How To Maximize Your Efforts
Getting the most out of everything you put into your business is as close to a sure thing as you can get when it comes to small business success. In fact, successfully applying leverage to what you’re already doing can transform your business overnight without spending a dime.
Applying leverage is easy.
Identifying the best leverage opportunities is a little more difficult.
Let’s look at some things you can do to start getting more out of all your efforts.
According to the Business Dictionary, leverage is:
The ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources. In other words, leverage is the advantageous condition of having a relatively small amount of cost yield a relatively high level of returns.
Obviously, you can apply leverage to every single activity in your business, but to determine the best places to start, you should begin by asking yourself as few questions.
What are the biggest dangers and opportunities your business faces right now?
The answers to these questions will provide you with the clues you need to determine the best leverage areas to focus your resources.
These areas can include economic, social or political factors that may have come up in your SWOT Analysis, and you should definitely keep an eye on these issues, but as far as your marketing goes, there are seven main levers you should work on.
Once you understand the power of these seven leverage areas, you can easily double the outcome of all of your actions, resulting in geometric growth for your business without any additional costs.
7 Main Marketing Levers
- Traffic – Traffic is the cumulative amount of people that walk into your business, visit your website or call your business for the first time. Most businesses focus mainly on this lever, but it’s only one of many available to you. Improving your window displays and running new sales are ways to increase your traffic.
- Opt-Ins – Opt-ins are the cumulative amount of people that are more than window shopping, but have yet to make a purchase. These people may have opted-in to a form on your website, tried on an item of clothing or signed up for a free consultation. Improving your offers is the best way to increase opt-ins.
- Conversions – Conversions are the percent of people out of your opt-ins who take the next step and make a purchase, regardless of how much they spend. Improving and lowering the first-buy threshold is the best way to increase your conversions.
- Items Per Sale – Items per sale is the average amount of items your average customer purchases during each individual purchase. Most retailers include the amount of items purchased on individual receipts. Improving product packaging and bundling is the best way to increase your average items for sale.
- Average Item Value – Average item value is the total dollar amount of all the items you’ve sold in a given period of time divided by that amount of items. Improving your products offerings and eliminating low cost items are the best ways to increase your average item value.
- Transactions Per Customer – Transactions per customers is the average number of transactions your average customer makes over a given period of time, and is highly dependent upon your type of business. Improving your promotions, overall product/service quality and product packaging are the best ways to increase your average transactions per customer.
- Profit Margin – Profit margin is the percentage of sales you keep after subtracting the costs of making the sale. Increasing prices and reducing marketing and production/purchase costs are the best way to improve your profit margins.
If you want to change your business for the better, a great place to start is with your leverage opportunities.
By improving each area as little as 10%, you can substantially grow your business in a relatively short amount of time without having to spend any additional money on advertising or inventory.