Get back to business basics!
Many business owners spend much of their time working in their business, often spinning their wheels just trying to stay in business.
Let’s stand back, take a good look and get back to business basics.
- Do you ask for referral business? Do you ask every time in a systematic way or just when you think of it?
- Do you thank current customers for referrals when you receive them?
- Do you act like you want more business? If you give the impression that you’re too busy to handle more customers, your existing customers won’t refer you more business. Why would they if it appears you are struggling with the customers you have now?
2) Customer Retention
- Do you know when customers ‘drop off’ your customer list? Do you know why they ‘drop off’? Is there any area for improvement?
- Do you calculate your ‘attrition rate’? This is the number of customers that stop doing business with you over a certain period. If you have 1,000 customers at the start of the year and only 800 of these customers are left at the end of the year, then the 200 that left represents a 20% attrition rate.
- Reducing your attrition rate by one customer is better than adding a new customer due to marketing and other costs of acquisition.
- Are your employees fully knowledgeable about all of your business’s service or product offerings? If they are lacking, it might be affecting your bottom line.
- Are you employees equipped to work productively? Do they have the right tools to do so? If you’re unsure, you should ask them!
- Are you employees active and engaged in your business? Does your business embrace a culture of respect?
4) First Impressions
- First impressions can go a long way. Is your storefront clean and inviting? Are your trucks in good repair? Does your website’s landing page pass the 5 second rule?
- Look at businesses you frequent, what are they doing right? How can your business emulate their positive first impressions?
Getting back to business basics is an excellent strategy for profit improvement. All businesses have areas of improvement they can focus on.