subject: The importance of sales in business [print this page] The importance of sales in business The importance of sales in business
In business, sales are the heart of the company. No sales, no business. Company that does not focus on their sales or selling activities would eventually close off. But it is also worthy to note that another balance factor to the company survival is their cash management. This is because the basic formula for business to survive is sales minus cost = profit.
How do we increase sales then? This is where the marketing plan and strategies come into the picture. To drive or increase sales, the company needs to increase their activities in getting their products to be sold or use in the market. The more people buy the company's products, the higher the revenue the company will get.
This is quite a basic knowledge for any business owners. However, what I would like to highlight is that (also works as a reminder for me) a lot of business owners or leaders in the organization forget about this basic selling ideas in their daily works. They are swamp with a lot of operational issues and matters end up they forget to monitor their sales activities. Only at the end of the month did they realize their company is unable to pay the bills and in worse case, the staff salaries.
If you work as an employee of an organization and is in-charge of the company sales department, it is very important that you track and implement the sales plan. Should you fail to meet the target set, you need to quickly analyze what went wrong and start planning a new or revamp the existing sales and marketing strategies.
How do we know the strategies work? The end result of your selling activities or marketing programs is increase in your sales. Products are being sold and bought by your customers. If no change in your sales volume before and after your marketing activities, then whatever you have implemented is not working.
As business owners, whether your company is big or small, ensuring your company to continue recording higher sales volume is a must. Without sales, your company will die off slowly. However, like I highlighted before, if your company has high sales volume but you spend all the money on some other unproductive things and do not manage the cash properly, your company can also die off quickly. It is a balancing act that you as business owners must do. At the end of the day, sales minus cost equal to profit.
