| Is
ALL Growth Good?
Most
companies are looking for greater growth. Many owners
think they can grow their way out of cash flow problems,
people issues or an inventory crunch. In most cases,
lack of growth is not the real problem, nor is it the
answer!
The
drive to grow faster, work harder, take more risk and
invest more resources can be the death of a struggling
business. A faulty business premise, poor strategy,
a management process that does not work or a staff without
the drive, commitment or skills for success is often
at the root of the problem. The drive to grow, without
correcting the underlying
problems, will just serve to frustrate owners, employees
and customers.
At Management
One®, we spend an inordinate amount of time on defining
the real issues. Growth without a stable foundation
is often a fatal move.
The
real answer lies in what is incorporated in every M1
process. The need to develop a direction and strategy,
gather the pertinent information and measurements, and
then use the analysis and data to make the right decisions
cannot be downplayed. Working harder, blame, finger
pointing and giving orders to improve will seldom make
the problems go away.
Greater
growth is good for business, but it must be based on
a solid foundation. Trying to grow on a shaky base can
only make the building fall to the ground even faster.
Once the fundamental issues are resolved, then, yes,
growth is good.
Bursting Our Buttons
Management
One® is always proud to announce the achievements
of affiliates' clients that make the news. This past
month there were two:
Cadence
120 in Mobile, AL is one of only 25 bike shops nationally
listed in VelloNews Spring 2005 magazine survey section
entitled "Cream of the Shops". The consumer
interest magazine, which targets bicycle enthusiasts,
asked some of the industry's most seasoned bike shop
visitors to list theirfavorite shop. Cadence 120 is
a client of James Hallman (Hoschton, Georgia).
Clarice Holden, owner of Island
Breeze (Sunset Beach, NC) - a client of Page Keel
(Wilmington, North Carolina) - was nominated for the
YWCA Cape Fear Women of Achievement Award. Holden regularly
raises money and awareness for non-profit organizations
with her popular fashion shows.
Congratulations
on the great achievements!
The Pitfalls of Selling on Price
Too
many salespeople fall into the trap of trying to land
sales based on prices. That is the trap a savvy buyer
lays when negotiating a purchase.
Once he gets the discussion going on the subject of
price, he has taken
the product or service into the realm of being a commodity.
The definition
of a commodity is an item that is the same regardless
of the source. If you
are selling hog bellies, you may be stuck as hog bellies
fall into the
realm of being a commodity.
On the other
hand, if your product or service is unique or better
than
your competitor's in some way, you must sell the benefits,
not the price.
Find the differential that sets you apart and keep the
negotiations focused
on that added value to be received by the potential
customer.
Quote of the Day
"The
person who knows how will always have a job. The person
who knows
why will always be his boss." - Diane Ravitch |
