Strategy

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 […]

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 […]

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 […]

Your Discovery Session Agenda

Your Agenda for your Discovery Session could be something totally different from mine. You need to discover what works for you. I personally provide a FREE 90-minute session with prospective clients. I do this with no stipulations (no obligations and no expectations).

During the session I don’t just tell them about coaching, I coach them. I don’t tell them what coaching is, I give them a coaching experience.

The agenda I set for this meeting is to:
1. Gain clarity
Help you gain clarity on the most significant ideas (issue to be solved or opportunity to be met) that can have the most favorable impact on your business. You get focus on what needs to be addressed. By asking powerful questions that help you to uncover what you truly want to see happen. How important is it to you?

2. Strategize

Help you determine the possible strategies to achieve the objective and then to determine the single top-priority strategy […]

How to have an Effective Strategy Session

What is the Purpose of the Strategy Session that leads to a selling conversation? I like to call our session a Discovery Session as we both discover if it will work for both of our businesses. The purpose of the session is to learn more about your prospect’s business.

You will ask specific questions of your prospect like the following:

Where do you want it to go and what has prevented you from getting there?
What is the Prospect’s Situation – Past and Present
Why did you get into this business?
Where would you like the business to be?
What would your ideal business look like?

Objectives or Desired Outcomes
What would you like to change in the next 12 months?
If we achieved that goal, what would you do next?
How important is it to you?
Impact of Reaching Those Objectives
What could get in the way of achieving this objective in the next 12 months?
Is there anything that might slow you down like?

a) […]

Before Marketing Tactics Answer Three Questions

Most business owners think of marketing and immediately they think email, blog copy, social media like Facebook or LinkedIn, and promotions you know, tactics. What the heck, most marketers do the same thing.

I like to suggest that none of the tactics matter until you are crystal clear about a number of things. You need to have a strategy before tactics, which is the simple road to success.

Now, don’t get me wrong, I am all about systematically and consistently rolling out tactics, but only those that support a strategy that you can commit to. Once you have nailed the strategy and objectives part then you can confidently go to work on strategy with tactics, but you can’t have one before the other.

Are you putting the cart before the horse?

I will go as far as to say, however, a simple, maybe even common set of tactics in support of a powerful strategy and objectives beats a […]

How do you have a Marketing Conversation?

When you share a marketing message, you are not trying to say everything in one sentence. You are trying to get a reaction or response. And then you reply to that response.
What do you do?
“I’m in the outplacement business where we help displaced executives find new positions.”
Are you much like other outplacement companies?
“No, all the other outplacement firms use a psychological model that assume there is something wrong with you because you lost your job.
Instead, we use a marketing model to get the job seeker out there in a way that gets the most attention and interviews. We call our business Power Marketing – The Outplacement Alternative”.
Hmmm, that’s interesting. Do you have a card?
“Yes, of course. Please tell me about your business….”
– If someone wants to know more, tell a short story that ties into your differentiation.
“A displaced executive was working with a psychologically-based outplacement firm but wasn’t getting results. So he started working […]

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