3 Ways To Grow Your Business
And Finally Quit Your 9-5
17 February 2023
As entrepreneurs, we are always consumed with an endless variety of advertising and marketing options available to us. With a lot of choices from traditional methods to digital strategies, we can easily lose sight of the fact that there are actually only three (3) ways to grow any business.
So, what are these 3 ways?
YES, incredibly simple, but mind you, it is no less powerful if properly leveraged.
Acquire new customers
The most obvious and focused for all entrepreneurs and other business owners but also the most challenging and expensive aspect of growth. Bringing in new customers is the lifeblood of any business. With growth and expansion comes more options for the business to make its desired impact.
Increase your average transaction value
This is one aspect that most business owners focus on for growth and profitability. Once advertising and marketing dollars have been spent on earning the first opportunity with a new customer, the ability to influence the level of purchase for future transactions can have an astounding impact on your business.
How is this accomplished?
Typically, this is part marketing and part operation. For marketing, the use of strategies like “stepped offer” (10%OFF $100/20%OFF $300 etc) to entice customers to stretch to that next level of purchase. Another common offer used effectively is a dollar value to qualify for FREE SHIPPING. Knowing your customer's average transaction value allows you to create other opportunities that influence purchases toward higher transaction value.
From an operation standpoint, it depends on what business you have that interacts with customers. For example -> if you’re in a restaurant business, have a server provide a dessert menu and simply ask “what looks good”? (Open-ended question- NOT Yes/No) can influence a dinner check by over 20%. “Oh I’m too full” can be answered with “I’m glad that you enjoyed everything; if something caught your eye, I can have it wrapped for you to take home and enjoy later”. Anything you can do to influence the level of sales at the time of purchase should be the primary goal for your business. Remember, consumers are always more likely to make additional purchases while they’re in a “shopping/buying mode”.
So help them fulfill their desires and increase your transaction value at the same time.
Increase your customers' frequency of purchase
The final piece of the puzzle is getting your customers to come back and purchase more often. This can be an auto-order on the same products more frequently bought or providing a variety of products or services that might have a different appeal at different times. Again, knowing your customer's needs will provide the starting point to establish your goals of bringing them back more often.
In retail or any service business of all types, coupon offers presented to existing customers at the right time can induce them to return to their business more frequently than planned. A direct mail campaign with a “Special Limited Time Offer” and appropriate coupons or discounts can bring your existing customers back into purchase again faster than anticipated. You can also present a special offer coupon at the time of purchase for "10% OFF your next purchase" with a relatively short expiration date motivating the customer to contemplate a quick return.
THE MAGIC of COMPOUNDING!
Now comes the really exciting part! Business growth is hard, and in challenged times it can seem even more daunting. But the good news is, even modest changes to each of these key areas will enjoy the compound effect and result in almost magical results.
Let’s look at a quick example.
Let’s say you have 100 customers with an average transaction value of $200 and each customer purchases 2x a year. Using this basic example, you generate $40,000 in revenue (100x200x2).
**If only one of the 3 areas above were increased by 10%? Sales would increase by 10% to $44,000 (110x200x2)
**What would happen if 2 of these areas increased by 10% each? Sales would increase by 21% to $48,400 (110x220x2)
**What would happen if all 3 variables increased by 10% each? Sales would increase by 33% to $53,240 (110x220x2.2)
I am a coach and guide that can help you with strategies that leverage the 3 ways to build and grow your business, resulting in consistent leads, increased sales, and loyalty.
So, when you lift your corporate hats and turn your back from your 9-5, you will never have to turn and look back ever!
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