Launching any project requires calculations, verified figures and costing. But the same strategy can launch a business rocket into space, or leave the mechanism at the construction stage. In the article, the Tochno team explains why such paradoxes are a natural phenomenon.
Are universal solutions in business a utopia?
Now let’s imagine two companies how to build phone number list in neighboring regions. Let’s say they sell foreign C-class cars on the Russian market. The companies’ goal is to double their turnover. The tasks seem the same, but different strategies will be needed to accomplish them.
Why?
The point is that the strategy is developed based on two key factors: the initial data and the final goal. And since the initial data (region, company size, budget, etc.) and the final goal are different (the turnover can be 1 or 10 million), you will have to go to them by different roads.
Point A – initial business data:
the scale and budget of the company;
marketing and production strategies;
employee competencies;
team status (additional employees or entire departments may be required);
market situation;
the presence or absence of strong competitors, etc.
Point B – current business tasks and global long-term goals:
Given different initial data, the paths to the same goal will differ for companies.
Strategy does not develop in a vacuum or why does the result depend on the context and the task?
In addition to the initial data (point A) and the desired result (point B), much depends on the correct formulation of the request.
Popular request: we want more clients and leads – we need to recoup the business.
This request is not entirely anatomy of email spoofing: what you need to correct. Payback does not depend directly on the number of clients. If a company has a low check, then by increasing leads we will increase the workload on the sales department, production and others, but only the turnover will grow significantly, not the profit. Even with a large flow of leads, the business will pay off poorly.
In this case, it is worth thinking about increasing the check, expanding the product line or entering a new market – then the work will be focused on payback and profit.
Let’s add some clarity to our story and consider two companies that are engaged in b2b consulting – building operational processes for sales or marketing departments from scratch. The companies have the same product line.
Company No.
1 works with checks from 500,000 ₽ per service, has a ge lists staffed sales department that works with clients according to a well-built structure. This is its point A.
Clients come – the sales department brings them to an initial free consultation and sells some inexpensive service. The client likes it, buys new services and becomes a regular.
Company #2 has a small and weak sales department with a low entry threshold: from 25,000 ₽. The client also comes for a free consultation, and then buys the service. First for 30,000 ₽, then more expensive and gradually becomes a regular customer.
Both companies want to grow and come with a request: we need more leads and buyers.
For company #1, this goal would be correct: if we bring in clients, the sales department will convert them into the “regular” category with a large check. The sales volume and profit will increase. The sales department will be busy, the profit will go to expanding the company’s scale.
For company #2, such a goal would be incorrect: if you increase the volume of traffic and bring in more target clients, a small sales department may not be able to cope due to the increased workload: incorrectly qualify the client, sell the service poorly, etc. And all this with a low average check!
To increase profits in the second company, you don’t need to increase the lead flow, but rather strengthen the sales department and increase the average check (for example, from 25,000 to 60,000 ₽). By doubling the average check, we get twice as much profit with the same amount of traffic. An alternative option is to introduce additional services that can be sold to the client immediately (for example, paid consultations instead of free ones).
The companies’ B points are similar, but the strategies will be different.
Success factors and failure factors
The main factors for success are analysis of initial data, a correctly set goal and a competent strategy.
Once we define our point A (resources, market situation, situation with competitors, etc.) and fix point B (goals and objectives), we can build our strategy brick by brick .
We include risk management, diversification and various analyses in the system. For example, SWOT analysis. It will help to understand what the business’s weak points are, what potential risks and threats exist, where the growth areas are. If this is taken into account, the strategy will be competent and effective.
