Loading...
Answers
MenuHow would you use your lull days in a business cycle?
Our business is typically dependent on marketing budget which faces severe downside during the last quarter.
I was wondering if there are ways that can be implemented so as to cover at least operational expenses by offering some discount to clients, etc.
We generally use this period for product development, training, planning, etc but with very little business, everything sucks. How do we motivate team?
Answers
Hi,
I was once in such an environment.
The company had an interesting way of dealing with the slowdown... they sold vacation time.
Here's how it worked (and it may only help you in 2019)
If you know you don't need a full complement of staff in the last weeks of the year, offer your employees the chance to take an extra week of vacation in that time which will be unpaid.
However, if they do want a paycheck, they can 'buy a week of vacation' by deducting 1/51st of a week's pay from each week's pay over the course of the year.
So a person who earns $1000/wk would have $19.61 taken off each week's pay in order to get a paycheck on the week which is essentially an unpaid absence. The money just goes back and forth.
The effect though is that your labor cost is cut in the slow period of the year.
People get excited about their extra vacation week. Happiness and fun fill the air in the lead-up to 'vacation time.'
Hope that helps.
Yes, It would depend on the nature of you product, the biggest burden will be the fix cost incurred. you can promote to have a discount sale, but make sure that you do not give discounts to make loss.
If you have many types of product you can do a cost analysis and couple ( piggy back Promotions) too.
I'd say hire a consultant to help you design some type of 4th quarter cashflow mechanism.
Even if this is an entirely different business.
Nothing motivates better than money flowing in + making money flow fun.
Related Questions
-
What do (bootstrapped) startups offer to new sales hires? Commission only? What are some good examples to keep people motivated and still survive?
Generally bootstrapped startups should avoid salespeople, for a few reasons: a. they typically can't afford the base and overall comp required to attract sales people who can actually sell / or afford to support them with marketing, management, etc b. it will be very difficult to find the rare person with the right mix of sales and startup DNA along with the critical domain knowledge, consequently the startup is likely to settle c. the founders need to be very involved in the selling and customers will demand it That said, if the plan is still to hire a salesperson, find someone who has demonstrated sales success in startups and is excited by the early stage in company building. Create a comp plan heavily leveraged on sales results (unless you are in an industry where 100% commission is a common practice, would recommend against $0 base as this creates the false impression that your hire isn't passing time with one company while looking for another job with a richer comp plan - you want your rep focussed). Sell the vision and opportunity to be part of a growth story. I have written a several blog posts on hiring sales people into start-ups. You might find these useful: http://www.peaksalesrecruiting.com/ceo-question-should-i-learn-to-sell-or-hire-a-sales-person/ http://www.peaksalesrecruiting.com/start-up-sales-and-hiring-advice-dont-stop-selling-once-you-hire-your-first-sales-rep/ http://www.peaksalesrecruiting.com/hiring-start-up-sales-reps/ http://www.peaksalesrecruiting.com/startups-and-salespeople/ Good luck!EB
-
What would be a good answer for describing the size of your company to a potential prospect who might consider you too small to service their account?
What an awesome question! Businesses are running into this issue more frequently that ever, good news is, it can be done. Having worked on projects with oDesk, Fox Television and Wikipedia and having a very very small staff, it's certainly possible. Here's how I say it in our pitches to larger organizations: "Tractive West provides tailored video production services to organizations of all sizes. We have developed a distributed workflow using the latest digital tools. We leverage our small creative and management team with a world wide network of creative professionals, that means we can rapidly scale to meet the demands of any project while keeping our infrastructure and overhead lightweight and sustainable." Cheers and best of luck.SM
-
What's a reasonable profit margin on merchandise?
Are you the manufacturer or reseller? If you are the reseller, typically about 40-50% above cost. Use the MSRP as an indicator.ZR
-
How can a small offshore development company find companies/software sales people to sell their service in the US/UK?
My company does a lot of consulting with offshore firms who are looking for a way to generate new business, so I hear this question a lot. My first reaction is that you need to totally reverse your mindset when you talk about your own company. You mentioned that you have: a great software developers team, proven track record, passion, real value But, everyone says that. There a 10,000 companies that have those things, so a customer isn't going to notice it. You need to figure out what your company is best at (doesn't have to be technical) and present it as a solution to a specific problem that clients have. Maybe a speciality, or really good project management, really good communications, a special expertise or experience, a personality, experience with a certain type of client.. really anything.. But, there must be some thing that makes your company 'special' otherwise you will be lost in the mix. Don't worry about things like rates, or the fact that you have 'great' developers. Those are generic. Think about why a client would really choose you, and try to build on that! After you understand your company identity, it gets much easier to identify and engage marketing channels because you understand your target.DH
-
What is the best way to sell to dentists?
Get specific with the "who" of your market (i.e. what kind of dentist? what is their specialty? whom do they serve? demographics and psychographics of both the dentist AND their patients?) And specific with your offer to them. What are you selling? What are they buying? And why do they want it (according to THEM... not you)? Get those factors right and they'll buy from you all day long.DB
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.