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That's right there are but 4 ways to grow, and they are:

 

1. Increase the number of customers you serve.
2. Increase the number of times they buy from you.
3. Increase the average sales amount per transaction.
4. Increase efficiency and either reduce your costs or produce more with the same costs.

Note: All too often business owners are told that the path to greater profit is through cutting costs.  Now, if there is waste in your business, then cost cutting will help. But, don't go too far because if you do you'll be shrinking rather than growing your business.

 

When you think about business development in these terms you can develop a check list of ideas to try.   Here are just one or two strategies you could try.  The list is endless, limited only by your vision.

 

To increase the number of customers buying from you:

 

• Advertise
• Develop you internet presence
• Send direct mail
• Try telemarketing
• Combine a campaign of direct mail and telemarketing
• And the list goes on, there's no limit to the kind of promotions you can run

 

Unfortunately, this is where most businesses stop in their quest for more profits.   It's the "bath-tup" form of marketing: First you get customers in, but then (probably because you're so busy) you don't pay attention to them So you lose them.  Then the cycle must be re started. 

Can you imagine the kind of profits you'd have if you could keep the majority of customers you attract?

You can.  Read on.

 

To increase the number of times your customers buy from you:

 

• Work your customer list – call them, write to them or in appropriate circumstances, visit them. After all they've already visited your business and spent money with you.  They're the most likely to buy from you.
• Start a “frequent flyer” club – or something along those lines.
• Offer a birthday special

 

To increase the average sales value of each customer transaction:

 

• Raise you prices (I know – I don't understand how competitive your business really is) it can be done.
• Package complimentary products together for a higher overall price.
• Train you team to cross-sell products and services.  (again I understand that it's not so much a team as it is a war -- but things can change)

 

To increase efficiency to cut cost or gain productivity:

 

• Train you team
• Write procedures for repetitive tasks to avoid “re-creating the wheel”
• Automate – bookkeeping, customer lists

 

Any one of these four ways can make a difference.

 

But, can you imagine how much you can accomplish if you can get them all working together?

 

A future article entitled “ Your profit improvement potential ” will show you the possibilities.