The Two Building Blocks Of Your Business
By Ralf Skirr.
The core of each business are two building blocks. Improve on these blocks and you’ll grow your business.
Building Block #1: Your Offers
You can’t start a business unless you have a service or product to offer. It sounds obvious, and in the offline world you’ll have a hard time finding someone starting a business without anything to sell.
- You won’t find a restaurant without a well-filled fridge.
- You won’t find a woman’s apparels shop without a nice selection of dresses, pants or shirts.
- You won’t find a lawyer’s office without a lawyer inside who’s ready to charge you for his consultation.
On the internet it’s different.
The number of people seeing themselves as having an online business without anything to sell is legion.
- The affiliate who doesn’t send offers to his list.
- The info product author (to be) who’s been blogging in his niche for 3 years – yet he never created the info product to sell.
- The coach who’s positioning himself, yet his coaching offer is nowhere to be found.
To make money, you need something to sell. A product or a service.
3 starting points to improve your offers to grow your biz.
1. Make sure you have several products or services that can serve as entry point for your customer. Customers go through different cycles in what they might need from you.
Make it easy for them to connect with you by offering a variety of products/services that might make the first purchase.
2. Make sure you have follow-up products to sell to those who bought before. The first-time purchase is the least profitable for your business. Often it will hardly cover the marketing cost to acquire the new customer in the first place.
Turning a first-time customer into a repeat customer will dramatically grow the profitability of your business.
3. Make sure to have products or services with different price points. If most of your products are cheap, think about how you can add some high priced products to your offers. If most of your products are expensive, consider adding lower priced items.
The easier way to grow your business, however, are high priced products. It’s easier to sell a $ 1000 item to 100 people than to sell a $ 1 item to 100,000 people. Yet, both variations create a revenue of $ 100,000.
Building Block #2: Your Clients Or Customers
You offers are no good if you don’t have people ready to pay for them. Besides offers your clients are the only other essential part of your business.
Everything else is secondary and subject to change. As long as you have offers and customers who buy them, you’re business is essentially working.
3 starting points to grow your biz by improving your customer base.
1. Go for more profitable clients. Assess your current customer base. Have you been going for the low hanging fruit? The customers that are easy to get but less profitable than the ‚other‘ customers?
Brainstorm who could be your most profitable customer or most profitable group of customers.
2. Become the go-to-business for a specific niche. Focusing on a specific niche gives you advantages over businesses in the same industry who serve everyone. You’ll get more specialized knowledge about the niche and deeper connections within the niche.
For example, a web designer could focus on real estate agents only. By having that focus within a few months he’d have an advantage in real estate specific knowledge plus niche specific web site solutions that others don’t have.
3. Contact each and every single one of your existing customers and find a way to sell something more. Existing customers are the easiest customers. They are also the most neglected customers for many businesses. Don’t leave this fully available potential untapped while pouring time and money into finding new customers.
Now it’s up to you!
You have 6 ideas to improve on your offers and clients.
Pick just one, implement, and your biz will grow a little more.
This article was first published at RalfSkirr.com.
Category: Internet Business Blog |