Let’s sit back for a second and consider some of the reasons you open up a business:
- To change the world: Maybe you have an idea that you know can make the world a better place.
- To pursue your passions: Life is sweet when you can earn from doing what you already love.
- To afford any luxury you want: Let’s face it; you got bills to pay and you want to own a car and you hope to afford vacations every year. Plus you want to provide the best life possible for your family.
- You want to be your own boss: Enough said.
But here is the truth: Running a business is not a piece of cake. It can be challenging and if not managed properly, can lead to lack of sales and frustration as you will then find it difficult to achieve any of the reasons you opened your business.
How to Ensure You make money from your Business:
Someone I know told me that Sales solves every problem in a business.
And I agree with him. Because when a business is making money, no matter what you might be facing in that business, it won’t frustrate you. If you have customers that complain a lot, you will swallow it; if you have employees that slip every now and then, you will overlook it; if you have a project that needs financial assistance, you can secure a loan from a bank; if you have a kid that needs special academic attention, you will pay for it.
A thriving business with consistent money flow and profits is every entrepreneur’s dream.
But how can you build a business that makes so much money, bank managers will be following you bumper to bumper just to convince you to put it all in their bank? I drew up a list of ways to increase the revenue-earning power in your business. They are:
1. Watch your business expenditure:
The mistakes a lot of entrepreneurs make is that they do not watch how they spend money made from their business. If you want your business to be successful and profitable, you have to watch your expenditure; there is no two ways about this.
Ways you can watch your expenditure:
- Decide what your salary is: A lot of entrepreneurs do not give themselves a fixed salary. This is really bad. They take money based on the profits they make or the issues that might crop up at home. I discourage that. Fix yourself on a salary and every single extra cent that comes invest it back into the business. Instead give yourself a milestone. Tell yourself that if you are able to achieve consistent volume of sales of a certain amount, then you will increase your salary. This way yo will be motivated to work more so that you can achieve your target and hence increase your salary.
- Only spend on what is necessary: Entrepreneurs always face an inclination to splurge. Maybe you are a new entrepreneur and you want a shortcut. So you have been told if you spend more on this and that, then boom! your business will be the next CocaCola. Or maybe you have been in business for a while but sales are at an all-time low and you are hoping you can buy back your customers by spending money here and there. STOP! If it is not necessary do not spend on it. Keep your expenditure tight. This way you will have more money and increase the money flow capability of your business.
2. Increase your client base:
More Clients or customers equal to more sales. That’s not rocket science, that is a fact! One of the best ways to invest in your business is to invest in strategies that increase your client base. Follow the following tips to increase your client base:
- Do not lose your old customers: Research has shown that it is way more easier to get an old customer to buy another product from you than it is to turn a complete stranger into a new customer. So do everything within your power to keep your old customers. Establish a rewards program, so that when someone buys something from you, they are entitled to a discount coupon they can use on their next purchase.
- Give out Giftcards on your site. Sites like Eve & Tribe and Fashpa are doing this well. Giftcards are great because they mean more sales for you. A giftcard is something you purchase when you are not sure what gift to give. Ensure there is a giftcard service on your site, so that your old customers can give it out to their friends and family.
- Make your old customers refer you to their friends. The most trusted and effective advertorial is when a friend says, “I have used it before and I loved it. You should get it too.” Encourage your old customers to recommend to their friends by rewarding them for every referral that turns into a sale. Software you can use to do this include Referral Candy and Gleam Rewards.
- Do giveaways: Nothing attracts new business like a giveaway. But a lot of entrepreneurs get this wrong by giving away something that will attract the wrong audience. Example: giving away an iPhone 6 will attract every tom, dick and harry to your site. And most of them (99.9%) will never buy a thing from you. Instead give away something related to your business. Do you sell custom shirts? give away a custom shirt. Do you make cakes? Giveaway a sumptuous, mouth-watering cake. Do you design apps? Giveaway an app design and implementation package.
- Liaise with established influencers in your target market, so they can advertise you to their audience. This is one of the most effective methods of attracting new customers and clients to your business. Click here to learn more.
- Advertise on Social Media Platforms your target audience hangs out: To grow you need new customers. Another way of getting new customers is through advertising. Get the best conversions on your advertising budget by advertising only on social media platforms your target audience already hangs out in.
- Advertise on Google: Every single day, millions of people use Google Search. Need new customers? Chances are that you can get them through Google Adwords.
3. Offer more value than your competitors:
Its one thing to advertise to new customers, its another thing to convince them to stay. And this is determined by your Unique Selling Point (USP).
To create a USP that converts into more sales, you need to ask yourself: How can I offer more value than my competitors?
To answer that question, first you need to know what your competitors are offering. Then you need to know what extra value you can add to that.
For example if you are a fashion retailer, offering nationwide delivery is no longer an added value. Everyone is doing it. But you can go a step further by offering clients a LookBook for any outfit they buy. In this lookbook, they will see 6 different ways to wear that outfit they buy.
An advantage of this lookbook is that it will contain more pieces for your store. So customers who get this lookbook will be enticed to buy even more outfits just so they can complete at least one or two of the 6 different looks.
4. Network/partner with the right influencers:
I have written about influencers in this article and this article. Have you ever noticed that whenever a blockbuster movie is about to debut, every single prominent actor/actress in the movie is interviewed by a well-known media personality.
There are many reasons for this but one of the reasons is to subtly market the movie to the media presenter’s audience. Because when someone like Oprah says, “Wow, I will like to watch this movie” you can bet that more than 10,000 Americans will want to watch the movie because of what she said.
Use the same strategy in your business.
Find an influencer who is well-respected and loved. Get them to recommend your product and watch the sales pour in.
5. Solve a pressing problem:
I wrote about this in the article: The fastest way to acquire success. Imagine if someone was to discover the cure to HIV. And imagine if his solution is simple like pop a drug in your mouth and in 24 hours you are HIV negative.
He will be a billionaire overnight right?
You should apply the same mentality in your business. Try to turn your business into a problem-solver. Solve a pressing problem and your increase your profits almost overnight.
6. Market the blazes out of that solution:
I don’t care how good your product is, but if nobody knows about it, it is not going to sell a piece. I learnt this the hard way and wrote about it here: 10 reasons why failure could be your best friend.
Thee ability of a business to make good money depends on the marketing strategy they have. Market your product to the right people, through the right mediums and at the right time and you will make a killing.
7. Get testimonials:
Nothing chases away good business like a bad testimonial.
Picture this: You are browsing on Amazon and you want to buy a facial repair moisturizer. But you are very careful because you have used two fake creams before and the damage they caused to your face has resulted in tens of thousands in dermatologist fees. You don’t want to end up in the hospital again.
Then you see a cream you really like. And it has got 20 rave reviews and just one negative review. You decide to check that negative review out and you see this:
“If there is something lower than 1 star, I would have given it. The texture of this cream is watery and nothing like the original. To make matters worse, after using this cream for only 5 days I noticed a fungal infection on my face. Do NOT BUY THIS fake product.”
Now be honest with me: Will you still buy this cream? Even though it has 20 excellent, 5-star reviews?
Chances are that you won’t! In fact you will run away from the retailer’s amazon page as fast as you can.
That is exactly what one or more negative reviews can do to your business. It can send customers running.
The opposite is true of a positive review. When visitors click on your ads on Facebook or google and they come to your website, see your products and see only excellent reviews and testimonials, they are immediately convinced to buy. Because if people have used your product and liked it, that means your product is genuine and trustworthy.
To encourage more website visitors to turn into new customers, ask your old customers for a testimonial. Entice them with gifts if necessary (this is because many people will not honour your request for a testimonial but will be more easily swayed if they will be rewarded for dropping a testimonial)
8. Get a website:
So Important. The internet is the home of billions of people. If you really want to make serious money, then you need to start thinking of how to sell your business to as many people as possible.
One of such ways is through a website.
I always advise people to open a website before they open a brick and mortar office. This way you keep expenditure low, then start making money before you start paying for office space. A similar strategy was used by Sweet Kiwi and it greatly contributed to their success.
9. Create tiered prices:
Though this not applicable to all business, it is greatly profitable for coaching and training programs as well as businesses like Makeup artistry, catering, health and fitness to mention a few. Tiered pricing works with this principle: the more value I offer, the higher the price I will charge. Look at the image below to see an example of tiered pricing.
Be creative. Start with a base service/product. Then figure out what extra values you can add to increase the price. The extra values can be video tutorials, more hours spent making up the bride and her family, 3 other cakes of different flavours.
So there you have it; More ways you can turn your business into a cash cow. Do you have an addition to make? let’s know in the comments
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