Your Company’s X-Factor for Growth
Why is it that certain companies continue to grow no matter what’s happening in the economy, while the fortunes of others go up and down like a roller coaster?
The simple truth is that leaders of organizations which experience consistent growth do a good job of knowing what’s happening in both their marketplace and their organization. Armed with this information, they respond correctly to changes in their marketplace. The X-factor for growth? It’s how they approach the fundamentals of business.
These leaders know that marketing and promotion activities are the fuel that drives the sales volume of their business. So, they make these activities the cornerstone of their operations. When there’s a downturn in the marketplace and their competition tries to ride out the storm by withdrawing – they grit their teeth and step-up their marketing and promotion activities.
This basic keeps them on a growth path even while other businesses decline.
For many people, this approach is counter-intuitive: they are effectively being accountants instead of CEOs. They believe that you should only market when you have “extra” money for it. They don’t realize that it’s the marketing that creates the income for the company to survive in good times and bad.
Here is a quick test to see if you naturally have the promotional X-factor in your business skill set:
You notice that your business volume is down 20% so you:
a. Hope the problem will right itself and go drown your troubles in a large latté.
b. Cut all your expenses and hope to get through the slump.
c. Increase the volume of your advertising and marketing.
If you answered either “a” or “b” you might join the “It’s the economy!” club of struggling leaders. However, you should forget about making the Inc. Magazine’s List of 500 Fastest Growing Companies.
If you answered “c” you have the right viewpoint for growth and may want to begin planning tax shelters for all of the additional income you’ll generate.
A Funding Strategy for Growth
So how do companies that experience consistent growth create the budgets to continually market to prospective customers? It’s really pretty simple. Most often they set aside a portion of their gross income which funds their marketing.
This approach allows them to grow their marketing budget as they grow their company. It’s a dynamic approach, so literally the more success they have, the greater success they can achieve.
Most of the clients I work with reinvest at least 10% of their gross revenues into marketing to grow their company. One for one, this puts them onto a fast path for increasing sales.
What to do next
Get a large marker and a piece of paper and write “marketing and promotion activities are the fuel that drives the sales volume of my business.”
Put it alongside your computer monitor to remind you to keep this cornerstone for organizational growth in place. Then start marketing. With this fundamental in mind you can focus on creating a multiple-source system for assuring the growth of your business.
To your business success,
If you would like to discuss improved growth strategies for your company, call Sentium at 1(800)595-1288 to schedule a free half-hour telephone consultation.
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Richard Wilson is the Founder/Chief Marketing Strategist for Sentium Strategic Growth which helps companies dramatically improves their sales, growth and profitability. Over the past 31 years, his clients have ranged from start-ups to major technology companies.
© 2006 All Rights Reserved. All people who are looking to dramatically boost their business should read this e-zine. Don’t even think about reproducing this document or its contents without written permission from Richard Wilson. But feel free to forward this or e-mail it to all of your friends. For reprint permission, please call 800-595-1288.