You have hidden business assets, untapped income opportunities and overlooked sales possibilities that are not producing maximum profits for you, waiting to be discovered. What is hidden can be revealed!
Let’s take just one very important, income-increasing idea and show you how important it is to understand.
Did you ever wonder how many ways there are to increase your business? 100 ways? 200 ways? 500 ways? It can be intimidating to merely know where to start.
In fact, there are really only 3 key areas to increase your business income
(yes, with many sub areas). Let’s begin with your customer….
There are really only three key areas to grow your business:
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Increase the number of clients – new customers
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Increase the average size of the sale per client – up sell, cross sell
-
Increase the number of times clients return and buy again – resell
Only three. Most businesses only focus on the first area and miss out on the most profitable and most cost effective sales.
Focusing on this one simple formula is just a small way you can easily increase your business bottom line and grow your business by 10%, 20%, 50%, 100% or more.
First let’s consider: How Much Is ONE Customer Worth?
To figure this out:
- Calculate your number of clients
- Figure the average value of each transaction/sale
- Determine how often a client makes a purchase in a year
You can expand this concept to include how many years your client will do business with you to discover the Lifetime Value (LV) of your client.
Value x avg. years = LV
You, and your staff, might PLAN to be “even nicer” (ie. spend more and give more value) to each client, and potential client, when you understand how long term valuable each client is to your business over the entire relationship. If you treat each client relationship like the gold it can be you, will reap the rewards financially, have happy customers who become raving fans who will often send new clients your way (referrals, positive reviews online, social media bragging etc).
Consider this, your lowest cost sale… is to an existing customer.
Which leads to a logical next question….below to:
How much are each of your clients worth to your business… per year?
Finding the Hidden Treasure in Your Business
# Clients x Transaction Value/Client x Transaction/Year = Total $
ie. 1,000 x $100 x 2 = $200,000/yr
as above: #clients _______ x $avg. sale ______ = $ _________
Incremental Increases Lead to Big Profits
To really blow your mind, what happens to your business gross sales if you create only a 10% increase in each of these three values:
# Clients x Transaction Value/Client x Transaction/Year = Total $
ie. 1,100 x $110 x 2.2 = $266,200
A small 10% increase in only three areas can explode your bottom line by 33%.
It’s hard to imagine (or is it?) a 25% increase in each of these categories would nearly double your sales to $390,625.
How much is just a 10% increase worth to your business per year?
# ________ x $________ x _______ = $ _________
If you would like to explore how to gain a 10-25% increase in these three key areas of your business then CONTACT US…
