Do you want to increase sales, improve profit, grow your business and create wealth? Let me outline my 5 step system to achieving massive growth in your business – no matter what business you are in.
Sadly, most business owners I have worked with are just so busy working to keep the wheels turning that they never make the money they deserve. Many struggle to draw commercial wages for their efforts; many never reach their profit potential, and most never sell their business for what it could really be worth.
My question to you is – are you making enough money right now? Do you know how to increase sales? Do you know how to improve profit? Do you even know how much profit your business is capable of making?
I think you will be amazed at how easy it is to increase sales and improve profit if you simply focus on what is important. In fact, let me cut to the chase and show you how easy it can be.
When I began coaching this manufacturing business, their profit model could be summarized as follows:
- 800 customers purchased product on average 6 times a year and spent on average $500 each time. This gave an annual sales turnover figure of $2,400,000.
- Their gross margin was 50% giving a gross profit of $1,200,000
- After paying $800,000 in overheads, their net profit was $400,000.
By understanding the 5 underlying profit drivers in this business, we introduced various strategies aimed at improving the results of each profit driver by at least 5%:
- We increased the number of customers buying from this business from 800 to 840 – a 5% increase.
- We increased the number of times the customers purchased goods from this business from 6 times a year to an average of 6.3 times a year – a 5% increase.
- We increased the average amount of money each customer spent during their sales visits from $500 to $525 – a 5% increase.
- We increased the average gross profit margin on each sale from 50% to 52.5% – an increase of 5%, and.
- We decreased overheads from $800,000 to $760,000 – a decrease of 5%.
With just a 5% improvement in the 5 key profit drivers we managed to increase sales from $2.4M to $2.8M and improve profit from $400,000 to nearly $700,000 – that is an increase of 75%!
Can you imagine what your business would look like if you were able to improve profit by 75% year on year?
The results you can achieve in your business will depend on your particular profit drivers, the opportunities to improve these drivers, and most importantly, your ability and commitment to implement the 5 step system in your business to improve profit.
However, if you apply this 5 step system I guarantee that you will increase sales and improve profit.