I just increased your profit!
Simply by reading this post to its end will increase your profit. Undoubtedly you will recognise some of the comments and you might even resonate with most of them, particularly if you’re a small to medium sized business owner.
Regardless of why we are in business, unless we have a clear understanding of what needs to be done within the business, and prioritise each of the tasks, then the likely hood is that profits and cash flow will suffer, with serious trading consequences.
It’s alarming when addressing business owners, who when asked, if the sales people in the room would raise their hands, they look around whilst internally muttering, not me. For whatever reason, there is a reluctance to admit or an ignorance of understanding, whichever it is, I tell you now that you are a salesperson, and if not, you had better find or become one quickly.
The Niche in which you operate regardless of what it is, needs consumers to act, that action resulting in a financial transaction, otherwise it’s not a business. However we dress it up, consumers, users, clients, shoppers, purchaser, patron or buyers are all Customers and we are looking for them to complete a transaction. So, like it or not what you do is creating sales and therefore you’re as sales person or company.
The outcome of what we do is creating sales, the activity and understanding behind that outcome will determine the profitability of your business, it is for that reason I make that bold statement above, I just increased your profit.
Do You Know Your Numbers?
Knowing your numbers is vital in business but it’s not surprising that very few business owners, if they are honest, actually now their numbers, and it’s these numbers that make all the difference. If you focus on just a few of the today then I will have just increased your profit, let’s have a look..
- How many leads did your business generate last month?
- What was your sales conversion percentage?
- How many new customers?
- How many times did they buy?
- What was the average order value?
- What was your total revenue?
- What was your profit margin?
- What was your profit £s?
How many of the 8 questions do you have the exact figures for?
Those who don’t have the exact figures for ALL 8 are losing money and missing opportunities. Those who say something like “I don’t need these numbers, my accountant knows them” Well, what more needs saying! Have I just increased your profit?
Now ask yourself another couple of questions.
- How much did you spend on advertising/marketing last month?
- If you don’t know the answer to all 8 earlier questions, why did you spend anything?
The earlier questions are undoubtedly the easiest for most business owners to track, but surprisingly only around 10% of owners actually know these numbers and not just monthly, but weekly. There are another set of questions which surround the investment made to generate the initial lead, these have another set of metrics which ensure that any investment made in generating sales form part of a targeted marketing strategy.
Simply spending money without the knowledge of what’s happening in your business erodes the bottom line, burdens the business and puts pressure on cash flow.
Understanding your business numbers is all about tracking, education and process, once implemented these systems and processes will ensure that your decisions to invest are made based on sound information increasing your business profits and effectiveness.
More Leads | More Sales | More Profit
These are outcomes based on action and activity within your business, disciplines which form the base of a sound platform for growth, that’s why I believe, I just increased your profit.
Small changes can make a big difference, find out more by completing the form below and claim your free 60 minute telephone consultation.
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