Often we speak with clients who want to grow their businesses and ask us for advice on how. The ways to grow your business are not complicated. It is often a matter of finding the right things to focus on and then ensuring you concentrate on these areas above all others.
There are four strategies any business can implement which will create growth in the business.
- Increase the number of customers
In a business increasing the number of customers will grow the business. It is important to know where your new customers will come from and focus on these avenues. For instance, do they come from word of mouth, particular advertisements, the yellow pages? If you don’t know, put a simple process in place to ask new customers how they heard about you.
- Increase the frequency of customer transactions
Increasing the number of times a customer deals with you will increase sales. A loyal customer will increase profit. Some businesses use loyalty cards or discounts for regular customers to encourage them to buy more often.
- Increase the value of each transaction
If you increase the average sale to each customer, you will increase your profit and grow your business. First, work out the value of your current average sale by dividing your sales by your number of transactions. This gives your current average sale from which you are seeking an increase. Increasing the average sale can be done a number of ways including bundling your offers, training your team to make a higher value sale, or raising prices.
Let’s say you have 500 customers who spend $100 with you each month. By increasing the average spend of each of those customers by $10 per month, you will increase your revenue by $60,000 a year with no additional fixed costs.
- Increase the effectiveness of each process in your business
Increasing the effectiveness of how you do things in your business now will help you grow your business. It will allow you to do things in a more efficient manner which can lead to decreased costs.
In summary, the four strategies outlined above are all relatively pain-free methods to create growth within a business. Some business might find all four applicable, while another business might implement the strategies systematically one by one. Either way, growth will be the outcome.