With that in mind, here are my top ten tips on how to scale your business.
(1) Attract more customers
This is where most bosses tend to spend their time – in attracting new customers through the front door of their businesses. The first and number one low cost/no cost strategy for increasing the number of customers is referrals. Have you asked your existing customers for a referral?
Some 86 per cent of my business comes from referrals – was it always the case – of course not but we’ve been focused on building a referral only business. Could you do the same? What percentage of your business comes through referrals today? What could it be in the future with an increased focus in this area?
(2) Sell more to existing customers
There is a danger for every business owner, leader and entrepreneur of obsessing about finding new customers, all the while failing to focus on the customers they’ve already invested the time, effort, and money to acquire.
Focus on increasing the value from existing customers by increasing the number of products and services your customers buy from you and your business.
In my experience, (I’ve worked with tens of thousands of businesses across 27 countries) most customers do not buy ALL the products and services they could from you, simply because they do not know everything that you sell. Do you have a process in place to educate and up sell customers on your full range of products and services?
(3) Retain the customers you have in order to scale
Customer retention, or more importantly lack of it, is costing businesses millions in lost turnover and profits each year. You’re going to lose some customers – FACT!
But, what if, through increased focus, you could reduce the attrition rate of your customer base by a small percentage point? For example, customers who rate the service from a supplier as “satisfactory” have a retention rate of 65 per cent. However, those customers who rate the service they receive as “very satisfactory” have a loyalty rate of 95 per cent.
Where do your customers rate their satisfaction level on in your business? What strategies are you going to implement to move the needle on your satisfaction meter to “very satisfied”.
(4) Shift your productivity dial
Put simply, how can you increase the output. Activities can include upskilling team members, reviewing roles against requirements, identifying technology advancements you can leverage.
I appreciate some of these suggestions could trigger a cost, but the fundamental question is are you and your people busy or productive? Take a fresh look at your ways of working to identify opportunities to increase your productivity.
(5) Drive top line revenue growth
Revenue is often referred to as the top line in a Profit and Loss statement (P&L). However, it can be something of a vanity number and many businesses can place too much emphasis on it. It’s pointless having high revenue if at the end of the year it equates to zero profit. This is not a formula for success, let alone a method successfully used to scale a business.
However, profit point aside, revenue growth is critical. Get your fixed costs and overheads covered with a carefully managed and controlled cost of sale, then scale and growth in your top line will massively fast track your growth and success.
Read on to find out how managing cash flow and training talent can help scale your business.