Dec '08 Twelve Christmas Business Points For Success

How do you sum up business prospects for 2009?

Probably the most challenging business conditions since the 1930's


Many businesses are facing tough market conditions because of the downturn in the economy? How many will survive? How many could thrive if only they knew how to prepare themselves…? There’s no doubt that many businesses will fail due to being poorly prepared for whatever the next 12 to 24 months brings.

Your challenge as a business owner is to ensure your company’s business fundamentals are sound, that you fully understand your market and your customer needs; finally and possibly most importantly you honestly identify weakness in your skills and those of your employees and do something about it.

You might consider working with a business advisor a cost in the current economic climate, however, consider the real cost to you if your business fails simply because you didn’t prepare - New Mindset has the experience to help to prepare your business whatever the next 12 to 24 months brings.

December’s Viewpoint summarizes the salient points from our Viewpoints over the 2nd half 2008:


Twelve Christmas Business Points For Success


Keep your existing customers happy

5% increase in customer retention can boost profits by 85%. Some studies suggest that it’s 10 times more expensive to acquire a customer than selling to your existing ones and you might not see them become profitable from anywhere between 1 – 5 years.

Improve your cash flow by minimise costs

It’s not unusual for your costs to have crept up unnoticed each year. Analysis your costs to establish which can be reduced the savings immediately improve your bottom line. But don’t cut your sales and marketing budget without reviewing each element ensuring that you only reduce or cut those that don’t generate the maximise sales return.

Minimise debtor days

It sounds simple but make sure that your invoices go out on time, confirm they arrived and there are not any issues which will delay payment. If you are finding it difficult to obtain payment then you might want to consider outsourcing your invoicing activities, it will cost but this should be offset by you not having to finance your customer’s which is tough if the banks will not extend your overdraft facility.


Identify customers that are financially vulnerable

It’s critical to review your customer base to identify which customers might be struggling financially. It’s better to introduce tougher payment terms now to minimise your payment default exposure than become creditor when they go bankrupt.
Are customers aware of all your complete product range Tell your customers about everything you do? They might only buy one item from you but if they are aware what else you sell they potentially may buy these additional items from you. It’s a more profitable sales technique than selling to new customers.


Encourage customers to repeat buy

It less costly and more profitable to sell more to your existing customers so do have incentives to encourage buying more from you on a more regular basis which also enhances customer loyalty. Boost profitability offering items that compliment the main item being bought Profit margins on these complimentary items can be in many case can be high boosting profits per sales without little effort.

Sell benefits not features

Customers are only interested in the benefits your product or service can do for them. When you buy a drill what you really buying is a hole! So they want a drill that does it cost effectively, quickly, accurately and cleanly.

Allow customers to buy when they want to buy

Invest in a website that attracts visitors which your website site converts to a buyer. Don’t make the mistake of thinking that the web is not important to your business, it probably more important that investing in promotional brochures. Invest your money wisely when developing a website the design matters less than the content and understanding how your customers search for you.


Understand your market

Do you really know your customers needs as well as you think you do?, do you understand how customers want to buy from you?, could you expand your routes to market to increase sales?, have you got the most appropriate pricing strategy?, do you have the right product or service range?, do you know who your competitors are today and in the future?, are there new technologies being developed that might impact your product or service which are cheaper, more efficient, require less support or just make your product obsolete?.


Understand why customers buy from you

What makes you different or unique to your competitors? Developing a unique selling proposition (USP) enables you to differentiate yourself from your competitors. It allows you state why customers should buy from you.

Don’t sell on price add value to the proposition

Selling on price alone potentially makes your product or service into a commodity, you need to consider adding value to the proposition that makes it difficult for the customer just to consider price as the sole reason for buying from you. It attracts customers whose loyalty lasts as long your price is lowest. Low customer loyalty means having to invest in attracting new customers to replace the ones you have lost.

Learn more how New Mindset can help you to prepare your business to increase sales and improve profitability even in current economic climate - call now on 01276 537 282 or email.

Merry Christmas & Happy New Year