Think of a tripod. The three legs come together to support the heavy weight of a camera. Without one leg, you are likely going to see that expensive camera fall to the ground.
Relying on just one channel of business can be risky and limit your growth potential. It's important to diversify your sales channels to mitigate risk, reach more customers, and stay competitive.
You may not think of it like a product if you are a service-oriented business, but your product is a repeatable process that you can package and sell. For Superstruct, ours is the 360º Assessment + Growth Plan.
So we got to thinking... if the idea of a tripod is that each leg is supporting each other, and your opportunity to hold up your business requires it, why not break this down into minutia?
Having just one channel of business can be risky for several reasons:
Over-reliance on one platform: If you rely on only one channel, you are putting all your eggs in one basket. If that platform experiences a problem or undergoes changes that negatively impact your business, you could lose all of your revenue overnight.
Limited reach: By only having one channel, you are limiting your reach to potential customers. Different customers prefer different channels for shopping, so by having a presence on multiple channels, you can attract a wider audience and increase your overall sales potential.
Competitive disadvantage: If your competitors are present on multiple channels and you are not, they will have an advantage in terms of reach and visibility. This can make it difficult for you to compete and grow your business.
Inability to adapt to changes: Consumer preferences and habits are constantly changing, and new platforms and technologies are constantly emerging. If you have only one channel of business, you may not be able to adapt to these changes as quickly or effectively as your competitors who are present on multiple channels.
Missed opportunities: By limiting yourself to one channel, you may be missing out on potential sales and growth opportunities that are available on other channels.
Key Growth Areas
As a consultant and business growth specialist, I look at 3 key growth areas as part of the steadfast and stable system. I would recommend the following 3-point system for developing key growth tactics for a startup in a low to middle market:
Active Sales: The first step towards growth is to actively sell your product or service. This includes identifying your target audience, creating a sales pitch, and reaching out to potential customers through various channels such as social media, email marketing, and cold calling. By focusing on active sales, you can generate revenue quickly and gain valuable insights about your customers' needs and preferences.
Passive Sales: Once you have established a customer base through active sales, it's time to focus on passive sales tactics. This includes creating content such as blog posts, e-books, and webinars to attract potential customers to your website. You can also implement search engine optimization (SEO) strategies to improve your website's visibility on search engines like Google. By leveraging passive sales tactics, you can reach a wider audience and build brand awareness.
Referral or Affiliate Sales: The final step towards growth is to leverage referral or affiliate sales. This involves incentivizing existing customers to refer their friends and family to your product or service. You can also partner with other businesses to offer affiliate sales programs, where they promote your product or service in exchange for a commission. Referral and affiliate sales can help you scale your business quickly and cost-effectively.
Every business with revenue has a Sales channel, however it doesn't mean that it has to be Active.
Case Study of a Strong Business Model: Blace
One of our Star Strong portfolio companies Blace is in NYC, and they just opened their second location in LA last year. The NYC branch has been focused on Referrals and exclusive spaces (inventory). In their new branch in LA, they hired an expert biz dev / sales person. They kicked off the new city with a trifecta of opportunity: 1. Exclusive Spaces (Passive) 2. Partnerships with Caterers, Event Planners, Restaurants, etc. (Referral) 3. Relationships with Businesses (Active)
In order for the business to reach its full potential of growth, all three sales areas need to function in harmony. The beauty of segmenting this out with a new location open is that it offers an immediate test case to see if there is a real possibility. And it is performing this year at the same capacity as the NYC business.
You Need the Right Tools to Build the Trifecta
If you feel you are ready to go, don't wait. Just dive in.
A few principles before you get started:
1. Active Sales: This is your CORE Audience.
Actively sell your product or service.
Identifying your target audience, creating a sales pitch
Reaching out to potential customers through social media, email marketing, and cold calling.
2. Passive Sales: This is your MORE Audience.
Creating content: blog posts, e-books, and webinars to attract potential customers to your website.
By leveraging passive sales tactics, you can reach a wider audience and build brand awareness.
3. Referral Sales: This could be your CORE or MORE Audience.
Who are your partners? How are you incentivizing them? Leverage referral or affiliate sales.
Incentivizing existing customers to refer their friends and family to your product or service.
Partner with other businesses to offer affiliate sales programs, where they promote your product or service in exchange for a commission.
Ready? Click the image or the button below to download the toolkit.
If you want to have us hold space for discussion... book us. Reach out.
Image by Mark di Suvero sculptures at the Storm King Arts Center.