Every small business I’ve worked with over the years, has some sort of funnel to get revenue for the business. They may call it by different names such as sales funnel, marketing funnel, sales pipeline, or sales process. In order to get sales & revenue into the business, they get people from their target market to become prospects and convert those prospects to become customers. And most of them go even further to retain the customers so they keep on doing business with them.
This is good because if they want to increase revenue, they know that they need to get more prospects and convert more of them. This is why sales funnel exist in their business. Every business must have this practice. But the problem with this is they will keep adding resources so they can get more prospects and convert more. This is a common practice in the startup scene where growth equals to the number of people in the team. That is absolutely absurd because more people in the team equals to more expenses.
This problem arise when businesses become too focused on sales number. Before you go all crazy on me, just hear me out. When you put all of your energy on sales number, you stop focusing on other important aspects of your business. And that is when businesses tend to shortcut their sales funnel to achieve more. That may work at an early stage, but not when looking for growth.
My wife received a call like literally a few minutes before I wrote this. The call was from a marketing agency that was interested in helping us with our E-commerce business. It was a cold call. We never heard of the company before. They asked us if we were interested in their service. I provide digital marketing services so of course I turned them down, at least for now.
Having sales personnel doing cold calls is not wrong. It may work for them that’s probably why they are doing it. But imagine that it’s working for your business and now you’re thinking of growing. So you add more people into the team so your business can do more calls. Just think about where your business is heading if you keep doing this.
Cold calls are annoying but it’s a numbers game. You have a certain success rate and you just multiply by how many people you want to annoy and you will achieve your sales numbers. I don’t know about you, but I wouldn’t want to be running that business.
Now let’s imagine a different scenario using the same marketing agency example. I run digital marketing for our E-commerce business but I’m not well versed in search engine optimization. I search on Google for information about E-commerce SEO and come across a blog by a digital marketing agency. The blog post provided me with valuable information that I can use for my business and at the end of the blog post there was a call to action getting me to arrange a time for free consultation. (Which I didn’t do because I prefer to learn and do it own my own so I can share the knowledge).
The marketing agency that did the blog post probably has a sales team also but a lot more efficient compared to the first example. This is because they don’t waste their time and effort trying to convert cold audience. They focus on converting those that arranged for the free consultation which are people that needs their help.
That is part of what a scalable growth engine looks like. They can easily grow their business without having to add as much resources. That’s called leverage. Leverage means getting more by doing less and that’s how you achieve the hockey stick growth.
There are many other components of a scalable growth engine. Get in touch with me at email@example.com and we can spend a day mapping out your scalable growth engine for your business.