A lot goes into starting a new business.
In all the hustle and bustle of getting things in place at the beginning, it can be easy to lose sight of the big picture.
Why sales are the lifeblood of your startup
While many small business owners strike out on their own for the financial incentives, most become entrepreneurs because they want to make a certain impact on the world through a product or service they really believe in.
Whichever camp you fall into, it is important to keep your eye focused on one thing:
without sales, you have no business.
Sales are the most crucial part of your business structure, and here’s why:
1. Sales make money
This one may sound obvious, but it’s not always.
If you are one of those people who went into business to make money, you may find yourself getting caught up in awards and investors to bring in the big bucks really quickly.
If you wanted to make a difference in the world with your skills, then you may be giving your product or service away for little to nothing just so that you can help people.
Both of these mentalities will take you to the cleaners very, very quickly.
Sales of your product or service are the only sure fire way to make money in your business.
Money, as you know, is what you need to keep your business running and fulfill all your personal financial obligations.
When you focus on sales as your primary means of money and survival, you will be generating income in a reputable, ethical way. Sales also help with other areas of your business, so with each transaction, you are doing so much more than just bringing in the dollars.
2. Sales are your most important form of marketing
You will probably investigate different forms of marketing, like advertising and using an email tracer.
With every sale you make, you are sending your product or service out into the world. You do not know where it will end up or who might see it and decide they want to do business with you, too.
For this reason, sales are your most important form of marketing, and marketing generates more sales.
For example, look at something simple, like a shirt. If you make a really great shirt and sell it to someone, they will probably wear it or give it as a gift.
If they wear it themselves then they will get compliments and questions about where they got it from. Others will then want to get one themselves. If they give it as a gift then if it goes over well, they may want to get more as future gifts, and the wearers of each of those gifts will get the same attention.
Just by selling your product, you’ve generated attention for your business. If you sell a service then while your impact may not be quite as visual, it will have a similar effect through stories of a job well done and giving qualified referrals.
3. Sales are a sign of your success
Nothing will determine how successful your business is as much as the amount of business you actually do.
Tracking sales not only tracks your income but it also tracks whether your startup is getting out there and doing something that is sustainable. If you find that your sales are going up over time then you can be pretty confident that you’re onto something successful.
If your sales dwindle over time or never pick up to begin with, then you can use that as an indication to revamp your business plan before it’s too late.
Sales are the most important component of a startup because they do so much, including keeping the lights on and serving as a guide for the future success of the business. In all the crazy administration of starting a business, do not forget to focus on the products and services that actually drove you into entrepreneurship, to begin with.
What do you think? Would you agree that sales is the only thing that matters in a startup? Let me know in the comments below.
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