If you knew how many small businesses spend all their time trying to save money, and that’s good for sure, but you can’t save you way to success. Don’t get me wrong, managing expenses is important for any business, but sales are the life blood. Cash is king, so you need to be prudent with your money and - you need to increase sales to generate the cash you need to grow and build your business.
So how do we do that? Here are just a few thoughts that if acted upon can increase your revenues and fill your cash drawer today.
1. Sell more to new customers: That seems obvious, you gain new customers. If you aren’t getting new customers then know why. Do you have the right sales people? Do the sales people have the right skills? Are you selling the right market? What about your products, are they aimed where they should be?
2. Sell more to existing customers: Ask how might increase sales to your existing customers? Grow your business by getting existing customers to buy more frequently? Serve your existing customers better. This is about rate of sales.
3. Sell more volume to existing customers: Figure out a way to sell more volume to your existing customers. That is, increase the size of the purchase. Whatever they’re buying now, get them to buy more tomorrow. This is about volume.
4. Sell more products or services: Simply add to your product offering. What do your present customers buy now from a competitor that they could be buying from you? Be ready to serve your customers in new ways.
5. Increase your price: How much do you charge today versus a year ago? Look at your pricing on a regular basis. Make sure your price supports your business.
6. Make more each time you sell or serve: What is your margin and does it support your business model? What do you make each time your people make a sale? Do the people selling even know that and do they sell to support the best margins? Make sure you’re getting what you need and deserve.
These are a few key things you can do to grow your small business. On this spinning globe we call earth there is one sound principle we must live by … we grow or we die. The same is true for your small business. You and your business must grow or die. Always pay attention to cost but always know … you must grow your business or you won’t have the cash to be king.
Ed Kugler has been living change since the jungles of Vietnam where he was a Marine Sniper for two-years in the Vietnam War. He came home to a country he hadn't left and began work as a mechanic and truck driver. Since then he has worked his way into the executive suite of Frito Lay, Pepsi Cola and Compaq Computer where he was Vice President of Worldwide Logistics, a position he achieved with no college degree. Ed left in 1997 to consult and write. He is the author of Dead Center - A Marine Sniper's Two Year Odyssey in the Vietnam War and five other books and counting. He regularly consults with some o the nations leading companies on organizational change and coaches individuals to make the most of their lives. Ed is the father of three, grandfather to three and has been married to the same woman for 38 years and counting.