how to improve profitability | small business management tips | net profit margin | kpi examples

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Contents of this Video1. The 2 Principles of Business Growth

2. How Measuring Reveals Profit Opportunities

3. How to Rapidly Increase the Profit in Your Business without Increasing Marketing Costs


The 2 Sides of Business Growth1. Analysing (figures you’ve measured)2. Strategizing

Poor analysis leads to poor strategy choice Therefore the more you measure, the more you

can analyse and the more opportunities you find


Strategy Types Determine ProgressUnder these “Types” of strategies, there are hundreds of strategies to grow any business.

Business owners often focus on Lead Generation but profit strategies are more important.

Are your business profits increasing rapidly? If not, which strategy type are you focused on? Are you testing and measuring different strategies?


Sample Measuring Opportunities

Can you see all the profit leaks & opportunities here? There are a dozen strategies to increase profits from what these numbers reveal. Every one will increase profits – without risk of wasted time, money or effort.


Strategies We Can Apply This business could send out newsletters or offers to

previous customers on services they haven’t bought, to actively generate more sales

Google isn’t targeting good phrases (shown by conversion rates), so better phrases would help

High C/R lead sources are best, so increasing referrals and leads from alliances is easy when an effective offer for both is introduced


Additional Strategies Facebook ads capture people early in the buying cycle,

(its showing here with very low sales), so it wastes time. Qualifying, not just these leads, but all will save time.

The biggest opportunity here is sales training (for qualifying to reduce Lead to Quote C/R, and to increase Quote to Sale C/R). Our systems would increase C/R from 33% to over 50% quite easily, which is a 50% increase in revenue.


More Strategies Do & Charge sales have high margins and no wasted time

with quoting, so it’s a great source of sales, which are coming through real estate agents. Brining on more would be an excellent strategy and easy to do.

Leads from the website convert poorly. Good copywriting by taking the word “we” out and changing it to “you” would make a significant difference.

Look at the difference these 8 simple strategies make…


The Achievable ‘After’ Numbers…

Previous figures


The Difference in the Result…Its an increase of $29,858/month, (equal to $358,296/year) – just by applying simple strategies, to opportunities – and it can be achieved without any ongoing cash-flow cost.

Improving on multiple numbers is the key to HUGE profit increases.


More Profit OpportunitiesWe’ve just looked at a small aspect of measuring Sales & Marketing to identify profit opportunities. There are a lot more ways to measure, to make confident, profit increasing decisions by applying strategies.

Bigger profit margin opportunities exist by measuring Production…


Measuring Production Margins$1 Million turnover - Split 80:20

$800,000 x 3% = $24,000 $200,000 x 12% = $24,000

Net Profit = $48,000 (4.8%)6 months later…

$800,000 x 12% = $96,000 $200,000 x 5% = $10,000

Net Profit = $106,000 (10.6%)


Actual Measuring of Production

This is where BIG profit margin increase opportunities are found! This is a month summary. Red means a loss, green means profit. There’s a 16% margin difference from one service to another and 17% on materials. That’s HUGE! Opportunities for profit margin increases are everywhere!


What it all Means5% net profit margin on a $1,000,000 turnover business is $50,000, so a 16% difference is the equivalent of $160,000 in net profit.

16% is a HUGE amount of difference. It’s the difference between making zero profit and having $160,000 in cash in the bank!Are you seeing the power of what these numbers are all about? Can you see why the magic of measuring is what increasing profits is all about?


The 3 Legged Stool of ManagementYour business has 3 functions, win sales, do the work of the sale and get paid for the sale, seen here

Measure $ each week for each leg

Now lets look at how to keep those 3 legs in a harmonious balance


Managing all 3 “Legs” of the StoolThis measuring tool with just 5 numbers,

gives you total control of your

business. You see trends every

week across all 3 areas.


Stress-Free Business Ownership!A major causes of stress in business is… having too many sales for your (production) capacity, or not having enough sales, or not having enough cash in the bank.Because this tool is measuring the previous 4 weeks, all the time, you see issues very quickly and avoid them, so no more stress – instead just peace of mind!


More Profit OpportunitiesWe’ve just looked at a small aspect of measuring Sales & Marketing and Production to find dozens of profit opportunities.

Can you see there’s magic in measuring, and the power of applying strategies to numbers? That’s what we call Business Growth Planning


Real World ResultsWhat profit are you missing out on, by not being able to use these

measuring tools to find profit leaks and opportunities?

Could it be $100,000, $200,000 or even more?

What difference would that increase make to your business & your personal life?

None of our clients expected it, and doubted it would work for them, but it still did. Why can’t it work for your business too?


Your Mission Focus on measuring more, & you’ll find lots of profit

opportunities & leaks to increase margins for free Can you raise your prices? Measure your conversion

rates before hand, to see if you actually lose sales Work on new strategy “types” you haven’t tried Consider the next Business Certainty Training. You’ll

get 50+ top strategies from the 22 Types included!


What’s Next?

Step 5

Systems for Profit Growth

Get more free profit increasing content & videos…


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how to improve profitability | small business management tips | net profit margin | kpi examples

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greenmeans profit

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