Are you a small business owner? Do you want to grow you business in 2011? And by that I mean increase the turnover and profitability (you do know your vital stats, right?). Generally speaking there are 3 ways to grow any business:

1. Increase the number of clients
2. Increase the average purchase value
3. Increase the frequency of the purchase

Many business owners focus their time and energy on the first strategy – attracting more leads and converting them into sales. They embark on costly PPC campaigns, network like mad at all possible events, send 1000s of leaflets or direct mail letters.

But the easy money in your business rests in the other 2 strategies. You are simply asking people who have previously bought from you to buy more or to buy again.

Getting that elusive first purchase is the hardest deal to close for any business, whether you are B2B or B2C.  Your prospects are terrified of making a mistake, of picking the wrong product and wasting money. Fear of getting it wrong is the main reason that stops them trying something new – you.

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Bookkeeping doesn’t have to be completely awful. It can be easy. Yes, trust us… it really can! First of all you need to use a good and easy system to maintain your business accounts. After a lot of research and testing we recommend all our clients to switch to either KashFlow or Xero and use those systems to do the bookkeeping online.

Secondly, it’s all about the process and self-discipline. Keep your books up to date and avoid piles of receipts and invoices stacking up in the corner. Tackling books a little and often would reduce your fear and overwhelm when dealing with it. You can also employ an accountant to keep an eye on your records. This will be much cheaper than getting them to do it all for you, but you won’t have to fear making a mistake and being fined by the “tax people”.

Finally, realise why you are doing it. Bookkeeping is a wonderful practice helping you as a business owner understand where you need to reduce the expenses and how you can gain more profit. Bookkeeping is a core area of your business, it’s the blood pressure measurements of your cash flow lifeblood. If you don’t do it regularly you may miss the warning signals of your business running out of cash. As a solopreneur coach or consultant you would really want to avoid that at all costs!

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The cuts have been recently announced and many business owners still fear the recession coming back and how the cuts will affect their business. Will their customers be able to pay them? Will their cash flow stay afloat allowing them to pay their creditors? It’s pointless blaming the government or big banks though for what’s happening down your street and in your small business. Better let us all roll up our  sleeves and go make sales!

So how can we keep our businesses profitable in tough economic times?

Sell more to your existing customers – you have already created rapport, trust and proved your credibility to them. Use bundles when selling: as your customers decide to buy one product you can offer them another. You can also add low cost bonuses to your offer that have high perceived value – ebooks, member-only sites, consulting, e-reports, etc. And never forget about viral marketing on the Internet!

Create joint venture deals with other businesses and cross promote your products or services. You will reach a wider audience at less cost. Trade advertising with other businesses, find complementary products or services through networking. Start an affiliate program for your business. Less money on advertising, yet more guaranteed sales!

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Freelancing and consulting can often seem like an impossible juggling act, but if you keep these seven practical business tips in mind, your business will go from strength to strength.

Work out what you’re best at and express it clearly on all marketing material – niche marketing is a simpler and more profitable way to grow your business, rather than trying to be everything for everyone. The more detailed your customer avatar is – the simpler it will be for you to find them, connect with them and offer something of value. To start creating your customer avatar think of the following questions:

• Who is my ideal customer? Who would I like to work with?
• Are they able to pay my fees? Will they be willing to pay my fees?
• What problem do they have in life, that my offering will help them solve?
• Why is it important to get it solved?
• How many of those customers are out there in the marketplace?
• WHERE… (do they work? Where do they study? Where do they live?)
• WHAT… (do they eat, drink, read, listen to, are interested in?)
• HOW… (do they look for new products or services, do they choose their suppliers, do they pay the bills?)

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