Words: Aki Kalliatakis. This article appeared in the October/November 2014 issue of Your Business.

BIGGER picture = BIGGER profits

Most people are too busy making a living to make really big money. That’s why dedicated salary-earners stay wage slaves and why small-time entrepreneurs stay small-timers. This is particularly true for the owners of your average local coffee shop, bakery or restaurant. Don’t get me wrong, they are hard-working; they get up early and work late. But they get bogged down in daily operations. To make real profits you need to spend time thinking about the bigger picture.

Start by setting some time to develop a strategic plan for building your business. Essentially you’re looking for new (although solid and proven will work too) ideas to get more people through the door. It means analysing your competitors and understanding what they do well and you could do better. Here are 12 tips to get you started on some big-picture planning:

1. Start with what you’ve got

Existing customers give you your base. Don’t chase new business to such an extent that you chase away your core loyal customers. Once you know your customers, try to get to know them even better. Find ways to say ‘hello’ and initiate a friendly chat. Gather information on what they like and then give them what they want. Make them feel welcome and special. Remember their names. Ask about their kids (by name).

You can even keep a little notepad and pen behind the counter so you can make a few notes – like their kids’ names and favourite dishes. This sounds basic, but you can pay a fortune for research and not get pertinent and personal insights like this. Also, observe what your customers spend their time on when they’re in your shop.

2. Develop a mailing list

If you don’t have a mailing list, start building one today. Run a competition or promotion that requires customers to enter their details, including dates of birth. Even the most basic mailing list enables segmentation according to gender, age-range, and locality. If the street addresses come from far and wide, you’re pulling in the office crowd. If the streets are close by, you’re a hit with the locals.

The more you know your customers, the more specific your segmentation becomes. Get to know what they’re most interested in by segmenting the list to see which offers drive the best response. Add a personal touch. Send out a mailer that lets customers know they get a free cupcake on their birthday. Make contact with customers on your mailing list at least every 90 days.

3. Be convenient

Coffee is a convenient purchase. People don’t travel 10km for a coffee. They go to the coffee shop that’s closest. Consider how you can offer even greater convenience. Serve customers quickly by opening an express or cash-only till.

4. Be seductive

Make sure you’re always tempting your market with something new. Keep up with trends. For example, what can you offer your health-conscious customers, perhaps low-carb or organic options?

5. Bank on the bakery

Pre-baked, freshly delivered products and in-store bakeries are fast-growing segments in the food sector. Frozen dough has tapered off. Ensure you always provide your customers with natural and healthy bakery products (e.g. whole grains).

6. Social media

Entice your customers in by making your company accessible through social media. Let them know the latest happenings and keep them up-to-date on new promotions. Don’t sell all the time, though. Social media works best when it’s a mix of conversation, content, and promotion.

7. Stand in the customer’s shoes

Analyse the experience from the customer’s perspective. What would you want if you were a local or an office worker from across the street? Or, if you were a young professional or executive?

8. Be techno-friendly

If the business crowd comes in armed with tablets, laptops and smartphones, make sure they know you are ready to serve them… with free wi-fi as well as coffee and the latest menu offering. Put a big wi-fi sign in your window so people know. Do you have enough plug points so that customers can work from your shop?

9. Local is lekker

Engage with your community. Make a list of businesses in your area and introduce yourself. Drop off a flyer or a menu. Identify the wedding and event planners in your area and give them a special rate if they order from you. Find ways to network with these and other local businesses.

10. Add value

Don’t just offer value for money; look for little ways of adding something extra. Everyone loves it when they buy a dozen and the baker throws in an extra bagel. We all love freebies. Find a way to add value to your products by including bonuses that make the product even better.

11. Advertise

The cheapest form of advertising is helpful signage in your own shop, backed by informative word-of-mouth advertising from your staff. Put up a banner alerting customers to your top three sellers. Make choices simple. Tell customers what is popular. Ensure your signage and your people announce any product introductions. This is also an opportunity to up-sell.

12. Build service excellence into your business

Train your staff to be helpful, prompt, polite, and engaging. Always. Make sure they smile, they are smartly dressed, and have exceptional product knowledge on every item you sell. Be proactive. Praise and encourage staff who go the extra mile and deliver quality service. Encourage them to follow your example and remember the names and preferences of your regulars.

Don’t forget, you need to take time out to consider the big picture and do some strategic thinking. You can’t be at the counter or the customer’s table every minute of every day. And you have to be sure that when you’re not in the front line, your people are performing service miracles… that’s the only way to build a service business.