Want a simple, cheap and easy way to increase profit? Increase how often people buy from you!

It is very common for business owners to be so caught up in trying to find the best ways to gain more customers, that no one is thinking hard enough about how to increase their current customers’ average number of transactions. Yes, gaining new customers will most definitely increase profit, but think about this… your existing customers clearly already like what you do, which makes it about six times easier (and cheaper) to get a past customer to buy again than to acquire a new one.

Now, I want you to ask yourself this question…

How many times a year do your clients buy from you? How can you increase this frequency? And what will you increase this average to? It’s time to start devising the ways you can encourage past clients to buy from your more often. Get brainstorming!

Need a few ideas? Consider these…

Hairdressers often end their appointments with asking their client when they would like their next appointment to be. Not only does this lock in their next sale, but it also gives the hairdresser a great opportunity to build a relationship with their client and to get to know them more.  When you’re with a customer, be sure to position their next purchase as well.

Boost Juice is a company which any business owner could learn from. They have a very simple and easy-to-use membership program which gives their customers a free boost for every 10th visit. As well as that, they make sure to say thank you to their client by using the name that comes up on their membership card. This is a great incentive to encourage clients to come back and buy, as well as making them feel good by knowing their name.

Imagine how much your cash flow would improve if all your customers bought once more from you each year or quarter. You would be steps closer to your financial goals!

So here’s a note to leave you with… Have a good think about creating products and services that encourage clients to buy off you more often. Then be sure to proactively trigger more purchases.  It is a great way to build your business more quickly.

Need help brainstorming some ideas? Click here or call me today on (02) 9146 4439 to book an appointment with one of our coaches.

Till next time…

“Every contact we have with a customer influences whether or not they’ll come back…”

cash flow

Take your cash flow on a date and get to know it a bit better

Now that you have set your goals and are planning out your days, weeks, months and years to achieve those goals, it is time you become a master of your money. Money mastery is not necessarily about making a lot of money. It’s about knowing where your cash flow comes from and where it’s going.

In the end, your financials will tell the story of your business, just like reading a novel…. what sort of novel would yours be?  A drama?  A comedy?  A horror???

To discover your level of Money Mastery, consider these questions:

  1. Do you have a monthly profit and loss statement that you review? Is it understandable?
  2. Do you have a weekly cash flow forecast that looks at least 3 months ahead?
  3. Is your balance sheet up to date?
  4. Do you know what your breakeven point is each month, week or day?
  5. Is your cash gap under control?
  6. Do you issue invoices quickly? And follow them up quickly?

If you answered anything other than yes to any one of those questions, then you don’t know your money well enough. It is easy to form bad money habits early on in business, when there isn’t much money to deal with. Business owners often learn that managing cash flow and income only gets harder as the business grows…and, unfortunately, they often learn it the hard way – when they have a money disaster! But larger cash flow is not the cause of your money problems. It is purely due to the way you approach your finances.

Many business owners are mistakenly under the belief that more money means more headaches, but they’re the business owners who haven’t set the right foundations in place or mastered their money activity early on. But it’s simple!

It personally takes me a total of 10 minutes per Monday morning to update my weekly cash flow forecast. This means that I only invest 10 minutes per week to update and understand what my cash flow in the business will look like for the next 3 months, allowing me to identify possible issues and to make the most of my cash balances too! Do you have a spare 10 minutes to spend a week?

According to American Psychological Association, more than 70% of Americans consider themselves financially stressed.

Join the minority and become a Master of your Money by booking a FREE 1-on-1 consultation with one of our very own Business Coaches who have helped several businesses gain complete control of the money flowing in and out of their business.

My next blog will be posted in 2 weeks, and will teach you the secrets to how to get raving fans, but till then, here is a thought to take with you…

…“If you expect your money to take care of you, you must take care of your money.”

Creating the perfect Corporate Synergy in your business, easier said than done!

When your enterprise reaches a certain point in its evolution you will have reached the synergy stage. However, it’s a process and creating the perfect corporate synergy in your business is easier said than done but by no means impossible!

So what is corporate synergy? It’s when you reach a point where your business is firing on all cylinders and therefore running efficiently and smoothly at a profitable level and needs little to no involvement from you on a day-to-day basis. In other words, it’s making money without you having to be there. With the right staff and systems having been established, everything is ticking along nicely.

This is no overnight evolution; to get here you have already gone through various steps and stages. You ought to be very pleased with yourself, though it is critical that you do not rest on your laurels.

Now is the time to step up and take “your baby” to the next level. This will be a different vision for different people. But, as we’ve suggested, it’s a process and there is a lot you can do to move it forward and make it happen.  In fact, offering exponential growth, this is one of the most enjoyable phases of growth for any business!

It requires a new energy and direction from you so that you can focus on developing greater drive, ambition, vision and so forth.

However, the beauty of the synergy step is you have more time to step back, gain some perspective and can therefore focus on this step. Corporate synergy is very much about contemplating how to grow your business and in what way. This can take numerous paths; do you want to add new products, have offices in new regions, franchise the business, or even start a complementary business to the one in place?  Perhaps you want to buy other businesses to merge with yours?

As your company evolves in the synergy stage, so, too, must you as its leader. Something to keep very much in mind; you need to adapt as you grow from being a manager and business owner to being an investor, and then on to being a pure entrepreneur. To do this, you’ll need to develop or enhance your skills and mindset. This is a key challenge for you in the synergy stage, and you need to master this before you can take your business to the level you want. It can require a shift to longer term thinking as well as being prepared to have less certain outcomes than in the day-to-day management of the business.

You will need new skills. They include: a wider understanding of different business models, developing investment strategies and being on top of financial management. As well, you will need to focus on areas such as return on capital, enterprise value and portfolio mix.  As you continue to embrace corporate synergy, your two biggest constraints of time and capital will become less so. As we’ve said, it’s easier said than done but the rewards are worth it!

Do you want to have your best year in business in 2017?  Check out this eBook on Synergy here or speak with one of our business coaches here.

Unique-Selling-Point

USP – not just another acronym – how to make your business stand up and be noticed

As you start the New Year have you thought about what your Unique Selling Point (USP) is? Remember USP isn’t just another acronym, it’s how to make your business stand up and be noticed.

You need to find a way to be unique and for others, particularly customers, to recognise that at once. Your product or service won’t be truly unique but your customer offering must have a unique approach that instantly makes your business stand up and be noticed. This will give you an edge over your competition.

Take for example a pizza company. Many years ago in the US, a family-run pizza joint in Michigan was looking to find a way to make it stand out from the crowd in the 1960s as one of the family members took over the business. This new owner, Tom Monaghan, was living rough in the store. So he desperately wanted to boost revenue and if things went well, create a franchise. So he came up with a USP – pizza delivered in 30 minutes or it’s free. Bingo! He had found a unique way to make the business – which most of us would now recognise as Domino’s Pizza – stand up and be noticed.

Other companies who have done similar USPs include FedEx (“When it absolutely, positively has to be there overnight”) or Woolworths (“The Fresh Food People”). The message from each is that if you really want your business to be successful, you have to have a clear USP.  The alternative is to compete primarily on price and that really only leads to one outcome…..and it’s not a pretty one!

Here are a number of questions you might consider to develop a strong USP. They are:

  • What are the most important customer problems, challenges and needs that you solve?
  • What would you say are your competitors’ strengths and weaknesses?
  • What is the reason repeat clients and customers like your business?
  • Name the distinguishing feature that puts you ahead of your competition?

If you can answers these with clarity, you are on your way to developing your own USP.

A USP can be a few words or it can be whole paragraph.Defining then encapsulating what makes you different, unique, and desirable is more important than the word count.

Remember, a successful USP answers this question: why should a potential client or customer buy from you? When answering this question, promise something special your competitors cannot deliver. You will need to crystallise and communicate your Unique Selling Proposition and it might be grouped under: price, service, speed, selection, quality or guarantee to name a few.

If you examine all these points, you will be well on your way to understanding that a USP isn’t just an acronym – it’sthe way to make your business stand up and be noticed.  If yours is clear, compelling, specific and speaks to how it makes your customers lives or business better, you’ll also be well on your way to winning!

Including all of the right elements into your business plan this year, can make this your best year yet. Check out these free business planning resources for more help.