What is Your "MSP"?

For many consumers and producers, MSP is an acronym for Manufacturer's
Suggested Price. Today, as a business owner or executive, I would like you
to consider a different definition for these commonly used letters
–Marketing, Sales and Profitability.

In an earlier article, "Do You Know and Plan for the 3-R's for Your
Business," the focus was on Relationships, Referrals and Revenue. One of
the most consistent challenges for any small business owner or executive is
the actual implementation of the strategic business plan that builds the
3-R's (Relationships, Referrals and Revenue). The MSP of Marketing, Sales
and Profitability helps to overcome that issue.

Since relationships are the first R, the necessary action is to construct a
Marketing Plan to increase relationships. This plan should be specific to
your company and not the "shadow" of a company that you admire. Many
business owners and executives attempt to "copy" someone else's brand
identity and fail to establish their own identify. Marketing plans require
research and evolve from a solid vision, values and mission statements.

The second R of referrals generates the greatest amount of Sales. Sales
plans and marketing plans are closely related and need to be aligned to
ensure that potential opportunities are realized. Within the Sales' plan,
specific goals are necessary to ensure that the marketing plan is effective.
For example, how many "mailers" are necessary to secure an appointment? How
many appointments result in a second appointment? How many second
appointments turn into a sale? Knowing your numbers is critical to the sales
process and more importantly your own internal motivation.

Revenue is the third R and is a partner of profitability or what some may
call productivity. This P is the direct result from M and S. Some companies
work on the philosophy of high sales and low profitability while others use
an opposite approach. Profitability is an absolute necessity and should be
examined on a regular basis.

Today's business world is complex, but still retains the simplicity of
earlier marketplaces. If you know your MSP, you will be able to build the
3-R's.