Tweet

Growth In Sales Can Be Harmful!

Guest post by: Nick Hughes

Article Overview: “Everyone knows that too few sales are fatal. But very few owner-managers understand that too many sales, made too fast, can kill a small business. Managing the growth in sales is another make-or-break condition of small business success.” Written by Paul Resnik in his book the Small Business Bible.

Growth In Sales Can Be Harmful!



"Everyone knows that too few sales are fatal. But very few owner-managers understand that too many sales, made too fast, can kill a small business. Managing the growth in sales is another make-or-break condition of small business success." Written by Paul Resnik in his book the Small Business Bible.

Too many sales can be fatal? What is he talking about? Why does he think that? He thinks that because as we have seen in our years of helping hundreds of business owners he is right. Most business owners, especially in the early years of business, are challenged by too few sales and so it is impossible for them to imagine that too many sales would be a worse condition.

It is all about capacity. Every organization has the capacity to deliver their products or services in a timely manner. While in the small business world the same person is very often developing new business AND delivering to their clients they usually have the capacity.

Then the sales begin to grow. Slowly at first but as time passes the speed of growth picks up until the unfortunate day arrives. The company no longer has the capacity to deliver on all the sales. And this is what happens:

• You can no longer deliver in a timely manner

• Quality plummets

• The customers are disgruntled and start going to the competition

• Referrals stop

• In the rush you forget to invoice customers

• The panic causes stress and lack of sleep and is harmful to your health

• There is no time to collect Accounts Payable

And on it goes until the sales have declined and the business is in serious trouble. This is why growing a business is more, much more, than just increasing your sales. You have to also build the capacity and the infrastructure. You have to hire and train people. Develop and document processes. Identify and manage the Key Business Indicators. In short you have to manage the whole business. That is a far bigger job than just increasing the sales.

Related Articles
  Environmental Impacts of Burning Coal
  Authentic Capitalism
  Why Buy an Organic Tshirt?
  Improving Indoor Air Quality
  Many Countries Fall Short
  Determinants of Growth in Sub-Saharan Africa
  Empower Your Sales People By Providing Them With Positive Behavioral Feedback
  Stock Market Volatility and the Impact on Small/Medium Size Business Owners and Buyers
  Home-based Business Opportunity: Why Should You Choose Beeswax Candles
  The relationship of revenue growth to your job?
  Eradicating Mold Issues On Your Next Property
  Sales Analysis Techniques
  Going Green and the Entrepreneur
  5.2 Growth, productivity and diversification: Economic Report on Africa 2007
  Is Perfection Hurting Your Home-Based Business?
  The Secret Weapon for Sales Coaching ©
  How Crunching Key Sales Numbers Will Increase Sales & Help You Sell Smarter not Harder
  REDUCING STRESS--- NATURE
  Sales Management By Mike Le Put
  Building From Your Core

Article Tags: business growth, sales, small business



Related Forum Posts
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Different Hats - CEO Sales & Marketing & Leadership Development Company Strategic Vision 10 Alliances & Growth Strategies 10 Hiring & Managing People 8 Mentoring 8-9 Strategic Planning for Clients 10 Execution of Marketing Campaigns 9-10 (i have great people who do the nitty gritty) Financial Management 9 Bookkeeping 3 (outsourced as I really hate the fine details like GST0 Administrative Follow Up 6-7 (again have great staff) Writing & Publishing 9 (getting better all the time!) Speaking 10 (so I have been told) Self Promotion 9-10 Web development & Promotion 6-7 (learning more and have brought on players who are 10+) Babysitting Employees (1 - wont do it, that's why I work so hard to hire and motivate the people I have) Great topic Kevin!! Jude
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Hello From Marietta GA! - Hello All! My name is Tim Naylor and I am in Direct Sales! I am glad I have found EC's sites and I hope to learn and share a lot!
taxes in canada - Well in Canada we only have a few provinces and the Sales tax is slightly different. Here in Ontario the Goods & Services tax has reduced to 5% from 7% in the last year due to the promises made by the government in place.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

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

Tips for the Novice Traveler

Reverse Mentoring

What should your free giveaway be?

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.