3 Reasons Most Businesses Don’t Make As Much Money As They Should.
I don’t have to be a genie in a lamp to know the stone-cold fact that stares so many business owners in the face and yet almost 90% don’t see it.
Imagine leaving a huge sum of money on the table after eating at a restaurant.
Hard to imagine you’ll ever make that mistake, right?
Yet that’s what happens in your business.
After conducting training and workshops sessions where I share strategies with business owners in different industries here’s what I found out…
…That most of them are sitting on a gold mine and don’t even know it.
You can fast and pray every single day of the week but if you miss these key principles, you’ll be shooting yourself in the foot.
So, having said all of that, I’m going to share the real reason why most businesses aren’t making as much as they should.
They Don’t Know Who Their Ideal Customers Are and What They Want
Most businesses are launched or run on fuel thinking that because they have a great product or service that is in demand, they are doing just fine.
Therefore, they fail to actually analyze the type of customers they are serving. They feel their business is for everyone that has a pulse and hence, end up spending money on random marketing activities that don’t yield so many returns.
FACT: Your business is NOT for everybody and the better you know your customer and their needs, the quicker you can scale your business.
This is a simple concept Jumia and Konga ride on.
The e-commerce giants understand that their customers want convenience and are willing to pay more for it.
(Related Post: How To Identify Your Ideal Client)
They Don’t Know Their Most Profitable Activities
To keep a business running means there have to be several activities going on that should be directly or indirectly connected to engaging a prospective customer or closing a sale.
However, in many cases you find staff neck deep in all sort of activities that have no link with making a sale and yet, they want a paycheck at the end of the month or they threaten to leave.
You must understand that the real business you are in is the marketing of whatever it is you are offering and that is the primary activity.
All other activities are secondary. In fact, many of these activities can be outsourced
Instagram was run by 13 people before Facebook acquired them for $1 billion.
You don’t really need to run an adult day-care center all in the name of hiring staff to be in profit.
You need to identify the core activities that bring in the cash and outsource or automate the rest.
They Don’t Have A Systemized Sales Process
On an average, most businesses sell at least 3 different products or services at different price points to different types of customers who buy their products or services for different reasons.
While that is fantastic, there’s more to just closing a sale and that’s where having a systemized sales process comes in.
The simple goal of having a sales process in place is to increase the value of every customer to your business more like turning a prospect into a one-time buyer and then into a multiple time buyer across the spectrum.
Uber and Taxify offer a free ride as a bait to get new customers because they know that a new customer is likely to make several trips that will eventually offset the initial free ride offer and they are still in profit.
To learn more about having a systemized sales process, read this article about Creating a Digital Marketing Game Plan For Your Business.
Which of these mistakes are you guilty of making?