The 3 Ways to Grow Business Revenues

As I am coming off of a typically slow blogging time in the summer, I thought I would go back to the basics to start September off.

So the subject for today is the three, and only, ways to grow the revenues of any business. Technology services most certainly included. And here they are:

#1 Get more clients
#2 Increase the frequency in which clients buy from you
#3 Increase transaction size





Pretty simple right? And it is to a point but I wanted to let you in on an alarming fact. Item #1, getting more clients, is the most popular amongst small business owners but it is also the hardest to do. Yes, believe it!

Once you have a client base, and one that works best for your business, meaning no worse than 80% being good to great clients and 20% being less than desirable, then looking at #2 and #3 are really your best bet.

You know this already but it truly is, as the statistics say, 6 to 8 times easier to sell more to someone that has already bought from you than to find and sell to a new client. This is why #1 is the toughest path to take.

So let’s first look at #2, increasing the frequency of purchase. As an example in an IT service provider world, the best way to do this is in switching clients to recurring revenue (i.e. any type of managed services) from break/fix to increase the frequency of purchase. It takes them from paying you inconsistently to paying you at regular intervals. This increases profit margins and it should certainly increase your productivity and efficiency allowing you to take on more clients without hiring new bodies to handle it, thus also increasing revenues.

But we still have one more area to go after. Item #3 is about increasing how much they are paying you in each transaction. This can be seen in two ways. It could mean finding ways to increase profit margins on things they are already paying you for by adding some more value that doesn’t really cost you more effort or becoming more efficient in delivering a service but charging the same price. The second way to utilize #3 is to add on services and products you can recommend that you, or a better idea a JV partner, can provide this client base which has already bought from you.

As another IT example, you sell a new client a BDR managed service deal, and then you bump them to also having you manage their network and then manage their print services, etc. Or you take an existing client and if the time is right for them, you recommend switching to VoIP and have a JV partner do that work with recurring revenue coming to you monthly. That revenue is pretty much all profit unless you’re giving out a commission to a sales person that made the recommendation.
Now that’s growing a business.

No matter what your industry or your business model, these are the 3 ways to look at growing the revenue your business generates. Increasing the bottom line is an entirely different story, but these are the basics concerning increasing your top line. So get on it.


To Your Business Success-

George Sierchio
The Consultant’s Coach

George Sierchio Honored in Third-Annual MSPmentor 250 Report

Just wanted to share a press release that recently went out. More importantly, I wanted to once again thank anyone I missed that has been a reader, listener and client to me. Your enthusiasm keeps me enjoying what I do in helping technical entrepreneurs build profitable and valuable businesses. And a special thanks to all that actually provided me a nomination/vote for the MSPmentor 250.

Release below:

George Sierchio, Expert Business Advisor Honored in Third-Annual
MSPmentor 250 Report

Global Report Identifies the World’s Top
Managed Services Executives, Entrepreneurs, Experts,
Coaches and Community Leaders

Parsippany, NJ (For Immediate Release) – George Sierchio, Principal Business Advisor, Action Business Partners, Inc. has landed on Nine Lives Media Inc.’s third-annual MSPmentor 250, a global report that identifies the world’s leading IT managed services executives, entrepreneurs, experts, coaches and community leaders.

The complete report is available now at:
• http://www.MSPmentor.net/top-250-people

“I’ve been advising company owners for seven years and have 17 years in total experience as an entrepreneur, but this is the most dynamic time I’ve ever seen to be a technology solution provider,” said George Sierchio of Action Business Partners, Inc. “It’s a pleasure to help those looking to profitably provide their clients with the best solutions and services possible and an honor to be recognized for it.”

“MSPmentor congratulates George Sierchio and all of the experts identified within the MSPmentor 250 report,” said Amy Katz, CEO of Nine Lives Media Inc. “We hope the MSPmentor 250 serves as a global Rolodex that allows MSP industry leaders to quickly network with one another.”

The third-annual MSPmentor 250 report is based on a global survey of MSPmentor readers, conducted from May through July 23, 2010. The resulting report represents MSP experts in North America, Europe, Australia and emerging managed services markets across the globe.

MSPmentor and its readership are uniquely positioned to identify the world’s top managed services experts. Ranked among the world’s top 100,000 Web sites according to Alexa.com, MSPmentor is the world’s leading managed services blog and community – and the ultimate guide to managed services.

About Nine Lives Media Inc.

Nine Lives Media Inc. (www.ninelivesmediainc.com) defines emerging IT media markets and disrupts established IT media markets. The company’s first five web sites (www.MSPmentor.net, www.MSPtweet.com, www.TheVARguy.com, www.VARtweet.com and www.WorksWithU.com) are the leading blogs and destinations for their respective industries.

About Action Business Partners, Inc.

Action Business Partners, Inc. is a business advisory and coaching firm specializing in helping small to medium technology consulting and service providers around the world maximize profitability and build business value. Since 2003, George Sierchio and his company have advised thousands of businesses through seminars, books, article publications, and hands-on advice. Many clients see a 50% or more increase in revenue and most achieve a 20% plus increase in profits in as little as a few months. For more information on this business as well as George Sierchio, visit consultantscoach.com

When Too Many Choices Leads to No Decision

I thought today I would write about a topic that baffles many, but when explained really makes sense.

I run into so many people including clients, potential clients or those that want to just ask “one quick question” that do not understand why their abundance of service/product offerings doesn’t make things easier for marketing and sales to work well.

The notion that’s not getting through to them is that offering up too much, at one time, actually hurts their business. How can that be?




Let me give you an example laid out nicely by Robert Cialdini and his co-authors of Yes! 50 Scientifically Proven Ways to Be Persuasive. In this research study they set up a table at a market selling a variety of jam. They changed the flavors throughout the experiment but the key was that during each time frame studied they either displayed 6 or 24 different kinds of jam. They wanted to see if a larger variety attracted more people.

As it turned out, no matter what the variety of flavors displayed, in total 3% of the people visiting the 24 flavor table bought something and 30% visiting the 6 flavor table bought something.

Those are very telling experimental results. Especially since the test was comparing a product that pretty much everyone is familiar with and probably has some kind of favorite flavors to begin with. Now apply that to a company supplying technical know-how, products and services and imagine the confusion that ensues.

So am I saying that it’s a bad idea to have a large variety of things to offer? Absolutely not as long as they are all valid products/services that your typical client base can utilize for their benefit. In that case, the more the merrier (read as more money for you and happier clients).

What I am saying is that you have to control what you are putting in front of them and how you do it. We’re not talking jam here. These clients and prospects are coming to you because you have a knowledge base that they don’t have. So as long as they don’t feel you are taking advantage of their lack of knowledge in technical matters or talking over their heads, they are relying on your professional opinion to steer them in the right direction.

That’s why less is more in marketing and sales situations and why you need to know who you are talking to as well as why. To avoid too many choices from the get go, marketing should talk to a specific audience about a specific solution that you know they would benefit from. Sometimes they already know the benefit and are looking for a company like yours to help, and sometimes it’s your job to let them know what they are missing.

Think about the last time you inquired about something that was outside your realm of knowledge. Did you receive material or talk to someone about that one specific thing you asked about or did they throw in a bunch of other things on top of it? If they did I’m sure you either didn’t want to deal with them anymore or just got fed up and gave up on something you were already willing to buy just because of the hassle. Your clients and potential clients are no different.

And of course there is nothing like your marketing getting you in a position for a sale and then you pull out a laundry list of options, drop it off on a potential client’s desk, email it or snail mail it to them and say “take a look and get back to me with your choice”. Sounds a bit odd to do this but it’s common practice. Meaning the big mistake of leaving them alone in the middle of a sales process, but also giving them a slew of options in which they don’t understand the subject to begin with.

Do you really think they are going be happy with any decision they make this way? The answer is no and that’s why they don’t call you back and go with somebody else. Don’t you think being face-to-face and saying “here are 3 options we have with subject XYZ we just discussed and based on what I’ve learned about your business, option 2 is the best bet for you but option 3 could work as well.” Or even show them 2 options and explain the difference of both and why you recommend one over the other based on their scenario. Sounds better and less confusing, right?

Here’s the bottom line… variety is the spice of life, but it will kill your business if you just throw it all out there and see what sticks instead of controlling the situation.

As usual leave any questions or comments below and thanks for reading the blog.


To Your Business Success-

George Sierchio
The Consultant’s Coach