About Me
- Waltmorey
- Pinellas Park, Florida, United States
- I founded Core Business Solutions with the goal of helping business owners improve operating results, add value, and recapture the energy and passion that was present when the business was new. We also have the expertise to assist start-up companies create the foundational structure needed to provide the best opportunity for the business to grow and prosper in uncertain economic times. Our goal is to help the business entrepreneur/owner, through mentoring and coaching, develop or enhance managerial skills while providing that independent and objective advice and expertise usually provided by a board of directors.
Monday, October 15, 2012
4 Ways to Grow Your Business
3:17 PM | 
Posted by
Waltmorey
This post will review four fundamental ways to increase your company's revenues, net profit and overall value.
Be careful here…it’s easy to say "I'm already doing that," or "that won't work in MY business." When, in fact, in most cases you can- 1) do a better job doing what you're doing, and/or 2) creatively adapt the idea in your business
Here are four methods that could work for you:
1. Sell to and serve more people
I know this seems so obvious ‘get more customers’. But ... let’s break it down further and look into all the possible channels by which you can advertise and reach new customers. Print, internet, signs, trade shows, direct mail, social media and the list goes on.
If you're like most businesses, you're probably advertising in some places but not yet in others. I suggest you start testing lots of different marketing channels to find new ones that can work for you.
Begin with the one that stands out as the one most likely to pay off (getting the most qualified people to contact you per dollar spent).
Are you really using social media consistently? Have you stopped networking as much as you used to when your company was new? Have you considered door flyers? Don't knock these marketing channels unless you've really tried them to the best of your ability.
Remember: the more marketing campaigns you try, the more likely it is you'll find the one or two that you’re not using that are solid gold. And these many times these become long-term assets, generating you profits month-after-month, year-after-year.
2. Increase your average order size
How many times have you heard “you want fries and a drink with that?” Fast food companies have learned this one well. Have you? It’s called ‘Cross Selling’.
Once someone has come into your store (or online property, or calls you) your goal is to maximize their total order amount. In doing so, you should simultaneously maximize your revenues and completely fulfill the needs of your customer.
The key is to not do it obnoxiously. For example, when you're in a restaurant and the waiter suggests entrees, appetizers and/or asks if you want dessert, it's not seen as being pushy, but it maximizes the restaurant's profits. Are you maximizing your profits?
Another example of this: you may have been calling to order something by phone like supplements and they suggest they can add an item in your package with no additional shipping charges.
You could add to your customers' order sizes by finding out what accessories or related items they might need, and have them available.
This can also be done Online. When you ‘checkout’ at Amazon.com a message will pop up saying "Those who bought X also liked Y...". No wonder they have one of the highest conversion rates among online stores.
Over all industries, cross selling generates 35% additional gross revenue and averages 18% more profits!
That’s serious money in anyone’s book.
3. Increase your customer order frequency
How often do your customers need your product or service? Is it something totally out of your control, like a real estate client not needing to buy another house for several years?
But are there things within your control that can motivate customers to come in more often or purchase more often from you, like a restaurant inviting its customers in for specials on slow nights?
Loyalty and reward programs can help make this happen. For example, hair salons can provide a VIP Reward program where the 3rd or 4th or 5th visit provides you a deep discount on their services and many coffee shops will give you a card to punch each time you buy a coffee to get the 10th one free. If you have 7 of 10 punches already, you know you'll be a little more likely to choose that place over others to get your reward sooner.
Continuity income is another huge one. If you can offer any kind of product or service on a recurring, monthly basis...do it. Ever hear of the ‘Book of the Month Club? A winery or liquor store could offer a wine-of-the-month club. Bakeries can offer weekly batches of cookies to local businesses for team meetings.
The odds are that whatever you're offering, a certain percentage of people want it every month like clockwork and will pay accordingly for it.
4. Increase your monetization methods
Finally, look for your business' byproducts that might be of value to someone else.
Think about this: when sawmills and furniture manufacturers stopped throwing away the tons of sawdust accumulating on their floors, and began selling it to other businesses who could use it (such as for making "starter logs" for burning in your fireplace) they found new income streams.
Another interesting example is a group of real estate investors who built a brand around their vanity number, 1-800-NO-AGENT, offering homeowners a chance to sell their house to them at a discount instead of listing it and waiting.
They found they could sell the leads (those who responded but didn't' want to sell to them) to local real estate agents (who would contact them to see if they could represent them). Their company ended up generating nearly as much revenue from selling "dead" leads as it did from their core business of "flipping" houses!
I have a client whose main business generated literally tons of scrap lumber. He has turned what was once a $3,000 monthly dump bill into a $350,000 revenue stream by converting the scraps into landscape mulch which he sells by the truckload!
Doubling revenues just by thinking outside the box...that'll add value to your company.
Hopefully as you read through these value-adding methods, you were able to find things you can do right now to increase your revenues and profits. At a minimum, add one new idea to your To Do list to accomplish in the next 30 days. Go after that new additional income with a positive outlook and you'll start seeing the benefits!
In the next few weeks or so I'll post another article to help you work 'on' your business!
"Remember, to get your business to the top, you must get off your bottom."
Walt Morey,
Core Business Solutions
8712 40th Way North, Pinellas Park, Florida 33782
Tel: 727-647-8242
waltmorey@iib.ws
http://www.corebizsolution.com
Practical Business Advice
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1 comments:
Thanks, Walt, for keeping the little grey cells stimulated.
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