Q & A: How can I grow my business.

I received this question form a lady working from home, she emailed and explained her business had started of well, she got some clients and kept her costs down. But her turnover is not high enough and she wants to grow her home business. Interestingly she does not want to grow the business more than 20 to 30%, she wants to stay at home with her business. This is not unusual for many small businesses and start-ups, a home business is an ideal way to run your own business.

Getting back to her question, there are really four answers:

• Increase the number of customers - this in turn will increase the your turnover, yielding the extra business you want, while at the same time make your business more recession proof;
• Increase the order frequency from your existing customers - this could be more difficult, you need to find out if you can replace someone else as supplier, or diversify your offering;
• Increase the average order value - same as before, offer higher quality or premium service.
• Increase your own efficiency - outsource more if you can, cut costs this will not grow your turnover, but increase your bottom line, so you can take more money out of the business for yourself.

Once you start thinking about these options you will find out what you can do, often it is a combination of things to do. But you need numbers, so plan your business, get an overview and find out where you stand.

Remember what you can measure you can manage. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below - I’d be most grateful.

4 Responses to “Q & A: How can I grow my business.”

1. Paul Simister, Your Profit Coach
   http://businesscoaching.typepad.com
   
   Said on November 8th, 2007 at 8:17 pm

   As the lady wants to grow her turnover the first three questions are much more relevant than the fourth.

   These are the Jay Abraham 3 questions for business growth and too many people focus on the first and ignore the second and third questions.

   Often your existing customers are a great source of additional revenue - they already trust you.

   Ask what else they buy - before they buy your product and service, at the same time or after. Can you find any complementary ideas.

   In particular where do they have an unresolved problem or where do they find it difficult to find a reliable supplier.

   When you’ve made more progress with the existing customers, the next step I’d recommend is to ask your existing happy, satisfied customers to find you more customers exactly like them.

   See if you can have a systematised referral process.

   Check out Jay Abraham’s resources - perhaps by going to my blog - The Business Coaching Blog at http://businesscoaching.typepad.com. I am a big fan and I am gradually build up more Jay Abraham inspired blogs.

   He isn’t the highest paid marketing consultant without good reason - especially when most of his clients are small and medium sized businesses.

2. Stefan Töpfer
   http://www.winweb.com
   
   Said on November 8th, 2007 at 9:40 pm

   Paul,

   You made some valid points, thank you for that. It is nice to see that you and apparently J. Abraham agree with my answers.

   From the email it was clear the lady was concerned about her income to support herself, so the fourth point is vital for her to achieve her goal. Her goal is not necessarily to grow the business, but to make more money out of it.

   This is an often overlooked aspect of very small business, and many business advisors do not understand that some businesses do not really what to grow - as in this case - they just want to earn a good living.

   If this would have been really about growth only - I would 100% agree with you.

   ST.

3. Printing Perth
   http://www.printingsecrets.com.au
   
   Said on February 11th, 2008 at 7:15 am

   Maybe it’s my imagination.

   I’ve found since online ordering ordering has grown more popularity and consumers see suppliers as just another name that bobs up when you type a search phrase into a search engine, I now think of them in the same light.

   Just another prospect or customer wanting a quote or to place an order.

   I’m in the printing industry and the majority of users of print see it as just a consumable and not something that’s been produced specifically for them.

   There used to be a lot of satisfaction received from delivering an order & hearing the customer say wow, they look great.

   Not any more… shame really.

   Peter

4. Oliver - Business Coach
   http://www.ologybusiness.com
   
   Said on April 22nd, 2008 at 12:27 pm

   The points made here are very valid - setting up a effect referral system is a key marketing stratergy for most small businesses.

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