Tips on Promoting and Marketing Small Businesses Into Super Profitability

To most struggling unsuccessful business owners, the possibility of becoming one of the truly successful business owners often looks like it’s reserved only for the lucky. However when you ask the successful business owner, they will seldom if ever attribute their success to being lucky. They may tell you they got some lucky breaks, but on the whole, their success is usually due to good planning, hard work, and making the most of all the resources available at your fingertips.

Something the vast majority of business owners don’t recognize is that their business isn’t a static entity. It is like a living breathing creature in its own right. Feed it good food, and it will thrive and grow, starve it, or pay it very little attention, and it will wither away and eventually die. Therefore, in owning and managing your business, with an aspiration of it growing into something that represent more than just a job (where you are the slave, and the boss) you need to pay particular attention to a number of key dynamics that will determine the growth, or demise of the business. These factors aren’t new, but they represent the lifeblood of any business.

1) Leads, or incoming Inquiries. This is the first part of your businesses blood supply. These leads or inquiries are generally created from advertising, marketing, word of mouth referrals, promotions, and the like. Without these, your business will not prosper. The first thing to do is the create a strategy to grow your leads, and incoming inquiries. There are many ways this can be achieved, but the fundamental thing is to be testing monitoring and measuring your response for every single dollar you spend on marketing and promotion to generate these new leads.

2) Once those leads come in the door, or call up on the phone, or inquire by email, you need to identify where they came from. How did they find out about you? And then how many of them subsequently purchased something from you. This measurement is important to know, as it will represent the measure of your conversion ratio. How many prospects you need to have before you can generate a sale

3) Once a prospect becomes a client and buys something from you, you need to be able to identify (over all of your clients in total over a set period of time- ie usually per month, but may be per quarter, or possibly even per annum) what their average dollar spend was with you. Allied to this, you also need to determine how often each client bought from you. In other words did they only ever buy from you once, and that was that, or did they keep coming back, and buying other products, or services from you at other times? This is particularly important in determining the long term life value of each of your customers, so that when you get around to calculating the cost of obtaining that customer in the first place, you will know whether or not that customer actually cost(s) you money, or whether they are an asset to your business.

4) The profit margin you make on your products becomes the next item to work out. Of all the products sold to all of your customers over the period of time we are talking about, how much of that is profit? From this figure you are able to calculate your average profit margin per item sold.

The key to developing your business into a gold mine, is to take a close look at each of these items, and make it a focus of your management style. Isolate techniques, and processes you can use to enhance and improve each of these areas. Believe it or not, but a simple 5-10% improvement across the board for each of these items will not only skyrocket your profits, but set your business on a growth path you probably never thought possible.