Business Consulting | Why You Need A Business Consultant

In this rapidly changing world, can you as a business person keep up with the shifts occurring in the marketing and advertising world?

Is your business operating at peak efficiency?

Let me ask you some simple questions. Let’s see how well you know your business.

• Do you know the ROI of your advertising dollars? In other words, is your advertising trackable and quantifiable? Do you know how much money any advertising you do specifically brings into your business? If not, I can virtually guarantee you are probably losing money on your marketing and advertising. If you can’t track what works – then it’s probably not working.

• How many times a year does your average customer purchase from you? What is the average transaction value? How much is that average customer worth to you over their lifetime? This is an incredibly important number to any businessman, because this number determines how much money you should or could spend to acquire new customers. Your customer acquisition costs are a primary ratio in determining the value of any marketing or advertising outlay you make.

Are you beginning to see the value of in having your own trusted business advisor/business consultant? Let’s try some more.

• Do you utilize direct response permission based marketing? If not, you are leaving thousands and thousands of dollars on the table.

• Do you keep a database of customers and contact them regularly, as in once a week at the very minimum? Sound like a lot of work? It doesn’t have to be, by using automation this part of your business can run on autopilot, increase your sales to your existing customer base, thereby increasing your profits and bottom line without you lifting an additional finger.

• Do you really understand the key ratio in your business, the almighty Profit Margin? Do you fully understand what tiny incremental increases in Profit Margin can mean to your business? And once you grasp the importance of this, do you understand how to make it happen?

• Do you know the only three ways to grow your business? As simple as that sounds, yes, there are only three ways your business can grow. Let me give them to you. Your business can grow by acquiring more customers; it can grow by selling your existing customers more of your products or services; or it can grow by some combination of either increasing prices or cutting costs. That’s it – those are the only three things you need to be concerned with, because those are the only three things that cause change.

• In this recession, what are you doing with your marketing and advertising budget? This is typically the biggest mistake businessman make. In slow times, the first thing they cut is their marketing and advertising expenses. Why is this a mistake? There are actually two main reasons.

1. First, all your competition is doing the same thing! This is the natural reaction by your typical business person – advertising and marketing is the easiest cost for them to control so it’s the first thing cut.  HUGE MISTAKE – this is the time to be aggressive in your marketing and advertising – it’s the time to step it up. Out of recession or slow times lies tremendous opportunity to literally steal customers directly from competitors by outmarketing them during bad times. With creative and intelligent marketing, this is the time you can assume the leadership role within your business’ category or niche. By carefully examining, re-aligning and shifting your marketing and advertising costs, many times it’s possible to still slash your costs dramatically, gain more advertising for the dollars spent, outmarket your competition leaving them in the dust and dramatically grow your business even in difficult times.
2. The second reason this is a huge mistake is because marketing and advertising are the ONLY expenses that  bring MONEY in the door. I see businesses make this mistake and never recover. They cut marketing dollars dramatically,  see revenues fall dramatically and blame it on the economy. NO – blame it on a bad decision.  Let me say it again – your marketing and advertising is the only expense you have that brings customers in the door – learn that and learn it well.

• Do your salary expenses bring customers in the door?
• Does your lease/rent expense bring customers in the door?
• Does your auto lease expense bring customers in the door?
• Do your water/power/utilities expenses bring customers in the door?
• Do your legal expenses bring customers in the door?
• Do your accounting expenses bring customers in the door?

Starting to get the picture? Starting to see why a business consultant can be absolutely invaluable to you? He can be the golden asset standing in your corner to dramatically grow your business even as recession swallows up your competition.

Until Next Time,

MichaelB

Related Post: Business Consulting | Dramatic Consumer Demographic Shift Occurring At Breakneck Speed

Tags: Kennewick WA Business Consulting, Pasco WA Business Consultant, Pasco WA Business Consulting, Richland, Richland WA Business Consultant, Tri-Cities WA Business Consultant, Tri-cities WA Business Consulting, WA Business Consulting

Tagged as: Kennewick WA Business Consulting, Pasco WA Business Consultant, Pasco WA Business Consulting, Richland, Richland WA Business Consultant, Tri-Cities WA Business Consultant, Tri-cities WA Business Consulting, WA Business Consulting