Growth Versus Real Growth

Time for a quick lesson in sales economics 101. Very few salespeople, management included, appreciate the difference between economic growth and real growth. I bring this concept forward because I have seen many salespeople and sales managers base performance appraisals and productivity on the wrong indicator. Growth is a result of a strong, buoyant economy; growth due to outside factors such as low interest rates, high consumer confidence, high demand, and limited supply. Your business becomes the beneficiary of economic growth stimulated by a strong, active economy. You did nothing to stimulate it—you only reacted to it. This scenario often creates a false sense of productivity throughout the company as management proudly high-fives each other. In boardrooms, they exclaim: "Aren't we great, we are 15% ahead of last year's numbers. Wow, we're awesome." Who's kidding whom? Yes, you may be up 15% but so is everybody else in your industry. You're all on the bandwagon together, riding on the coattails of strong economic growth. However, real growth is over and above economic growth—growth on top of growth. Real growth is stimulated by effective prospecting and is critical for long-term success. For example, if the economy generates 15% economic growth, your goal may be to achieve 5% real growth in addition to the 15%. Thus, when the economic wave crashes (they usually do) and the 15% growth evaporates, you're still left with 5% growth—probably 5% more than your competitors. That's real growth. It doesn't take very long to see and appreciate the tremendous impact real growth has on a business. Salespeople and managers usually don't think about growth in these terms. It's time you did. Reevaluate your productivity and challenge yourself. Is my business growing, or is it really growing? Clearly, your objective as a sales entrepreneur is to drive real growth. Don't simply respond to a natural economic growth spurt.