What are Quality Leads?
Potential customers are potential customers, right? Anyone who walks into your store or picks up the phone to call your business could be convinced to purchase from you, right? Not necessarily, but this is a common assumption most business owners make. Quality leads are the people who are most likely to buy your product or service. They are the qualified buyers who comprise your target market. Anyone might walk in off the street to browse a furniture store – regardless of whether or not they are in the market for a new couch. This lead is solely interested in browsing, and is not likely to be converted into a customer. A quality lead example would be someone looking for a new kitchen table, and who specifically drove to that same store because a friend had raved about the service they received. These are the kinds of leads business owners need to focus on.
Every business owner knows the importance of profitability in their business and they all want to have as high profits as possible. But what about growing value in a business? Business owners often do not think of the importance of growing value, which one day in the future can greatly impact a business and what the owner wants to do with that business.
Business owners who take the time to learn what specifically adds value to their business can receive a very positive result with multiple outcomes. By knowing what adds value and implementing specific activities to build value, owners will build more profit as well. So what are the ways to build value in a business?
One of the main ways to build a valuable business is for the owner to develop systems and processes that enable the business to become less and less dependent on the owner. We call this value driver the “hub and spoke” part of the business. Other ways are to be focused on growth in other areas of the business (new products/services to existing clients, expansion into new geographic areas) and setting up a system within the company’s accounts payable and receivables to generate more consistent cash flow. Also, a business should not be in the position to be overly dependent on a few customers, vendors, or even employees.
One newer method for creating value is to develop a recurring revenue model (think the “Automatic Customer”) in the business, and there are opportunities for doing so in every business. If a business owner wants to eventually sell or transfer his/her business for the most competitive and possibly highest amount possible, starting right away with building value within the business is crucial. And your bottom line and bank account will be thankful!
By Sandra Munier, Owner, EndGame By Design, LLC