The 6 evergreen-old-fashioned strategies to grow your business
Why did you decide to start that business: to make extra income? Make a name for yourself? To test the extent of your creativity or resilience? Whatever the reason, this post will help you take your business to another level or at least, help you to see it from another perspective.
As far back as I can remember, and you will agree with me, that the classical definition of business is simply the sales of good and services that produces profit for its owner. I define entrepreneurship as the creation of value capable of attracting financial benefit. The value here could be any kind of product or service offered to the marketplace.
Entrepreneurship is the creation of value capable of attracting financial benefits.
So, it starts with having a service. Every business starts by offering some kind of value to customers which is in turn exchanged for financial benefit. One of the challenges of offering only services in a business is that it puts a peg on how high you can scale. Think of Sandra. She runs a Spa in one of the high brow neighborhoods in her country and has customers coming in and others calling for home service around the environs. She sees the business grow but she also notices that her revenue cannot exceed a certain height. She begins to seek solutions. From day-to-day she sees the potential of her business and is aware of the need in other parts of her country. How does she scale her business?
A service business can be scaled by engaging these three steps:
1. Democratizing the service: well, just like Henry Ford decided to democratize the mobile, (a term which meant that he wanted the average American during his time to be able to afford a Ford car) you can also democratize the service. In this case, this means, creating lower packages that others can benefit from which may not originally be in the class of people you primarily serve. Every business has its ideal customer. Democratizing your service helps to give several others in other customer segments a chance to test the value your business has to offer. So, Sandra can attract other lesser earning customers in her high brow neighborhood by intentionally designing treatments to suit their budget. This way, Sandra may have to employ more hands to cater for the new flow of customers.
Democratizing your service helps to give several others in other customer segments a chance to test the value your business has to offer.
2. Franchising it: this is the sole reason why certain companies seem to dominate the world. Wikipedia says of McDonalds, “McDonald’s restaurants are found in 120 countries and territories around the world and serve 68 million customers each day. McDonald’s operates 36,899 restaurants worldwide, employing more than 375,000 people as of the end of 2016.” This is the power of a franchise. This means to sell the name and fractions of the business to individual investors who choose to promote the brand while also earning their share of the investment. Sandra can do this as well. She can brand her company to a point where people see the viability and profitability of running a spa and then duplicate the same system in other parts of the country as well
3. MLM it: multi-level marketing has come to stay. Though hated and resented by many, Robert Kiyosaki has come to say that it is the business of the 21st century. Donald Trump made millions from MLM, you can too. So, Sandra can create service packages for people who are willing to promote her business and also earn as well. With this, she can design a program or referral, whereby as people refer clients to her, they earn a commission on it. Her business profits could reach the sky with this.
The next is having a product. Rendering services alone requires a lot of manpower and with that comes the hassle of people management, training, coordination, directing and others. Having a product increases your profit margin and reduces the need for manpower. Sandra in this example could create a video course, an online course, write books, create formulas, ointments or creams in the name of her company which could then be sold to customers. This opens up endless options to her and provides even more value for her clients in the process.
So she has to;
1. Digitize the content: today the internet is used to sell practically everything. You can order anything and have it delivered to you from as early as few hours to few weeks depending on the location. She could set up an online store where clients can order these products. By simply partnering with a courier service business, she can get her products shipped to any location in the world.
Businesses are sustained by people who come back to buy over and over again and not just one time customers.
2. Up-sell it: businesses are sustained by people who come back to buy over and over again and not just one time customers. The created products could first be marketed to those who already patronize Sandra for her services. It will be easier to convince those who have already done business with her than new customers who are just getting to know about her business. So, you can up-sell your existing customers
3. Create multiple options: creating multiple options and format for getting your product increases the chances of people getting to know your product and purchasing it as well.
Now, you may not be Sandra, and even if you bear that name, your business may have different services and product it offers, find creative ways to engage the steps listed in this post to promote and increase the present level of growth or success you have in your business.
I hope this helps someone