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Sida 77 · Column Rob Looye

Column by Rob Looye

“Waiting for someone to ring the doorbell is not a sales strategy” – part 2

6. Make costs visible

any entrepreneurs responded positively to my first column: honest, direct, and without complicated models. That is why here is part 2, covering costs, budgeting, and profitability. Because revenue is great, but it is not sacred if you ever want to sell your company.

Employees can only manage margins if they understand the cost of choices. An extra courier, rush order, or correction round is quickly perceived as a service, but service is not free. Give your team insight.

7. Review contracts annually

1. Do not budget for growth to please a buyer

Software, subscriptions, lease agreements, and supplier prices creep up unnoticed. Ask annually: are we still using this, can it be cheaper, and does it still fit our organization?

Anyone who grows by zero to five percent for years must explain why that will suddenly become twenty percent next year. Does that growth come from new customers, higher prices, extra sales capacity, an acquisition, or a digital channel? “The market is picking up” is not a valid justification. Buyers pay for future cash flows, not for enthusiasm in a spreadsheet.

8. Manage monthly

Compare revenue, margin, and costs against your budget every month and intervene in a timely manner. Discovering in hindsight that profit is disappointing is not management information, but historical record.

2. Do not let costs grow automatically

9. Do not cut blindly

With a growth budget, people are often hired and costs incurred immediately. But if revenue lags behind, those costs continue to accrue. Therefore, work with decision points: at what revenue level do you hire someone, when do you invest, and what do you postpone? Growth may cost money, but incurring costs is not growth.

Good people, strong systems, digitalization, and commercial clout can add value. Do not just ask: “Can this be cheaper?”, but above all: “What does this euro yield?”

10. Work with scenarios

Create three budgets: realistic, disappointing, and positive. What happens in the event of a decline in revenue, margin pressure, or the departure of a major client? Those who think ahead can act faster.

3. Know your fixed and variable costs

Clearly map out which costs fluctuate with revenue and which persist when revenue declines. Personnel, premises, lease contracts, subscriptions, and systems can make a company vulnerable.

The conclusion is simple: profitability arises from realistic budgeting, understanding margins, making costs visible, and adjusting in a timely manner.

4. Look beyond revenue

Revenue means little without margin. A large customer can hardly generate profit through customization, rush orders, storage, correction rounds, or extra logistics. Calculate what a customer, product group, or order actually contributes. Some revenue makes you bigger, while other revenue mainly makes you busier.

Waiting for revenue to rise is not cost management. Just as waiting for someone to ring the doorbell is not a sales strategy.

Whoever gets a grip on their costs now will determine for themselves how much they earn, can invest, and under what conditions they sell.

5. Dare to let go of bad revenue

A customer who generates too little margin and demands many exceptions can cost more than they contribute. Raise prices, adjust terms, standardize, or part ways. A company becomes more valuable through profitable, predictable, and repeatable revenue.

Rob Looye

This column is an abridged version.

I det här numret

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  2. Supplier vs Intermediary12
  3. Lieke Jans Stroomer wants Goodwill to be a reliable bridge between factory and trade14
  4. BIGsmilegroep’s ambition is clear: to become the central platform for gifting, without taking over the reseller relationship23
  5. Martijn van Rooy: “We are not an alternative to the full-size bottle. We are a discovery and marketing channel.” Parfumado is now entering our market too28
  6. The secret of Prodir32
  7. Carryon sharpens product focus under new owners39
  8. The Polish power behind European production43
  9. The quality of Glasmark45
  10. Guapa Clean Up: conscious production, targeted personalization47
  11. NOEX: reliability for generations49
  12. Lanyard Pro: lime green guarantee51
  13. DOTHAT creates53
  14. Bage4U: quality, flexibility, and production close to the European customer55
  15. Asgard57
  16. Tea bags in every shape imaginable59
  17. Tomadex S.C. launches its own sportswear brand KEEZA: fan merchandise and professional teamwear from a single production environment61
  18. Zooksy custom socks63
  19. Essential factors for a successful embroidery design64
  20. The psychology behind price68
  21. Next Gen: Demi Oomen, Florisgifts73
  22. Column Rob Looye77
  23. PPP79
  24. The vision of newly appointed PPP chairman Pieter Bosscher81
  25. Top or Flop83
  26. What are the expectations for The Supplierdays85
  27. What do recent studies on the effects of marketing for sustainable products mean for the marketing of pro- motional clothing and workwear?91
  28. New ProductZ94
  29. NoteZ103