Originators in the commercial equipment leasing and finance industry are often required to pivot away from one stream of business and explore new avenues for future business. Many originators are currently facing change and are being forced to find new channels of opportunities. One of the benefits of the industry is that there are always new channels, new opportunities, and new clients to serve in every economic cycle. This is not the first time originators have been asked (required) to pivot.
Prior to the 1986 Tax Reform Act, many originators strictly sold a tax product, driven by investment tax credits (ITC). In July of 1986, Congress basically eliminated the product. Originators pivoted and started selling cash flow savings, rather than tax benefits, and sales volumes quickly resumed. I knew of many originators that had their best years in 1987 and 1988, when in July of 1986 they thought the world was coming to an end.
In the early 1990's I managed a sales team with nearly 50% of our volume being generated through copier vendors. The company, with my input, decided on a Friday that we were going to pivot away from the copier business. On Monday morning I notified the team that the company would no longer fund copier transactions. Six months later our sales volume was hitting record numbers with not one copier transaction included. The company found a new niche that was more profitable and the team was entrenched in a new direction.
In the early 2000's, I helped a company pivot away from 100% vendor-driven business to nearly 75% end-user-driven business. The change was daunting at first, but ultimately the pivot allowed the company to increase profitability and sales volume.
After the 2008 downturn, many companies had to reinvent themselves in the market. Originators were asked to leave the past behind and find new niches; to change from being generalists to niche players. Originators were force to pivot; to innovate, to create new channels of business, and to embrace major changes.
Many of today's most successful originators have embraced change over the years. They have pivoted several times during their careers. Top originators are survivors. Top originators innovate and find new means to serve new markets, new clients, and new opportunities.
As the economic recovery begins, top originators will once again be asked to lead the industry forward, to leave excuses behind, and to pivot into new opportunities. Embrace Change.
Survive - Thrive - Lead
This "Sales Tip" is provided by Wheeler Business Consulting.
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