Sometime ago I worked with a business coach who told me that there are only 5 things you need to do to increase your profits. So I am going to explore these Five areas in this article. I like the way it is categorised. As there are so many changes happening with technology constantly it is hard to keep track on everything. But if you keep track of these 5 areas every so often, you will be able to manage your business pretty well.
- More Leads. I am sure you heard this before. Every single week you should be focusing on where to get more leads. That is the easiest way to grow your business. Know exactly what brings you more leads, what channels are they coming from. How much does it cost you to get a lead and how long will it take to convert them into a client? Know your retention rates. This area alone gives you a lot to work on on a weekly basis.
- More Transactions. How can you get your clients to buy more often? What is your up-selling technique? Meaning a good sales person will always try sell you a higher end package once you decided to become a client? What about cross-selling? If your client is getting a dress, are you asking them to get a cardigan, handbag and hat with it? What systems do you have in place for all this to smoothly happen?
- More Conversions. What is your conversion rate from a lead to a sale. Many businesses are struggling with this one. There can always be so much improvement in this area. There is no point in generating leads if they don’t convert into sales. If you do have a pretty good conversion rate how can you increase that? Are you offering an alternative package if a client can’t afford the initial one? How are you nurturing your leads? Remember, today people buy only on the 9th point of contact. If somebody needs more information, or is not ready to become your client now what do you do?
- Higher Prices. The easiest way to increase prices is by adding more value. That is why bundles and hampers are so popular. Can you offer a package deal? How many times have you heard your friends bragging you about that amazing deal they got? And all it was it was just their perception as they got X, Y, and Z included for that special price.
- Higher Profits. Well increased revenue is kind of tied in with the increased sales which is a result of the above 4 things. Another way to increase your profits is by decreasing your costs. Do you need every employee in your business? I seen businesses employing staff 40 hours a week when they only worked 15 hours max. Have you looked at internships or contract work?
As the famous author says…
A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them.– John C. Maxwell
So what’s the conclusion?
By implementing these 5 simple strategies and constantly working on improving them you will take your business to an unlimited hight. To set those systems in place and constantly monitor them might take you good few months. But once you do that your business will sort of start running itself. And that is what the ultimate goal is, isn’t? I believe you are here to work on your business NOT in your business.