Blog

There was some good news today when the Institute for Supply Management reported that the purchasing managers index rose to its highest level since April 2006 - 55.9.  This is yet another sign that we’re heading in the right direction, but we’re far from out of the woods.  Many of the factors built into the Wall Street Journal article back in August are still with us, and so the path we’re on remains unclear - Sharp Rebound; Slow Growth; or Double-Dip.

Since the recession officially started two years ago, we’ve all been focused on the bottom line and cutting costs like crazy.  The Bureau of Labor Statistics reported in December that Productivity in the non-farm business sector in Q3 of 2009 rose by 8.1%, the largest increase since the same quarter in 2003.  Which means that businesses are doing a great job of getting the most out of their remaining workforce after multiple Reductions in Force.

However, as we move forward, we need to change our focus if we’re to do more than just survive.

Moving Focus to the Top Line

So the question is, while we’re on the path to recovery, how can we take advantage of the sales opportunities that arise and grow the top line?  Traditionally, if we were to focus on increasing sales we’d have to invest ahead of the curve in sales resources - new or additional account, regional, country, or market coverage. 

In this environment, the length of a sales cycle is not predictable and when the recovery will actually occur is unknown.  This brings a great deal of “Balance Sheet Uncertainty” when companies do not have the resources to gamble.

Balance Sheet Uncertainty

So again, what do we do to get back into growth?

Enterprise Software - Take Your Product and Business Online

Fortunately, for Enterprise Software companies, there is an option - move your software and sales process online.  I do not mean for you to rewrite your software and business model overnight, but to install your software as-is on the Xuropa Platform.  You can then delivery your product for demonstrations, evaluations, training, or even in a post-sales Software-as-a-Service (SaaS) model.

In this manner, you are able to lower your cost of sales while focusing on growing your top line revenues.

Revenue Growth with Xuropa

Once your software is installed on the Xuropa Platform, you’ll be able to employ it to solve a large number of sales challenges.  And your business will be able to participate in the benefits of the SaaS model without having to re-invent your company. 

For more information on how we can grow your revenues, contact us at sales[at]xuropa[dot]com.

Posted under business, industry

Recently, everywhere I look there is news and more news on how about the economy is doing.  I constantly read about layoff, company closings, etc.  And I hear about it in all sectors.  If someone doesn’t by now know about what’s going on, he or she probably just doesn’t want to know.

The press is treating the economy just as it does with any other sensational news.  And I understand sensationalism:  Many times in my career, press was going out of their way to hail my company and at times me, myself, and couldn’t stop reporting the great subjects.  Nevertheless, as soon as a bit of market momentum was lost, press was all over how bad we were doing - often making it sound like we won’t be in business for more than a couple of weeks.  Yes, I have see the quick turn with my own eyes many times.  Needs to say, these negative stories about the companies (even when we were doing much better than OK), leads to loss of key employees and more importantly key customers as they just believe what the read, or at least what they read significantly affects their purchase decisions.

Negative news is destructively self-fulfilling.  It’s no surprise that the announcement of layoffs everywhere, doesn’t help but encourage companies to invest less in workforce, which leads to lack of productivity, and eventually to more cuts.

I am a big proponent of free press.  I am also a huge proponent of free market (and less/no intervention of government in business).  Nevertheless, I very well see the point of having a stimulus package and how it could help re-vitalize the economy.  At the same time, I believe, if the government is to interfere with free market, it would behoove us all if it could also drive some sort of “management” (and I use that term very carefully) on press.  I do realize that this is very dangerous, but I strongly believe as long as the sensationalism of news is out there, making a recovery would take longer than it could.  Bad news always sells better than good news.

The stimulus package will help the economy.  We now need a disciplined, non-sensationalist press “package”to reinvigorate the recovery itself.  I’m not suggesting to lie or suppress the bad news, I’m just asking not to blow things out of proportions.

Posted under business, industry, marketing