As a marketing consultant, a lot of people call me desperately searching for ways to either continue growth in their business or to stop the haemorrhaging of cash due to losses incurred as a result of falling sales.

Ironically, all of these people are searching for seemingly complex solutions, as if only the Harry Potter of marketing can solve their problems.

The truth is, the answers are generally very simple. However, first you need to stop running around, take a seat, a deep breath and give yourself permission to think!

First of all let’s run through a few questions to prompt you to look at your business from a fresh perspective.

Let’s begin with your lead generation system. After all, it’s the starting point to the creation of a customer.

1)      How many lead generation systems are you currently running?

2)      Out of all of these systems, which one, if any, is performing best, and which is performing worst. Obtain the numbers for each system for the last 3-6 months (assuming you monitor results) and then plot the numbers so you can analyse for trends.

3)      When you have the data, let’s find out how much resource you invest every month in terms of money (advertising/marketing costs), and time (human capital). Now map out the costs versus return on capital (profit from new customers) for each lead generation system.

In a nutshell, this tells you what’s working and which system needs fixing

4)      For the loss-making lead generation systems, take a closer look at the data and see if you can find a time when it made a profit. What changed to change it from profit to loss-making?

Note: if the system has always been loss-making, then why have you continued to use it?

Before you make a rash decision here and cut this system from your marketing plan, there are some important questions to ask and more data to analyse.

With the loss-making systems, take a close look at the customers they have brought you. Do these customers still buy from you? If so, on average, how much profit per annum are they worth to you?

OK, before we go too deep here, let me explain why this information is critical

Let’s say that one of your lead generation systems is “losing” you £500 per month, and you only generate 10 new customers from this system.

When you analyse your records, you may find that 60% of your best customers were found through this system. And, these customers represent 90% of your profits.

This data now tells me that rather than cut the system from your marketing plan, you should be looking to optimise the system, with the aim of making it a profit centre and therefore attracting more of these better customers.

Whenever you spend time analysing your data, and asking the right questions, you place yourself in a strong position to make decisions.

You then need to look again at each system. You may find break-even systems generate the wrong type of customer. These are ones who are extremely demanding, command too much time from your team, don’t pay their bills on time and complain when they don’t get what they want their way.

Perhaps I’m being extreme, but it’s to make a point. In the above scenario, you are clearly attracting the wrong customer and there’s a huge possibility they are contributing to your losses.

OK, we’ve spent a lot of time on your lead generation system. You should have found it extremely useful, even if some of the examples bear no resemblance to your business. What I want to get across is that there are simple methods of analysing data to help you identify areas in your business that are either profit centres or loss making.

Sometimes we are too quick to give up on an idea or system. Before you even consider this option, optimise, innovate through testing to find a better way.

By the way, never make the mistake that you have to think of all the answers. Involve your team, your customers, suppliers, because it is critical you obtain solid, honest feedback and ideas. Some of the best ideas I’ve seen have resulted from team meetings. Asking good questions solicits a lot of good answers. Make sure you involve junior staff and new recruits too.

Many new products, services and problem solving ideas have sprung from a customer forum or team meeting. The lesson here is to listen well, take detailed notes and never be too quick to dismiss an idea. The idea may not be good in its current form, but it may contain a seed of greatness and need a tweak or two to reach its potential.

Quick tip. If at all possible make sure you sit in on the meeting and do not lead it. Set out an agenda or list of well-thought out questions and ask somebody in your team to lead. It’s good for their development.

So far in this article you’ve looked inwardly to a degree, by looking at your lead generation systems and your current offering.

What about looking outside your business?

I’ve talked about this before in other articles I’ve written.

Some of the greatest answers you will ever hear are generated by people like you running a business in a completely different industry.

So, why not arrange a meeting with other business owners/directors in your locality. In other words, create a Mastermind Group. They are incredibly powerful and most of the top business owners or performers belong to some type of Mastermind Group. In the great business book Think and Grow Rich, by Napoleon Hill, the author explains the power of the Mastermind Group in more detail. Buy and copy and read it.

At these meetings, create an agenda to discuss problems and challenges. Probe the other business owners to ascertain how they solved certain problems. You may find a sequence that will enable you to copy and get a successful result.

Chances are you can also help them too – a win-win scenario is always best. I’m sure, during your time in business you have figured out solutions to all kinds of problems. Well, doesn’t this give you a degree of expertise in those areas of business? I believe it does.

And, by helping others solve these same problems, you are giving back to those who helped you solve your problems. Isn’t that exciting and worth a try?

So what are you waiting for? Action is the key and I’ve given you a lot to think about and more importantly, do here.

Why not write to me and let me know how this article has helped you?

If you’re still stuck and need help, then get in touch and we’ll get to work on your business problems together.