Perhaps you’re not hitting your revenue predictions or having difficulty with cash flow. Secretly, you’re concerned that business is slowing. However, these things alone may not be enough to indicate that your organization is not humming along as usual.
After all, other factors could be at play, such as increased expenses or inaccurate forecasting, and it’s important to make business decisions based on more than just a feeling.
Here, we’ll take a closer look at the symptoms of a slow business, what external factors could be impacting your bottom line, and 16 strategies to jump-start your revenue growth.
How can you tell if business is naturally ebbing or if internal factors are at play, affecting your bottom line? The answer: eliminating variables as you troubleshoot from your bank account backward.
Here are some symptoms of a slow business that may be factors to consider:
This is the big one to check since it’s closest to your bank account. Compare your revenue numbers to previous periods: last month to this month, last quarter to this quarter, last year to this year, year-to-date to the corresponding period the previous year.
This helps confirm a known revenue drop and when it occurred. If revenue dipped outside of regular seasonality, or if it fell more than you expected, you’ll be able to find the cause — whether it’s business slowing or something else.
On the other hand, if there’s no revenue drop, you’ll want to look at profitability as a culprit to confirm whether business is slow.
Did you hire new employees, invest in new tools or equipment, or take on additional overhead in another area?
If not, you’ll want to investigate the performance of your more profitable products against those less impactful ones. It’s possible that business is slowing for your “money makers” but staying the same or increasing for other offerings.
If revenue is down, the next step is to figure out why, and that begins by looking at sales.
A decrease may indicate an issue with sales or marketing performance rather than a business slowdown. However, if the closing ratios are healthy, you may simply have fewer deals in the pipeline — which is a potential symptom of slow business.
Before you make this conclusion, you’ll have to ensure your team’s sales activity matches or exceeds that of previous periods. If they are not prospecting or calling as much, this can also dry up the pipeline.
Now the question becomes whether traffic is enough to sustain your sales pipeline.
Another symptom to consider is the broader scope of your market:
Mark Zuckerberg once said, “Move fast and break things. Unless you’re breaking stuff, you’re not moving fast enough.”
However, that attitude in startups can lead to burned-out sales reps and a business ill-prepared to scale.
How can you grow better and experience deliberate growth?
Below, you’ll learn why slow business can be a good thing and what to do when business is slow to grow better.
Your sales department can be experiencing slow business for a variety of reasons. Here are some examples of factors that can affect business:
Just as some businesses explode during the end-of-year holiday season, other businesses slow down, particularly in the B2B space.
Holidays can greatly affect whether business is slow, so it’s important to measure business performance during these times versus similar periods rather than linearly. It’s comparing apples to oranges if you compare the holiday season against your busier seasons.
The holiday season is one example of seasonality, though not all seasonality has to do with holidays. For instance, some industries, such as pool servicing or HVAC, tend to do better in the summer months, while others (i.e., retail) have busy seasons around the holidays. For this reason, it’s not beneficial to compare your slow season to your busier season, so make sure to measure business performance accordingly.
Consumer spending habits can change based on weather patterns, as well. For instance, if you sell AC units and a heatwave is around the corner, you’re more likely to get a surge of people walking through the door.
Another example: when I worked marketing for a roofing company in a dry climate, there would always be a spike in business if it rained since rain would expose leaks and other problems. During dry spells, repairing or replacing a roof isn’t top of mind for consumers. This applies to a number of industries.
The economy is probably the biggest factor on this list for affecting business. During economic downturns, consumer attitudes change. Those who lose jobs have less money to spend, and even those who retain work may change their consumer behavior as their positions seem less secure. The average buyer may make fewer luxury purchases and try to extend their dollars the best they can.
Consumer trends change based on generational attitudes, economic prosperity, current events, and more. These trends can affect a single product or a whole industry.
While this is an extreme example, it demonstrates the boom and bust cycle of trends — and how certain industries are more vulnerable to it than others.
Legal or legislative changes can force a business to shut down, change its entire operational model, or adjust the type or velocity of marketing that it does. For example, cigarette ads were banned in 1970, and this restriction had a big impact on their bottom line.
With the advent of the internet and recent innovations in technology, there are many industries that can easily be disrupted with emerging (and perhaps more efficient or convenient) competition entering the market. Just as Uber disrupted the taxi cab industry, other industries can slow down due to disruption or competitor innovation.
Some of these factors can be weathered through, and some require more inventive solutions. If you can predict the periods of slow business, you can prepare accordingly. However, even if you can’t predict when you’ll experience slow business, you can use the list below to help scale your sales process.
It sounds counterproductive, but slow business can be a good thing for your team. When you’re experiencing slow business, it frees up your time to address weaknesses and focus on prospecting and connecting with potential leads. Here are several ways to innovate your strategy when business is slow:
For example, your sales reps can ensure their contact details are completely filled out. Do they have the company size, location, and vertical of all their prospects or clients? These details are important for closing deals.
As a sales manager, you can use data in your CRM to see how your team is performing. How long is the typical sales cycle for your reps? How often do they close-win deals versus close-lose?
Sale and marketing are two sides of the same coin, but they often find themselves at odds. This misalignment can have big consequences, like lost revenue, wasted budgets, and gaps in the buyer’s journey.
If your reps continue to miss targets, it may be time to revisit your training and coaching initiatives.
As a sales manager, here are a few questions to ask yourself:
Your answers to these questions should guide your future training initiatives.
You can analyze your sales process by observing your reps. Ask yourself questions like, “What do their deals look like from beginning to end?” or “How much time elapsed between each step?” Once you’ve looked at the process, consider what moves prospects from one stage to the next. With a complete understanding of your sales system, you can analyze what’s working and what isn’t.
Sales enablement is the process of providing your reps with the resources they need to close more deals. For instance, marketing can provide reps with various content to enhance their interactions with prospects, including videos, product guides, blogs, and more.
On the flip side, sales can communicate with marketing about which types of content are missing and could benefit leads throughout their journeys.
For instance, you might consider sales methods your team can use to close more deals. How will your team qualify leads? How does your product compare with competitors? Answer these questions and develop sales tactics and team structure that will set your sales team up for success.
When business is slow, it’s a good time to take a look at your sales strategies in order to plan deliberate growth.
Make sure that you’re checking in with your employees to ensure reps aren’t suffering from burnout. When business is slow, reassess how happy your sales reps are — are they talking with their mentors, do they have the right tools for success, do they have smaller goals, and are they motivated?
If you find that some sales reps are experiencing burnout, work with them to fix the issue. You can create a performance plan, encourage them to take a day off, or offer more training. Being proactive, especially during slow periods of business, will set your sales team up for success.
Professional development will help your reps grow, develop, and be more active, engaged, and productive in their roles. This can set your team up for long-term success and happiness and increased revenue.
To conduct a competitive analysis, you can answer questions about your competitors like:
During periods of slow business, understanding how your product compares to competitors can help you strategize for future success and growth.
Sales reps have the best pulse on what’s happening with customers. In their conversations, they organically uncover gaps in your services and offerings. During periods of slow business, utilize your sales reps and ask them to brainstorm ideas for your product team. What products or services are missing from your offerings? How can your product team improve your existing products?
By brainstorming with your sales reps, you’ll learn more about your customers and how to sell to them. Also, this can help your sales team grow better.
To conduct customer interviews, you’ll need to reach out to customers first. Find customers who have found success with your product and send them a quick email introducing the idea. If they’re open to the idea, you’ll need to write interview questions, conduct interviews, and gather their stories in a digestible, distributable format.
Interview questions could include something like, “What were the major pain points of your process prior to using our product?”, “How does our product help your team achieve its objectives?” or “How are our companies aligned (mission, strategy, culture, etc.)?”
Within your CRM, you should be able to easily automate the rep outreach process, follow-up emails, log prospect activities, organize and track your prospects, and save time on your sales cycle. During periods of slow business, use this time to automate parts of your sales process.
You can even plan promotions to help your sales team reach their goals. Developing smaller goals, such as a number of phone calls reps should have with a prospect or sending more prospecting emails each week, sets your team up for success. Take the time during slow business periods to develop these goals for your reps.
During slow business, have your sales reps practice their techniques for these stages.
Collaborating with your team is one of the best ways to grow better. During periods of slow business, you have the time to truly collaborate with your sales reps. Set up film reviews, where reps can provide and receive constructive feedback. Set up a mentorship program between new sales reps and experienced reps. These collaborative opportunities will ultimately help your sales team increase revenue, while also implementing productive work to develop in their roles.
Slow business can actually be a good thing for your sales team. You can use this time to grow better and strategize ways to increase your revenue in the future by creating a sales plan.