Why Your Sales Process Needs to Work in Tandem With Your Operations
Every so often we encounter a business that experiences strong or growing sales but continues to struggle with turning a profit. Likewise, we have some clients with strong internal processes failing to reach their intended sales goals. Both circumstances—while struggling with separate outcomes—share many of the same fundamental issues.
Most commonly, these businesses have lost sight of the relationship between their “top line” and their “bottom line.” Put simply, your business’s top line is your gross revenue, and the bottom line is your net income. When these streams are not in sync, business growth tends to stagnate.
In this post, we will explore the value of the link between your business’ top line and bottom line and communicate why your business needs to focus on strengthening both to remain competitive.
Strengthen Your Top Line
The specific factors that result in a successful sales process vary from business to business. That said, organizations that boast strong sales processes tend to share a few of the same traits, including:
Clearly defined leadership. Sales teams thrive under leaders and managers who have tangible experience in the industry and possess the ability to commit their time and energy to foster growth from within.
Solid market insight. Even the most charismatic and energetic members of a sales team will struggle to meet their goals if they are targeting the wrong people. Marketing and research development are crucial elements of any business's overall sales strategy.
Support from the executive level. Executives who understand and respect the role that a sales team plays in growing their business will dedicate the proper funding and resources necessary for a sales team to flourish in their market.
Ensure a Healthy Bottom Line
Regardless of how successful your sales team is, your businesses may not see the profit you were hoping for as long as your internal operations struggle to maximize value. As an executive or business owner, your bottom line may be informed by various expenses outside of your direct control, such as income taxes and interest paid on loans.
To balance the budget of an organization, your financial team must consider the balance between your business’ expenses and its investments. While most business expenses cannot be avoided, financial professionals can determine how best to make use of your gross revenue by taking a broader look at operations and identifying which processes and departments need more support, which can manage with less, and what alternative options you have to optimize expenses.
Why Both Your Top and Bottom Line Need to Be in Sync
In isolation, neither your top nor your bottom line will be able to express the financial health of your business. The overall profit of your business is the result of your revenue minus your expenses.
Without a strengthened sales team, your revenue may fall, independent of your business’s total operating costs and expenses. If your business is not willing to make budget cuts or find fractional solutions to inefficient internal processes, you may expect your operating costs and expenses to remain relatively consistent. However, if your revenue is shrinking, your business may be caught in a terminal spiral as you struggle to cover the cost of your expenses month in and month out.
If your business’s bottom line continues to shrink, eventually your sales team will feel the effects of a decreased budget, and a lack of support may contribute to a drop in performance quality. A strong top line can bolster a healthy bottom line. However, choices that result in a weakened bottom line may also result in an eventual collapse of a strong top line.
How Fractional Managers Can Make a Difference
At Sebastian Lane Consulting, our team helps strengthen businesses by focusing on growth and improved processes from both a top and bottom line perspective. As a fractional sales manager, Jesse focuses on top line growth by working with executives and businesses by implementing proven strategies for sales processes with a focus on growth and performance. John, as a fractional COO helps businesses improve their bottom line by leveraging their already existing tools and taking an objective look at their internal operations with a focus on increasing profitability.
Get in touch with us today to learn more about how we can help your business unlock its full potential, at only a fraction of the cost of an in-house manager or operating officer.
If you have questions on how to improve your sales and operations, call Sebastian Lane Consulting at 443-534-6783 or email us at jesse@sebastianlaneconsulting.com to schedule your free consultation.