Every business wants to make more money and enjoy their own “successful” business life and financial freedom. However, it seems to many business owners that this goal is difficult to achieve simply because they did not earn enough money. Studies show that 60% of all new businesses fail within the first six years of operation, Dun and Bradstreet estimates 82% will go under by their 10th anniversary. Therefore in this post, I would like to describe three methods that business can take action right now so that they can still survive for very long time.
Getting More Customers
This is probably the first thing business owners start from. If they don’t have enough sales and enough profit, they go out and find new customers. While there is nothing wrong with it, the problem is that every business goes out and does it, which in turn makes the market so competitive and eventually drive their profit margin lower and lower. Business gets new customers mostly by advertising, online and offline, from billboard and mass media, to facebook and twitter. However, if your advertising is not effective, or you are targeting a wrong market to advertise to, not only will you waste a lot of time, but also you lose your hard-earn money on advertising. Your advertising agency will probably tell you: you did not broadcast it enough, may be you should give us more money and do another advertising again…
Again, I am not against those advertising people, but I want you to know that, there are another ways to make more money even if you don’t get new customers.
Have existing customers by more things from you
This strategy is simple, effective and usually overlooked. One of business biggest assets is their customer list. This customer list already gives you a summary on what your market looks like. Since they are buying from you, it means that they already trust you in some level and you have a customer relationship with them. All you need to do is to protect and nurture this relationship by providing good stuff, like freebie, discount or free information, to them. Your product and information giving away should let them avoid pain and get more happiness. Then, the next step will be to create an irresistible offer and have them buy from you again and again. In other words, even if you don’t pay anything to get more new customers, you can still make tons of money by selling to existing customers.
Have your customers buy high value product from you
This is quite similar to the second point. The only difference is that you are selling a high ticket items to existing customers. For example, you can run an internal launch on your product and provide high level, one-on-one support to the customers who bought your high ticket product. So you can bundle a bunch of products, instead of selling it in discount, you charge a higher price. You can get a higher leverage using price and make a lot of money even if you are selling high.
So remember these 3 strategies: getting more customers, selling to your existing customers more often and selling to your customers a high price products, will help you to make more money from your existing business without too much hassle. It applies to selling physical products and even services.
Please comment below and let me know what do you think!