Short-Term Selling could be Short-Sighted

New research reveals that small businesses are focusing on immediate sales above all other areas of running their business.

A recent poll run by entrepreneur and Dragons' Den star Rachel Elnaugh has revealed that over 75 per cent of small businesses are currently spending most of their time and energy on driving immediate sales.

The poll reveals that short-term sales are way ahead of operational and new product development initiatives and even managing finances and cashflow. Moreover, the same businesses also said that their budgets for marketing and advertising were now minimal.

The findings reveal that many small firms are focusing on survival. But they also raise concern about the long-term prospects of businesses that are focusing purely on short-term goals.

“Understandably, many firms are doing what they can to keep their businesses alive. If you’re cash-strapped, you need to get out there and roll up your sleeves,” says Grant LeBoff, principal of the Intelligent Sales Club and expert contributor to Marketing Donut, the one-stop marketing advice website for SMEs.

However, this short-term tactical approach needs to be part of a longer-term strategy, says LeBoff. “I wouldn’t say don’t do anything short-term, but you also have to put long-term plans in place. Most SME sales are like a rollercoaster. People panic when it’s quiet and they are complacent when it’s busy. In an ideal world, you need to iron out the peaks and troughs.”

Even in a recession, it’s vital to analyse buying cycles and do sales forecasting, says LeBoff. “There’s a lot of evidence to show that buying cycles are getting longer, partly because of the recession, partly because more decisions are made by committee and because people are more risk-averse. So if you know you’ve got a six-month buying cycle, you need to start selling now to ensure you’ve got work in six months’ time.”