While to some people it may seem like it would take a long time to increase profits by 33%, the reality is... it's really simple. In the last video I talked about the 3 ways to grow your business (click here for that video). This video focuses more on the actual math of what it would look like to increase these areas in a real business.
We know that we have 3 focus areas. That in order to increase profits we need to increase one of the following areas (at least):
If you focus on a 10% increase in each of these areas, you will increase your profits very quickly. Instead of just talk, let's look at an example:
Let's say you started off with 100 clients, and they bought once from you (your transaction per client), and your product/service cost $100. So we now have our starting point for your business.
Now, let's pretend this is your business. If we want to increase profits the easiest way is to focus on a small increase (10%) in each of these areas. Before doing that, let's assume that the above is a per month figure. Now, how much does the business make per month?
100 customers multiplied by the value per transaction ($100), then multiplied by the transactions per customer (1) : $10,000
What do these numbers look like if we increase each area by 10 percent?
It's the same equation to figure out our new monthly revenue right? 110 customers x $110 value per transaction ($12,100) Then multiplied by 1.1 (average transactions per client) = $13,310
This is roughly a 33% increase in your profits. From $10,000 per month, to $13,310 per month. All of this without any major change to your business.
Start by writing down your current numbers for each of the above areas. Know exactly where you're at now. If it's not where you want it to be, that's fine... because we're going to change it.
Now write down 3 ways that you could grow each of these areas and increase your profits. Don't skip this!
Next, make one of the 3 areas your focus each week or month. Gauge activities you're doing in your business by asking yourself "Am I increasing profits and focusing on what to do to grow my business?". If you deal with marketing and ads for a larger business, it is just as important to focus on.
If you'd like to get a free business coaching session with me on how to increase your profits it's a simple process. Click the button below and we will schedule a time to talk and I help you come up with a plan to grow your business between 33%-250%.
If you like the plan and want my help implementing it, then we can talk about you becoming a client. If you'd rather implement the plan yourself, no worries! I won't hassle you.
Consulting with businesses for 10 years, with focus on business growth, sales, and marketing. Implementing and/or improving sales funnels, marketing, and ad campaigns; as well as other organization activities. After studying human behavior for years, sales funnels became more effective, but really found a passion for helping people in all areas of life. Trusted business adviser, and leadership coach, to really get business owners to the next level.