By ActionCOACH Business Coach, Derek O’Dwyer
When we are caught up in the “busyness” of our business, we often fail to stop and take a look at our progress so far, our potential for growth, or even the routes that we can take to achieve growth. There is a very simple formula, which, if applied to your business in a practical way, will deliver massive results to you every year.
Why is everyone not doing it? The answer is lack of knowledge, lack or commitment to change and no focus on targets and results.
At ActionCOACH, we follow the 5 Ways with every client we have.
The 5 Ways unlocks profit in your business and in many cases, it need not cost you a thing to implement. The other impressive thing about the 5 Ways is that the benefits can be permanent, repeated year after year and can be taught to almost anybody.
Why is everybody not embracing them and putting them to the test? The biggest reason is resistance to change and resistance to personal change.
I’ll explain this as we go through the 5 Ways…
In business, every business owner or manager is aware of the number of customers that they have, their turnover and in most cases, the profit that they’re making. BUT, very few know how they got to these results and they certainly have no stats or records to back them up.
The 5 ways deal with the HOW to get to the results.
NUMBER OF LEADS
CONVERSION RATE = CUSTOMERS
# OF TRANSACTIONS
AVG. € SALE = REVENUE
PROFIT MARGINS = PROFIT
(1.) Lead Generation multiplied by (2.) Conversion Rate = Number of Customers
When you look at the number of prospective customers and multiply this by your conversion rate (i.e – from every 100 enquiries that you get, how many become customers) – this gives you your number of customers. Then, take your customers and multiply them by (3.) Number of Transactions and then multiply them by (4.) Average Value of Sale – This will give the turnover figure. Therefore, if you have 100 customers and they all buy off you 10 times a year, each time they spending €1,000 – you have a business turning over €1,000,000.
Take your turnover and multiply it by your (5.) net profit margin – this will give you your profits. So – take €1,000,000 and multiply it by Net Profit of 20% and you have a profit figure of €200,000.
All very straightforward – you might think.
There are over 350 business strategies that can be applied to the “5 Ways” to drive on a business. AT least 50 will apply to your business, whatever business it is.
“That would not work in my business – my business is different” this is the usual defence followed by, “I tried that and it did not work in my business” – Also Known As.. the biggest crime every committed in a business. People tend to never ‘Test and Measure’ the effectiveness of their efforts and very quickly go into blame and excuse mode. As we work with our client, we teach them how to implement strategies that once in place, continue to deliver results time after time.
Would you like to know the best part?
Most of the strategies that can be implemented in the 5 ways have zero cost.
Interested in learning more?
Come to our ‘5 Ways to Massive Profits’ seminar and you’ll learn all the points highlighted above and more. Join me as I teach participants how to learn the 5 levels that owners can use to increase customers, how to easily expand profits, how your beliefs about marketing can hurt your business, and how to identify which of the 350+ strategies for improving your profit will work for you.
Every business owner will be able to pull something away from this session and take it back with them to grow their profits. You do not want to miss it!