Some Businesses Use Direct Sales to Speed Growth
Many businesses come and go. Some businesses may survive 10 or 15 years but many people feel that the first mark of longevity is reaching 25 years. At that point a company has succeeded for about a generation, and quite often new leadership or potential new leadership has taken on many tasks and functions that were once handled by business founders. The silver anniversary for a business may represent only the first major milestone in the life of the business.
For example, what happens to a company after it turns 50? And what about the 100-year mark? Why is it that some businesses (such as bakeries and other special skills) may be handed down generation to generation for hundreds of years without experiencing any growth and other businesses zoom to international success in the space of a few years? One possible explanation may be the business culture that develops within the company. For example, a business that emphasizes secrecy and family may have little growth potential.
On the other hand, a company that opens its doors to new ideas and new employees, rewarding them for successes and innovations, may find itself in a position to grow. And there are numerous growth stages. In some cases, a small company may expand to a certain size and then reach an equilibrium point. One such company might be Penguin Windows. A northwest company that specializes in custom window replacement, Penguin Windows relies on a direct sales force rather than in-store sales to build its business.
The direct sales model has been used by many companies that market high end products — products of usually superior build and quality that command higher-than-retail prices. These types of businesses may experience phenomenal growth or they may only grow a little bit each year. A firm like Penguin Windows may rely extensively on customer satisfaction ratings to help its marketing. Penguin Windows celebrated its 25th year in business in 2009.
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