There are 5 ways to build a business, according to one of our members. Rob Caughey of Action Coach business coaching, recently spoke about those five ways, which he emphasised all business owners need to know, and remain focussed on if they are to succeed in business. Rob also mentioned that by focusing on all of the 5 ways and not just one or two, can lead to exponential profit in the business.
1. Leads
Focusing on leads or new business helps grow the business as a whole. Many businesses focus on new business.
2. Conversion Rate
As Rob showed, by increasing the conversion rate of new leads will directly lead to a large increase in profit.
3. Number of transactions
It is one thing to have an increase in the number of customers who have converted form leads, it is another to engage at a greater level with each and every customer. The classic example that Rob talked about came from McDonald's: "would you like fries with that?"; which in enough sales led to an increase in sales (and profits) for McDonald's.
4. Average Sale
By focusing on the average sale will enable the business owner to focus on increasing the amount of that average sale.
5. Margins
Sales revenue is not enough. There also needs to be a focus on the profit margin, including increasing it by reducing costs.
No comments:
Post a Comment