Business growth should always be at the forefront of the minds of business owners. However, it can become unclear sometimes just how to achieve that growth. This article seeks to clarify some ways that you can increase the value and size of your business.
1. Increase client retention rate
Most business owners are already aware of the first rule of client work: it is easier to keep existing clients than it is to attract new ones. By putting the right amount of resources and energy into keeping your existing clients happy, you will find yourself with a much more sustainable business model. Be careful not to chase after clients who are not of high value to your business.
2. Increase leads generated\
Just because it’s easier to hold onto existing clients, doesn’t mean you should ignore new leads. On the contrary, driving more potential clients to your website, phone line and premises is another essential step to growing your business. Using effective lead generation techniques is a crucial element to your success.
3. Increase prospect conversion
Don’t leave responding to clients to your auto-responder. Follow up with potential clients who have made enquiries, show genuine interest and build rapport. The more attention prospective clients have, the more likely they are to consider you their best option.
4. Increase transaction value
Upselling and cross-selling is a hidden gem in the business industry and helps to increase the value of your sales. Upsell additional services or bigger volumes to your current clients or customers to bolster the value of the deals that you make with them. Be careful not to overdo it though, clients who feel like they are being pressured into services they didn’t ask for are liable to walk away from your business altogether.
5. Increase transaction frequency
Encouraging clients or customers to buy more frequently is another way to increase your business. This can involve signing clients up for repeat or recurring services and subscriptions. Compared to one-off sales, by increasing transaction frequency you can ensure the longevity of your business.
6. Reduce cost of sales
Another major step to growing your business is to ensure that your processes are as cost efficient as possible to increase the profit margin of sales. Identify ways to save time and resources in order to make more sales, as well as drive efficiency and variable cost reduction.
7. Reduce overheads
Review your overall business costs to identify unnecessary expenditure that can be trimmed. Be careful when undertaking this process to strongly identify the strengths and weaknesses within the business. This will mean you don’t accidentally trim away the proverbial muscle of the business, instead of the fat.
In conclusion, by following these 7 steps for business growth, you can ensure stability, health and expansion of your business for years to come. For a further explanation of any of these steps, or for help actioning them, get in touch with the expert team at QCA today!