Four Ways to Grow Your Business
Welcome to this week’s issue of Phil’s Profit Points: powerful, pragmatic advice to improve profits. We are sending this to you because of our prior business relationship and hope we meet with your approval.
Four Ways to Grow Your Business
When you simplify it down to the basics, there are only four ways to grow your business. These are the foundation for creating dramatic, profitable growth. They are:
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Increase the number of customers – of the type you want. Life is too short to deal with people who don’t appreciate your value or don’t pay their bills. Focus on customers who enjoy great benefits and returns from doing business with you.
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Increase the average transaction value. Give your customers choices and options for how much value they want to receive from you. Don’t have a ‘one size fits all’ business.
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**Increase the transaction frequency. **Be proactive. Don’t wait to react to your customers’ needs, go to your customer. Instead of offering an emergency repair service, offer a proactive maintenance service. Instead of providing service once every six months (like your friendly dentist), offer your service quarterly or monthly.
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Improve the effectiveness of your internal processes. This is a huge opportunity in most businesses and costs virtually nothing to implement. Respond faster to your customers. Issue invoices faster. Collect cash faster. Build relationships and become a strategic partner, not just a vendor.
Action Steps
What are your metrics? How many customers do you have? What is the average transaction value? What is the transaction frequency? What processes, if improved, could have a significant positive impact on your customers and your business? If you would like an excel spreadsheet or information to help you calculate these metrics in your business, please send us an email asking for the ‘4 ways metrics.’
From The Piggy Bank
Change one thing at a time and measure the results. If you change several things at once, you won’t know which ones are or aren’t working.
