Do You Want A Fast Easy Way To Increase Your Business Profits?
The principle that I share here has helped thousands of our clients quickly and easily increase their bottom line profits by following a mechanical process.
In Business there are 7 Key Profit drivers that determine the sales in your business.
Each one has a big impact on your results in business, but when compounded the results are simply amazing in terms of improving the profits in your business.
As business consultants these 7 Key areas are one of the first things we focus on to get fast results for our clients.
The 7 Key Profit Drivers
Here are the 7 areas that you want to improve.
- Lead Generation
- Sales Conversion
- Average Dollar Sale
- Frequency of a purchase per year
- Profit Margin
- Lifetime Value of a client
It is important that before you look at increasing your sales you must take a contrarian approach.
Follow this simple three step check list
- Do I have a reasonable profit margin on the product or service I provide?
- Have I optimised my sales conversion system so that I have the highest chance of conversting my leads?
- Now I can create a reliable, predictable, cost effective lead generation system to grow my company.
When clients come to me in my role as a business consultant most of them want me to generate more sales and leads for them.
However, if you are not making good profits on your projects, products or services, through being efficient, there is a good chance that generating more leads or sales will just make you go broke faster.
CASE STUDY – BUSINESS TURNAROUND
I remember a great client of mine, many years ago called Peter, that had a painting company that was turning over millions of dollars a year working for one of the largest project home builders in Australia.
He rang me and asked me to urgently come to his office because they were losing money big league!
When I arrived, as usual I follow my mechanical business consulting system of firstly making sure that they are running a profitable organisation, and to my surprise, even though they had a turnover of well over $10,000,000.00 as I looked at the job cards, I discovered that the project home job cards were actually losing money.
In fact, his biggest cause of the losses he was making was because of his largest client, the project home builder.
Please understand, when I arrived to help this client, his belief was that I would help him generate more sales, and increase his turnover but as you can see, if I had done that before addressing the core issues, he would have gone bankrupt within about 3-4 mths.
So, I did the only thing I could. I told him the truth.
“Peter”, I said, “After looking at your job cards it is obvious that you are losing money on your project homes because of your pricing and the large call backs to fix up shoddy work.”
You need to act with urgency and meet the builders and tell them you need to increase your prices or you cannot work for them any more.”
That advice went down like a lead balloon, as the builder was worth half of the turnover of the company.
Peter went red in the face and quite understandably went off at me at first until his wife helped him calm down and accept the reality of the situation.
I explained to Peter that when he had three choices,
- Do nothing and go bankrupt in 4 mths.
- Talk to the builder and they agree to pay the higher prices and you make a profit
- Talk to the builder and they do not agree to pay higher prices and you cease doing any new work immediately.
Then I said “But Peter, There is good news! The profitability on your private jobs is fantastic, so we will create a marketing strategy to generate more of that work for you.
Peter spoke to the builders, they refused to pay him the extra money, he ceased doing new work immediately.
I created a marketing campaign to focus on the private jobs.
His profitability went through the roof even though his turnover halved.
He had less stress because he could control the quality of the work.
AND FOUR MONTHS LATER THE BUILDER RANG HIM BACK AND AGREED TO PAY THE HIGHER PRICES.
(I did tell him there was a strong possibility of this occurring)
The way I helped Peter quickly improve his profits was focusing on just three of the 7 Profit Drivers.
- I improved his lead generation systems by creating an effective SEO strategy to get him on page 1 and designed a monthly geographical flyer.
- I improved his conversions by providing sales training to him and his team, and building a sales system to deliver predictable results.
- I increased his profit margins be getting him to get better pricing from his suppliers and by putting his retail prices up by 10%
In finishing, I would like you to remember that your Turnover is your EGO .
It is all about your bottom line profits, not your high turnover, that creates a strong business.
If you would like to know more about how to learn these skills and become a Highly Paid In Demand Business Consultant then watch the discovery webinar I created below and fill out the application form that you will see in the webinar.
“How to be a Highly Paid In Demand Six or Seven Figure Business Consultant!”
Click the button below.
Or If you would like help improving your business then fill in the application form below for a Discovery call call with Ian and let’s see if and how we can help you improve the results in your company.