Are your Strategies growing your Business and Profits?

roadmap2As a Business Owner you want results. It comes down to having clear objectives driving growth through consistent focus on your People. Driving Strategies through daily-weekly-monthly-quarterly and yearly execution.

What is the meaning of a business strategy?
Where management analyzes the major initiatives taken by a company’s top management on behalf of owners, involving resources and performance in internal and external environments. … http://en.wikipedia.org/wiki/Business_strategy
or
The definition of a business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives.

Strategy is management’s game plan for strengthening the performance of the business.
It states how business should be conducted to achieve the desired goals. Without a strategy management has no roadmap to guide them.

Here is an example – the goal/objective is to drive/grow business Leads. The strategy would be to grow Marketing activities for lead generation. Let’s say that we have 5 key tactics to support this strategy…

1. Website – free information download
2. Referrals – loyalty program and benefits for regular referrers
3. Strategic Alliances – complementary business offers
4. Signage – brand awareness car, building, road side
5. Flyers – strategic placement, mail drops, direct mail

Business owners need to measure every tactic used to ensure the right balance of effort, funding and return are being achieved towards the overall strategy result wanted – in this case number of qualified leads generated through the different marketing efforts.

The important word here is ‘qualified’ it is fairly easy to get contact information when giving something away, the difference is are they actually in the market for what you have to sell or just wanting the ‘freebie’

Once you have generated these qualified leads your next strategy is to grow your Sales/Turnover. This strategy involves converting the Leads from the marketing activities into customers. Let’s look at some tactics ….

1. Quoting systems having a 3 option close for different price points
2. Guarantee that removes the perceived risk
3. Following up, follow up and follow up with useful information
4. Benefits versus features focusing on WIIFM
5. Testimonials providing social proof of your quality and reputation in the marketplace

Now you have qualified leads turning into customers let’s focus on the next strategy of growing Gross Profit through minimizing COST of Sales. Let’s look at some tactics ….

1. Manage Productive hours efficiently
2. Keep suppliers cost down
3. Task Delegation and accountability for results
4. Fixed Pricing from Sub contractors
5. Make sure you charge all costs out

We see far too many business owners discounting, which is not the best strategy for making good Gross Profits. Discounting often means that the Company feels they don’t have strong value points to maintain good margin.

Here is a list of just some Business strategies Leaders may focus on to grow their business and profits:
People / HR / systems / sales / operations / marketing / debt / financials / Culture / Education / expansion / management / exit

So how is your business performing? If you would like a complementary 45 minute review of your current plans contact the Rise Team today (0800) 747 323

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