This is the second of five blogs that describe individual roles, individual capabilities and the right organizational structure (or as we say, defining the Requisite Organization). Today I'll describe working at Stratum I and II and what the business looks like.

Working at Stratum I

1. Type of Business

• Defines self as sales person or service provider. “I am selling a product or service.” 
• Most likely an employee in a business. Successful as a sole proprietor only if there is little local competition or if the entrepreneur has a very large natural market.
• Works with natural market: those people known by the entrepreneur or people they know. If an employee, they are working in an assigned market.
• No real marketing. Prospects are found by referral or cold calling.
• Sales process matches a product to a need. No diagnosis or search for greater opportunities to serve or sell. Find a product that fits.
• Minimal, reactive service. No proactive service.
• No management of the client relationship. Expectation that answering questions and responding to requests will maintain the relationship with the client.

2. Organizational Support

• The entrepreneur or employee has no subordinates and has no need for them.
• Longest Task: Working one month out to generate enough commissions or sales to cover their draw (employee) or to meet living expenses and pay their rent and expenses (entrepreneur). Pipeline only stretches up to three months out.
• Tasks Done: Everything depending on business (administrative, financial, sales, setting up appointments, making sales calls, filing paper work etc.).
• Tasks Delegated: None.

3. Revenue

• $20,000 - $80,000

Working at Stratum II

1. Type of Business

• Primarily product focused.
• Sole proprietor or junior partner in a team-based ensemble or employee.
• Market is friends, relatives, associates and people they refer. Perhaps a target market.
• Marketing is by referrals and introductions from existing clients, cross selling to existing clients, networking/marketing within target market.
• Find the best product for clients considering all of the relevant factors.
• Reactive service, but questions are answered with some analysis. Some consideration of opportunities to cross sell.
• All relationships are reviewed once per year.

2. Organizational Support

• At most, an administrative assistant. But at this stage, the business owner will likely not yet have hired an assistant. As a result, they must spend more time than they want to on administrative activities and they have less time to network, review client relationships and engage in other marketing activities that will grow the business.
• Longest Task: Generate gross revenue in the year to hit targets/goals. Turn a key prospect into a client in six months. Move towards a desired state of relationship to members of the target market in nine months. Review all client relationships once a year.
• Tasks Done: Sales calls, solution design, proposals, perhaps prospecting calls, review of client relationships, design and host an event for individuals in the targeted market.
• Tasks Delegated: Reception, filing, basic marketing activities, accounts receivables/payables, some service initiatives.

3. Revenue

• $80,000 – $125,000