In this podcast, I talk about the success of the company and some of my consulting experiences with different companies. Continue reading to learn more.
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In this article:
- Why companies fail
- They do not know who their target market is
- There are inefficiencies in the process
- They exceed their limits
- SaaS companies are led by sales
- Keys to a successful business
- They focus on income
- They go with what works
Obstacles and keys to business success
Why companies fail
It is interesting to think about the success of a business: why some companies win and why others lose. Sometimes the reason people lose is not for reasons that they think are the cause.
Competition is becoming stronger and market conditions are fluctuating. However, the ability of the business to win or lose depends largely on their ability to turn their business into a machine.
You must go out of your own way to become a successful business.
By observing the companies I worked with, I discovered several reasons why businesses lose. The following is a list of the main reasons why business failures occur:
1. They do not know who their target market is
Companies lose because they do not know who they sell to. I know this sounds basic, but it is not as simple as you think.
When we list our target market, we use general terms such as "I sell to the ISD" or "I sell to the sales manager". That's good, but you have to be more specific, more niche.
This is especially important when you are starting out with a new product or a new business. You should really know who you are selling to.
Choose words such as "I sell to the person in charge of the request" or "I sell to the public relations manager". You can not just reach the highest level. It's too vague and it does not help you.
I've seen this happen too often and it's messy. This certainly does not contribute to the success of the company.
2. There are inefficiencies in the process
The second thing that I think is slowing down business is inefficient processes. Most people know what their sales process looks like because they can display it in their CRM.
You may have different steps, but these processes are a joke. Some people even argue about the timing of each step.
Yet very rarely has a company taken the time to do an exercise to understand its end-to-end pipeline. You really need to know your process and understand your doorstep to succeed in your business.
3. They exceed their limits
Another thing I've seen companies go wrong with is that they exceed their goals. They say the investor pitch deck should not be the same as the client pitch deck.
Most likely, the investor launch platform is the whole vision – as where the company intends to be in five years time. Yet, when it comes to customers, you can not always sell steam.
You have to find a way to know where the puck is going. You want to be ahead of the game.
Yet, many companies are making their debut on the market and instead of being fancy and trying to be at the forefront of technology, they adopt a simple concept and win with it.
I think companies that really understand exactly what they sell and do not try to be too far ahead of those who win.
Video communication providers are a good example. They arrived in a very crowded market and came up with slightly different business ideas.
They did not say they were fancy, they just said they were a video provider for communications, but the end result was that they had grown up crazy.
It's a beautiful story of concentration, simplicity and understanding of who you are and who you are not from.
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4. SaaS companies are driven by sales
I have to be careful with this one, so I say it delicately. If you are in SaaS, you can not be a sales-driven company.
You can not get sales to run the show and dictate everything. I have been a salesman for years, so I say it softly.
In the end, sales are the last room to turn off the light and allow the business to continue. But in today's modern SaaS environment, you need to focus on products and marketing.
Companies whose products are well built are successful because users love their products. We are no longer in an era where you can sell top-down products and impose products to force users – that must change.
I am a supporter of the modern SaaS economy. Find a way to make sure your product and marketing teams are not absolutely crushed by your sales team.
It basically means that sales do not have to dictate everything. Sales must design the road map because they sell what they want to sell.
The sellers are never released. They would stay because they can do what they want if the product is good.
Keys to a successful business
There are also good practices that companies apply that help them succeed. Here are two good practices that I have observed in the companies I worked with:
1. They focus on income
Winning companies have a pig-headed discipline and a shortsighted focus on earnings. Your business should focus on revenue.
You will know that you are misplaced when you do not reach your target and that employee retention is down and below an acceptable threshold. When you go through them quickly and start focusing on what you see, such as brand, notoriety, or business cards, you are out of your game.
If you want to pound the table, beat it on the income.
2. They go with what works
This may seem more obvious, but you must choose what works. We all want to become big business and move forward, there is no question.
Yet the truth is that not everyone can. do not everyone can become a business.
The key is to be who you are and not to try to fight it. I've heard far too many leaders say things like, "I do not want to do that because it's not sexy."
Really? C & # 39; why are not you going to do something? You do not want to associate with a certain product for this reason?
And if this product is winner? And if it is the product that sells and dominates the market?
You must double what is winning. If you do not want to do that, go elsewhere.
I think it's so important. Our prejudices can sometimes limit our potential for success.
For example, you only pay $ 10 million. You can also refuse to sell on a niche market or not want to step out of your comfort zone to enter a new market.
I'm not saying that you have to stop innovation or stop testing new ideas. All I'm saying is that in the end you have to go with what works.
Whatever product or market works for you, double up there. This seems like an obvious thing to do, but some companies are not escaping.
Get out of your own way and focus on what works.
If you want to know the success of your business, follow these essential instructions not to do. Avoid practices that will not benefit you in the long run, so you will not suffer the consequences.
The key is to actively and consistently apply best practices to ensure the long-term success of your business.
What are the best and worst business practices you have learned from your experience? We would love to hear from you in the comments section below!