There are 4 ways to grow your business.  They are:

1.      Increase the number of customers (of the type you want)

2.      Increase the transaction frequency

3.      Increase the transaction value or ‘average sale’

4.      Increase the effectiveness of each process in your business

Conversely, think about a strategy like ‘cutting costs’ – realistically that won’t grow your business unless you use the money you save to promote your business.  It may let you control your business better and return greater profits, but it won’t grow your business.

1. Increase the number of customers (of the type you want)

If you’re like most business owners your primary focus will be on the first way to grow your business – winning new customers.   Businesses may spend money on advertising, trade shows, and other expensive marketing tools.  Often there are other ways to win increased sales that don’t cost nearly as much and usually those strategies go untouched.

We can work with you to find other leveraged ways of winning new customers and show you how to improve the advertising you are doing.  And they’ll make sure you’re winning the right type of customer – someone who’s ‘qualified’ to buy from you!

2. Increase the transaction frequency

Increasing the ‘transaction frequency’ – or the number of times someone deals with you is an important step to increasing your profitability.

In fact, some scholars say this second way is the most important of all.  It’s a fancy definition of loyalty, or customer retention, which in and of itself is closely related to value.

3. To Increase the transaction value, or ‘average sale’

This is a “Blinding Flash of the Obvious’ or ‘BFO’! However, few businesses realize its importance (in fact, they do the exact opposite).

There are two fundamental ways to increase the average sale.  First, by ‘cross-selling’ or ‘up-selling’, both mean you encourage the customer to buy more.

The second way to increase the average sale is to raise your prices.  When you suggest “raise your prices” to the average business person they think you’re crazy.  But, when you sit with us, we can guide you through what’s called “The Margin Chart”.  It shows the direct relationship between 4 key variables in your business – price, volume, fixed costs and variable costs and you’ll be amazed at the possibilities.

4. Increase the effectiveness of each process in your business

The fourth way to grow your business is more of an all-encompassing strategy than the other 3 ways.  You see, increasing the effectiveness of the way you do business is central to everything - but so few people work at it.

Truth is that most people don’t see their businesses as a series of processes.  But that’s exactly what they are.  By increasing the effectiveness of each process, especially those that are critical to the success of your business, you can dramatically increase sales and profitability.

To learn more, ask us how you can apply the 4 ways to grow your business.

You may be aware about the New Form 990, which was modified recently requiring more information to be disclosed by nonprofit organizations.

So far, the changes affect only those mid-size to large Section 501(c)(3) public charities that are required to file a Form 990.  The changes do not affect private foundations, which are required to file the Form 990-PF.

Groups with less than $25,000 in gross receipts can file the new Form 990-N (also called the "e-postcard").

The Form 990 threshold is reduced over time. By 2010, every organization with assets over $500,000 and gross receipts over $200,000 must use the new Form 990.

Prior to 2008, the 990 tax return required financial information and a relatively small amount of other information.  The New 990 is filled with questions and supporting schedules revealing much more about an organization – and obviously, the form still asks for some financial information.

It’s now more like an annual report to constituents and contributors. Since it is public information, any Guidestar subscriber can get a copy of it.  Remember that the users of the Form 990 can be numerous, from state agencies to the IRS, donors and lenders, watchdog groups, the media, board members, employees, researchers and competitors. 

How about this opportunity – why not look at the Form 990 as a public relations piece?

You may want to use the Form 990 to “shout your message from the mountain tops”.

Services we provide to nonprofit organizations:

·        Bookkeeping

·        Outsourced accounting function

·        Financial reporting

·        Payroll services

·        Form 990 preparation

·        Nonprofit startup and accounting setup

·        Advisory services, including budgeting, projections, other business guidance

Call Steve Stravolo at (864) 587-1685 to get started.