Thursday, 14 June 2012

There Are Only Three Ways of Growing a Small Business, Make the Most of Each

You probably know this more than I do, maybe not, but there are three basic ways of growing a small business.

Let us look at each briefly:

  • Increase customer base: There is only one reason businesses all over are scrambling for and partitioning their respective niches. Getting more customers means that one has more sales. Simple. If you have a hotel and you have 200-300 customers a month, and you manage to increase this to say 500 - 600 customers over the same period, you will earn more. There are many ways of getting more customers and advertising is one of the major ways of doing this.
  • Increase the cost of products/ services: If you are a small scale farmer selling a litre of milk say at Ksh. 30, increasing this to say Kshs. 40 would mean that you will have more income with the same quantity of milk you produce. You can then use the money to expand your business by say buying more heads of dairy cows. 
  • Increase the frequency of sales: Imagine having a cyber cafe with around 10 computers each of which gets used for roughly two hours in a day. If you manage to increase the number of hours that each computer will be used say to about five hours in a day. This will considerably boost your income giving you more money to expand the business. 
That's it! What do you think?

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