Machen MacDonald: Three things to know to grow
If you are a business owner and want to increase profits there are three ways to do it. Do you know what those are? How effective are you at driving them?
Increase your revenue.
Decrease your cost of goods sold
Decrease your overhead
For the purpose of this article, we’ll stick with the first – Increasing your revenue.
Support Local Journalism
There are three ways to increase the revenue of your business. Do you know what those are? And again, a more important question is, how effective at each of the three are you?
Generate more clients
Get your clients to buy more, and more frequently
Increase your prices
It’s really that simple. Everything that can be done to increase revenue can be placed into one of those three areas.
Let’s dive a bit deeper into each one starting with generating more clients.
To get more paying clients or customers you need to generate more leads and there are hundreds of ways to do that. The obvious ones are advertising, networking, and getting referrals. Beyond that you can optimize your website with lead magnets that capture the name and contact information of qualified prospects. Form a joint venture program with another business that you can cross promote each other’s services to the same clients. How about having a system to reactivate former clients?
For a list of 88 other lead generation ideas visit https://probrillaince.com/88tmt and get the free book 88 Tactful Marketing Tactics.
Another factor of getting more clients is processes for converting qualified prospects to paying clients. It would be great if your prospects were all ready to buy right now and just wondering who they should buy from. However, only a very few of your prospects are in the “ready to buy now” camp. Most are in the future buyers bucket wondering why should they buy and others are in the soon-to buy bucket wondering why they shouldn’t buy. It’s the job of a business owner or sales person to move the prospects along that continuum to the now buyers group.
The second way to grow revenue is clients buying more, and more frequently. This can include offering more products and services. A strategy that works brilliantly is developing marketing campaigns to reach out to clients and prospects throughout the year. Each month develop a message that is relevant and tie it into your offerings. January people are making New Year’s resolutions. February has Valentine’s day. March includes St. Patty’s day. Every month has a couple opportunities. Keep in mind clients’ special days like birthdays and anniversaries. If these are done correctly, you will successfully move prospects from the future buyers end of the spectrum to the now buyers end.
Think about other products and services your clients typically purchase prior to yours and after yours. Perhaps you can take those on as an additional offering.
The third way is to increase your prices. I find most struggling businesses shy away from this strategy. They fear if they do raise prices then they will lose clients to competition. Having instructed many of my clients to do this, I can tell you the great majority of customers will stay with you. The average percentage of clients that may move on is between 2% – 20%. Even if you were to lose, let’s say 15%, the revenue increase generated from the 85% that stay provides a substantially nice pay raise. The key to make this work is to provide tremendous value so clients don’t want to leave. Visit https://probrilliance.com/45minbook for more info and a free “45 Minute Breakthrough Profit Strategies” copy.
Operating a business can be a blessing or a curse. The more you know and understand how to drive numbers the more fun it becomes.
Make it up, make it fun, and get it done!
Machen P. MacDonald, is a certified life and business coach. He can be reached at email@example.com and 530-273-8000.
Support Local Journalism
Readers around Grass Valley and Nevada County make The Union’s work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Your donation will help us continue to cover COVID-19 and our other vital local news.
Connect with needs and opportunities from
Get immediate access to organizations and people in our area that need your help or can provide help during the Coronavirus crisis.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User