Double Your Business Profits By Making Small Changes
It is very possible to DOUBLE YOUR PROFITS 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 huge profits and huge 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 NET PROFITS dramatically by only making small changes to your business.
I know from experience in my own businesses and working with other businesses that relatively small changes can be made that could literally DOUBLE your NET PROFITS, through doing the following:-
- REVENUE SALES be increased by 20%
- MARGINS be increased by 8%
- COSTS be decreased by 10%
Let me give YOU an example for an average business with £125,000 REVENUE (ex VAT), GROSS PROFIT 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 PROFIT £22,500 (18%)
But 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 PROFIT £45,000 (30%)
Here the NET PROFIT MONEY is doubled to £45,000 and the NET PROFIT PERCENTAGE has risen 66% from 18% to 30%. Hopefully, YOU can see that a BIG CHANGE to the NET PROFIT has been made through reasonably small changes to the BUSINESS NUMBERS.
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.
- By providing BETTER PRODUCTS and BETTER CUSTOMER SERVICE, YOU will be able 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 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.
If YOU want the same SUCCESS, YOU could achieve it by acquiring this same habit.
Hopefully, this has convinced YOU that this possible.
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 further with me, please email at Robert@prestigebusinesscoaching.co.uk
Or please leave a comment below.