Three Ways to Grow Your Business

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Lisa Thal

Three Ways to Grow Your Business

Spring has arrived, and wouldn’t it be nice if we could simple sprinkle a little water on each of our accounts and then watch them blossom into wondrous money trees? If only it were that easy.

One thing our clients do have in common with plants and trees is that if you don’t water them, they are likely to wilt and die. Understanding what is necessary to each customer is critical in earning and retaining their business. I attended a Tony Robbins Business Mastery program in which we discussed the most focused strategies to grow your business effectively, efficiently, and profitably.

Jay Abraham created the following three-step concept to grow your business:

1. Increase the number of customers.
2. Increase the average transaction value.
3. Increase the frequency of repurchase to get more residual value from each customer.

Could the plan above be that simple? Yes! The only thing you need to discover is where you are currently in your business, what revenue goal you must achieve, and which of the three strategies you need to implement.

My first recommendation is to write down your revenue goal. For example, let’s say you want to grow your income by $10,000. Then you need to review your current client list and divide the active accounts by the total revenue you generate. In this example, we will say you bill one million dollars and have fifty accounts. Therefore, understanding each client on average spends about $20,000, and you generate ten percent in commission from each account which is $2,000. For you to achieve your $10,000 income growth, you need to generate an additional $100,000 in sales.

The most efficient use of your time is to look at any current clients not at the $20,000 spending level. We start with them because you already have a relationship with them. You need to create a valid business reason for them to increase their average spend with you. Is there another service line you can offer them as a business solution? If they tend to do business with you twice a year, can you increase that to one more time per year?

Once you have reviewed those options, you may need to increase the number of customers doing business with you. This approach may include asking for referrals from satisfied customers or new targets in which your company can help with their business challenges. There are many options for you to grow your business. The decision is yours as to how you will approach it.

My wish for you is that the April showers bring you May flowers!

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