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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 […]

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) […]

What is your Exit Strategy?

John is in his early 60’s and we were talking because he was thinking about retiring and wanting to pass his business on to a person who used to be part of the business. It’s natural for business owners to want to pass the business to employees. The owner doesn’t want to business to just become extinct. He or she wants someone else to enjoy the same success that they have had.  Retirement, exit strategies and the succession of a business to others, all pose several issues that business owners need to think about.

Firstly, the valuation, how are you going to determine the value of your business? Even if you are simply selling the business, or in John’s case if you are passing the business onto others, have you determined what is the best method of setting that value? Are you going to determine the value based on multiples of total sales, profits, assets, […]

Four Ideas You Can Use To Motivate Yourself

Do you struggle with meeting deadlines?  Do you feel burnt out and tired all of the time? Do you put off tasks? These are some signs of being unmotivated. Below are four key ideas to help you to motivate yourself. When someone is motivated they are more on top of their priorities and in the end feel good about themselves and their work. Try these motivation tips to better yourself and your business.

1) Make time psychology work for you. If you have ever taken a time management course before, you have learned how to pack more into less. But have you ever noticed how difficult it is to leave a project incomplete? You can play on this psychology of completion by writing a to-do list before you go home at the end of the work day. Chances are if you don’t know exactly where to pick up where you left off, you’ll have to […]

Rallying Your Team

If you were to ask each person on your team, “What is our main goal?”, how many different answers do you think you would get? If the answer is, “more than one,” or, “we don’t have a main goal,” then you have a big opportunity in front of you to lead your team! Whenever a team of people is expected to work together in synchronicity and to give their best individual efforts toward “success,” then success needs to be clearly defined. Otherwise, each individual is forced to rely on his or her individual perception of what defines success.
What is success to you as a leader of the team?
If I were to ask you to define what success means to each of your individual team members, could you do it?  Not without guessing you couldn’t, unless, of course, they specifically told you how they define it.  They can’t possibly know how you define success unless you […]

Are you a Leader or a Leader Developer?

What is the difference between a leader and a leader developer? Is there a difference? You are a leader if you have people following you. Many leaders have the title but are they really leading or are they telling?

When a coworker comes to you with an issue and they are looking for some help, do you give them the answer and send them on their way? Do you listen to them describe the issue and quickly give them the solution? If so, what will they do the next time they have an issue? Will they come to you for the answer?

What if your solution doesn’t work out? Who is responsible for the outcome? Will they come back to you the next time they have an issue?

Are you helping them to find a solution to an issue? What if they make a mistake? What is their solution doesn’t work? Do you say that you would have done it differently […]

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