If you want to get your business going, there are five ways you can tweak to push your business ahead.
The first thing you need to do is worry about your leads.
How many people are turning up to your shop?
How many people are coming to your online store?
The more people come in, the more potential you get in sales.
Conversion is getting those people who walk through the door to start and spend some money. The more people who spend money, the more your business is going to grow.
Have you ever heard of the upsell? Everybody has seen it at McDonald’s.
You sit there and they say, “Would you like fries with that?” That’s the old joke, isn’t it?
It’s the same with your business. Every single time you can sell something else, more transactions at a particular time, you’re definitely going to take more out of it, you’re going to make some more money.
4. The dollar value
We talked about leads, conversions and transactions. But the higher the dollar sale, the more money is actually going to flow in.
The higher the extra sale that you make on that particular time.
We talked about transactions. But you can turn one particular sale into a higher level of sale by asking the right questions.
Margins are one of the most important things you need to monitor in your business. They’re part of the Key Performance Indicators. The higher the margin, the more money you’re going to make.
So, what’s a margin?
A margin is your sale price minus your cost price.
If you sell something for $10 and it costs you $2, you’ve got an $8 margin. If you sell something for $10 and it costs you $8, you’ve got a $2 margin.
Which one would you prefer to be selling?
A really good friend of mine, Ross, has a landscaping business.
What I said to Ross was: In order to increase your sales, increase your business. First, get more clients.
How are you going to get more clients?
Well, go on and have a look at the people you already know. Go and increase the number of leads. Increase the number of referrals.
The next thing – increase the number of times they turn over.
As a landscape guy, he goes out to people’s houses. It costs him time, effort and money to actually get out there and do a quote. The more people that say “yes”, the better his opportunity. So, leads and conversions.
Your next one is the number of transactions. If you can say to somebody, “Hey, your lawn needs to be mowed twelve times a year instead of six.”
Obviously, that’s more transactions. That helps him.
Now, increasing his average dollar, he always carries a bag of fertiliser with him. He’s on the spot, he doesn’t have to come out again.
He says, “Hey, while you’re here, I saw your gardenias (or your camellias) could use a bit of feed. I’ve got some in the back of the truck. How about I just put a bit out there? It’s going to make them a lot better.”
He saves travel time, he saves costs.The last thing is, if you put all those together you end up getting a profit.
Do you work on one of these things at a time, or on all of them at the same time?
You work on all of them at the same time. Leads, conversions, number of transactions, dollar value… it grows profit.
You will kick start your business like you would have no idea.