There are three main steps to growing a business:
- Finding new customers
- Increase the unit of purchase
- Increase the frequency of purchase
Finding new customers
Most people believe that in order to grow a business, you have to prospect, cold call, advertise, do direct mail, or use the Internet to find new customers. While finding new customers may be one way of growing your business, it is also the most expensive and most risky way to go. There is no guarantee that the thousands of pounds spent on placing advertisement is going to bring new business.
Increasing the unit of purchase
What this means is that you want to make your new customers purchase more from you at each and every sale.
Increasing the frequency of purchase
The other way to grow your business is by increasing the frequency of sale. In other words, if your typical customer buys from you once a month, for example, you could offer them a reason to buy twice a month.
These last two methods work for most business as they have very little risk associated with them and can very easily have the same growth effect as finding new customers, but without the inherent risk associated with cold prospecting. Another key advantage is that your customers already know you and trust you.
Growing a business does not have to be expensive, risky, or even time-consuming by following these strategies.
At Irwin Insolvency, we can advise you on your company’s strategy for growth and development including strategic alliances to safeguard your future.