Businesses that constantly ride the “roller coaster of consistently inconsistent sales revenues” never actualize long-term success and are in jeopardy of failing at any moment.
Having revenues up one month and then significantly down the next month not only frustrates business owners, but makes it virtually impossible for them to plan for any kind of consistent business growth.
Inconsistency leads to many complications. As odd as it may sound, businesses really don’t want all the business that they can get, as soon as they can get it, nor should they. That’s simply because, without pre-planning, they cannot handle it. For example, a sudden, 300% increase in a restaurant’s lunch sales from one day to the next won’t end well. It will most likely overwhelm employees and management, ultimately creating many unpleasant dining experiences. If you have ever eaten at a place that had too many customers with too few employees, then you know exactly what I am talking about.
Unless it is part of their weekly sales patterns, no restaurateur in their right mind would want a sudden, overnight, 300% increase in lunch sales. But, if sales incrementally increased day-by-day over a couple of months, every (literally every) restaurateur out there would covet a 300% increase in revenue.
Most business models will be overwhelmed with an overnight, 300% increase in business. If fact, most businesses will be completely overwhelmed if they experience anything close to just a 50% sales revenue increase from one month to the next, let alone a 300% increase overnight.
As nice as the thought sounds of acquiring tons of customers fast, it isn’t really what a business wants or, let alone, needs. Not only will the quality of that business’s product and/or service suffer when sales revenues increase too steeply, the additional sales revenues come at too high a price as the value of the products and/or services declines in the consumers’ minds. This will result in many customers or clients becoming disgruntled, with the real possibility of the business losing many of them. The business’s reputation will take a hit. And if things continue, the business will pay the ultimate price and have to shut its doors.
Yet, having too little business certainly isn’t ideal either. Even though falling at the other end of the spectrum from having more business than you can handle, the end-results are often very similar. The consumers’ perception of the business decreases, customers become disgruntled and never come back, the business’s reputation takes a hit; and, if things continue on this path, once again the ultimate price becomes business failure.
Businesses that ride the roller coaster of consistently inconsistent sales revenues find it not only impossible to effectively and accurately plan daily objectives and long-term goals; they simply don’t grow and don’t become profitable and successful.
Successful and profitable businesses that have long-term growth generate consistent sales revenues that increase incrementally over time.
The secret of success is consistency of purpose. —Benjamin Disraeli