Every business aspires to grow—and to grow profitably. However, many organizations attempt expansion before they are adequately prepared, often leading to results opposite of what they intended.
My first sales position was with a prominent foodservice company. My role was to sell food and food-related products to virtually any establishment requiring them. The market potential was significant, with restaurants representing our primary target. Our product line consisted of over 10,000 SKUs, positioning us well to meet the needs of nearly any foodservice operation. I was hired to develop a newly established territory filled with promising prospects that met our target criteria. It sounded like an easy task—at least on paper. Not so fast.
When you’re soliciting new business for a relatively unknown supplier, the process demands a highly consultative sales approach. During this consultative process, you identify the prospect’s explicit needs—needs your company must be able to meet. You also uncover specific service expectations that will define the long-term relationship. As a salesperson, it’s your responsibility to convey confidence in your ability to deliver on those expectations. However, your company must also execute flawlessly on the promises you make.
Here lies the challenge: most companies are not truly ready to grow. They lack the infrastructure, systems, and service capabilities required to support expansion. That was precisely the issue my company faced. You cannot simply assign a sales representative to a new territory without careful strategic planning and logistical preparation.
Before pursuing growth, a comprehensive territory analysis should be conducted, addressing questions such as:
- Who are the competitors, and what are their strengths?
- What are the specific customer requirements in terms of products and delivery?
- Do we have the right product mix to satisfy those needs?
- Do we have the service capabilities to both acquire and retain customers?
This analysis must be completed thoroughly and well in advance of any prospecting efforts. All departments involved in the sales and fulfillment process should participate in the planning.
I excelled at building relationships and presenting our value proposition persuasively. Unfortunately, the company did not deliver on the commitments I made. Although I had clearly identified the needs of each prospect and the territory as a whole, our organization was unprepared to fulfill those requirements. We spent more time correcting service failures than selling and growing the business. Initially, this resulted in short-lived customer relationships and a poor reputation in a small community.
Over the following six years, through persistence and dedication, I developed that territory and ultimately became the number one supplier. I virtually eliminated the competition and became the primary vendor to more than fourty customers in a market where we had once been unknown. However, the process took far longer than it should have—time that could have been saved with proper planning from the start.
Before you pursue growth, consider these Three (Temporary) Reasons NOT to Grow Your Business.
1. Are You Meticulously Managing Your Existing Business?
Does it make sense to pursue new business opportunities if your current customers are not completely satisfied? Is it wise to expand if you are not fully maximizing the potential within your existing customer base? Often, the greatest growth opportunities already exist within the relationships you’ve established. If you can generate more business by deepening those relationships, why look past them? Sustainable growth begins with a strong foundation. You must have satisfied customers who trust and advocate for you.
2. Is Your Current Level of Service Superior to That of Your Competitors?
A guiding principle I have always followed is this: “Provide a level of service superior to that of your competitors, and your customers will not make a change for a few dollars.”
Sales and customer service are inseparable; sales is customer service, and customer service is sales. When your customers are genuinely satisfied with both you and your company, they are far less likely to entertain competing offers. The only time they might consider another supplier is when they perceive a better option. In such cases, a strong relationship ensures you’ll be informed and given the chance to respond.
If you remain a dependable supplier and your pricing is fair and relative to market standards, you will maintain a trust-based relationship where price is not the sole factor in doing business.
A “Trust-Based Relationship” is defined as:
“An existing or potential customer that recognizes and understands the added value and superior service provided by you and your organization and reciprocates through loyalty and by paying a higher cost than offered by the competitor for the same or comparable product.”
3. Are You Intimately Familiar with Both Your Business and Theirs?
How well do you truly know your own business? This is a critical question to answer before pursuing new customers. How can you confidently sell to someone if you are uncertain whether your organization can meet their service requirements? You can make all the promises in the world—and you might even secure new accounts—but those relationships will not last if you cannot deliver.
It is your professional obligation to both your existing customers and prospects to understand the inner workings of your own business as well as theirs. Your product knowledge must exceed that of any competitor, and your understanding of the industry must be equally strong. Customers look to you as a source of information; someone who provides insight, not just products.
Take the time to develop this deep understanding before soliciting new business. The process may feel slow or demanding in the short term, but the long-term rewards will far outweigh the initial effort. Short-term discipline yields long-term gain.
Business growth is essential—no organization can remain comfortable with the status quo. Growth can be achieved in two primary ways: organically or through internal expansion and development. One method may be simpler than the other, yet both can yield the same outcome—sustainable progress. However, before pursuing growth in any form, it is critical to carefully consider the three factors outlined above. Only by doing so can you position your organization to achieve meaningful and successful growth.
