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Grow revenues in price competitive markets

Growing revenues in this market is probably harder than it’s ever been. You’ve got several factors working against you. You’ve got an industry that is over-commoditized and over-heating right now. On top of that you’ve got an economy that is still not in recovery. You’ve got merger and acquisition activity going on that is making vendors larger and they are driving prices down because of their size. You have ADP and Paychex who are now selling insurance products. So even within the broader industry, the lines are being merged between who is a broker, who is a payroll provider, who is a PEO, who is an HRO, so there is client confusion at the same time.

A small business has to have exquisite focus on what their market position is and how they are going to win. They have to be bolder about it. They have to be persistent about it. If you have chosen to be customer intimate or you have chosen to be someone who is going to have product innovation, you have to drive all activities towards those and really drive the value back to your customers to grow revenue, because all the other factors are working against you. The economy, commoditization in the industry and merger and acquisition getting bigger are all problems, so that exquisite focus on spending every dollar available on high value work that drives revenue is critical to your success.

 

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