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Well 10 sizes won't fit all...but, in general.
10 Best Ways to Grow Your Business...
More than likely depends on two things, YOU, and what kind of business. Right?
OH, and grow, what does that mean? Some would measure growth by number of employees, such as Ben Suarez having over 750 full timers when I worked there.
Or by gross profit, growing to a 100 million dollar a year business.
Or by Net profit, growing from 250k net to 500k.
Or by number of customers.
Using my two basic standards for: Big Business --SCI at peak, 1000 employees and 100 million a year selling over 1200 different products to millions of customers.
Or Harvey Brody, representing the one man band, kitchen table operation, having only 125 customers, yet selling millions a year and having high net profits without all the employees, headaches, etc.
And everything in between.
So, I'll start with increasing dollars. And NET profit, because for me, it just doesn't make sense to spend a lot of money for small profits, let alone the time, work and energy to do so.
MORE net profits come to a business with increased profit margins, the first place to look, and within that; the supply chain, marketing, fulfillment/delivery and overhead, etc. Any reduction in the costs of these necessities could increase Net profits.
Also, through increased sales. These could be an increase of dollar amounts per sale, or through repeat sales, or one off special offers. Or by selling more of whatever, increasing the number of customers.
Small operators may hit a ceiling and have to add employees or help in order to be able to handle some of these increases...getting more products to sell, in SCI case, meant having the space for them. and with a 150,000 sq. ft. warehouse Ben Suarez had room.
With Harvey Brody, it was easy to add more products, since he doesn't handle or touch anything, doesn't ship or worry about delivery, his customers do all the work. So adding the pistol grip to his Zoom Spout Oiler, and increasing profits required little extra effort, just a little more bookkeeping.
So one has to have a good grasp of how their profits are coming to them and examine each area to see if A) Costs can be reduced or B) Margins can be increased. By the way all the formulas for this can be found in 7 Steps to Freedom II.
So it would be pert near impossible for me or anyone to give across the board ideas to grow a business, eh?
But just to keep things short and sweet.
Add more products, increase product line.
Increase profit margins by reducing costs.
Charge more per product.
Sell more products together, via bundles, sales, combos.
I don't know if I have a 10 BEST ways, as explained above, it would depend on the business and type of growth wanted.
I would tend to stick with tried and tested, in the market proven ways to grow a business. One in particular is to "go to the well that gives you water", or to take care of your customers and increase their lifetime value. Stay in touch with the old, and ask them to bring you the new. Referrals.
So, in list form:
1) Referrals from current and past customers.
2) Special offers like sales, BOGO, exclusives, limited time offers.
3) Raise prices and lower costs/expenses.
4) ADD products or services.
5) Establish expertise, write a book, report, be the GO TO PERSON.
6) Joint Ventures and mutually beneficial relationships, either ongoing or one off.
7) Targeted Advertising.
8) Spin off businesses, or Co-op ventures.
9) Take on partners.
10) Buy out others.
The fastest way to increase profits, because I don't know what grow means to you...
the fastest profits come from offers to current and past Customers, joint ventures and targeted direct response advertising.
If you care to be more specific, about what business, what type of growth and maybe, my answers will change or be more targeted to those questions, fair enough?
Last edited by GordonJ : February 27, 2021 at 07:22 PM.
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