The 3 critical steps to revenue

When we are working with customers one of the things we always finish up talking about is the importance of the three main steps that need to be taken to ensure revenue is generated sustainably.

The diagram above shows what they are and what in our experience is included in each of the steps. We also know that without them, sales and revenue are not possible.

This week’s blog entries over the next couple of days are going to focus on the three steps, how to make them work for you and the level of importance each has in ensuring the flow of your revenues.

Today, I am going to cover the way most businesses that struggle to make their sales targets prioritise their focus on the three steps. This will introduce the whole concept of Backwards Business and why it can help any business to boost their revenues and profits.

The diagram above indicates how most companies prioritise the three steps on the road to generating revenue. (Please note that when we talk about market we mean ensuring that you understand the market and have a product the market wants to buy.)

Logically this seems very sensible because the more you prioritise selling the more revenue and sales you generate. That's right isn't it?

However bearing in mind the basic rules of all markets you cannot make a market buy something it doesn’t want, no matter how hard you try.

So on that basis does it make sense to spend all your time focused on selling what you want, without making really sure that the market wants to buy it?

Or is it better to take a step back and invest more time in making sure you really understand what the market wants so you can offer that earlier and avoid those costly Launch-Learn-Develop cycles that can force you out of business?

Tomorrow we’ll cover what happens to your prioritization when you start applying the way markets really behave and how that helps you generate those revenues you want. 

By  Tim Sandford