Three Management Tips for Bring In
More Money
by:
Daryl Cowie
Fundamentally there are only two
ways to grow your business: increase
the amount of money coming in and
cut costs. If you are just starting
out your cost cutting opportunities
are small so you need to turn your
focus to taking in more money.
Here are three management tips on
how to increase the amount of money
coming into your company. The first
is focus on increasing the number of
customers you have. The second is
focus on increasing the average
amount of value of each sale from
your business. The third is look for
ways to make sales more frequently.
Each one of these topics is worth
expanding on.
Increasing the number of customers
for your business is all about
advertising. Step one is to figure
out what group of people you can
help. Step two is finding all the
ways you can reach those people with
a message of the value of your help.
All too often people start with step
2 and try to reach everyone,
figuring the right people will
figure out who they are and contact
you. If you’ve got a lot of money to
waste, this is a quick and easy way
to waste it. If you want to see some
bang for your advertising buck, then
you must determine your target
market first, and build your
advertising campaign second. If you
think your market is everyone, then
you have not properly defined your
market and you are poised to waste a
lot of money on fruitless
advertising. Getting new customers
is the most expensive way to
increase revenue. It is also
something all businesses must do.
In addition to finding new
customers, you can also bring more
revenue into your company by
increasing the average value of each
sale. The obvious way is to raise
your prices, but that is only one
way. The others are cross-selling
and up-selling. Cross-selling is
offering people a related product of
service at the time of purchase. If
they buy a burger, ask them if
they’d like fries with that as well.
Up-selling is offering a range of
higher grade solutions in case they
customer would like a little more.
You want a burger? How about trying
our new steak burger its only $2
more and it tastes great!
Finally, you can have your business
bring in more money by getting your
customers to buy from you more
frequently. There are many ways to
get people to come back more often:
provide exceptional service, teach
people how to use your products so
they use them up and need more,
schedule the next appointment before
they leave, or make recommendations
on how often things should be done.
Make a conscious decision to think
about ways to make people come back
sooner.
Increasing revenue comes from a
mixture of these three things: new
customers, higher average value of
each sale, and sales to your
existing customers more often. If
you are not using all three of these
strategies then you are missing out
on some huge opportunities.
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About The Author
Daryl Cowie has shared
management tips with
thousands of people in over
30 countries around the
world, and found a solid
foundation in business 101
to be at the core of
successful managers. Daryl’s
vision is to help people and
companies turn business
opportunities into business
realities.
Sign up for a free class at:
http://freemanagementtips.com/ |
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