imagine approaching a prospective customer to initiate a sales pitch only to be ignored, or fail to close the sales or worse still be humiliated by being called ‘big’ unprintable names. However, having a well-trained team will help them understand and appreciate the actual cause of those objections then come up with ways of addressing them before making a step to close the sales. Another thing you need to note is that the current sales industry has undergone a lot of changes. Therefore it will be of great importance that the salespeople understand the modern techniques used in closing sales especially now that customers have the ability to make payments online.
Once a sales cycle has been established, you will then be required to build a reliable process. The reason why we have weak sales is the existence of a poor process or worse still the lack of a process in the first place. To make this process dependable, it needs to be drilled into the minds and the hearts of the salespeople. Furthermore, data collection at each stage of the sales cycle needs to be done. The data then needs to be analysed and compared to the anticipated results. The effort needs to be made to rectify any arising disparities.
Finding a Scale Factor
In finding a scale factor meant to scale up your company’s sales and value, you need to be aware of some of the scale-up interventions that will help you realize your desired outcome. If you want to scale up your sales, you’ll probably need to be remarkable in the sense that nothing is more marketable than word of mouth. With the advent of social media, you’ll probably find it easy to contagiously spread your word of mouth. Another thing, you need to understand that ambitious businesses intending to scale up don’t rely on wishful thinking as a strategy, they always have a plan in place. To scale up, sales you will also need to expand your horizons by thinking about the adjacent sectors, target new markets and also new geographic regions. Nonetheless, creating new sales channels will enable your business to reach the unreached. Remember that businesses which are willing to rapidly scale up their sales are those that actively embrace every existing opportunity to sell.
So you have been wondering how to find scale factor especially in sales will be important for your business. The information discussed above concerning scaling up of sales will probably act as a guide to you as an entrepreneur. Remember that the most important budget for any form of business is the sales budget. The larger the number of sales made, the more the revenue generated. However, the high revenues will only be realized if the company will find ways of reducing its expenses. One sure way of ensuring the revenues generated from sales is improved is through taking relevant steps to scale-up the sales.