Why do businesses fail?or
Why most businesses are not as
successful as they should be!
Why do businesses fail?Most businesses will never reach their full potential because:
They also spend far too much time and money on ineffective, untested and unproven advertising, promotion and lead-generating programs, only to end up frustrated and/or broke.
Therefore, it’s safe to say that the success of any business is dependent upon its ability to effectively market its products and services to its current and potential customers.
It isn’t that business owners and managers aren’t trying or don’t want to succeed. The fact is, they do try and they desperately want to succeed but the problem is… most business people know what they want from their business but few know how to get it!
Ask any businessperson what they want most for their business, and the answer you will most likely hear is that they want more customers.
And that’s exactly what most of them spend the majority of their marketing time, money and effort on… acquiring new customers.
When you consider that it' costs up to six times more to acquire a new customer than it does to sell to an existing customer, and that most businesses acquire new customers at break even, or maybe even a little less, it’s easy to see that getting new customers is not the most cost-effective way to build a business.
However, getting customers is critical to the success of any business and I’ll cover this area in a moment, but there are other, more effective ways to reap windfall profits from a business.
Most businesses can actually double or triple their profits very easily and nearly overnight by concentrating their marketing efforts on a few key areas that are overlooked by nearly every business owner.
In fact, if you focus your efforts on the following areas, you will automatically out-maneuver, out-sell and out-market your competition before they know what’s hit them.
Here they are:
One of the first things to consider is Lead Generation.
That is, people who are interested in, and are willing to listen to your sales story. But be careful, here. “Leads” doesn’t necessarily mean raw new prospects (remember, selling to new prospects is a costly proposition).
Conversion Rate is another consideration not to overlook.
All the leads in the world (no matter how qualified and interested they may be) will do you absolutely no good unless you can convert those leads into buying customers.
Once you start generating high quality leads you’ll need to convert these leads into sales and new clients or customers. This is normally expressed as a percentage. For example, if you tried to sell 10 people a widget and 3 people purchased it, then your conversion rate would be 30%.
Sales conversion is a simple system that you must use to logically 'move' the prospect from an enquiry to becoming a client or customer.
And then there are 5 other areas you must pay particular attention to.
They are:
Average Transaction Value – this is the average amount of money you get from each sale.
Frequency Of Purchase – this is how often someone will continue doing business with you once they’ve bought something from you.
Referrals – this is the number of people who enquire about your product or service after hearing about you from someone else.
Lifetime Value – this is the amount of money a customer will spend with you over the lifetime of doing business with you before they take their business to someone else.
Profit Margins – this is the amount of money you make from each sale after deducting cost of goods and cost of delivery.
I call these…
Click here to download a free tool called the Business Growth Analysis Sheet (hyperlink to web page) which will help you understand how to put into practice the 7 Quantum Keys.
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