Having an online business is a long-term investment and you want your long-term investments to work. This is where statistics come in. Business money management is an inextricable part of the financial stability of a business.
What you need to do first, is understand where your money is coming from and that means spending a lot of time with your bookkeeper and analyzing the figures. You need to understand which of your projects are generating money and what are the market’s common trends. This is crucial because you want to direct your energy in the right place.
Using bookkeeping software and a time-tracking device for your employees’ working hours are additional ways of cutting down on expenditures and maintaining your run rate.
These were the big picture numbers you probably knew already. But you need to go deeper. You need to understand where your audience is coming from, how a person finds you. It can be through one of your books, through your website, or at an event.
The best way to understand your audience is to track on a mass level the people that take your gifts or purchase something from you to find out if they are participating in the future because there is a massive difference between those people and someone who, say, took your gift and unsubscribed from your mailing list.
Now, not every person can be converted into a buyer, but there are people who although cannot afford to buy your product, will read your books and leave a good review, or will listen to your podcasts, and hang out with you long term. They are precious to have around because they also make your business grow.
Opt-in rates and conversion rates are also important later on the line. Opt-in rates show you the percentage of people that subscribe to your mailing list whereas conversion rates indicate the number of people that visited your website and made a purchasing or any other desired goal.
For example, if you better your opt-in rate by 1%, it will improve your product by 1% too, and the earlier you improve a certain number the more profitable it will be for your business.
On the other hand, to boost your conversion rate first, you need to make sure your traffic isn’t wrong. You want to attract the right people to your website because what is the use of trash traffic, right? That’s traffic that doesn’t convert.
However, if the right people are coming to your website, but your conversion rates are low, maybe your gift is wrong. You want to make sure your gift is adequate and that it appeals to a large audience. No one wants a free ebook on bad kissing because first of all, no one wants to admit they are a bad kisser. You need to create something universal, something that everybody will like.
Improving your traffic is a lengthy process and doesn’t happen overnight, but you can work on your opt-in and conversion rates and improve those numbers first.
It all comes down to looking at the stats and seeing which area of your business has the biggest impact and work on it first to maximize profits. It’s a matter of control and analysis. If you are not good with the stats yourself, getting a bookkeeper to guide you through the process is the best thing you can do for the growth and prosperity of your business.
- Understand where your money and audience are coming from
- Listen only to the voices that matter
- You don’t need trash traffic and gifts that don’t appeal to a large audience