---

Guest post by: Leanne Hoagland-Smith Become an Author

Tweet

---

---

During swings in economy, many businesses leave their core businesses to increase sales because they must survive or thrive. Taking this action spells disaster for any business.

The question that each business needs to consistently and constantly ask themselves is “Why are we in business?” Peter Drucker said the essence of business is to attract and maintain customers. My belief is that the purpose of business is to attract and maintain loyal customers who provide an ongoing stream of new customers through referrals.

When a business abandons its core business and decides to build a new business, it probably is also leaving its core loyal customers. Soon loyal customers become disenchanted because the resources that delivered excellent customer service to quality goods and services are being redirected to the new business.

Loyal customers are the unpaid sales force for any business. When they start abandoning your business, overall costs will increase from marketing to selling. This is why loyal customers who deliver new customers are literally worth their weight in gold.

If a business decides to open another business to increase sales, this action should be a direct result of several years of planning as articulated within the existing Growth and Innovation Strategic Business Action Plan. The new business should be guided by the same core values and should contribute to the overall mission of the first business without negatively affecting any other aspects of the business.

All business have limited resources of time, energy and dollars. These resources need to be invested and reinvested in those areas that deliver the most bang for the buck. If your core business is not delivering the results that you need specific to the goal to increase sales, then it is time to determine why you are having performance gaps. The lackluster sales results may just be the tip of the iceberg.

There is an old proverb that goes: A bird in the hand is worth two in the bush. Your core business is that bird in your hand. Before you let it go to acquire another business, make sure that you truly will increase sales and not increase false hopes.

Related Articles

  Reactive vs. Proactive & Core Beliefs
  3 Deadly HR Outsourcing Mistakes You Must Avoid
  Your Marketing Actions Must Match Your Business Ethics To Increase Sales
  The Biggest Mistake Sales Managers Make
  You Can Win More Sales by Accepting & Working with Change Than Denying It
  Outsourcing Accounting: Easy Accounting Outsourcing to India for Small Businesses in USA
  Intent Versus Content
  Increase Sales by Demonstrating Appreciation through High Business Ethics
  The Truth About Sale Success!
  Gratification in Action
  How to Find Direction
  Why Do So Many Business People Ignore The 80-20 Rule?
  Increase Your Trade Show Sales without Renting a Booth
  How to Take Proper Action
  Do You Have the 3-A’s in Sales Behaviors to Secure Today’s Competitive Advantage?
  How By Being in the Bottle Is Keeping You From Reading The Label and Growing Your Sales
  How Important is Staying Power in your home based online business?
  How to Select Professional Sales Training
  Building From Your Core
  Increasing Sales and Productivity: Action and Fundamentals

Related Forum Posts

Diamonds vs. squares
New Small Business Topic
Online Sales and Marketing vs Traditional
Re: Online Sales and Marketing vs Traditional
My entry

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Why I Exchange Business Cards

LISTENING SKILLS IN COACHING

10 Steps to a Great Support Team

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.