7 Key Ways To Rev Up Your Revenue!
As a coaching firm, especially with the word Action as part of our name, we are continually teaching business owners how to “Take Action”, but many business owners who are not getting help are not clear on what specific actions they should take. This is primarily because they truly believe their challenges are in one area, when in fact their problems are rooted in another area entirely. Visit this site http://www.businessmediagroup.co.uk/ for more great information about business
This article will address areas that are often the root to business owners’ challenges. Effective actions can take place to remedy the situation.
Areas to take immediate action:
Duh, right? We all want to, but sometimes business owners have very different ideas on how to do that. As a matter of fact, many business owners are still hung up on the outdated view that reducing one’s prices are the best way to make more money. Think about that for a moment. Now think about this: “Instead of reducing my costs, I will focus on income growth. How? I will think about added value, investing in my product and service, and not in giving my product or service away.” Okay, so, what are some effective, actionable ways to increase cashflow?
Know your numbers.
I know, I know. Sounds elementary, yet 80% of the business owners I talk with THINK they know their sales numbers, when in fact, they are just guessing. Now, maybe these are educational guesses based on inventory, but guessing is guessing. Tracking is fact. By tracking one’s daily sales, business owners can dramatically reduce their sales cycle times. Clearly, experts agree that personal contact in the form of a phone call or one-on-one meeting is the best way to get someone who’s sitting on the fence to join in the game, but tracking that customer is the key to turning them into lifetime customers, rather than one-time buyers.
All these suggestions are a part of preparing your mind for the cash to flow. Think of it this way. If your thoughts are negative or if you’re “guessing”, you are blocking the path of opportunity for growth! For something to flow, it needs a path. Your job is to create the path that directs your potential customer and your existing customers straight to you.
This will require some discipline, but as Jim Rohn said, “Never wish that your job were easier, wish that you were better.”
Master The 50/50 plan
What does that mean? It means that 50% of your time should be devoted to distribution and the other 50% on sales and marketing. Most business owners spend 10% on sales and marketing and 90% on distribution. “But I can’t afford marketing,” some of you are no doubt screaming. The reason you can’t is that you have not turned your marketing “expenses” into marketing “investments”.
The only way to do that is to test and measure. What should you test and measure? Everything. For example, someone comes into your store. Right off you ask, “How did you hear about us?” TRACK their answers.
Or how about this: You spend $250 on an ad. What’s the return? You guess around $150 in business? Don’t guess. TRACK it.
How many times have you watched sports on T.V. and the teams were not keeping score? None, right? Business is no different. Tracking is the way you keep score in business. You cannot change something if you don’t know what the challenge is.
As for what you need to measure, surprisingly it’s not turnover, costs, and profit. Yes, I know. Your accountant told you otherwise, but the truth is what you track includes 8 key factors: leads, conversion rate, customers, number of transactions, average dollar sale price, total turnover, margins, and profit.
The secret? Learn the formula then add 10% in each area. That’s your goal. Just 10% to start. All of a sudden business is fun, isn’t it? Your challenge has turned from fretting, guessing, and decreasing costs to tracking, putting processes in place, and adding value to increase your cashflow.
Buy Your Customers.
Again, without tracking their sales patterns, you won’t know your best customers from the deadbeats. Give the good half the attention they deserve and let the other half call your competitors! One way to get to know your customers’ needs is to ask them and then listen to their responses. People generally buy based on emotional stimuli. Tap into the challenges they are having, show how your product or service can help them and you’re halfway there! Treat them like kings and queens. After all, those customers support you.
Keep Technology simple!
Technology can freak a lot of people out, so make transactions clear and simple to perform. “Click here. Select this. Go here. Buy now,” are examples. Make their decision to take action an easy one for them to make. Educate your target audience, but also educate yourself. Offer training for your employees and keep on top of trends, news, and what your competition is up to. The better informed you are the more credible you become, and the better informed your customers are the better choices they will make. And of course, choosing you should be their best option.
All of these tools and thoughts are great to wrap your thoughts around, but it all goes back to what we started with in this article, and that is taking action. Sometimes getting help is the first action to take in order for all the other things to fall into place.
Business owners can easily feel disheartened, wondering if achievement is possible. But, as Audrey Hepburn once said, “Nothing is impossible, the word itself says ‘I’m possible’!” And I bet she didn’t get where she was without a coach!