If you’ve ever wondered the secret to making more money and growing a business, there are three indisputable ways to do it. To illustrate these three ways, here’s what I do every time I go into a money-making establishment:
Let’s say my wife and I go to see a movie at the theaters. Immediately upon walking through the door, I ask myself, “How does this place make money?”
From there, I’ll count everything — how much a ticket costs, the number of seats in the theater, and certainly the cost of the popcorn, drinks, and candy.
From there, I start to think about the number of showings one movie does daily, the overall value of the full theater, and soon enough, I’ll begin to realize that one movie theater could be bringing in anywhere between $10,000 and $20,000 per day.
I repeat this same process with coffee shops, restaurants, shopping malls, and any other place of business — and the most important thing that I is ask myself:
“How would I compete with this business?”
Once you understand the value of questioning how you could do better than any other establishment, you’ll come to the three indisputable ways to make money:
1. Bring in more customers.
How can you expect to make money if no one is persuaded to spend money on your business? Make your business an attractive place to people who can make it successful.
2. Get those customers to spend more money.
Let’s say you do have customers who come to your business and spend their money — that’s great. But if you can get them to spend more — every single one of them — you’ll make more. Upsell them on anything and everything and find more ways to bring in additional revenue.
3. Increase the lifetime value of your customers.
One of the keys to a successful business is having customers and clients every week, month, or however often they need to come in order for them to be considered loyal customers. How can you get them to come back to your business time and time again and continue spending that money each time?
I encourage you to think about these things often and never stop considering how your business can be more profitable over time. That’s the mindset of an entrepreneur.