Declining Sales is Business Owner’s Biggest Fear

In a recent survey, more than half of business owners said the risk they are most concerned about is declining sales. Although this number decreased from 2010, it is still the top concern. The second most common concern this year was the risk of losing top employees, which according to the survey, has become more prevalent than it was last year. And despite worries about tax increases falling 7 percent from last year, maintaining finances and sustaining sales are still top priority for entrepreneurs in a less than stellar economy.

Craig James, president of Sales Solutions in Westwood, Mass., a sales productivity improvement business, says entrepreneurs should follow a three-pronged approach to mitigating this risk: greater focus on customer retention, exploring low-cost marketing programs, and investing in building a productive sales staff.

Strengthen your customer relationships

“If you’re not talking to customers on a regular basis, they’re not thinking about you, but they are being approached by your competition,” says James, a reality that can drain revenue from your company. Give customers opportunities to share their concerns about their needs in relation to your business. Interaction opens the door for cross-selling your products and asking happy customers for referrals, both surefire ways to bring in more business.

Promote your business for less

Search for new ways to do low-cost marketing promotion. Promoting your products and services through social media platforms like LinkedIn and Facebook reaches countless potential clients. “You can reach a lot of people with a relatively low investment—sometimes zero investment,” says James. In addition to cold calling, your salespeople can tap into a digital client database through social networking, building relationships that eventually graduate from electronic to face-to-face at no charge.

Cultivate a productive sales team

“If you’ve got the cash, invest in training your salespeople,” says James. Expanding the professional skill sets of your employees now will offset declining sales and their accompanying concerns in the future. If you can’t afford to hire a sales trainer for your team members, you can still give them a leg up through cost-free resources like blogs, newsletters and podcasts geared specifically toward professional improvement.