There
are 4 fundamental ways to grow your business: win new customers, get them
to come back to you more often,
get them to spend more when they do, and improve the processes in your
business to ensure that you achieve the first 3.
So
that’s:
#1:
Win new customers.
#2:
Increase
the number of times they deal with you.
#3:
Increase your average sale or ‘transaction value.’
#4:
Improve the effectiveness and processes within your business to
ensure achievement of the first 3!
When
you think about any other strategy, such as cutting costs, it won’t grow
your business unless you use the money you save to promote your business.
It may let you control your business better and return greater profits,
but it won’t grow your business.
And
what do most businesses focus on?
That’s
right—#1, winning new customers. And they often ignore the other
(usually less expensive) ways to grow their businesses.
If
you are a business owner who is almost solely focused on winning new
customers, you’re missing sales and PROFIT opportunities beyond your
wildest dreams!
This
information is designed to give you insight into the massive opportunity
that creating a ‘back end,’ or getting your customers to come back to
you over and over, offers your business.
Let’s
look at why this can have such a dramatic impact on your business.
Let’s
say you have a customer base of 1,000.
And
let’s say you can increase the number of inquiries and, therefore, the
number of new customers by 10%. That would mean your customer base would
increase to 1,100.
Now,
imagine if you increased the number of times your customers dealt with you
over their lifetime by again 10%. Let’s say from once to 1.1.
Next,
you go ahead and, through certain techniques, you manage to increase your
average sale or ‘transaction value’ by 10% as well, this time taking
it from $100 to $110.
Now,
if you were to put all of these factors together, what do you think might
happen to your turnover?
Assuming
everything else was equal, it would make sense to say that the overall
business would grow by 10%.
Right?
Wrong.
In
fact, something completely different happens. Something that could mean
the difference between a profit or a loss for your business or between a
comfortable lifestyle and a wealthy one.
For
a moment, look at the next calculation. It shows the numbers before any
increase and multiplies them to estimate turnover roughly.
|
Number of customers |
x |
Number of dealings |
x |
Average $ Sale |
= |
Turnover |
|
1,000 |
x |
1 |
x |
$100 |
= |
$100,000 |
|
Complete your own business figures below: |
|
__________ |
x |
__________ |
x |
$_________ |
= |
$_________ |
Look
at what happens to turnover when just one area—winning new customers,
for example—is increased by 10%.
|
1,100 |
x |
1 |
x |
$100 |
= |
$110,000 |
|
Repeat
the exercise for your business: |
|
__________ |
x |
__________ |
x |
$_________ |
= |
$_________ |
|
The
same happens when either the number of times your customers deal
with you or the average transaction value is increased by 10%. |
|
1,000 |
x |
1.1 |
x |
$100 |
= |
$110,000 |
|
And
your business? |
|
__________ |
x |
__________ |
x |
$_________ |
= |
$_________ |
|
Or… |
|
1,000 |
x |
1 |
x |
$110 |
= |
$110,000 |
|
Complete
the figures below for your business and calculate the results: |
|
__________ |
x |
__________ |
x |
$_________ |
= |
$_______ |
|
Now
calculate for yourself what happens when EACH area is increased by
10% at the same time. |
|
__________ |
x |
__________ |
x |
$_________ |
= |
$_______
Turnover |
|
That’s
right—increasing each area at the same time has a multiplier
effect of increasing turnover NOT by 10% like you could assume,
but by a staggering 33.3%!
An
additional income of not 10% to $110,000 but 33.3% to $133,100! An
increase of $33,100 in turnover for doing nothing else except
improving EACH area at once rather than concentrating on just one
area at a time.
This
multiplier effect is caused by the combination, the momentum, of
all 3 areas working together. Each begets the other, if you will.
So
once more, rather than a 10% growth factor, the momentum created
by working on EACH one of these first key areas brings about a
growth of 33.3%!
Try
this calculation on your own business now. |
|
_______ |
x |
_______ |
x |
$_________ |
= |
$_______
Turnover |
|
The
increase should surprise, impress, and last but not least have you
jumping out of your seat with excitement. Especially when, among
other things, this information, your support from Team FVBK and Businesses
Getting Results is fundamentally built around helping you
easily develop EACH and EVERY area—at once.
So
you’ll agree, then, that focusing on all 4 issues is the best
way to achieve maximum results for your business.
When
you’re ready to take another step in your journey, visit our
Online Course Library to learn more about each of the four ways to
grow your business. |
