For the experienced entrepreneur, there are times when the pining for consistently steady sales growth reaches a feverish pitch. It’s frustrating. Simply knowing organic business growth comes with fits and starts proves small comfort when sales are down.
Unless it’s that seemingly eternal 50-year-old hardware store that continues to garner steady revenues from a loyal customer base, the majority of businesses should take heed. Madison Avenue has trained everyone to continuously desire new inventions and innovative services. Retailers and consumers overwhelmingly prefer the latest in products and services to the old standbys.
What’s the cure? In short, innovate or die. New ideas, products, and services remain the proven way to overcome a revenue plateau, without falling into a deep hole. Goosing the till with yesterday’s solutions is not the answer, although many small business owners tend to stick with what’s familiar.
Consider these four tips for surmounting a revenue plateau:
1. Fill in the ruts. Over-worn solutions are as comforting as Grandma’s fresh-out-of-the-oven cookies, yet they’re not always good for your health. Schedule a brainstorming day for all parties involved in the business operation. Hatching fresh ideas will revive the business. Be sure to hold the brainstorming session in a venue that encourages inspiration.
2. Crunch the numbers. Paying a visit to your accountant is a good place to start. And, remember the task at hand isn’t bookkeeping — it’s trend analysis. Timely data often provides clues as to why sales growth has slowed.
3. Invite a fresh perspective. Sometimes, an initial look may not uncover the whole story. Consider hiring a consultant to ferret out relevance from the data that applies to your specific business operation. For example, an emotional attachment to an idea can fuel business growth, but only if that idea is still relevant. Too many times, small businesses see comfort in returning to what worked in the past.
4. Avoid a quick fix. Often, a revenue plateau will not reveal its secrets without a vigorous investigation. Many factors can be involved — everything from internal changes in a competitor’s operation, to bad reviews posted online by an angry customer. Social media plays a larger role today in reputation management, and a busy shop owner may not realize the slow bleeding of sales is the result of a vindictive effort.
What’s the bottom line? When looking for answers, don’t make assumptions. Ferret out the facts.