Every small business owner will tell you they want to have a million dollar business; unfortunately less than 1% realize their dream. Over 90% of small business owners will be out of business within 5 years.
These are staggering stats, so what is it that makes so many people think they drink the magic Kool-Aid. Do they have a strategy heretofore unknown to their business colleagues? Do they possess a magical tactical plan?
There are 5 key strategies for building your million dollar business. If you want to dominate your competition you will need to embrace these strategies in all that you do.
LEADS
Are you driving enough Leads to your door step. You need to engage your market, expand your market, create value with innovation, satisfy a need and be consistent with your message.
CONVERSIONS
Are you Converting your Leads to actual sales? Your business card, elevator pitch, blog, newsletter, advertising, web site must present a consistent message. You need to understand what your customer is thinking, what they value and why they value that.
TRANSACTIONS
Upsell, cross sell and even down sell if necessary. Build your Transactions by creating value through innovation.
PRICING
When was your last Price increase; hopefully not five years ago. It is important to understand the market Price for your product / service. Innovation creates value.
PROFIT
Re-invest some of your hard earned Profit back into the business to drive the Leads that will in turn continue to grow Profit.
An outdoor home improvement service has driven enough Leads over the last three years to quote, on average, $2M / yr. Actual revenue is $400K / yr. A 20% Conversion rate.
Improving the Conversion rate to 30% will increase revenue to $600K. A 50% Conversion rate increases revenue to $1M. Imagine the Profit.
Strategic Transaction thinking can Convert 50 of these existing Leads to landscaping clients with weekly contracts priced at $100/week for 30 weeks for an additional $150K / annum.
There is also the gym owner who never cross sells Transactions by promoting existing in-house services such as a physiotherapist, chiropractor or one on one coaching. With over 300 active gym members, many of whom compete at an elite level, the potential is enormous.
Many of these athletes would benefit from a regular maintenance program. The gym could embrace a strategic Transaction program that up sells 250 members with an annual Price increase of only $150/member/annum for additional Profit of $37.5K. That is barely $12/mth/member. This Transaction strategy generates Profit by better engaging underused capacity.
5 Steps To Your Success. Build Your Million Dollar Business
P.S. Remember that at any time you feel ready and qualified to move forward and acquire the professional help that will enable you to build the business of your dreams, call Andrew at +1.647.991.2282. We help small business owners, just like you, get the answers and help they need to build the business they have always wanted.
We help you get laser-focused on your highest income-producing activities… and help you develop and then apply the fundamentals that will Build Your Million Dollar Business.
Andrew Hoffman