“Growing a business must be a carefully crafted plan combined with a fierce dedication to execution. Big revenue requires executing on big plans. Big plans require big dreams,” – Jeffrey Sachs
Commercial operations and business expansion are essential partners that complement each other. Every business needs to grow from initial beginnings and must expand in size and scope in a bid to stay competitive and relevant to the customer in crowded markets. Brands and businesses must realise that expansion is critical to a business in terms of geography, depth, and scope of doing business. Expansion fuels revenue streams and unlocks new market opportunities. Therefore, brands and businesses should actively work to double sales and profits in a manner that promotes greater momentum in current operations and presages future expansion.
One of the strategies of achieving such goals lies in the systematic conversion of business prospects into regular customers. Therefore, businesses must put in place market strategies and infrastructure designed to double sales and profits. Every business prospect must be closely examined, and wooed in an attempt to expand the customer base. Businesses that operate in mass markets should be especially active in terms of converting large sections of the prospective market into full time customers. For instance, a wireless telecommunications service provider should ceaselessly seek to expand its market footprint by enrolling more and more customers. The on-going sales pitches and value proposition of the product or service should be upgraded at regular intervals. New customers can be accorded special treatment in terms of the business packages, while existing customers can be offered a steady, if incremental, value proposition. These strategies should enable the said service provider to double sales and profits on a consistent basis.
Upselling represents a key business strategy to increase the volumes of revenue gained from each customer. This technique essentially hinges on incremental selling techniques that upgrade the value proposition offered to each customer. Product or service add-ons can be considered one of the methods to upsell to existing customers. For instance, each customer that offers ‘X’ amount of revenue to a brand or business can be persuaded to consider additional products and services to achieve ‘X+2’ revenues. We must note that this strategy can help a business to double sales and profits within a certain timeframe. In addition, special treatment must be reserved for high volume customers so that higher quantum of revenue can be realised from this category of customers. We may therefore state that every brand and business should make it a point to target business expansion through strategies that essentially hinge on triggers that can be leveraged to mould customer behaviour to benefit the business.
Businesses can consider reducing the fixed costs of doing business in an attempt to double sales and profits. Property rents, utility bills, staff salaries are some of the avenues that represent fixed costs to a business enterprise. These must be paid at regular intervals and represent a ‘drain’ on the corporate coffers. Therefore, businesses can adopt a variety of tactics to reduce the quantum of fixed costs. For instance, a business can choose to negotiate with property owners to reduce the rent of business premises. This tactic can be useful because any reductions can directly boost the bottom line of the business enterprise. Businesses can also consider re-locating to different premises, which are offered at lower rents. Similarly, staff salaries can be reduced across the board in order to cut the costs of doing business. Businesses can also choose to lower the number of staff members on payroll in order to cut the fixed costs. We must note that these strategies are highly context specific and can help to double sales and profits at a business enterprise.
Large trans-national corporations can consider on-shoring business strategies in a concerted attempt to reduce the costs of conducting business. For instance, a furniture manufacturer that has significant operations in overseas destinations can choose to compare costs and arrive at a decision to curb outsourcing operations. Per se, this exercise must be conducted with a steady focus on operating costs and must factor in emerging (and evolving) macro-economic realities. Once these plans are firmed up, the business transition should be executed in a bid to help corporations to reduce costs, manage business processes better, and to double sales and profits. We must note that professional business transition experts must be deployed to affect a smooth and non-disruptive transfer process.
The profit margin that attends each sale creates an outsize impact on business bottom lines. Brands and businesses should relentlessly pursue opportunities to boost the profit margin with a view to double sales and profits. Up selling and cross selling techniques may be harnessed to boost the profit margin per sale. Customers can be offered larger units of product for sale and may be persuaded to try complimentary products and services. These actions serve to boost the profit margin on each instance of sale, thus indicating the achievement of critical corporate objectives. Alternatively, products and services that typically earn lower margins can be eliminated from the business inventory in an attempt to boost profit margins. Moreover, business strategies must be focussed on actively retaining current customers because this helps to reduce the costs of acquiring new customers. Production processes and inventory mechanisms should be scanned to spot spoilage and wastage. A judicious combination of these strategies should be deployed by brands and businesses in order to double sales and profits.
Customer referrals often help to bring in new business opportunities and to multiply the volumes of business revenue. Brands and businesses must encourage their customers to refer their family, friends, and colleagues to a certain business. We must note that customer referrals are a low-cost approach to boosting business revenue, and double sales and profits over the long-term. This strategy should be seriously considered keeping in mind that customers tend to trust other customers. Similarly, word-of-mouth publicity should be actively encouraged through social media channels in an attempt to broadcast the benefits of using a certain product or availing a certain service. In addition, customer referrals typically lower the cost of acquiring new customers and therefore, this technique must be leveraged by every business enterprise.
The quest for new customers should animate the actions and strategies adopted by every business enterprise. We must note that this quest represents one of the fundamental growth drivers for a business and must be pursued vigorously. Corporate budgets, commercial strategies, business innovation, and marketing paradigms should be primarily driven by the quest to find and retain new customers. We may state that this strategy hinges on geographical expansion because virgin markets typically present large swathes of new populations that can be converted into paying customers. When this quest is choreographed with other business strategies, brands and businesses can often succeed in their schemes designed to double sales and profits.
In the preceding paragraphs, we have examined some of the strategies that can help modern business enterprises to double sales and profits. We must note that these strategies must be calibrated to operate in concert as befits the different requirements of different industries and diverse markets. Every entrepreneur must work to elevate the sales mechanism in order to drive revenues, to boost profits, and to elevate a business into an excellent enterprise.