Follow the Money

In a world driven by money and economic gains, it's common to encounter companies whose sole objective seems to be the accumulation of wealth. While a company's purpose is, in part, to generate income, an obsession with money can have negative consequences for both the business and society as a whole. Following the money is not just about amassing wealth but understanding that success in business is based on identifying where revenues flow and adapting accordingly. In the following lines, we will explore how a more balanced approach can be beneficial for all parties involved.

In any industry, sales are the lifeblood of a business. You can have a meticulously crafted business plan, flawless administrative management, and the most luxurious facilities, but if you're not generating sales, everything else is secondary. Sales are not just a financial metric; they are a key indicator that we are doing things right. They are the engine that drives our business operations.

How can you apply the concept of "follow the money" to your own business? Here are some key steps:

Evaluate your sources of income: Begin by analyzing in detail where your income comes from. Which products or services are the most profitable? Which customer segments generate the majority of sales? Sales drive a company. Without sales, a company cannot survive in the long term. Sales generate income, which in turn finances the company's operation, enables investment in improvements and expansions, and ultimately contributes to profitability.

Listen to your customers: Pay attention to what your customers are saying. What needs are not being met? What changes in the market could affect your business?

Be flexible and adaptable: Do not cling to a business model or strategy if data and trends indicate that they are not working. Being willing to adjust to the changing demands of the market is essential.

Invest in what works: Once you identify the most solid sources of income, invest in improving those areas. Whether through product quality, service expansion, or process optimization, focus on strengthening what drives your sales.

On the other hand, once you have sales, you need to have excellent quality, an excellent product and excellent service, but the reverse is not possible. You cannot have excellent quality, an excellent product, excellent service, and no sales.

Excellence in Quality and Product Requires Resources. To offer a product or service of excellent quality, resources are needed. This includes investment in research and development, advanced technology, high-quality materials, and qualified human talent. These resources are often costly and require financing, much of which comes from sales.

Customer Feedback and Continuous Improvement. Sales also provide a vital avenue for collecting customer feedback and opinions. This feedback is essential for continuous improvement of product quality and service. Customers are the ultimate judges of quality, and their satisfaction is a determining factor in retention and loyalty.

The Paradox of Quality Without Sales. Now, what happens if a company invests in quality without focusing on sales? The answer is that without significant sales, the investment in quality becomes an insignificant effort. Costly quality control systems, the production of high-end products, and exceptional service can result in financial losses if there is no market to support them.

Business Success: A Delicate Balance. The key to business success lies in finding a balance between sales and quality. Sales are necessary to fund the investment in quality, and quality is essential to maintain and expand sales. This creates a virtuous circle in which both aspects mutually reinforce each other.

The assessment of income sources, active listening to customers, flexibility, and investment in what works are key steps to maintain a balance between sales and quality. This balance is essential because exceptional quality and products require resources that come from sales, while sales depend on quality and customer satisfaction. Business success is found at the intersection of these two areas, creating a virtuous circle that allows the company to thrive in the long term. Ignoring any of these aspects can lead to an imbalance that ultimately harms performance and profitability.

IOS OFFICES is an example of this. The serviced office industry has existed for 40 years, and we started in 2007. Initially, our business model focused on renting fully equipped office spaces. Over time, we observed a shift in our customer needs. Some of our virtual clients, those who did not physically occupy office space, but desired telephone answering and mail services, started using our facilities regularly. These virtual clients spent time in the offices and needed a place to work for a few hours a day. That's when we came up with the concept of "coworking" to accommodate these users.

This example illustrates the essence of "follow the money" beyond the commonplace phrase. At IOS OFFICES, we didn't limit ourselves to our original business model but adapted to the changing needs of our partners, identifying where the revenue stream was and responding with innovative solutions.

MBS 2023

Are you ready to set yourself up for success in 2024? Join us at Mexico Business Summit 2023, the must-attend B2B conference for Mexico’s business leaders!

Taking place on Nov. 28-30, 2023, at Expo Santa Fe in Mexico City, this high-level multi-industry conference offers unmatched opportunities to get inside perspectives on key industry trends, access actionable business intelligence, generate pre-qualified leads and identify new opportunities in a unique cross-industry networking environment.

Mexico Business News offers you an exclusive MX$2,000 ticket discount by using this code: MBS2023MBN2000. 

Don't miss this opportunity and get your tickets here: https://mexicobusiness.events/MBS/2023