One of the biggest problems business owners have, is that they don’t have a plan for growing their businesses. They jump from idea to idea, hoping that sooner or later, something will work for them, and somehow, magically, their business will take off, or will suddenly become more profitable.
In reality, there are several things you can do to grow your business. But there are only four main things… or “key” categories that nearly every method of growing your business falls under.
1. Get more new customers. That is, increase the number of customers you now have.
2. Increase the average transactional value of each sale. That is, get more money every time a sale is made.
3. Get your customers to buy from you more often. That is, increase the frequency of purchases by your average customer.
4. Increase your customer’s average buying lifetime. Get them to continue doing business with you for a longer period of time.
Increasing the average transactional value of each sale… that is, getting more money from every sale, on the other hand, has the potential to add an immediate 30 to 40 percent in pure profits to your bottom line.
Using this technique, and making a simple suggestion, fast food restaurants add millions of dollars in profits to their coffers every day. They use the strategies of “bundling,” “cross-selling” and “packaging,” to get their customers to spend just a little more and get a better value.
But aside from the actual cost of the additional product, that “little more” is pure profits, since there are no marketing costs involved. Method number three… getting your customers to buy from you more often is another effective way to build profits.
It starts by getting to know your customers and determining what their needs are. Then communicating with them often, regarding special offers, additional products or services that might benefit them, or other products or services offered by another vendor or supplier with whom you have a joint venture arrangement.
Now, item four… Increasing your customer’s buying lifetime. It just makes sense- the longer a customer continues to do business with you, the more products and services you’ll have the opportunity to sell that customer. Which, of course, translates into more profits.
But also, the longer they keep coming back and buying from you, the more benefits they’ll receive from the products and services that they’ve purchased from you, which leads to a more satisfied customer, and again, means more profits.
And naturally, the longer the customer’s buying lifetime with you, the more chances you have of getting referrals from them of others who can use and benefit from your products and services.
Now, increasing any one of these four methods of growing your business can certainly make a positive impact on your bottom line.