Dear M & M: What is the number one thing a business should be concerned with? – Jill
Dear Jill: Just as no two businesses are alike there are always exceptions to every business as to what is the most important thing to them on any given day. Emergencies and specific problems come up every day that are unique to all businesses.
Studies done on the popular Shark Tank show that the number one question asked almost always first is, what are your sales?
“Just knowing the dollar figure isn’t enough. Where are sales coming from, on what platform do you use, are sales driven by promotions, and what sort of partners are you working with? Is your marketing working? The number better be good, too. You can’t charm the Sharks into liking a company that doesn’t have any sales.
Most importantly, the Sharks want to know if sales are growing and what your plan is to keep it that way. You should have a story about how expanding to new geographies, new product lines, or how online has boosted or can potentially boost sales. The investors are profit-focused, and the more a business can scale, the better.” – Max Nislen Business Insider.
Here are some other things one needs to consider. Why do consumers what you are selling? What problems are you solving? What is your pricing strategy and why? What parts of your business are not profitable? What product lines or services can one offer that isn’t being offered in your market? Another important questions to ask is, what percentage of your customers are you retaining?
Finally, after everyone and everything gets paid, how much is left over for the owners of the company? If you don’t make a profit one cannot stay in business to pay the expenses going forward. You will find sales can cure many problems in any organizations.
Lack of sales will kill you every time.