Whether you’re just starting out as a veteran entrepreneur. Or have reached a sales plateau after being in business for a year or longer. There’s always a good reason to think about ways to boost the growth of your business. But how can you Double The Size Of A Veteran-Owned Business, without getting bogged down?
To double the size of your business, it’s easiest to think. In terms of “triggers”, you can impact the growth potential of your business. The good news is that these triggers are linked by a simple formula. One that every business owner will recognize:
Revenue = (Sales) x (Price)
That makes sense, right?
To figure out how much money you’re making. Simply multiply the number of sales you’re making by the price of each item.
For example, if you sell 100 widgets at a price of $10 each, you just made $1,000 in revenue.
But let’s dive into that formula because there’s actually a lot of useful information hidden in there. They will help us find the triggers to double the size of a veteran-owned business.
The first insight is that the number of sales you make can be further subdivided. Into the number of customers that you have and the frequency with which they buy from you. That gives us the following formula:
Sales = (# of Customers)(Frequency of Purchase)
Again, that makes sense, right?
More customers you have. The more frequently they are purchasing from you. More sales you are going to make.
Thus, our first two triggers are Customers and Frequency.
But we also need to consider how we get our customers, right? You can represent this with the following formula:
# of Customers = (# of Leads)(Conversion Rate)
In other words, if you have 1,000 potential leads, you can’t expect to convert all of them into sales. But you can plan to convert some portion of them into paying customers.
That’s the importance of your conversion rate. It tells you how many leads you are turning into paying customers. Increase your conversion rate, and you increase your sales.
Our third trigger is Leads.
And that’s not all. There’s one more step to take to find all of our triggers. We also need to consider the types of sales that our customers are making.
In a perfect world, these customers would always be purchasing the most expensive items in the store. Or, if you own a veteran-owned business, they would be ordering the most expensive items on your menu.
Remember how we calculated revenue as a function of sales and price? Well, the way to describe your profit from each sale is margin:
Profit = Sales x Margin
Some items are going to be high-margin items (which will help you grow faster). While others are going to be low-margin items (still good, but your growth will be much slower).
Thus, our fourth trigger is Margins.
Putting all this together, we now have our four triggers. These triggers are the key to doubling the size of your veteran-owned business:
Let’s take a quick look at how we can maximize the value of each of these.
This is the one factor that most small business owners tend to obsess over. And for good reason.
It makes sense that…
The more customers you can bring through your door. The higher your sales are going to be. So that naturally leads to the creation of marketing campaigns. Designed with one goal in mind: boost the number of leads.
The key to this is the creation of a lead magnet. This lead magnet is an irresistible offer that provides a very specific amount of value to a prospect.
In the offline, physical world, these lead magnets are everywhere. Outside of a retail store, you might see a huge sign in yellow:
“All items marked down 50% or more. Final day of sale.”
That’s pretty irresistible, right? It’s very specific, too.
You can also use lead magnets for your online presence. You just need to solve a very specific problem that your customers are facing.
For example, you might create a video and then highlight it on your website:
“Watch this 60-second video to find out how to grow your sales by 50% in less than 30 days.”
Now that you have the leads, what do you do with them? You want to make sure that you convert as many of them as possible. So you need to create something of value for them.
One easy way to communicate value is through pricing. For example, you could try to woo customers with a $30/month subscription plan for your services.
Even better, you could use pricing of $29.99 per month.
And, still better, you could use the following logic to woo customers:
“For the cost of less than one dollar a day, you can get our high-quality services.”
See? You are clearly communicating value to the buyer.
There are plenty of ways to boost your margins. Again, a very simple example will give you a good idea how to do this.
At a fast-food restaurant, ever notice how the cashier will always ask a question like…
“Would you like fries with that?” or “Would you like to super-size that for just $1 more?”
Both are very clever ways to boost the size of the final order.
As a business owner, you need to be thinking in these terms also. What can you up-sell or cross-sell to your customers? What kinds of bundles can you create that will encourage customers to increase the size of their orders?
That’s the key to boosting margins.
The key to getting more frequent purchases is having a way to re-engage with a customer. Keep in touch after he or she has left your store (or website). One easy way to do this is via automated email follow-up. In which you send out emails with an offer you think the customer will want to buy next.
Putting all this together. It’s clear that the four main triggers to double the size of a veteran-owned business are:
Leads, customers, frequency, and margins.
Pulling any of these triggers could result in the doubling of the size of your veteran-owned business.