Ten Questions Every Business Owner Must Ask Themselves To Grow Sales

Every business owner and/or business manager must do an annual checkup on their business, particularly during these economically challenging times. Just like your body needs an annual physical check up by your primary care physician, your business needs to undergo a major checkup each year by you, the owner, your management team and by your CPA. No matter how large or small your business is, you cannot gauge the effectiveness of any changes you have made without analyzing the benefits and bottom line.

Good business management begins with asking these 10 questions you must ask as a part of your annual checkup:

1. How do your year-to-date sales compare to the last couple of years? Do not be satisfied if you managed to match them because if sales stayed the same then you have achieved zero growth. With inflation, this flat growth line is a warning sign for more trouble down the road. Obviously, in a stagnant economy like we have now flat sales may be a small victory for you and your business, but under normal conditions if you are now growing then you are falling behind.

2. What percentage of your business is from repeat customers? This is important to know because if it is too low, then it needs to be improved. The estimated cost of getting a new customer versus retaining an existing one can be as much as five to one in terms of dollars spent. Keeping customers is more cost-effective than constantly seeking new ones. Remember, happy, satisfied customers can become Raving Fans and they will become your best word-of-mouth advertisers.

3. How long has it been since you offered a new product or service? Loyal customers like to see you changing and progressing with the times. If you are stuck for an idea, ask your customers what they need. New product and services development is essential for any business. If you are able to upsell current customers because of new products or services you could see a significant growth in sales with very little effort or expense.

4. Do you consider marketing and advertising expenses or investments? How you look at the money spent in these areas affects your willingness to spend money at all. Would you look at prescriptions as a waste of money? Marketing is really investing in you, your vision, and your company. The old adage that you must spend money to make money is true, but you must spend it wisely. Spend it on ads that are pulling responses and orders, and if they are not maybe you need to change the media you are using. During slow times like many businesses are facing now, advertising is a must. You cannot afford to lose business during these tough times, but just as importantly, you might be able to gain share while your competition sits on the sidelines waiting for things to change. Be aggressive in your marketing, then super serve your new customers and you will gain the upper hand in the market.

5. Do you know what PR is and how to use it to positively position your business in the media? I will bet that at least one of your competitors know what Public Relations is and how it helps them to grow their business. Nearly every mention of a company or business in the newspapers and magazines is a direct result of publicity efforts. Being quoted or featured in an article speaks volumes to your clients and readers who are your potential prospects. A good PR consultant can do that for you and show you ways to extend the shelf life of that article beyond its publication.

6. Are you listed in the yellow pages, both in print and online? If you only have a line listing, consider including a small ad in the printed yellow pages and their new electronic version. If you can afford it, it will pay dividends throughout the year. People do not always know who to call for certain products and services so they go to the Yellow Pages for help and guidance.

7. Do you treat your regular customers better than your drop-ins? You should. If your customers do not feel special when coming to you for products of services, why should they remain loyal to you? Have a customer appreciation day or a special invitation only sale for your regulars. Create a mailing list of your regulars. Send occasional post cards or greeting cards for special events or just to keep in touch. Learn to recognize them on sight and greet them by name when they visit you.

8. How long has it been since you really talked to one of your customers? Just as you appreciate when your Doctor takes time to talk to you, your customers will appreciate you if you take an interest in their needs. If you have a service business, have lunch or coffee periodically with some regulars, even if they only contact you once or twice a year. The personal touch in an impersonal world will be remembered.

9. How is your business doing compared to your competition? Every company, no matter what the size, has competition, even home-based businesses. Is their business growing or downsizing? Is their pricing or service better than yours? If so, what can you tell potential customers about the price difference? Think about how you can improve your service to meet or exceed your customer expectations. The little things that you do for regular customers can trun them in Raving Fans that will always be loyal to you and they will always tell their friends about the special treatment you gave them. So please go that extra mile to win your customers over.

10. Are your employees happy? Do not ask them directly, but observe them throughout the day. Watch, listen and learn. Employees who like their jobs do not watch the clock for quitting time, are not habitually late, do not have poor body language, do not spend time on personal phone calls, and do not look like they never smiled. Observe how they interact with customers. Not everyone is a match for direct contact with the public, so make sure you do not have an employee who is driving business away.

I can remember when I was working at my very first job out of school. It was a service business with just the owner and me at work. There was direct contact with the clients, and there was never a problem with smiling when talking face to face with them. I was given the best business tip of my life by that employer, when he pointed out to me that when talking to clients on the telephone I should smile too. For some unexplainable reason, when you smile as you talk on the phone, the exchange with the client becomes more pleasant and more productive. It is as if that smile went right through the phone wires to the person to whom you are talking.

Give your business the annual checkup it needs and you will be rewarded with steady, if not exponential, growth in sales and bottom line profit.

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