Top 5 Tips for Generating New Business
As a multiple business owner, I have 5 top tips for generating new business to share with you, which you can apply to your business to increase your chances of success, increase sales, and generate new business.
If your business is one day old or four years old, but you are stuck in a rut, this article will show you how to improve your business, increase your chances of success, and boost your sales.
I also have a top tip for generating new business that will skyrocket your sales!
1. Start a mailing list right away.
As soon as you start your business, start generating leads, open an account with a site like Mailchimp, and start populating your mailing list with interested people immediately.
If you already have a business, then start a mailing list right now. They say your mailing list is where your money is, and that is true because anyone who signs up for a company’s mailing list is a true fan of the product or service.
You can start direct marketing to people on your mailing list to stay fresh in their minds. You can also offer them great discounts on your products or services or build a rapport with them so they can get to know you, your story, and your business.
Just a side note, though, I wouldn’t recommend bombarding them too much, or you can become annoying as we all get too many emails these days. Try staying in touch every week or every other week just to stay fresh in their minds.
This will help you generate more business than you would have without using a mailing list. It is a proven strategy in marketing to get more sales.
The other awesome thing about marketing to a mailing list as there’s nearly enough free advertising!
Lowest cost marketing campaigns.
Marketing to your mailing list is one of the lowest-cost marketing campaigns you can run apart from word of mouth, which is, of course, the number one free marketing tool.
If you have 1000 people on your mailing list, it doesn’t cost you anything to drop them an email advising them of a new product or promotion.
On the other hand, if you have 1000 followers on social media and want to send a message to them by posting an update on your feed.
The likelihood is that only about 30 people will see your update if you’re lucky, as the social media algorithm determines this, not how many followers you have.
The open rates on email communication campaigns are around 15-25%. This means you are reaching 5 to 8 times the amount of people you can reach on social media. Unless you have crazy high direct engagement rates, which are pretty uncommon on social media these days.
Second shot to send emails.
With an email campaign, you also get a second chance to send emails to people who may have missed your email the first time around, giving you another bite of the cherry to generate new business.
All of this data can be tracked using online apps like Mailchimp. But there are many other apps like this now, so find the one you like.
When you get a decent-sized email list, your business will grow along with it, so start your email list now.
Even if you don’t plan to send out updates just yet, starting a mailing list for your business is never too early and is the key to generating new business.
2. Get to know your market better than your competitors.
One of my top tips for generating new business is knowing who you are selling to. That way, you can create a better product or service to cater to your customer’s needs. The company that knows its customers best is usually the most successful in its industry. Why?
Well, if you know what your paying customer wants, then you can tailor your product or service to meet their needs. And if you are meeting your customer’s needs, they will want to come back to your business over and over again. Who doesn’t want that?
There is no place in the market today for companies who don’t put extra effort in with their prospective customers.
When you deliver a product or service, try to include something they were not expecting. It doesn’t have to cost a lot. It’s just the thought to make them feel valued as a customer.
For example, for one of my e-commerce companies, I include a handwritten note to every customer to thank them for buying from us. It’s a little, but it makes the customer feel valued.
I am grateful for everyone who chooses to spend their hard-earned money with my businesses, so it’s my way of saying thank you.
Sometimes, I give a little freebie of one of our small add-ons when the customer doesn’t expect it.
Just think about that experience; when you have ordered something, and you have a handwritten note from the founder personally addressed to you and another little gift in the package you weren’t expecting, imagine how that would make you feel and how you would think about that company.
It’s just little things like that that help spread word of mouth about your business, get great reviews, attract more customers, and help you keep the ones you already have.
3. Try a subscription-based service for your business.
This is the business model of 2022 and beyond, subscription-based businesses or reoccurring revenue-based business models.
These are powerful, as once someone subscribes to your product or service on a subscription-based method. They will inevitably buy more from you than they normally would.
Why is that? Well, it’s the buying barrier flipped on its head. Normally a person would have to make an effort to purchase a product eventually.
All of the friction for the sale is in the buying process, and now with a subscription-based business model, the friction is in canceling your product or service subscription.
Once they are subscribed, they would have to go through a process to cancel the subscription, cancel the direct debit at the bank, etc., and people just don’t do it. They forget about it and keep the subscription going.
Many businesses offer a 30-day free trial, as they know you will probably not remember to cancel the subscription. Millions of pounds are generated from customers on subscription-based services who don’t even use the product or service.
Netflix, Disney +, and Apple music are great examples of subscription-based services.
These companies have this reoccurring revenue stream every month, which is great for them as they have predictable income each month, we personally never watch Disney + but haven’t canceled it. Perhaps I should do :/
Create a product that people use regularly.
If you have a product or service that people use regularly and run out after a period of time, for example, some skin lotion, consider this subscription-based model, or if you have a service that you keep adding to every month and people use regularly, then consider the subscription-based model.
It’s easier to keep hold of an existing customer than to find a new one, so if you can keep that existing customer coming back, your business will keep growing as you generate new business.
So think about the subscription-based model. If your product or service can be adapted into this model, it will greatly impact your sales.
4. Diversify the markets you serve.
Another one of my top tips for generating new business is if you can’t sell any more products in your market or the sales are starting to level out, then look at diversifying your markets to access more customers.
Can you modify or adapt your product or service to appeal to a different customer, industry, or even a different country?
There are many different markets to serve, and pivoting on this may make a huge difference to your small businesses and allow you to generate more business.
For example, if you own a gym. You have your gym memberships which people are paying for, but can you sell them supplements in the reception as they walk in, for example?
Could you offer everyone who walks in to train a pre-workout drink?
Or could you start serving food so that as people leave and are craving their post-workout meal, you have a set menu tailored for different goals so that they can be served quickly?
Could you add a massage or sports therapy room to your gym to capitalize on the customers you already have to diversify and increase revenue?
A gym is a great example of this method to increase revenue because a gym can get full, then your revenue is capped as you can’t physically have any more members, so think of ways to offer bolt-on products so you can generate more revenue.
A case study for generating new business.
Let’s say your gym can have 100 members for easy numbers. You are charging $40 a month for membership, so that is $4000 a month in membership fees.
Now, what if you started selling supplements, let’s say, a pre-workout shake before they train, which sells for $5 a drink?
Let’s say you have a low take-up rate of 5% of your members, that is, five people, the kind of people who would be interested in this probably work out at least four times a week. So say 17 times a month per person, which would be 17 multiplied by $5 = $85
Multiply that by the five people = $425
This is about a 10% increase in revenue, which isn’t bad, considering those are conservative numbers. So, you can see how a little shift to a different market and a bolt-on product can greatly impact your revenue.
This can be combined with other things or bundled into a subscription service, as we mentioned earlier .. .Your gym subscription and supplement subscription in one, perhaps?
I used to own a social media agency, I can speak from experience on this one that using social media advertising is a great way to get your voice heard for a relatively low cost.
Each social network has its own policies about what kind of content is acceptable and how much money you can spend on an ad campaign — so make sure you understand all of the rules before spending any money!
Advertising on sites such as Facebook, Instagram, YouTube, etc., has moved on in the past few years, and it really is the future of advertising.
People are spending so much time on these social media sites. The social media giants know our interests and buying habits, so they can actually target the advertising to the things we like and want.
They have so much data on us that they know when you are looking to buy and what you are looking to buy.
So they can serve you with an ad for the product you want at a time when you want it. The advertising holy grail. Advertising costs can start at as little as $2 a day and have no upper limit.
Connect with influencers.
Connect with influencers in your field. Influencers have large followings on social media and often use them to promote products or services from brands that they like. If they recommend something, their followers will often trust them enough to buy it too! Connecting with these influencers is a proven way to get more exposure for your business and brand and will help you push sales up quickly.
Targeting can be so specific that you can get down to the exact customer you want to sell to. Let’s say you sell dog products, one example. Well, the only people you want to advertise to are our dog owners, right?
Well, using Facebook advertising, you can do that if you only want to target female dog owners. For example, well, you can do that too.
This means you can target your advertising dollars with a laser-like focus to maximize your return on ad spend, as you are not wasting money advertising to people who aren’t your target customers.
I will write an article on social media marketing channels in the future; if you want to see that, let me know in the comments.
Find targets for new business.
There are a vast number of ways to find potential customers for more lead generation processes, but some methods work better than others. The following are some of the best ways for you to find new clients:
Personal contacts are a great way to get started with your small business. You may already have contacts in your social circle who are interested in your product or service.
Talk to them about what you do and see if they would be willing to refer you to others who may be interested in what your business has to offer.
Social media is another great way to find potential new customers.
Many businesses use social media sites like Facebook and Twitter as their primary marketing free tool because they allow you to reach so many people with just one post!
In addition, the best time for social media advertising is usually when people are online: early morning, lunchtime, and late evening.
These are also when most people are looking for new things on their newsfeeds, so it’s best not to try and sell them anything at these times, just make them aware of what you offer but avoid the hard sell!
Online advertising can be expensive but effective at getting your message out there. You can target an audience with different ads and see how well they work before deciding whether or not they buy.
6. Ask for and build reviews for your business.
In a world full of noise and advertising, It’s estimated that the average person sees 4000-10,000 advertisements per day. Every day, you are exposed to people trying to get you to buy this or that.
So, with people having so many choices, the best way to create more visibility for your great product or service is to ask for reviews.
Sites such as Trustpilot or Trip Advisor and even Amazon reviews provide feedback to new customers about other people’s experience using your product or service.
Before buying products or services, they will often look to review sites to get a feel for other people’s feedback on the products and services they are looking for before making a buying decision. So, ask people who compliment your product to leave you an honest review.
You need to be confident in your product or service to ask for a review as you don’t want to ask for reviews if your product is bad or that will amplify your bad name, which will be the fastest way to a failing business.
Make a great product, provide a great service, ask for customer reviews, rinse and repeat, and before you know it, more sales will flood in and this will have you generating new business in no time at all.
Frequently Asked Questions About Generating New Business
What are some effective strategies for generating new business?
Practical strategies for generating new business include digital marketing, networking, referrals, content marketing, social media engagement, cold outreach, and offering promotions or incentives.
How can I identify potential leads for my business?
Identifying potential leads involves understanding your target market and ideal customer profile. This may include demographic research, market analysis, and lead generation tools and techniques.
Is it better to focus on acquiring new customers or retaining existing ones?
Both acquiring new customers and retaining existing ones are important for a balanced business strategy. While acquiring new customers expands your reach, maintaining existing customers ensures a stable revenue stream and can lead to referrals.
How can I effectively communicate the value of my products or services to potential customers?
Clearly articulating the unique benefits and value proposition of your products or services is essential. This can be done through compelling marketing messages, customer testimonials, case studies, and demonstrating how your offerings solve specific problems.
Should I invest in advertising and paid marketing channels to generate new business?
Depending on your industry and target audience, investing in advertising and paid marketing channels can be an effective way to reach a larger audience quickly. However, it’s important to track ROI and adjust strategies as needed.
How can I measure the effectiveness of my efforts in generating new business?
Key performance indicators (KPIs) like conversion rates, customer acquisition cost (CAC), customer lifetime value (CLV), and return on investment (ROI) can help measure the effectiveness of your new business generation efforts.
Final Thoughts About Generating New Business
The above advice is just a starting point. If you put these top tips for generating new business into practice, they’ll benefit you in the short and long term. Whether or not you find new prospective clients will largely depend on your industry and the competitiveness of your area.
Nevertheless, if you put these tips into action, you should see better results than you would if you had not implemented them to generate new business. You’ve got nothing to lose by trying these tips out!