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Business Coaching Clients Need to Think Profit Plan Before Sales Strategy.
May 4, 2010 — Dominic Rubino
The importance of communication in business coaching is obvious.
The question is: are you using today’s communication technology to its maximum potential? Are your clients?
As a business coach you know the bottom-line – why you are called in – is about profit.
I’m guessing if you’re a management consultant, business coach or mentor, you have never had a single consultation where your client is worried about an excessive profit margin. And yet, how many times have you also been asked to help increase sales? As though sales and profit aren’t necessarily the same thing. Teach your clients that a Profit Plan comes before their Sales Strategy.
A lot of businesses will be looking for you to bring in some kind of “Brian Tracy Certified Magic Formula” for them to get their revenue up. But FocalPoint Business Coaching isn’t about sorcery, it’s about reality. And the reality is, unit sales has little to do with profit.
Profit and profitability is why people do business.
Here’s a thought to bring to a consultation or strategic planning session:
We all like to make fun of used car salespeople, but who’s really laughing? The reason we don’t like them is because we believe they’re out to screw us. How dare they make a profit on every deal they do – that’s not how a business works….is it?
Well, why not? Why do we hold their profit motive against them?
Profit and profitability is why people do business. If your coaching client still pays his sales people on volume instead of deal profitability, then ask him some tough questions to find out if he’s doing so at the sake of profits.
Sending a sales team out to hit the streets without a profit directive is exactly like a football team running an east-west play that gains no yards – what’s the point?
Here are some reasons why a business may have “forgotten” to make compensation tied to deal profitability:
- They get measured on Unit Sales from their supplier, which makes turnover feel like it is the priority. (Gotta wonder how the supplier compensates their sales people!)
- They haven’t sat down and analyzed their actual COGS (cost of goods sold) or COS (cost of sales).
- Changing the company’s compensation plan will require re-training the sales team. They might even have to let Aunt Betty go.
- They allow too much variability or special pricing on a deal.
- They don’t have the right CFO to keep them in check.
- They fear competition, or, more concisely: they lack brand confidence and identity.
We train and support our coaches to use Brian Tracy’s proven content. They have the resources and support to help a client tackle these blocks, step by step.
No matter what kind of business coaching , training or consulting you do, take your training, your coaching content and your experience and give your client the reality they have to hear.
Thanks for reading, talk to you soon!
By the way, I write on request, too. If you have a questions for me about business coach training, or coach support, let me know and I’ll get you what you need.