3 Things You Can’t Impact Directly In Your Small Business Even Though You Want To

Transcript:

Are you a local small business owner looking to take your business to the next level?

This video will uncover why focusing on increasing your customer base, revenues, and profits won’t work for growing your local business.

Local small business owners often seek to increase their customer base, revenues, and profits. However, these results can be hard to come by without the right strategy.

It’s easy to focus on the wrong metrics when trying to grow a local small business- like increasing sales or cutting costs – but this won’t necessarily lead you toward your desired outcome.

This video will discuss how focusing on the right metrics is vital for local small business growth, and success.

We’ll explain why it’s essential to focus on margins, average dollar sale amount, number of transactions, number of leads and conversion rate to see real results. How is this possible? Don’t you need more customers, revenues and profits?

Of course you do!

You just can’t impact any of them directly because they are the result of other factors.

Let’s start with customers. How do you get customers? First, you market to them, right? Then, once they raise their hand and say, “I’m interested,” you sell them your product or service. So your number of customers is a function of the number of people you attract with your marketing, your number of leads, multiplied by the percentage of those leads you can convert into customers, your conversion rate. So to get more customers, you need to focus on leads and conversion rate.

The same thing is true for revenues. Your revenues are a function of the number of customers, multiplied by the average amount they spend with you when they buy, the average sale amount, and multiplied by the average number of times they buy, the number of transactions. So to get more revenue from your customers, you need to focus on your average sale amount and the number of transactions.

Finally, your profit is a function of your revenues multiplied by the percentage of your revenues that goes to paying the bills, your margins. So to get more profit, you have to focus on your margins. In conclusion, local small business owners should focus on increasing their margins to increase profits, average dollar sale amount and number of transactions per customer to increase revenues, leads in conversion rate to increase number of customers.

By focusing on these intertwined metrics, you can create a successful growth strategy for your local small business.

With this knowledge, you’re ready to take your local small business development efforts up a notch!

Thanks for watching this video about local small business growth.

We’ve hope you’ve learned something new today!

We’d love to hear from you in the comment section. Share your experiences – both good and bad – so that other local small business owners can learn from them.

After all, we’re all in this together!

Talk about what strategies or tactics have worked for you in increasing your customer base, revenues and profits. Tell us which metrics have been most effective for driving growth in your local small business. Or maybe share insights on any mistakes or pitfalls you’ve encountered along the way so we can avoid them.

Your stories are invaluable and will help empower other local small business owners achieve success!

Thank you for taking the time to share your knowledge with our community.

Would you like to learn more about local small business growth, and other topics regarding business success?

Yes!

Great!

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I’m Doug Barra, and I believe it takes great courage to own a small, local business, and for the last 16 years, I’ve been making sure that business owners like yourself get the time, money, and freedom you deserve. Be sure to click the link to learn more about having a business that works without you! Thank you for watching.