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The Three P’s of Profitability

In business, we tend to do what we have always done. You are probably like many business owners, you want to know how you can increase the profits of your business without having to make too many changes. What can you do with the tools and resources that you already have?

You can double your profits and it doesn’t take a lot of effort.

Here are 3 ways that you can increase profits:

Pricing

People

Purchasing

Let’s start with Pricing. Have you changed your pricing recently? Many businesses have a fear of losing customers or clients when they raise their price. What will they do if I raise the price?

I like to describe fear as False Expectations Appearing Real (F.E.A.R.).

By raising the price just 2.5% it can have a dramatic effect in your business profitability.

Let’s take an example of a business that has the following income and profits:
Income   $ 2,500,000
Profits         $ 300,000
Increase average price by 2.5%
Income    $ […]

How to Use the Profit First Method – Part 2

The purpose of this post is to help business owners get control of their business. This is a straightforward (simple but not easy) explanation of how this method works.

In Part 1 we revealed the idea about looking at your business financials differently. This totally turns how you look at your income statement (P&L) on its head. Here is Part 1.

It ties back to how we look at the game of business – the old business class equation is:
Sales – Expenses = Profits
Using this approach, this mindset means that Profits are what is left over…but human nature drives us to spend what is in front of us, therefore Expenses end up cancelling out Sales, often leaving us with NO Profits.

What if you were to change the equation?
Sales – Profits = Expenses
How do you escape the Survival Trap?

This method is basically the idea of using smaller plates for your business. You are tricking yourself that you […]

How to Use the Profit First Method – Part 1

The purpose of this post is to help business owners get control of their business. This is a straightforward (simple but not easy) explanation of why many business owners struggle with revenue, profit and how to really make money over time.
“Many small businesses, medium businesses, and even some big ones are barely surviving. The guy driving the new Tesla, whose children go to private school via chauffeur and who lives in a massive house and runs a three million-dollar company, is one bad month from declaring bankruptcy. I should know; he’s my neighbor.”
“Today is the day you make your business (and your life in the process) financially strong. Permanently.”
Pretty much every business owner is interested in growing their business. There is an inherent belief that Bigger is Better and if things are tight on the financial side, you can grow your way out of it. Revenue solves a lot of problems. Unfortunately, revenue also […]

Two Ways to Increasing Profits

As the year is approaching the mid way point, many companies are thinking about and planning ways to increase profits in the 2nd half of the year.  If growing your profits is important to you, then this article was written for you!

In this article, I will ask you a series of powerful questions.  These questions are centered on the most basic (and most significant) profit-drivers for a business.  Specifically, the questions will address:

Reducing Costs
Increasing Efficiencies

In answering these questions, it is likely you will get several ideas on how you can grow your profitability in coming year.  Remember, growing profits does not necessarily mean that you have to work harder.  Sometimes, we just need to work smarter.

Here are the powerful questions in each of those areas for you to consider and answer truthfully:

Reducing Costs

The cost of labor is usually one of the largest expenses in many businesses. Having a team of […]

What Does Relationship Marketing have to Do with Business?

There are many definitions for Relationship Marketing. Here is one that I found:
“Relationship marketing is a strategy designed to foster customer loyalty, interaction, and long-term engagement. It is designed to develop strong connections with customers or clients by providing them with information directly suited to their needs and interests and by promoting open communication.”

While I can agree with the above it leaves out one very important word. It kind of implies the word somewhat but does not include the actual word and it should for this word cuts right to the heart of the term itself and to the word “relationship.”

The word I am referring to is “emotion.”

The word emotion speaks to that place where few businesses and brands spend time. For just as in any relationship in life, touching on human emotions, preferably the positive emotions, is the key to any happy, healthy, and long-term relationship. How do others feel when they hear your […]

Six Social Media Metrics for Businesses to Track

You need to develop a presence on social media to help you grow your
business and form that all-important relationship with your customers or clients. How do you know if you are using the right medium? Is it even working, at all? What are the social media metrics you should be watching to ensure your company is headed down the right path? Is there any way to find out?

As a matter of fact, there sure is.

The truth is tracking social media doesn’t have to be any more difficult than tracking your other marketing campaigns, you just have to know what to look for. If you are just getting started, below are six metrics worth watching to help you determine how social media is working for your business.

1. Increased awareness/mentions

For many business owners, this is how they will
begin tracking social media because it is an easy way to get started, especially as building awareness is one […]

A Networking Idea That Will Increase Business

Start referring your contacts to other professionals and watch your business grow.

When I was just starting my consulting business in 2004, I knew that I wanted networking and referral marketing to be a major part of my marketing strategy. One of the biggest questions I had in mind at the time was, “How do I find the right people and how do I generate referrals for them?”

I have joined a network of local businesses after I was referred to a meeting by another business person in the area. I also have acquired other contacts in the Business and Information Technology arena over the years. I’d like to share with you just one of the techniques I heard someone else use that had a huge impact on their ability to provide quality referrals to others.

Do you want to be the person others come to if they need a referral for anything–the “Go-To Person.”? A person […]

Create Your Own Referral Sales Force

Surround yourself with a network of competent professionals and add more value to your client relationships. Joining referral networks like BNI or local chamber groups can be a great way to help you network and generate referrals. The most powerful way to use this strategy, however, is to grow your own.

Almost any business can benefit from having a group of trusted providers effectively marketing your business like a referral sales force. When you build your own private referral network your business benefits in two very powerful ways: you experience an increase in leads and you have additional resource to bring to your client relationships. In some cases, this second benefit may produce the greatest long-term impact of this approach.
How to build it
The key to building your own referral network is to focus on developing relationships with businesses you can believe in thoroughly. I would suggest that the first consideration should always be – what […]

What Does Your Sales System look like?

Are you a business owner or sales manager with outside salespeople? Are you frustrated with the poor results those salespeople have been getting or their lackluster performance?
Do your salespeople have a sales system to follow?
Once you have a sales system is in place and your sales team is trained, they need activity goals.  Remember, the ultimate goal is to “make sales” and “increase revenue,” thereby, increasing profits.  But there is the “sales cycle” that needs to be addressed.  The sales cycle is the average amount of time it takes to move someone from being a prospect to becoming a paying customer or client.

If you are selling office supplies, for example, the sales cycle may be very short.  Since many of your prospects order office supplies periodically, you have an opportunity more frequently to get their business.

But other industries may have much longer sales cycles.  For example, if you sell computer systems to manufacturers, they […]

How to Improve Your Sales Performance

Are you a business owner or sales manager with outside salespeople?

Are you frustrated with the poor results those salespeople have been getting or
their lackluster performance?

Do your salespeople always seem busy but their results are disappointing?  Whenever you confront them on their lack of new sales, they do a wonderful job of “selling you” on the fact that they have some great prospects on the fence that is about to close!  So you wait.  And you wait some more while they stay busy looking like they are really, really busy.  A few months go by, and then you confront them again. What do they say?  The same exact thing they said the last time and the cycle continues.  And you wait again.  Does this sound familiar? It does to me.

You are NOT alone! They can be like a hummingbird, fluttering from one juicy lead to another without ever landing a new sale.

When I had sales […]

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