Imagine using these words to describe your business. Respected and valued. Highly profitable. Experiencing explosive organic growth.
Sounds great, doesn’t it?
Imagine if OTHER people described it back to you that way. That would sound even sweeter!
So what is organic growth and how can you harness it?
An organic growth strategy focuses on using the company’s own assets, energy and resources to expand the business as opposed to growing the company through major capital outlays, significant strategic shifts or a merger or acquisition strategy. When you choose which elements will help your business grow, plan them out properly, execute the plan diligently and multiply the effect the results can be enormous. And the great news is, there is no silver bullet or rocket science involved! Small simple steps can provide massive growth.
What sales and marketing tools could you use to grow your business?
Did you know that there are approx. 350 ways you can grow your business? Excited yet? When we work with clients there is an overarching model we use that includes 5 ways to grow the business, each of which has about 70 strategies you can use to do that.
So, let’s look at these sales and marketing strategies that will lead to organic growth. What are the 5 key ways you can start growing your business today:
- Generate more Leads
One of the simplest ways to achieve organic growth is to build on the customer base you already have. Happy customers are walking advertisements for your business whatever it may be. How can you leverage your existing customer base to bring in more leads?
Here’s an example:
A hairdressing business increased turnover from $2,300 a week to over $4,000 a week within two months by adding a referral promotion to a customer survey they conducted. They obtained an average of just under one referral per existing client. The referral was contacted and booked in for a half price haircut which brought a number of new clients to the business quickly almost doubling their turnover. By using a proactive referral strategy you can really grow your existing database exponentially.
What about the people that don’t know about you yet? How are people finding you? How can you get them more interested in what you have to offer? How can you capture that interest so that you can start building a relationship with these potential clients?
- Generate more sales for the business
Many clients we work with are fantastic landscapers, interior designers, plumbers, graphic designers – whatever their specialty is, they’re very very good at it.
What they struggle with is running a business and certainly taking it to the next level, growing it and developing it.
One of the first areas we review is the lead conversion process for the business. How many businesses actually have a documented sales process that can help them convert those leads into actual customers? Not a lot. A lot of business owners “wing” the sales process and hope that the client actually likes them enough or needs their product or service so they will purchase. Yet having a dedicated sales strategy can take all the pressure off and arm you and your sales teams with the right tools to help more clients understand why they need your products and services.
- Repeat Business and recurring sales
You’ve heard the stat…”it’s 6 times easier and cheaper to get a past customer to buy again than to find a new one”.
Working with a dedicated coach who focuses you on the opportunity if creating products and services that encourage clients to buy off you more often is a great way to build your business a lot quicker. After all these people already like what you do!
What other elements of your business can you offer existing clients that complements the first product or service they purchased and how can you encourage them to buy off you more frequently? Upselling and repeat business are a quick and great way to increase your revenue. Often take less time and money from a conversion perspective and add value to your bottom line.
- Increasing the Average Dollar Value per Sale
We often see business owners not billing for work that has actually been completed, high levels of discounting so as not to ‘upset’ the client who isn’t prepared to pay full price and undervaluing their own skills and knowledge.
What’s the side effect of this? You’ll end up bankrupt!
What would happen if you increased the value of each sale by just 10%? It’s not a big jump right? That could come from well-implemented price increases. Or from a better range of “packages”. Or from some simple “up-selling scripts”. Or from any of about 70 other ways of increasing your average transaction value. In what areas of your business could you apply this to? One simple step can make a big difference to the bottom line.
There’s more good news. If you increased your efforts by as little as 15% on all of the five steps we are outlining here, you would double your profit. Yes, they all multiply together. Are you starting to see the real value now of how each of these steps can help you grow exponentially? But wait there’s one more.
- Increasing your Net Profit Margin
By working diligently to plan and execute the strategies above, assuming your fixed costs don’t grow at the same rate, your net profit margin will increase by default. By using strategies that your Business Coach can work with you on, you can increase this even further.
Remember when we said at the beginning that there are over 70 strategies that you could use for each of these steps? We weren’t kidding. What other strategies could you apply to your Net Profit Margin to keep the arrow pointing up on your growth chart? This is where a Business Coach can really help.
Traditionally, organic growth is viewed as a slower path to progress and growth but it can actually be a smart, savvy and simple way to increase profits swiftly and progressively.
The first key? Using sales and marketing tools that build value on to your current model without adding debt to the bottom line.
The second key? Having a business coach that specialises in organic growth strategies and a tailored approach to get you there.
“If your business isn’t growing, it’s dying.” Brad Sugars
If you are excited by the above haven’t registered yet for the 6 Steps to Building a Better Business Workshop then you can do so here. We look forward to seeing you there.