Three activities to grow your business

They say that business is simple, but it is definitely not easy. I will explain only three ways in which businesses can grow. Without these three, be assured that your business exists only for a season

1.    Recruit new clients. This is the most difficult and most expensive option and the value your business offers, the ability of your sales staff, your marketing strategy and the extent to which the quality of your product/service meets or exceeds that of the competition, are determining factors in the arsenal of tools at your disposal in persuading consumers to buy from your business. Recruiting a new client cost about 5 times as much as keeping existing clients, and as so, requires hardworking.

2.    Sell more to existing clients. Learn to follow an aggressive price strategy. In other words, package a service/product at special discounted prices – you do not need to recruit new clients. Make sure the existing customers develop the habit of just having to buy anything you have, in bulk, because of quality, price, after sales services (customer support), guarantees, and product positioning among others. Information about changes or improvements in the products/services should be readily available for customers, and must not be misleading

3.    Sell to existing clients more often. Consider a loyalty card or a discount strategy for frequent purchases, customers are enticed by very small tokens of appreciation for their loyalty. Do not sell to or serve a customer and sit on your laurels. Keeping following up on the customer to ensure they are satisfied and require more of your products. A customer might as well feel honoured just to be remembered. Give them special offers, special treatments, and special respect
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In order to make informed decisions with regards to a suitable strategy, especially to sell more to existing clients, the following dimensions for business growth must be taken into consideration. The underlying assumption is that reliable client and management information is available.

•    The size of the existing client base.
•    Average spending per client.
•    Frequency of spending.
•    Doing a sensitivity analysis – What would the business' turnover be if there is for example an increase of 5, 10, 15, 20 or 50% in client spending?
•    Consider proposals to increase the transaction value. (Ways of "up-selling".)
•    Consider proposals to increase the frequency of purchases.

There are many side-line activities that can be considered to increase a business' turnover and profit. However, these three tools/activities form the basis for further consideration. Watch out for our future posts on Business Growth.

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