Published: August 07, 2007
Not Every Dollar is Created Equal
By Joel Block
As an entrepreneur, you must understand that some of the dollars flowing into your business are more important than other dollars.
What do I mean by this?
Your sales people may deliver a $1 million worth of sales (positive, right?), but those $1 million worth of sales may be poor sales, or sales to the wrong customers.
There are several ways that sales may not be all that beneficial to a company. The sales may not be profitable for the company because of their prices or terms. Or they may be taking the company in a direction that isn't relevant or helpful to growth. This can happen especially if sales goals are always monetary. You need to understand where profitability for your company lies. For example, where is the long-term growth going to come from?
Even if some business is less profitable now, if we believe that growth in this area is possible in the future, then targeting such business is worthwhile to ensure dollars in the future. Some dollars have more leverage attached to them; some customers have more leverage attached to them, too. Always strive for sales and relationships that allow you to go deep with those customers in the future. If they are customers that will buy more products and services from you, then it's worth it for you to initiate a relationship - even at a lower margin - as an investment in the future.
So, as you are working hard every day to build your company, or as you're building your career, remember that not all dollars are created equal. You must carefully analyze which dollars you want to go after, because in the long run, some may be an extraordinary investment.
About Joel G. Block
Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker and advisor. To bring Joel into your company, please visit www.joelblock.com or www.growth-logic.com.
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