Boost Your Small Business Profits By Increasing the Value of Each Transaction

From the first day you open your small business, profit is the objective.  It's important to focus on your overall profit while considering additional revenue streams for your business. And nothing is as important to the success of your start-up business than attracting and keeping good customers. Keep this little tidbit of small business advice in the back of your mind and you'll increase your probability of success.

But what makes any particular customer a valuable part of your company? You see a lot of small business ideas floating around out there suggesting the key to success is simply pulling in more customers. But not all customers are created equal. So it's important to know what distinguishes a "good customer" from the run of the mill variety.

Essentially, a customer is valuable to your business in proportion to the amount of money they spend with you. That's the bottom line. Someone who buys a small item one time and never returns is not nearly as valuable as the buyer who buys a more expensive upgrade, then returns again and again to acquire more of your products. Understanding this simple concept is the key to growing your small business profits continuously.

By making upgrades available, you will bring in additonal profits. Offer more upgrades on more basic product versions and you multiply your profit potential on every transaction.

Consider “deluxe” versions, add-ons, and accessories that compliment the original purchase. It's easier to do than you might think. Add simplified instructions, maybe on DVD... extend the warranty (like most electronics retailers offer)... add a booklet of 101 ways to use your product. The sky's the limit here. All it takes is a little creative thinking applied to small business ideas that boost profits.

But here's the kicker: the initial sale is the toughest one you'll ever make.

Once your customer has mentally agreed to the purchase, they’re much more open to purchasing additional items – particularly those that will enhance the original product. Once the switch has ben flipped, your customer has decided to purchase the item. At this point, it's far easier to sell an upgrade or supporting product.

Think multiple sales over multiple exchanges. That's the ultimate formula for maximum small business profits. Work to serve your customer and you'll be giving your start up business the best possible shot at survival and long term success.

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