Struggling with growth?
Trying to achieve increased growth can seem a daunting prospect, but as with most thing in business and life, once broken down it becomes clearer. There are only 4 ways to increase growth.
1.Increase the number of customers or transactions.
- Increase the average value of existing transactions.
- Increase the gross profit margin on your products and services
- Introduce a new product or service
So, for each of these we can come up with a strategy that may help.
Firstly, increase your customers or transactions. This can be finding new customers or encouraging your existing customers to order more frequently. Both of these can have a strategy put in place to optimise your chances of success. Targeted marketing towards your ideal potential customers may help to gain new customers, while keep in touch marketing to remind existing customers of your services or products can be easy to implement.
Secondly, encourage people to spend more on each order. This is the classic – “would you like fries with that?” Targeting people who are already poised to buy can be an easy way to increase their order size.
Thirdly, increase your profit margin. You can increase your profit margin in two ways, one by raising the price, or two by lowering the cost. It may be possible to raise the price, though be wary and study your industry carefully, however reducing cost can be achieved by spending time studying process and negotiating better deals. A small reduction in cost can lead to be big increase in profit over time.
Finally introducing a new product or service. This is the costlier option and is best carried out once other areas of the marketplace have been explored. However, researched carefully, and carried out smoothly this has the ability to make a sizeable difference to the growth of your business.
If you are wanting to improve the growth of business but are unsure of the next step to take, why not consider our Business Builder Club? We can support and advise you while you grow your business in achievable manageable steps, rather than a haphazard series of guesses. To learn more about working with an accountant who does more than just file your tax return and see if we can help you, why not take a look at our website. Or to book an appointment call us today on 01905 21411.