Crunchers Accountants

Crunchers Accountants

Are you sure you need another customer?

Archive for April, 2013

Are you sure you need another customer?

Given that most business people are keenly interested to increase the turnover of their business, we present an over view of the numbers that drive turnover.

Of course we all know that one way to increase turnover is to increase the number of customers and many business people work hard at increasing the number of customers they have.  In fact most people’s marketing plan are almost exclusively focused on this.

However an increase in the number of customers is only one way to increase turnover.

What all accountants are taught is that:

Turnover = No of Customers x Av Sale x Av Frequency of Sales

Or to put it into layman’s terms your turnover is given by the number of custmers you have multiplied by how much they spend multiplied by how often they buy.

The irony of our focus on more and more customers is that getting a new customer often requires more time and money than getting an existing one to spend more or buy more often.

After all we must gain people’s trust and establish our credibility before they will even consider a purchase and we need to accept that a percentage will never buy.

So what are alternatives to finding new customers?  It turns out we are surrounded by examples of tactics from the big businesses we all intereact with.

Methods used to increase the amount we spend, include added extras we are invited to buy, carefully placed infront of us at the right time; pricing strategies, introducing premium pricing according to the timing of the sale or the type of customer etc.

To get people to buy more often we might consider loyalty cards, or marketing copy targetted at existing clients; discount vouchers.

The End Game – Seminar Report

This seminar was all about know what shape of business you want to create.

The norm in business is to allow business to grow ‘organically’, ie without a plan.  This is because the alternative requires thought and time.  Whilst allowing things to grow organically can work, we all know the statistics for business that fail and we probably all know business owners who become slaves to the needs of their business working all hours.

The first aspect we looked at was creating and inspiring or exciting vision for the business, including what is being created with the business and what is the business allows us to do in the rest of our lives.

We then considered the four roles we might end up with in business – on the tools, manager, managing director or chairman.  We looked at what financial model our business will have and finally our exit strategy whether selling, gifting or closing the business.

More than previous seminars, this was an opportunity for participants to take part in a workshop to start applying some of this planning to their own businesses.

Sadly numbers were down but value experienced by those who attended was the highest yet – 10/10 scored for overall value.

Comments included:

“You might think you are going to explore your finance and business, and Crunchers seminars give you the space and guidance to do just that. Don’t be surprised if you also explore the bigger picture of your life, how you spend time, and how to create a business that works, and works for you. I would highly recommend these seminars for anyone willing to explore what’s possible in business and how to get there.” 
“Helped immensely breaking a big goal into small manageable steps.”
“I find these seminars very helpful and focusing.  Powerful material clearly delivered.  Workshop content with other business people was very useful and great networking without pressure.”
“Very useful and thought provoking”