You may already have made a business plan, set up your business and got yourself some customers. But perhaps you are not satisfied with the returns you are getting. So what is the secret that allows you to make more money in business?
It can seem at the moment that costs keep going up but you may be nervous about raising your own prices for fear of losing business. If you are sure of the value you offer then you need to get over that feeling. You must maintain profit levels to sustain your business growth.
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There are things you can do to improve your chances to make more money without losing your current customers.
Make more money in business in one of 3 waysIn order to make more money in business you need to either get more customers, raise your prices or sell more to each customer.Click To Tweet
It is cheaper to keep a customer than to acquire a new one. This is especially relevant to service businesses. You should consider how well your customer service is performing at an early stage. Be responsive to your customers enquiries.
Use the knowledge you gain from your current customers to have a better chance of finding new ones.
Research your market
The first thing is to find out what products or services your customers want and then provide more of that. You could look at your records to see what is selling best or you could just ask.
Do a survey and ask why they bought the item, what they expected from it and whether they are satisfied with the result. You can use what they say in your advertising to promote that product. This gives you more insight in to what is important to your market and also reveals the language they use to describe things.
It is important to achieve message to market match in your advertising and using language they identify with helps enormously.
The advice comes from a business who have done over $100 million in sales over 20 years.
Make an offer
In order to make money you need to actually sell something! There is a question as to whether selling is an art or a science. From the research you now have you need to make an offer that your customers will respond to.
That doesn’t have to be a price cut although a limited time coupon is an option. But it’s actually more important to use the research to offer an irresistible offer based on what you know they want. The price may not be as crucial as fast delivery and good customer service.
You should always be looking for inexpensive, but effective ways to promote. If you have collected contact details from potential customers then send them a personal letter reminding them how your products and services can benefit them.
You can do this by email but if you have physical address details then consider mailing them. This can make you stand out. A sneaky trick to get past the gatekeeper is to send a parcel that looks like a present.
A series of postcards mailed at regular intervals to current and potential customers can also be very effective. Sure it is more expensive than sending an email but these personal promotional approaches can have more effect.
Ask for referrals
Another great way to get new business is to ask you’re satisfied customers for referrals. You can offer an incentive for customers that choose to participate. You can offer them something in return for a certain number of successful referrals.
Your happy customers will probably be happy to help anyway as they want your business to survive. But an added incentive will certainly help.
Under promise and over deliver
So hopefully you have researched the market and sold a product or service. It is important that you deliver what you promised. This is especially important if you are in a service business.
Don’t be tempted to make unrealistic promises just to secure a sale. You don’t just want to aim for satisfied customers you want to aim for delighted customers. Delivering what you promised is very important. This means they will be happy to buy from you again and also make those all important referrals more likely.
Knowing your numbers is the key to make more money
You need to concentrate on your overheads and profit margins. Obviously in order to make more money in business you will need to establish a marketing budget. Decide on a percentage of your profits that you will re-invest back in to your business for advertising and marketing.
You don’t want to waste your hard earned profits but it is important to look at the bigger picture and grow your customer base. How much you spend is not as important as whether it brings a gain. You want to make a profit on your ad spend overall. This may not always be on the front end though.
Once you have a good grasp on your customer journey you may find that you can use a loss leader if you know that your back end sales will bring profit in the long run.
It’s important to find the most effective ways to reach your customers within your budget. Your customer avatar will tell you where those people are usually found. If you are advertising online then generally speaking you will find a younger market on Instagram but an older market on Facebook.
If you sell physical products in particular then Pinterest is a platform that is under utilised but very effective for visually attractive products.
Do more of what works
You would be surprised how many people have a successful promotion and then go looking for the next great thing. While it is good to keep an open mind and try new options you don’t need to re-invent the wheel.
If you are having success with Facebook Ads then scale up that campaign. If you are using Google Ads then look at the campaign results and remove the under performing ads and keep the best.
Monitor your successful campaigns and do more of that.
So the way to make more money in business comes down to simple things.
- Identify your ideal customer
- Make a product or service they want
- Research where they can be found
- Advertise and market using a message to market match
- Put effort in to getting repeat business from your present customers
- Incentivize your customers to send referrals
- Over deliver on what you promise
You have no doubt worked hard to set up your business. Focus your time and effort in to growing it into a thriving concern that will serve your customers well. Just make sure that your cash flow is uppermost in your mind. Once you have more money coming in than going out, and you have happy customers you have the key to making more money in business.