"The Business Boomer"

Business Tips For Great Success

Your Business Value Is Largely In Your List

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I just had an associate get a massive six figure offer from someone to buy his online business that he only started from scratch in 2008.

Another old client a few weeks ago told me he has been trying to unsuccessfully sell his long running retail business for some time for a five figure sum and which has a higher turnover and profit margin than the first guy's part-time online business.

So what's the difference between these two businesses? The first guy has a record and contact details of every customer he has and he regularly contacts them.

The other guy with the shopfront retail business has never gotten the contact details of any of his customers, ever!

The first guy gets constant repeat business from many of his customers by constantly staying in touch with them online and sending them a monthly newsletter or advertising specials etc. and so has a "treasure" in terms of his list. The other guy regularly loses his customers to other similar businesses offering similar products and has to spend a huge chunk on advertising to be viable.

So why would you buy the second guy's business when you can just start your own similar business, advertise and attract your own customers?

It is a statistical fact that it costs around five times more to get a new customer rather than keep and sell something to an existing customer.

If you do not have an invoicing system that get's your customer's details, the best way to get their contact details is to offer them a prize, especially if you have a high turnover business with lots of customers and can't stand there jotting down their names and email addresses when there are other customers standing in line waiting to be served.

The prize may be a weekend holiday, a computer, TV or a product you have in your business. It does not have to be super expensive and the prize can be on offer quarterly, for example. You just need to have a clipboard and pen near or on your counter or reception desk that they can fill out in a minute. At the end of the week or month load those names in your computer and you can use companies like Mail chimp that can send out a monthly newsletter, advertising offer etc.

You will become much more profitable and affluent and you will be able to sell your business much easier and at a premium price because that is where the value lies, in a solid customer base that you can regularly promote to inexpensively! It's never too late to get their details and you have everything to gain!

All the best,
Jeff

 

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