Bangalore: You were triggered with this thought of converting your passion into profits. And you shifted from being a employee to a full time entreprneur. A lot of time and resource goes into building your business. For those who already have a business, it is clear you are undergoing business process. The question is whether your business is able to become a money machine for you? Do you benefit from the business you run? A good business is one where the business results received outweigh the issued capital. If you figure what really works for your business, you can grow at an alarming rate. This has many names. People call it an achieving scale or a money machine.

Here are three ideas that will help you convert your business into a money machine.

Know Your Customer Lifetime Value

Customer lifetime value is the amount of profit a customer delivers to your company for as long as the customer is buying from you. It is the net present value of the profit you’ll earn from all of a customer’s purchases over time. With this you’ll know which customer segment delivers the most profit to your company and you can focus more marketing efforts toward that segment. Once you know how much each customer is worth to you, then you know with certainty how much you can spend to get a new customer.