Posts Tagged ‘money’

Follow up any and all enquiries.

And not just enquiries – leads and contact too. Just make sure you stay in touch. When you call you don’t need to sell your product or service, just simply make contact, see how they are and catch up. This will keep you in the minds of contacts and potential customers.

Emails and newsletters are also a good way of keeping in contact with people, and with the use of sites such as

www.mailchimp.com anyone can un-subscribe if they really don’t want to hear from you anymore.

Don’t forget the good old pen and paper. In the past 5 years I’ve received probably one or two handwritten letters/cards from networking contacts that were simply catching up. And it worked, their correspondence stood out and I was made to think about them and their business and I immediately contacted them and past referrals their way.

Many leads and enquires can be long term and need regular contact and persuasion in able to convert into sales.

Many enquiries take at least 8 calls to be made before a sale is made.

So please don’t give up and throw away sales. It takes a lot of time and effort to generate a lead, win a contract, and earn a sale: don’t waste it all by failing to follow-up.

Just remember – if you don’t keep in touch, someone else will!

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Seems simple doesn’t it? To get more profit you just simply need to sell more, right?

Well let me give you a few points that may help………..

1)      Put your prices up. Yes that’s right put your prices up. Apparently if your margin is 10% and you put the prices up by 10% then you can afford to lose 33% of your clients. So before you dismiss this idea, have an honest think about just how many customers you may lose – 1%, 10%, 15%? But how much more income will you be making from the increase?

2)      Get your clients to buy from you more often. Do you have a database of your clients? Can you easily send a special offer to them? If you contact them more often will special offers you potentially can get them to buy more often, therefore increasing your sales!

3)      Once you’ve got your clients buying more often the next step is to get them spending more per sale. That’s why supermarkets have sweets at the checkout, thousands of customers pick up an extra items at say 49p whilst queuing which makes a massive difference to one company with hundreds of stores. All you need to do is add one extra thing to your customers basket.

I’ve only just touched the surface with these 3 points but hopefully I’ve given you some food for thought.

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 Starved of Oxygen Cash
A challenge to many small businesses is getting paid by customers. Cash is like oxygen to a business and without it your business could die.
Sometimes, even great businesses fail due to the starvation of cash.
So I would like to ask – do you have a debt recovery system?
If you don’t do anything to chase those who owe you money then it’s unlikely you’ll ever get that money.
Here are a few points to think about:-
·         Firstly what are your payment terms? 30 days? Is this really necessary? How about reducing to 7 of 14 days or where possibly upfront payment.
·         Water, phone etc. are cut off if not paid for so stop providing services to any bad payers immediately.
·         Dedicate a member of staff or allocate one day a week/month to chase debtors.
·         Get accounting software that provides a debtors report showing how long they are overdue i.e. 0 – 30 days, 30 – 60 days, 60 – 90 days.
·         Be prepared when you call debtors, make sure you have account details and invoice numbers in front of you and always make notes of when you called and of what was said. Then set a diary date to their next call.
·         Always speak to the right person – if you sell business2business speak to the person responsible for paying you, if they can’t help go above them.
·         Write a standard overdue letter and post with a statement.
·         If dealing business2business check before you take the job what their payment terms are and get a Purchase Order number & place this on all correspondence to them.
·         If a customer is struggling would you consider taking part-payments or a settlement figure, remember 80% of the money is better than 0%.
·         Don’t be afraid to stop dealing with a bad payer. Fact: 20% of customers will take up 80% of your time. Give up that bad paying customer and replace with one in in the 80% bracket.
Thanks for reading.
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