7 Ways to Grow Your Business

This post was originally published on briantracy.com

Growing a small business takes a lot of sweat, hard work, and sleepless nights. When you have your own business you have multiple options to increase your profits — because that’s what everyone wants. 

Here are 7 options you have to grow your business:

1. Increase the Number of Qualified Leads

The process that you use to attract interested prospects to your business. 

If five out of ten prospects end up buying from you and you can increase the number of people coming in from ten to 15, you will increase profits by 50 percent.

2. Increase the Number of Prospects You Convert to Buyers

This is the measure of the effectiveness of your sales efforts. If you can increase your conversion rate from one out of ten to two out of ten, you can double your sales and increase profits.

3. Improve Your Ability to Sell and Convert

Learn how to take interested prospects and turn them into paying customers — it is one of the most important things you can do.

There is no replacement for ongoing sales training, both for you and for every single person who speaks to customers, either live or on the phone.

Look at the key area in your sales process and seek ways to improve a little bit in each area. A small improvement in each key area can lead to an enormous improvement in overall sales results.

4. Increase the Number of Individual Sales You Make

Elevate the number of sales you make to each customer that you acquire. By increasing the frequency of purchase by ten percent, you increase your sales and increase profits by the same percentage.

What are some things that you could do to get your customers to buy more from you and to buy more frequently?

The size of the sale and the profit that you earn from each. You should be continually looking for ways to up-sell each customer so that he or she buys more each time.

5. Increase Your Profit Margins for Each Sale

Profit margin is the gross profit that you make from the sale of each product or service. 

By continually seeking ways to raise the price or to lower the cost of the product or service without decreasing the quality, you can increase profits per sale.

Every dollar you raise a price, if you hold costs constant, flows straight to the bottom line as profit. Every dollar you reduce expenses, if you hold sales and revenues constant, also goes straight to the bottom line as net profit.

6. Lower Your Cost of Acquiring a Customer

The amount that you have to pay to acquire each paying customer. You should be continually seeking creative ways to improve your advertising and promotion so that it costs you less to buy each customer.

This can impact and increase profits of your business dramatically.

7. Think of Ways to Increase Customer Referrals

The customers who come to you as the result of referrals from your satisfied customers. Developing one or more proven referral systems for your business can have an inordinate impact on your sales and your business.

When you practice continuous improvement in all of these areas in your business you will make more money, increase profit in your business and help contribute to your future financial success!