In this series, I’m talking to you about the key areas I look at in a business to help me find the hidden money. Imagine those invisible piles of cash that are right under your nose – those untapped opportunities that can lead you to great wealth and prosperity.
The first area that I look at when it comes to looking for hidden money is current transactions.
Current Transactions – Where Money Changes Hands
What I mean by that is – where is money currently changing hands?
Always, always, always, the first place to look is where money is changing hands, because that’s clearly something that’s already working in the business. So the question I ask is, are there ways to optimise or improve how money changes hands?
So for example, let’s say that there are 10 transactions a day, each of a $100 a piece. So there’s $1,000 a day in revenue. Is there a way to turn that $100-transaction into a $200 transaction?
There could be lots of ways to do that. Here are a few ideas:
- Raise the prices
- Sell in bigger packages or bigger bundles
Look at the transactions that are currently happening in your business and look how you can make those transactions larger. If you can make those transactions larger somehow, it might be that you carry on with the $100 a day transaction, but you add an upsell; that means the average order value over the day increases.
You can start by looking at transactions where you can immediately make the volume or the size of the transactions bigger or both. And if you do both of them then you’re going to grow sales exponentially. Right there there’s hidden money in your business.
Take Action to Find Your Hidden Money
Look at what transactions are currently happening in your business…
- Are there people you are doing business with on a regular basis?
- Can you get them to do business with you more frequently?
- Can you get them to increase the average order value?
You need to be creative about how you do this. This isn’t just about going up to existing customers and saying, “Hey, do you want to buy some more?”
You want to think about how you can add more value for them. You know the classic McDonald’s question? “Do you want fries with that?” increases the average order value – it increases the volume and the size of the transaction. It’s just one simple question and it’s just offering something extra.
So, this week I really want you to start to look at where money is currently changing hands in your business? And are there things that you could do to make money change hands more frequently, or to make money change hands in larger sums, or both even?
So that’s your homework from this article. Go and figure that out. Feel free to post your comments or questions in the boxes below. I’d love to help you out with this. I look forward to sharing more with you in part three of our Hidden Money in Your Business series.