5 Ways to Grow in Any Environment
Think you can’t grow your business during the Coronavirus crisis?
Although I've never personally been through a pandemic before (not many people alive today have!), I’ve been through a number of recessions.
These recessions have taught me that during tough times, you have to be willing to do something different than you've done before.
If you’re watching your market share shrink and your customers dwindle right now, here’s what to do about it.
There are 5 main areas you can influence to increase your cash flow and business growth right now. Even during a crisis, there is ALWAYS something you can do in these departments.
Think of these areas as five buckets - once you start tracking your numbers (easy done in a Google spreadsheet), it’s simple to see which ones are leaking.
Here’s where you should be looking to plug holes and grow your business right now.
1. Leads and Acquisitions
If you've noticed that your lead sources suddenly dried up, you've got to ask yourself this question:
Is my offer still relevant to my market?
Because if your leads have slowed down, that's an indication that the offer you're putting out to the marketplace is missing the mark.
That might mean you need to update your messaging. To speak more specifically to the story that's going on in people's minds right now.
It might mean that you need to change the product or offer.
2. Conversion Rate
The second part of the bucket is your conversion rate.
If you're still seeing leads come through, what's your conversion rate of those leads into jobs?
If you notice your conversion rates have dropped, maybe need to change the sales scripts or the sales process to work with the current instability that's going on in the world right now.
3. Average Sale
Are you still getting the same cut per sale? The same product value as what you were in the past? Or have you seen changes around this?
How can you increase the average sale? Is there a complimentary product that you can offer your clients that you haven't currently offered them?
Things like, for arguments’ sake, a hand sanitizer. I noticed the number of people that aren't even in the hand sanitizer business have been selling hand sanitizer at a reduced rate.
This obviously increases average sale, but it also drives a bunch of traffic through a business. Which means potentially you could build a database for the longer term.
4. Lifetime Value
Are you noticing that your clients or your current clients are leaving you?
Has that been because you've been too slow to react? Is it because you've not changed your offer, service, or product to deal with the current times?
At The Game Changers, we’ve recently helped a lot of our clients that have owned gyms, basketball training facilities, and dance studios to pivot their offerings online.
Which meant that these guys have actually maintained not only the lifetime value of their current clients for during this period of time, but when the premises opens back up those customers will be there.
What’s more, they’ve also been able to market a whole new product offering to a new market and bring new business to the business. They can choose to keep their online-only offers going as a complimentary revenue stream when this crisis is over.
So they've gone from having a thriving business to being literally being shut down overnight, to opening back up again with a new product, new marketplace, and gaining market share, which is going to either further position them for a huge comeback once the market kicks back over the coming months.
Is your product still profitable from a cost of sales perspective?
I’m not talking about measuring net profit here. I’m talking about cost of sales. What changes or tweaks can you make to your product, to your offering, to your price point, to ensure that you can maintain or increase the gross profit margins?
Bringing it together
Now let's look at leads, conversions, average sale, lifetime value, and profitability.
If you get those things mapped out on a spreadsheet, and look at the last month or two of data, you can start to see where the biggest hole is. That's going to give you an indication of where you should start focusing your energy and attention.
Right now you might have a product that's still viable to the marketplace, but you just need tweak the way that you sell it. Or you just need to tweak maybe additional services or products you offer with it.
Or maybe you need to go back to your suppliers and negotiate a better rate so you increase your profit margins.
These 5 ‘buckets’ are as relevant right now as they were a month ago or six months ago. And they’ll remain as relevant six months or 12 years from now. It will not change.
Where to get help
If you're looking to work with people that are ensuring that our clients not only survive but thrive through this, please click below or book a call with one of my team.
We’ll have a chat around helping you create a specific and customized game plan to help your business through. Otherwise, check out https://www.thegamechangers.com.au/ and get in touch through the website.
During the current COVID-19 crisis we’re helping our members pivot to online models and keep their virtual doors open for business. So they come out the other side of this with a business to reopen.