Many times in our businesses we want to increase our turnover and profit. It’s a great temptation to try to identify the big opportunity, and develop it boots and all. However, often it’s the incremental increases in key areas of our business that offer greater return on investment and effort. The 10% Rule involves looking at five key areas that can be tackled by most small business owners. This week we look at the first three of these areas. 

1.     Increase your sales lead generation by 10%

Contact your existing business customers and ask them for referrals. This is often the quickest and most cost effective method. Most customers don’t mind if you approach it in the appropriate manner. Also seek publicity opportunities in your local and regional media. Often they are seeking topical and interesting business stories and case studies. Contact me if you would like some direction with this. Look at using the internet and social media to increase your business footprint. It can be as simple as using e-Bay to start with.

2.     Increase your lead conversion by 10%

Many times this is achieved by really targeting your sales lead generation contacts e.g. asking your existing customers for leads. Also research your current customer base and identify in which market segments you have most success in converting leads into business. Identify lapsed customers and contact them. Often you can convert them back to you. For example, motor mechanical shops often do not recontact previous customers. It can be as simple as making a phone call. 

3.     Increase your transactions / purchases per customer

Start the next sale when you make the last. With service businesses such as motor mechanics, ask if you can pre-book in their vehicle for the suggested repairs you identified during the current service. Update your customers frequently on new offers and services, and maximise the impact of new stock lines through product releases and a networking event at your business for customers.

Next week we will look at the two other key improvement areas, and how much difference they can make to your profitability.