What Declining Sales Really Mean

Many businesses are currently experiencing a decline in sales. Some owners and executives believe this is due to outside economic conditions. Although the economy may have some bearing, perhaps the real reasons for the decline are more fundamental issues that no one in the company wants to face. The economy has only masked the issues and helped sweep them under the rug.

Many in this predicament think, “If only we could increase sales, everything else would take care of itself.” Oftentimes, the declining sales pattern is not the real problem; it’s just a symptom of other underlying issues. Perhaps the issues are in management, staffing, or a lack of effective marketing and sales.

If your company is experiencing a sales slump, it may be time to do a little soul searching to find the real issues. If you decide to take this head on, here’s a four-step plan to help you lick the problems.

Step 1 — Assess your current situation. What strengths do you see? What weaknesses? Are there opportunities you might be missing? And what are your threats? The more honest you can be at this step, the better the foundation for the rest of the process.

Step 2 — Now that you have an outline of the problems, it’s time to make a diagnosis. What are the causes behind the problems and issues you’re facing? Look beyond the surface issues, and try to get to the root causes.

Step 3 — Now that you have the assessment and a diagnosis of the situation, it’s time to make a plan that addresses your diagnosis by taking advantage of the strengths you identified and establishing ways to correct the weaknesses.

Step 4 — This is where the rubber meets the road. All that analysis will lead to no good unless you follow up with action. It’s time to follow through and act on the plan by implementing the changes outlined in the previous step.

By following through on these four simple but powerful steps, you can not only turn around sagging sales but also position your company for long-term growth.