Business success demands that you have a crystal clear business focus and a narrow, clearly defined target market. You’ve heard it from me countless times. And I’m still a passionate believer in that approach.
The Law Of Sacrifice
In deciding “what business you’re in”, you must also decide “what business you’re not in”. You must obey what market gurus Al Reis and Jack Trout call The Law of Sacrifice: what you’ll give up so that you can specialize.
What You Say: What They Hear
Of course you must be careful. As my mate Bix Berry reminds us: “The business you’re in is the business your clients and prospects perceive you to be in”. It’s not what you tell your clients and prospects, it’s what they believe. It’s a perception issue, not a matter of logic and reason.
You can tell clients and prospects what business you’re in. But it’s what they believe that determines their response.
Issues For Staff Performance
- Your specific business focus
- Your definite target market
- How clients and prospects perceive both your focus and target market
- How what they do as employees benefits the business
- How your define business success
- Why superior business performance is their responsibility
- The problem your prospect/customer has that your business solves.
Directing Employee Energy
All your employees’ workplace energy should be directed towards improved staff performance in those terms. But there are two sides to this argument. You must do your best to ensure that employee performance enhances your business success.
You must also ensure that employees don’t expend effort doing things that don’t enhance business success.
Some Basics Employees Must Grasp
- You can’t be all things to all people. The era of the department store as the epitome of good business is long gone. If you don’t agree have a look at the recent history of the US vehicle market. All major manufactures try to have a “car in every category”. A Ford or Chevvie could be a sports car, family sedan, SVU, commercial van or luxury car. But everyone knows what a Jeep is. That’s why Jeep has been the biggest selling SVU for decades and still is.
- You must know precisely what product or service you’re selling and precisely to whom you’re trying to sell it. Every ounce of business energy must be directed to that purpose.
- Perception is vital. “The business you’re in”, as Bix Berry says, “is the business that prospects and clients perceive you to be in”. the perception of prospects and clients is far more important to the success of your business than the sound, logical comparative reasons you promote in your marketing.
- Prospects and customers want value. They want your product or service to solve a business problem they have. They assess price in terms of the value it provides their business in their terms.
- Ultimately, employee performance can only be effectively evaluated in terms of its contribution to overall business success
- What business you’re not in as well as the business you are in
- What makes your product or service “special” in their terms compared with similar products or services from your competitors.
Business success is what matters most. When someone suggest a change or improvement to your systems, focus or target market, always ask “What benefits will such a change bring to the business?”
In a nutshell, your employees must know precisely what business you’re in and your specific market. They must also know what you don’t sell and the prospects you don’t seek to sell it to. One without the other restricts superior staff performance.
What To Do Now
What systems do you have in place to ensure that employees know both “the business you’re in” and “the business you’re not in”. Are your employees fully familiar with the influence of perception or prospect and customer opinions?
What can you do now to ensure that employees understand the difference and why it’s so important to business success?