Do you need to increase your businesses bottom line and cash flow? In this economy, most business people would answer a resounding “YES!”. While there are a lot of methods that can help you do so, there are 5 basic strategies that you must understand to make it happen. This is called the Business Chassis.
What are the 5 strategies?
1. Generate more leads: What are you doing to generate more traffic (online and off) and leads for your business? How are you getting more people to notice your company and raise their hand to say “yes, I’d like to know more?” Until they become an actual lead, they are just suspects.
2. Increase your conversion rate: You can have all the leads in the world, but if you never convert them into a buyer, you will forever have hobby, not a business (and I might add, an expensive hobby at that). What are you doing to increase your conversion and turning leads into buyers?
3. Increase the buying frequency: How many times does your average customer buy from you in a given month, year, etc? You’ve probably heard the phrase “anybody can sell something once, but getting the repeat buyer is the key”. What are some ways that you turn buyers into repeat buyers?
4. Increase the average dollar sale: Have you ever bought something on impulse that was strategically positioned at the checkout counter? I know I have. Why? Because the retailer knows how to increase the average sale by upselling. What are some ways in your business that you could increase the amount of money your customer spends on average?
5. Increase profit margin: Do you know what products or services contribute the most profit to your bottom line? There might be some areas of your business that you need to eliminate, and others that you need to increase so that your profit margin can go up, even if it is just a few percentage points.
What happens if you make small improvements in each of these areas? Well, let’s look at an example:
Wow! In this simple example, when you increase all five of these components by just 25%, you increase your profit by 305%!
So how is this done? Over the next month or so we will be talking about 31 specific strategies to help you in each of these areas. So be sure to stay tuned and we’d love to hear your comments and questions as well. These are all great marketing and business makeover strategies.
If you’d like help with a marketing makeover, be sure to give us a call. You can reach Tim Fahndrich @ 503.581.4554.