Only 3 ways to get more turnover for your business
Regardless of what business you are in or how much revenue you currently earn from your business there is only three ways to increase your yearly turnover for your business. Once you understand this you will be able to start getting better results.
Increase your prices
Naturally raising your prices will have an instant effect on your sales turnover because you will be earning more revenue per transaction. This will also become pure Gross Profit increase because you haven’t incurred extra expenses to put this into effect.
Increase the number of customers you have
If you can get more people to become your customers then you will see an increase in your business turnover due to the easy part of making more sales transactions than you were doing before. This seems to be the most common method for small business owners to increase turnover and results in numerous advertising campaigns to get these new customers coming in.
Increase the amount each customer spends in each transaction
You have encountered this when you buy an item and the cashier asks if you want some extra products with your order, thereby increasing the value of how much the business would have got without selling those extra items.
Magic business formula
As a small business coach I often get asked by small business owners how they can get more turnover for their business.
An effective way to do this is to consider using all three methods to increase your turnover as my example shows below.
Raise your prices by 2%, increase your number of customers by 2%, and then get them to spend an extra $ 5 each visit. By replacing my figures with yours you can see how much these simple changes will boost your turnover each year.
Now you have the same secrets to raise your business turnover that the large multinational companies have.
Feel free to let me know how you go after considering these changes in your business.
© Copyright 2008 by Paul Baker
Information supplied by Paul Baker