It’s that time of the year, when we make plans for our business’s growth in the new year. Here are four simple ideas (some would say the only ways you can grow a business) you can use to increase the revenues your business makes in 2011:
- Bring in more customers. Of course, they have to buy something for this to work!
- At each transaction, get each of your customers to buy more. Fast food restaurants have perfected the art of the upsell with their simple statement, “Do you want fries with that?”
- Once you’ve got them to buy more, create continuity by encouraging them to purchase more often. Think of ways to package up different items or make your service more consumable.
- Finally, and the easiest of the bunch for any business owner, is to increase your prices. But beware — most goods and services are relatively elastic, meaning that changes in price have relatively large effects on the quantity demanded (sorry for the Econ 101 lesson, but it’s important to keep this in mind).
Which one of these will you focus on first? Which one will you ignore?
Photo credit by svilen001.