Invest resources in increasing your sales volume. Improve your sales process and/or get some sales training, if needed. Successful businesses are those that take orders and ensure that the final product/service is delivered. A clever way of increasing your turnover is to offer limited luxury services/products – this will appeal to the top 5-15% of your customers. (See Increasing your Sales) Understand your customer base
Without customers, you would NOT have any income. Categorise your customers in terms of the income they bring into your business. Focus your efforts on your most valuable customers and give them the most favourable rates – as they will always come back. You know the type of customers that call in thrice a day to moan about your prices or pay late for their invoices. They are not worth the hassle. Create a referral system through your customers as this will generate more customers for your business. (More information in the article Understanding Your Customers) Eliminate competition
With every business, there’s bound to be competition – even for a sole proprietorship. Compare your quality and pricing with competing products and services. By analysing your competition, you should get a rough idea on how to price your goods and/or services. Aim to charge a ‘full’ price and offer value for money for your products/services. Always ensure that your products/services stay ahead of the competition. (See Researching Your Market: The Competition for further advice) Invoice Finance
Turnover is income received in the form of cash or cash equivalents – such as outstanding invoices. However, though these invoices are recorded as income receipts, you do not actually receive any cash payments, as modern businesses now tend to trade on credit terms of up to 90 days. Invoice finance (factoring or invoice discounting) is a financing solution that transforms your unpaid invoices into cash of up to 90% of the invoice value. The remaining...