Any business has the potential to become huge. A bigger business means you’re helping more people and it means more money too. Both go hand in hand when you do things right. Regardless of the residual Income business opportunities you’re reviewing, think of the ways you can multiply your leverage and grow your business well beyond your original projections.
Here’s what I learned from the business gurus’ guru, Jay Abraham.
Increase the amount your customer pays
In tough economic times, it may seem counter-intuitive to increase your prices, but there are good reasons to do so. By offering an excellent product or service, you’re playing in a bigger league than those who compete solely on price. Increasing your prices might cause some customers to drop and at the same time strengthen relationships with the customers who really see the value in what you do. Referrals from those customers will also bring you more people seeking the best instead of the cheapest. There is no industry which cannot take this approach. It simply requires you to stop following the average crowd and pull ahead.
Increase the amount your customer buys – Fast food powerhouse McDonald’s mastered this strategy when they discovered that the increase in profit for a size upgrade far exceeded the increase in cost of goods. What do you offer that could benefit from a “supersize” option? Do you have a service business where a 30, 60 and 90 minute session increases the benefit to you as well as the customer? If it takes you time between each client to travel or prepare for the next session, the answer should most certainly be yes.
When a customer buys from you, is there another product or upgrade they regularly seek from somewhere else? Why not offer it yourself? Perhaps you offer performance coaching and your clients go through lots of pens, journals and organization materials. Why not offer them yourself along with a free audio CD you recorded to help them get the most out of their new purchase.
Joint ventures also open doors for helping your customer get what they want without having to run all over town to find it. If you’re not sure what related things your customer uses, ask.
Increase how often your customer buys – When your customer buys your product or service, they’re solving a problem. Sometimes that problem can be as simple as “I want that,” but if you look deeper than the surface results, there’s almost always a reason behind the reason. Find a way to satisfy that want more often for your customer and they’ll buy from you more often too. This could mean offering your deck sealing service in the spring also with a “ready for winter” package in the fall. How about a special “date night” for your child watching or dog sitting service? Figure out what your customer is really getting out of their purchase and find new ways to satisfy that need.
Small increases to each of these three areas can lead to an enormous increase in your revenue. As a business strategy, they can hardly be beat.