Increase Your Profits Exponentially

Increase Your Profits Exponentially

Increase Your Profits Exponentially

There are only 3 ways to grow your business1.Increase your customer base2.Increase the value of each transaction3. Increase the frequency with which your customers buy from youMost businesses think that doubling your turnover means having to double your customer base, but if you take each one of the 3 ways above, and start to apply some numbers; you get very interesting results.What these results mean is that you can concentrate on smaller targets in each of the areas above, or even use a phased approach, improving one area after the other, to increase your turnover much more than you thought easily possible.Let's take a hypothetical business. So you have a business, and in that business, let's say you have 500 customers, and each of those customers spends an average of 10 per transaction and they buy from you at a frequency of let's say 10 times a year, or week, or 2 years. The time frame really doesn't matter.500 x 10 x 10 = 50,000.Let's see what happens if we increase our customer base by just 10%, the value of each transaction by just 10% and the frequency by which those people buy, by just 10%. 550 x 11 x 11 = 66,550That's an increase of 33.1% and all you have done is make small improvements in the three main areas of growing your businessAt this stage, don't worry about how you will be able to make those improvements, stick with me, and I'll give you everything you need. How about this;Again, using our hypothetical business, let's see what happens if we increase our customer base by 30%, the value of each transaction by just 20% and the frequency by which those people buy, by just 30%. Slightly harder targets, but still very achievable over time. What happens to our numbers then?650 x 12 x 13 = 101,400That's an increase of 102.8%. You will have doubled your turnover.So how do you start to make increases in each of these areas. You could increase you customer base by running a referral program, you could increase the amount of an average transaction by upselling or adding to your back end of products or by introducing a 'premium' version of your product or service at a higher price, and you could increase the frequency by holding a sale or, for example, by inducing by e-mail or direct mail.

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