Double Your Business Profit By Making Small Changes
It is very possible to DOUBLE YOUR BUSINESS PROFIT by making SMALL changes to your REVENUE SALES, MARGINS and COSTS.
If YOU have read some of my other articles on this site, YOU would have read my comments about the top 10% who achieved good profits and good success in their businesses and the remaining 90% who are running mediocre business with mediocre profits.
In my articles, I have also made several references to SMART BUSINESS THINKING and SMART BUSINESS ACTIONS and have said that if the 90% want to migrate to the top 10%, they have to change their THINKING and ACTIONS in their businesses.
In this article, I want YOU to THINK that through SMART BUSINESS THINKING and SMART BUSINESS ACTIONS, YOU could increase your BUSINESS PROFIT dramatically by only making small changes to your business and your business plan.
I know from experience in my own businesses and working with other businesses and startups that relatively small changes can be made that could literally DOUBLE your NET BUSINESS PROFIT, through doing the following:-
- REVENUE SALES be increased by 20%
- MARGINS be increased by 8%
- COSTS be decreased by 10%
Look At An Example
Let me give YOU an example for an average business with £125,000 SALES REVENUE (ex VAT), GROSS PROFIT MARGIN of 50% or £62,500 and COSTS of £40,000.
A PROFIT AND LOSS SUMMARY for this business could look like this:-
- REVENUE SALES £125,000
- GROSS PROFIT £62,500 (50%)
- COSTS £40,000
- NET BUSINESS PROFIT £22,500 (18%)
If YOU made the changes that I highlighted above, the PROFIT AND LOSS SUMMARY could look like this:-
- REVENUE SALES £150,000
- GROSS PROFIT £81,000 (54%)
- COSTS £36,000
- NET BUSINESS PROFIT £45,000 (30%)
Here the NET BUSINESS PROFIT in terms of MONEY has doubled to £45,000 and the NET BUSINESS PROFIT in terms of PERCENTAGE has risen 66% from 18% to 30%.
Hopefully, YOU can see that a BIG CHANGE to the NET BUSINESS PROFIT has been made through reasonably small changes to the BUSINESS NUMBERS.
Business Profit Is Doubled
Surely £45,000 is MUCH BETTER than £22,500!
But, I hear YOU say that YOU could NOT make these changes in your business, small as they maybe.
My reply would be that these changes could be easier than YOU THINK, so please read on!
How To Do This
If YOU have read some of my other ARTICLES on this site, YOU would have read that I have said YOU should KNOW and UNDERSTAND YOUR TARGET CUSTOMERS COMPREHENSIVELY.
This means KNOWING and UNDERSTANDING them MUCH BETTER than YOU do now – MUCH BETTER!!!
Through this KNOWLEDGE, YOU will be to achieve the following:-
- YOU will able to TARGET your TARGET CUSTOMERS much better with your MARKETING, grabbing more CUSTOMERS and making them BUY MORE from YOU.
- YOU will be able to BUILD A BIGGER ARMY OF LOYAL CUSTOMERS who will return time and time again to BUY MORE.
- YOU will be able to provide MUCH BETTER PRODUCTS that will provide BETTER HELP and BENEFITS for your TARGET CUSTOMERS.
- YOU will be able to provide MUCH BETTER CUSTOMER SERVICE that will EXCITE and IMPRESS your TARGET CUSTOMERS.
- YOU will be able to provide BETTER PRODUCTS and BETTER CUSTOMER SERVICE, allowing YOU to increase your PRICES modestly.
- By EXCITING your CUSTOMERS, YOU will create WORD OF MOUTH, the most powerful MARKETING TOOL in business, thus reducing your MARKETING COSTS.
All of the above will GROW your REVENUE SALES and GROSS PROFIT MARGIN and help to reduce some COSTS.
In addition to this, every business owner should do a COMPREHENSIVE AUDIT of their REVENUE, MARGINS & COSTS ideally every 3 months and certainly every 6 months to see where they can GROW their business and make SAVINGS – many businesses don’t do this EVER!!
The most successful in business will do this as a course of habit and are constantly tweaking their BUSINESS PLANS.
Have The Same Habit
If YOU want the same SUCCESS, YOU could achieve it by acquiring this same habit.
Hopefully, this has convinced YOU that this possible.
If you wish to continue the conversation, please email me at Robert@prestigebusinesscoaching.co.uk or contact me here:
You Could Do Even Better Than This
In my view, doing what I have described is the minimum anyone can do in their businesses – I THINK much more is possible – I am talking about DOUBLING or TREBLING REVENUE SALES!!!
The WILL to MAKE THE CHANGES along with SMART BUSINESS THINKING and SMART BUSINESS ACTIONS is all that is needed. This will create the FOCUS to look at your CUSTOMERS, your PRODUCTS, your TRADING MARKET and EVERYTHING ELSE in your business and an AVALANCHE of possibilities will unfold to effect the changes that I have described here in this ARTICLE.
TRY DOING THIS NOW!!!
WHY NOT SET YOURSELF THE OBJECTIVE of:-
- INCREASING REVENUE SALES by 20%
- INCREASING MARGINS by 8%
- DECREASING COSTS by 10%
And, DO IT NOW!!!
If YOU wish to discuss this article further with me, please email at Robert@prestigebusinesscoaching.co.uk
Or please contact me below: