Many business owners when trying to grow their business, find they want more of 3 things...

• Customers
• Turnover
• Profit

These 3 things are deemed the most important and so in all strategies to grow their business they are only ever asking themselves.

• How do i get more customers?
• How do i get more sales?
• How do i get more profit?

These things while important are only the end result that we are trying to achieve. They are not as important as the actual steps involved to achieve the result.

There is a simple 5 Ways formula that I and many other business owners around the world use when growing a business. 

The 5 ways to grow your business are based on Brad Sugars business chassis model.

This forumla is:

 
Leads

x

Conversion

= 

Number of Customers

x

Number of Transactions

x

Average Dollar Sale

=

Turnover

x

Margins

=

Profits 

 
As you can see highlighted in red are the RESULTS, they aren't red as they are the most important but actually because they are the least important.

Lets look at this in a bit more detail.

I want more Customers!!

Ok you understand the result you want is more customers, right? So how do you go about getting them. Simply put you cant just make more customers appear at your door or on your phone.

What we can directly affect however is how many leads (potential customers) we have callingup or dropping into your store to inquire about a service or product.

Then we can also directly work on our conversion rate (that is how many of these leads actually go from enquiry to purchase)

and with that simple formula we can acheive the result of more customers.

Lets get practical for a minute and try putting in some numbers to test this.

lets say I sell Widgets at my store.

I know that i currently get 100 people calling me every day to enquire about buying a widget.

of that 100 people, i know i only sell to 20 of them.

So my end result is 20 customers. which means the formula looks like this:

100

x

20%

=

20

What if i worked on my marketing strategies and got 200 people calling me isntead of just the 100?

The formula now looks like this:

200

x

20%

= 

40

By doubling my leads i can double my number of customers

but what if i then worked on some strategies on increasing my conversion rate, maybe i offered a money back guarantee on my widgets and i now get my conversion rate to be 30%

Lets look at the forumla again:

200

x

30%

= 

60

Do you see how with some very simple strategies we can indirectly achieve the results we want?

Stay Tuned - Get More Information 

 If you would like more information on the Business Chasis plus 60 specific lead generation strategies you can put in place today, take a look at Brad Sugars - Instant Cashflow - you can purchase this from our Library of Wealth

Stay tuned for Part 2 - Increasing your Turnover 

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Last update : 16-04-2008 21:42

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