How to Strengthen Your Business

by Robert Cordray 15 days ago in business

These tips may help you bring meaningful change to your business.

How to Strengthen Your Business

Have you ever been in a situation where people just don't get what you're saying or they didn't put a level of importance on your product, service or business that you're trying to present to them? This article will share with you how to specifically talk to your prospects about your product, service or business so that they listen, pay attention and they're interested and excited to learn more about what it is that you're doing.

Prioritize the Benefits of Your Business

One thing you have to remember is that it doesn't matter what business you're in. It doesn't matter what products you have that you're selling. People do not care at all about the features of what your product service or business. All they care about is the benefits of your product, service or business and what it can actually specifically do for them. Even though your ingredients are listed in your products or your beauty products of whatever it is that you're promoting or selling, people just don't care. They care specifically about the benefit that your product service or business can do for them.

For example, people don't buy toothpaste, they buy white teeth. So, if you really want to pique the interest of your prospects that you're talking to, you really want them to pay attention. You want them to be excited about making a purchase with you or joining your business with you. You have to speak to the needs, wants and desires of them. What benefit can your product, service or business do for them? So you have to start talking in benefits and stop talking about features because very little people care about the features. For example, you're in a health and wellness company, you got a weight loss program that you are promoting. One of the features of your weight loss program could be a simple three step system. That's a feature, so that might be how they describe what their product is.

Focus on Clients Not Revenue

Most business owners tend to think incrementally and linearly when it comes to growth into business. They only focus on one thing, and that's a growing their client base, when in reality they should be doing different things. You should be increasing your client and customer base. You should be increasing your average transaction value, and you should also be increasing the number of transactions you can get out of each customer claims each year. Also, you should be constantly checking your risk and compliance policies. If you can do all three of these, even a small amount, you'll start to see geometric growth with your business instead of that traditional incremental growth where you're trying to grow your business five or 10 percent every year.

Example

Here’s an example. You have 1000 clients, and the average transaction value for your business is $100 per transaction, and a typical customer buys from you two times a year. That gives you $200,000 in revenue. Now, if you only use that incremental mentality where you're trying to create your customer base, and you increase that 10 percent, to 1100. That would still only give you another $10,000 in revenue at the end of the year. So not much more revenue by adding another 100 customers. But what if you increase all these by 10? So now you have 1100 customers. The average transaction value is now $110, the number of transactions per year is now larger. That gives you $266,200 in revenue. And that's a 33 percent increase to your bottom line and growth for your business. So you can see by increasing all three of these by a small amount, you can start to see that geometric growth that's really going to start to transform your business.

Strengthening your business can be a labor intensive and long process. These tips may help you bring meaningful change to your business.

business
Robert Cordray
Robert Cordray
Read next: Why Denny's Is the Perfect Starter Job for a Cook