Why it’s important, and how to achieve it
Throughout my years as an Entrepreneur, profit has been the name of the game. From achieving a baseline profit, to learning how to 8X a Company’s profit in 12 months – I have analyzed it all!
As a business owner, or market leader, I am certain that you’re fully aware of the importance of running a profitable business. You have probably also spent hours, upon hours searching the internet for quick and easy ways that you can maximize your profits. Well, I hate to burst your bubble, but there are only 4 ways that this can be done – it doesn’t matter which way to look at it!
Regardless of your industry, profit is business.
Profitability is a measure of a company’s ability to generate maximum revenue while incurring minimal costs. Simply put – profit goes up as sales increase and/or costs decrease.
In reality, though, achieving profitability is anything but simple. Because sales and costs are not necessarily incremental, focusing too much on increasing sales could leave you at risk if there is a sudden, unforeseen decrease in demand. And cutting costs by procuring lower-quality materials, contractors or staff, could lose you customers in the long run.
At the heart of it, most business owners believe that increasing profits is the only way to increase profitability. Sure – this is one way, but it’s not sustainable. If you look at the other end of the spectrum – while low prices can cause their own set of problems, prices that are too high will inevitably result in a decrease in sales, and therefore, a decrease in profitability.
So, what are the 4 ways?
We’re all here to make money, that’s the goal of any business. Finding a way to do this without overworking ourselves, and our staff, is the aim!
Here are the 4 Profit Maximizers that you need to be aware of.
1 – Increase Leads
2 – Increase Customers
3 – Increase Profit Margin Per Sale
4 – Increase the Frequency of already purchasing Customers
Seems easy enough right?
Let’s look at these in a bit more detail, before I show you how you can 8X Your Profit In 12 Months.
According to recent data, it is said that 1/3rd of businesses fail within the first two years, while I can’t give you all the reasons, I can tell you that inadequate lead generation is close to the top of the list.
This is where Digital Marketing takes the lead.
In the world of Digital Marketing, lead generation refers to the act of gaining actionable customer interest for your business – ultimately resulting in an increase in pre-qualified leads.
- Growth Hacking
- Direct and Purposeful Engagement
- Leveraging off Referrals from Existing Customers
- Optimize SEO Functionality
- Create, and offer a Free Lead Magnet
- Utilize the Power of the Sales Funnel
Learning how to optimize, and fully utilize the steps in the lead generation process is one of the easiest ways that you can ensure that your pipeline is fully populated!
Once you’ve tapped into the power of effective lead generation – this is the next, natural step in the process. You have already created awareness for your company, through webinars, the sales funnel, blogs, or social media posts – and you have a list of potential, and possibly already qualified leads. Now, you need to turn them into customers, so, how is that done?
I have found that there is a slight overlap between generating leads and turning them into customers. The difference lies in the execution, and the purpose. When generating leads, you’re creating an awareness, an interest for what you are offering – a gentle approach is often effective here. When increasing your customers, you’re taking those leads that you have identified, and nurturing them to the point where they have no objections to buying what you are offering.
- Offer new customers discounts, loyalty programs, or promotions
- Ask old, and new customers for referrals
- Reconnect with old customers
- Leverage off your LinkedIn Network
- Stay active on social media, and update your website
- Promote your expertise, not your product or service
- Understand your USP (unique selling point)
- Identify, and understand your target audience
Once you have increased your customer base, the next step flows almost seamlessly.
Increase Profit Margin Per Sale
Business is a series of relationships – each balanced perfectly, with the line between profit and sustainability so faint that it is often overlooked.
Understanding how to increase profit and elevate the profit margin of your business is vital to your bottom line and ability to attract investment. Since a company’s profit margin indicates its ability to manage its expenses, investors use them as a basis of comparison when sizing up a potential investment. While it can be tricky – no one wants to outprice themselves, we are all here for the same reason, and that is to turn a profit.
The key is found in executing innovative ways to increase your profit margin, without overpricing your product or service.
- Focus on the long term – strive for incremental growth
- Cultivate strategic innovation – why is your offer better than anyone else’s
- Build a reliable team – having the right people in your corner is crucial
- Identify what isn’t working – this requires an objective insight
- Fine tune your production and shipping costs
- Identify wasteful expenses, and eradicate them
- Offer a low entry to market, but focus on your high-end offer
- Capitalize on the competition
You don’t necessarily need to increase your profits to improve your margins – you’ll likely find success in reducing your expenses as well.
Increase the Frequency of already purchasing Customers
In one way or another, we are all salespeople. Think about it, you sell yourself before you sell your business, people buy from people!
So many great salespeople make the mistake of complicating the process. Selling is not an art, it’s an act of common sense. Instead of wasting valuable time on perfecting your parrot fashion pitch, take it back to basics – The Fundamentals of Human Interaction.
- First impressions are forever – you have a few seconds to entice your customer, make the offer count
- Give each customer the attention they deserve – this doesn’t mean you need a 100 strong sales team, prioritize your time accordingly
- Find out what they really need – spend adequate time analyzing their pain points, and then give them a solution that they can’t say no to
- Know when to sell, and when to have a conversation
- Build customer loyalty, and reward it
- Prioritize customer satisfaction – all it takes is 1 bad review to ruin a new opportunity, don’t overlook the value of word-of-mouth marketing
- Utilize, and optimize your Digital Assets
There is no one secret to running a successful business, but I can tell you one of them…
While there is value in analyzing your competition, copying their strategy isn’t the key. The idea is to learn from the mistakes that have already been made, so that you can find your unique path to success. Finding your value is just as important as creating it.
I have an offer for you, that won’t cost you anything!
Over the years, many, many clients have approached me with a single, predictable problem… One fantastic month is followed by 3 really bad ones, and no one can seem to figure out why… That’s where I come in.
I have written a free ebook for you to download, How to 8X Your Profit in 12 Months!
Sounds great doesn’t it?
CTA: Download your copy here!
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