Adopting a Lean Business Model Is Key to Success in Direct Sales

I have been very fortunate to work with many direct sales consultants over the years, and the most successful of these consultants have just a few characteristics and traits in common as it relates to the manner in which their business is run. The direct sales businesses that enjoy the greatest profits and generate the most revenue are frequently those that have adopted a lean business model and are committed to keeping their business lean as it continues to grow. This can be a difficult commitment to maintain, but significant profit margins are a worthwhile goal that can be achieved through the use of a consistently lean business model.

So what exactly does this mean for you and your direct sales business? Well, it means that you must take a long hard look at your operations and determine what is absolutely essential and what is not. This may include personnel, products, overhead or other costs associated with running your business. A thorough analysis of these aspects will help to determine what results in profits and revenue generation while also illuminating where funds are not being used optimally. If you sell a whole host of products, identify those which are most profitable and cut down on your offerings so that you only provide the products that are the most profitable.

Clearly, it is much easier to cut down on product offerings and overhead than it is with regard to personnel, but this is a necessary component of running a successful direct sales business. If you have an employee who is not essential, you must conduct a cost-benefit analysis to determine whether it is financially beneficial to keep that employee on the payroll. Please, do not go telling your employees, “Joe Olujic told me to fire you because you are worthless!” What I am saying is that when an employee is not essential, try to find a way to make them essential before you consider cutting the employee altogether.

When you go into the direct sales industry, it is important to recognize that you must be judicious when it comes to costs. A lean business model will help in ensuring that your business is profitable, as efficiency with regard to business expenses is a hallmark of all of the most successful direct sales consultants. Adopting an analytical mindset can therefore be quite useful, particularly as it relates to the amount of revenue you are able to generate through your business.

Joe Olujic

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