When I ask NAWBO members what they want, they all say the same thing – more clients and more revenue. But ask yourself what does it take to produce more clients and more revenues? It takes improvement in some (or all) of five key areas. These are the components of my proven formula that can create massive, exponential growth for your business… starting immediately.
#1 More Leads
Let’s start with leads. Do you know how many leads you are generating and where those leads are coming from? Successful lead strategies differ between businesses, of course. Knowledge is power, so understanding where most of your leads are coming from is the first key step; whatever is working should be done better and more often. I also recommend not wasting any more time and energy on the stuff that hasn’t been working. I will tell you that a strong, compelling, no-risk offer that directly speaks to the hot buttons of your ideal client is the trick here.
#2 More Conversions
Now we have to convert those leads into clients. You have to find a way to compel your prospects’ decision-making process so they chose you over your competition. The key here is to truly understand the hot buttons – the fears, issues and concerns – that your prospects have and engage them directly by addressing that issue – then assuring them of how your service or product will eliminate that problem. You have to know how to write powerful marketing and advertising copy… along with persuasive sales scripts that can thwart anticipated objections. I say scripts, because you will have to practice your lines on this to be convincing.
#3 Higher Prices
Did you know that price is one of the least understood components when it comes to small business ownership? Let me explain with a real life example. Let’s say you own a health club that offers a package of health services for $60 and you presently have 300 clients enrolled in this program. That means your total revenue is $18,000. You operate on a 25% net profit margin so your net profits are $4,500 per month. Suppose you raise your price by just $4 per month or 6.67%. You just increased your net profit by 26.67% or $1,200 per month.
I bet you’re worried about clients cancelling their membership because of the price increase…but listen. As the health club owner, you would have to lose 63 clients from this program just to get back to your original net profits. In other words, you could lose 63 members and it would have zero impact on your original profits.
#4 – More Transactions
How can you get your clients/customers to buy from you more often? Consider the florist that offers an annual fee to record all special dates (birthday, anniversary, Mother’s Day, etc.) for the busy executive? Or the hair salon that instructs the receptionist to book the next appointment when collecting payment? What about that same salon offering waxing, pedicures, etc. with bundled or discounted pricing? What can you do to create more sales in your business? Adopting one simple new technique at a time seems less daunting – and can have a tremendous positive impact.
#5 Higher Profit Margins
Finally, it’s imperative we look at your profit margin. It’s probably easier than you think to keep more money in your pocket after each sale. I want you to reduce your overhead, streamline operations, and look for other innovative ways to increase your profits. Some suggestions are renegotiating with vendors, identifying and focusing on only your ideal client in terms of marketing. Remember the old 80 / 20 rule which states that 20% of your clients generate 80% of your total profits. Another suggestion has to do with separating your business from your competition by becoming unique in what you do – and marketing that differentiator accordingly.
Use this formula to calculate your current numbers in each of these areas. Pick one area and try to implement a specific strategy to address this. Try it for 6 months and then re-visit that area. I hope you can use this proven formula to double your profits!