This article is about the ways your project or idea could grow and improve or fail and die after a short period of time. This article gives a different point-of-view of the correlation between revenues and costs in a business model and how you can use it as an advantage.
Most of you probably know that over 80% of the startups bankrupt only after 18 months and over 90% of the startups bankrupt in the first 3-5 years.
The most common and important reason for this is the lack of revenue to cover the costs.
Let’s make clear something here. For all people with business ideas, freelancers, and entrepreneurs.
If you start a business ( or if you have a working business ) and you succeed to make 20% optimization of your costs, this 20 % is pure profit for your company.
This is a money-in-the-pocket profit which is excellent. Great job!
But if you can make a 20% increase in your sales, that DOESN’T necessarily mean that this 20% will be profit for your company!
This is really important so I will repeat it again and please pay attention to it.
If you succeed to make a 20% increase in your sales, that DOESN’T mean that you have 20% profit for your business.
Increasing in revenues from sales could be lost in costs like prices of common services you use to produce or some unexpected costs.
This is a thing which very few people think about when they analyze their results. But it is a real-world scenario which could have a HUGE effect on your business or project. It’s even an “Aha-moment” for some entrepreneurs and business owners.
There are many new ways and strategies for optimizing your costs and get the best price for what you need at the moment. For those of you who want to know more about such tools, I will share with you a revolutionizing platform with the potential to change the market.
I strongly recommend checking the brand new online trading platform Auxionize ( a place where you can get the best price for almost everything ).
But this is THE Platform for SALES knowledge and experience so let’s see what sales could do for you.
The question here is this:
Can you optimize the costs more than you can sell?
Of course, do BOTH.
But is it true that if you have a MISSION worth spreading, if you a have values worth sharing and if you’re striving for positive change, if you have world-class service/product, your ONLY GOAL will be TO SELL IT? To sell it to as many people you can?
You can get the best accountant in the Universe but you just can’t optimize costs forever and ever.
My experience in sales has shown that businesses and companies, in face of certain people, trade their solutions/services with other people, which are representatives of other businesses and companies. This, in a nutshell, is the “Business to Business” model – a company trades with another company.
Another model of trading (selling and buying) is the “Business to Customer” model where a certain company sells their solutions to individuals.
In addition to “Business 2 Business” and “Business 2 Customer” ways of selling though, there is another way which actually combines the first two in it. It’s called HUMAN 2 HUMAN.
The HUMAN 2 HUMAN model states that people buy and sell to other people ( not that one business sells to another business ). The main concept is that deals are made between people, not “businesses”.
What does that mean in the real world? That means even if you have the one-and-only solution for someone’s case, you still have to have an adaptable, intelligent and experienced sales representative, with the full package of soft and hard skills, in order to make that deal a win-win situation (this sales representative could be you). This automatically leads us to the fact that investing in salespeople/team or in yourself is worth considering.
Customer oriented sales are THE SOLUTION for growth. Sales cure everything.
Only sales and money flow from it give you the power and resources to grow, develop and improve – to amplify your actions to the next level, to share your mission with others, to give even more value to people, to grow your team and business.
You can increase your sales 7 times but you can’t decrease your costs 7 times.
It’s always been like that and it will always be.
Be helpful to someone and share this point of view with him/her.
Spartak Vasilev – Sales Leader, Author, Investor