How to double your business

If you implement a few of these principles we’re about to share with you, you’ll soon be able to profit during any economy while your competitors perish.

1. Think BIG

Working in house at Proctor & Gamble (P&G) for 10 years was a fantastic learning experience. Part of the P&G culture is setting big goals – they call these BHAGs (Big Hairy Audacious Goals). Okay, this may sound trite and crass but it works so please have an open mind and try and set your own BHAGs.

During my time at the firm in the nineties we set a goal to double the business in a beauty category – okay, we didn’t quite get there but the busine4ss grew +42% in 12 months; not a bad rate of growth don’t you think?

Creating BHAGs forces you to think differently and more creatively. It helps you adopt a mindset of achieving breakthrough vs. being content with incremental goals. The result is stronger results.

2. Invest in marketing

Marketing is the engine that drives your business. Your product or service may be different from someone else’s. You may sell to different customers than they do. But no matter what, your business is still a marketing business.

This is true without exception – no matter what you sell, how you sell it, or who you sell it to.

You may be the best there is at what you do, but it’s just not good enough to be the best accountant around, or the best urban designer around.

If it were, you’d be getting all of the business you could handle, wouldn’t you?

Being the best is important, but the truth is, if you want the world to beat a path to your door, you’ve got to first tell them about all the benefits they’ll get from using your product or service.

Your target clients must understand what results they can expect from your intervention.

You’ve got to make them an irresistible offer, and lead them every step of the way. And then you’ve got to remove any risk they perceive of doing business with you.

3. Niche

Would you go to your general practitioner if you had tooth ache? No, you would visit your dentist. Is it cheaper to go to your dentist? No, but you accept that dentistry requires specialist skills and experience and so you pay a premium for the service.

In the same way, lawyers and accountants recognise that marketing experts have a depth of knowledge in the professional services sector can add more value than a generalist marketing agency.

In the legal sector, a company requiring advice on patents and trade marks is likely to consider a specialist firm such as Reddie & Grose ahead of a bigger brand offering a full service. Why? It is recognised that patent attorneys have specialist knowledge and a deep understanding of the technical detail.

Similarly, in the hospitality sector companies with licensing issues will mitigate risk by going to a law firm that has licensing expertise, such as Poppleston Allen.

Finding a niche for your product or service gives you focus and build’s credibility.

4. Know the lifetime value of your clients

One of the fastest ways to grow your business is to maximise your profits from existing clients. Critical to achieving this is to understand the ‘lifetime value’ of a client. It’s vital to your success for 2 reasons:

First, you must know where you are before you can determine where you’re going. This gives you a baseline so you can track your results. And secondly, until you know exactly what each client is worth to your business, you won’t know how much money you can spend in marketing to get that business.

Before you can figure out exactly what your clients are worth to you, you’ve got to know a few things about your current business.

• What is your average sale?
• How many times a year does an average client buy from you?
• For how many years does an average client buy from you?
• How many people does your average client tell about you?
• What percentage of these people actually become clients?

5. Think creatively

What is the biggest obstacle to you doubling your business?

Here are some typical excuses that perhaps you’ve heard or even used before:

• Competitive activity economic down turn
• Changing buyer habits & preferences
• New tender or panel procurement
• Budget restrictions
• Existing supplier relationship locked-in
• Market saturation

Yes, these are all factors that might hinder progress vs. your goals. However, the biggest obstacle is adopting a self-limiting mindset.

By adopting the right attitude you can open up your mind to new possibilities that you might not have previously considered.

In Size 10 ½ Boots we realised that we would have to do something fresh and innovative to capture peoples attention in direct marketing campaigns.

Typically direct mail campaigns yield a very low response – perhaps on 2 or 3 %. By thinking creatively and using a 10 ½ football boot as a marketing mechanic we have been able to deliver between 24-34% success rates.

Thinking differently about what is possible delivers results. A creative approach helps.

6. Don’t ignore your existing clients

Additional sales to existing clients are the easiest and most profitable sales you can make. It costs between 6 to 8 times more to sell to a new client than it does to resell to one of your existing clients. All that is required is that you stay close and understand their problems and needs.

One great tool to do this is to periodically run Client Service Reviews. This tool will identify blind spots in your current service offer and enable you to improve client care.

We can guarantee from running such Reviews with our clients that this intervention will save 1 in 20 relationships.

What is the value of this 1 saved relationship? If it is a key client it will certainly be more than the investment in the research: £20,000, £50,000, £100,000 +….?

Most clients are used to (and tired of) not getting their money’s worth when they make a purchase. Rather than thinking of what you’re going to do for them, they’re worried what you’re going to do to them. So, when they find a business that really delivers what it promises, that business stands out. And they’re eager to buy from that business again and again.

7. Bump a little bit more

Have you ever bought a new car or furniture without the salesman asking you to add on the Scotch guard stain protection?
Probably not.

That’s because when you buy a £20,000 car or a £1,000 sofa, it’s not very hard to convince you to add stain protection if it’s only £100.

Research in the furniture business shows that about 80% of their clients buy the ‘bump’ and that it costs them nothing to do the service. In fact, they say its almost all profit. What if a furniture store sells 5 major pieces a day and they’re open about 360 days a year? If they add £75 profit to each of these sales it adds up to about £135,000 a year to the bottom line.

Simply suggest the option to what the client has already decided to buy. What bumps can you use in your business?

8. Keep track & keep it visible

Had to smile when I recently went to say goodnight to Lawrence, my 9 year old son. Above his bed is a whiteboard which now has a chart with his personal objectives: Win the school swimming race; Win Player of the year award at Colts football; and, most amusing, empty the dishwasher every day. This really is quite smart practice.

What gets measured does indeed get done. Better still to put your goals in a visible place. Follow Lawrence’s lead and you will never have the frustration again of trying to put your dirty plates in a dishwasher full of clean crockery!

9. Be bold

I found it fascinating listening to an interview with Simon Woodroffe – he of Yo! Fame. Woodroffe was questioned about the value of market research and highli8ghted that research should not stop innovation and bold thinking. When Woodroffe’s team were exploring the concept of creating a fast food sushi experience in the UK they had the courage of their conviction and followed their gut feeling.

As Woodroffe said, ‘What would have been the value in researching the need in the UK for a Sushi bar? How would they articulate a need for something that hasn’t been experienced?’

10. Get out of your comfort zone

The single biggest factor in Size 10 ½ Boots’ success in our early years is down to there being no option to fail. Quite simply, we have had to deliver. Having jumped off the corporate bus of cosy share options, cash for car benefit, private healthcare, 30 days+ holiday etc failure is not an option when you have a large mortgage and 6 mouths to feed in the family home.
 
Having got out of the comfort zone you quickly realise what is possible by adopting a positive attitude. For example, up until founding Size 10½ Boots I would have rather put needles in my eyes than picked up the telephone to sell. Two years on I rather enjoy it as I have learnt from experience what works and what doesn’t. I recently sold 30 appointments to key decision makers for a top 15 legal practice, 1 week ahead of schedule.

10 ½ What are you going to do to get out of your comfort zone?

11. Build an outstanding team

Invest in close working relationships with smart people. The value that employees, advisors, suppliers and partners can add is immense. Think bigger than your immediate teambut consider the value that other stakeholders in your business can contribute. For example, Size 10½ Boots is fortunate to have the support of a board of 4 trusted advisors. Richard, Dave, Andy and Jon all bring different qualities and experiences to the business. They are able to hold a mirror up to the business and identify blind spots in the service offer and commercial model. Their ideas, inspiration and candid perspectives enable us to grow.

12. Talk to strangers

Outsiders are able to shed light on your business because they are not so close to it. They will generate fresh thinking and different pproaches.

Some years ago at Procter & Gamble I was responsible for launching a fine fragrance brand in Boots the Chemist. At an internal planning workshop I was introduced to a design consultant from the retailer, Pete Ramskill. Interestingly, Pete was not invited to the workshop but a colleague at Boots had the foresight to take a risk and talk to a stranger, recognising the value of an external perspective.

Pete’s insight transformed an otherwise dull initiative and we removed ugly packaging allowing light to shine through perfume bottles to create an instore theatre. The result was we smashed our sales targets and happy stores.

Pete’s not a stranger anymore – 10 years on he is working with Size 10½ Boots to enhance our branding and visual identity.

 

Famous feet

David Morrissey
Actor
Shoe size: 10