7 Ways to Grow your Business

7 Ways to Grow your Business

In every economy, there are always opportunities in business. It’s about understanding what numbers matter to you and assessing how you achieve your goals.

I am working with many businesses currently going through a lot of change. Whether that be reviewing employee salaries in line with increased costs of living, looking to add a new salary into the business to support growth, the implication of increased bills and supply chain costs and much more.

To help businesses realise those opportunities and continue on their journey, I have outlined 7 key ways to grow your business.

ways to grow your business

1. Grow your business by increasing transaction value

When customers evaluate a product or service, they weigh its perceived value against the asking price. If the perceived value is greater than the price, they will buy. So firstly, a business needs to increase its value to increase its price. Value is complex, but according to a Harvard Business Review article, there are 30 elements. Don’t worry, we won’t go through them all now, but take water as an example. Roughly 70% of the earth is covered in water and you can obtain it out of the tap free. But people have paid $60,000 for a 750ml bottle.  It’s an extreme, and why do people pay that? It’s because the perceived value is so high. For example, every bottle of Acqua di Cristallo contains water from three points on the earth. Part France, part Fiji, and part from glaciers in Iceland. It’s also packaged extremely expensively. The point of this is to ensure you impart all of the value of your product/service to your customer, and then you can maximise the value and, subsequently, the price.

2. Increase customer retention rate

It’s much cheaper to make sales to existing customers, in fact statistics show that it’s six times easier and cheaper to make sales to existing customers than it is to new customers. What are you doing to delight your customers and make them want to return to you? Do you know what it is your customers want? What is your current communication strategy with your customers?

3. Increase business growth through lead generation 

This one may seem obvious, and to successfully achieve this, your marketing and sales need to be aligned to convert your prospect to a lead, customer, loyal customer and even an advocate!  Do you have a Customer Relationship Management or CRM system? Is it up to date? How do you keep track of your leads to ensure they are followed up? Who is your target market? Where are they in the highest numbers? You need to understand this in order to tailor your marketing to the right people.

4. Increase transaction frequency

This is all about looking at how often customers spend with you. As we said earlier, it is easier and more efficient to increase sales with existing customers rather than new ones, so are there any ways you can increase the frequency they spend with you? For this, it might be worth exploring subscriptions or some form of VIP scheme. 

5. Increase how much customers spend with you

Do your customers know about all your products and services?  It’s often the case that customers come to you for one service and go somewhere else for other services because they don’t know that you also provide that product or service. Typical examples include a shoe shop that sells shoes but also sells shoe polish to keep the main product looking good; hairdressers could offer hair products to keep their hair looking as good as when it was cut.  To make this work, you need a system to ensure your customers know all your products and services.

6. Reduce costs of sales / variable costs 

We mean to reduce your variable costs, which increase as sales increase. Growing your business isn’t always about what more you can do for your customers, it’s also about making your organisation more efficient. Ways of doing this include purchasing more efficiently, reducing wastage and negotiating with suppliers. 

7. Reduce overheads

The final way to grow your business is to reduce your overheads. These are your fixed costs, e.g. phone, power, interest, etc. How often do you review your overheads? It should be done annually. Go through your annual financial statements or your management reports or your Vision deck. This is very timely as electricity costs soar! 

The OutRiser way

Are you interested in how any of the above may impact your business and its growth? We have created a purpose-built tool to help you see how these changes can impact your business in real-time. All you have to do is input a small amount of data, and away you go!
FINAL OutRise LinkedIn Oct Preview with link

At OutRise, we believe that you have to get close to the numbers to get ahead and stay ahead. Only then can you take advantage of the opportunities for your business and focus on what needs to be assessed first. 

If you need advice or support in achieving your business goals and getting ahead, OutRise can help you rise above your competitors. Book a Discovery call now. 

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