6 Quick Tips to Growth in Your Business
The small business owner can strategically grow their business by focusing on 6 areas of their business. A focused effort on each of the 6 areas will have a compounding effect on the growth of the business.
1 - Increase the Number of Marketing Leads
These are the number of people who are aware of your company as potential clients. These are the leads your marketing plan generates. You decide how many leads you generate, or do not generate, based on how you are planning out your marketing strategy.
Consider ways to increase the success of your marketing. Ideas are virtually endless - quick ideas are networking, direct mail, cold calling, vehicle wrapping, Google Adwords, and social media.
2 - Increase your Conversion Rate
How well you convert those leads or potential clients into actual customers is your conversion rate. You control how well you explain what you want a potential customer to do after seeing (or hearing) your marketing. Your marketing helps people determine if they walk through the door or pick up the phone to talk to you. And then how well you successfully “convert” them into becoming a customer.
Consider ways to increase your success closing sales. Ideas could include – take sales training, use effective calls-to-action, scarcity, urgency, or offering warranties or financing.
3 - Increase your Average Sale per Customer
Average sales per customer, or the order size, is also something you can control in your business. There is a reason grocery stores put all the candy by the cash register, why fast food employees ask, “would you like fries with that”.
Consider ways to increase the average value of each of your sales transactions. Some ideas could be to consistently ask the equivalent of ‘would you like fries with that’, offering volume discounts, include shipping with a minimum order, or offer insurance or warranties.
4 - Increase your Sales Per Period
Sales per period is the frequency that an individual customer might make a purchase. You can guide this as well: Coffee shops give out frequent purchase cards with the 10th visit, you get something for free or discounted. To encourage repeat purchases jewelry stores will call important clients a few days before an important anniversary or spouse birthday (they gather this information when speaking with the clients over time).
Consider ways to increase the frequency your customers make a purchase from you. Ideas could include auto-shipping, pre-booking next appointments, birthday specials, offering member only events, or have customer appreciation days.
5 - Reduce your Cost of Goods Sold
Cost of Goods Sold (COGS) is the cost associated with production and sale of your product or service.
Some ideas to reduce your COGS could be to increase productivity through training or incentives, outsourcing, buying in bulk, improving distribution, negotiating with suppliers, or technology upgrades.
6 - Reduce your Operating and Overhead Costs
Your operating and overhead costs are things like the rent on your building, utilities, insurance and administrative expenses.
Some ideas to reduce your overhead could include looking for available grants, having employee retention programs, managing overtime, managing utilities, reducing discretionary expenses, and improving technology.