Matthew Curtis

If sales were your factory....

If sales were your factory...would you accept their current level of planning?

What expectations do you have for a manufacturing team? They should know their plant capacity right? even down to the capacity of individual machines or processes. You would expect them to know what their utilisation of equipment is and what efficiency they are achieving from processes. It might be considered reasonable for them to have strategies in place to avoid costly down time through preventative maintenance programmes. Certainly you would expect them to keep on top of the output of all their processes assuring that the production is to specification avoiding costly quality problems. Definitely you would expect them to know the lead times for the different inputs needed to manufacture your products, raw materials, sub assemblies, labour etc etc

The question then is, on the basis that sales revenue is an output... the product if you will of the activities of the sales team. Why is it that so few sales teams and sales people are planning their capacity, identifying their core sales processes and managing both the quality and efficiency of them.

Research and experience tells us that relationships are important and businesses that can move through the 5 levels of relationship from approved vendor to trusted advisor will likely be in the top 28% for performance in their sector, but those that achieve the highest levels of process mastery and commitment from their sales teams get there quicker and are less dependent on achieving the highest levels of relationship, especially important if your solutions are not perceived as mission critical to your customers.

The hardest part is to get started, sales people need to shift their mindset to thinking about which of their activities are truly value creating for their business, how much time do they really have available to spend on them and which are the right opportunities directionally to focus that capacity on. They then need to make a conscious decision to forward plan those activities and look for efficiency opportunities in their plan.

Most sales people are still surprised that in a sales year - once you take out non-working days, internal meetings, holidays, absences and training courses etc etc and then think about daily admin tasks, travel time etc that they only have around 600 hours per year of customer facing time.

It's almost the end of January already... do your sales people and sales team know where they will be investing the remaining ~550 hours of customer facing time left to achieve their goals?....they should, and so should you so perhaps as you plan your next sales meeting think about having that conversation and the KPI's you might use to track they are not being diverted from achieving their 2019 sales goals.

Matthew Curtis

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Why you should think about bootstrapping your business rather than seeking early investment?

by PH795074 • 16 July 2024

The Case For Bootstrapping Your Business: The Path to Profitability and Independence In the vibrant, ever-evolving world of startups, the decision to bootstrap or seek early-stage investment can significantly shape the trajectory of your business. Bootstrapping, the art of building a company from the ground up using personal savings and revenues, often gets overshadowed by the allure of venture capital. However, the benefits of this self-reliant approach are profound and, in many cases, essential for long-term success and sustainability. 1. Complete Control and Ownership One of the most compelling advantages of bootstrapping is the retention of complete control and ownership. When you rely on your own resources, you’re not beholden to investors who may have their own vision or agenda. This autonomy allows you to make decisions that align with your mission and values, fostering a culture that reflects your authentic vision. It’s your business, and you call the shots—an empowering position that can lead to innovative and unorthodox solutions that set you apart from the competition. 2. Financial Discipline and Efficiency Bootstrapping necessitates a stringent level of financial discipline. Every dollar counts, and this constraint drives entrepreneurs to optimize every aspect of their operations. This frugality often leads to more efficient business practices, ensuring that resources are allocated to initiatives that directly contribute to growth and profitability. By focusing on generating revenue early and efficiently, bootstrapped businesses build a solid foundation that can withstand market fluctuations and economic downturns. 3. Strong Customer Focus Without the cushion of investor money, bootstrapped companies must prioritize their customers to generate revenue. This customer-centric approach often results in better products and services, as feedback is directly tied to the company's survival and success. Building a loyal customer base not only drives profitability but also creates a community of advocates who can help propel the business forward through word-of-mouth and organic growth. 4. Sustainable Growth Bootstrapping encourages sustainable, organic growth. Unlike venture-backed startups that may experience rapid, unsustainable growth driven by the need to satisfy investors, bootstrapped companies grow at a pace dictated by their actual performance and market demand. This steady, measured growth often leads to more stable and resilient businesses, capable of weathering industry shifts and economic challenges. 5. Creativity and Innovation Constraints breed creativity. When resources are limited, entrepreneurs are often forced to think outside the box to solve problems and achieve goals. This inventive mindset can lead to groundbreaking solutions and unique market positioning. Bootstrapped companies frequently develop innovative business models and creative marketing strategies that give them a competitive edge. 6. Higher Valuation When a bootstrapped business reaches the point where it’s ready to seek external investment, it often commands a higher valuation. Investors recognize the value in a company that has demonstrated profitability and a viable business model without external funding. This higher valuation means less equity dilution for the founders and a stronger negotiating position. 7. Personal Satisfaction and Confidence Finally, the journey of bootstrapping a business instills a deep sense of personal satisfaction and confidence. The knowledge that you’ve built something from scratch, relying on your own ingenuity and perseverance, is incredibly rewarding. This self-confidence can be a powerful driver for future endeavors and challenges, fostering a resilient entrepreneurial spirit. In conclusion, while seeking early-stage investment can provide a significant cash infusion and resources, bootstrapping offers a unique set of advantages that can lead to a more robust, customer-focused, and innovative business. By embracing the challenges and rewards of bootstrapping, entrepreneurs can build companies that are not only profitable but also aligned with their core values and vision. The path of bootstrapping is not easy, but for those who choose it, the rewards can be immense and deeply fulfilling.