How can I increase my profits? It’s the question I hear all the time, in fact dare I say every week, in my 20+ year coaching business. It comes from the mouth of both my private clients at the helm of multi-million dollar businesses and on the opposite end of the spectrum who are just starting out.
Typically, most anyone who is primarily concerned with profits falls into one of the following three categories:
- Their company is stalling out
- Their company is not growing at the pace they want it to
- They have a newer business or are just starting their business and they aren’t sure of what they should be focused on or where to start
Any of this sound familiar? I think many entrepreneurs feel this way lately, especially with all of the curve-balls 2020 keeps throwing. However it’s always a good time for a ReLaunch in business, relationships, and your lifestyle, especially when it has to do with owning and running a successful business.
Let’s Get Clear About Where You Are At:
The first thing I want you to do is get clear about where you are at. Are you
– Just starting a business / company
– Have an existing business / company
The reason why I think it’s important to get clear as to where you are at currently is because some people with side hustles / hobbies think they have a business, when ultimately all they really have right now is a talent and zone of genius. They have NOT built a solid foundation – team, systems, mission, customer journey, budget, etc. – or any of the many foundational elements in which an ACTUAL business needs to operate. Therefore, in order to make a profit, no matter which of the two you fall into, the following will help you pull back to get a 360 degree look at where you are at, as well as what you need to focus on.
Are You Business Savvy OR Business Smart?:
If you’re like most people, we want to be both business savvy and business smart – and you can be. But most entrepreneurs are inclined to want to jump into their business and do do do! It’s easy to think by constantly doing you’ll eventually find success and ultimately profits. But there has to be a point you work ON your business not just IN your business by constantly doing. That’s what leaders do. That’s what profitable companies and businesses do. And that is the missing piece I see most…
So what’s the difference?
Business Savvy – When you are business savvy, you love or are great at what you do. And although you’re really good at that “one thing”, you still haven’t identified the business, or how you’re going to not only turn your gift into profits, but ultimately a sustainable business that is set up for lasting success
Business Smart – If you are business smart, you not only have dialed into your zone of genius, but you also have and continue to work on building a solid foundation for your business. You know the importance of building a life cycle for your target avatar, marketing, lead gen, have a well defined mission and vision, budget, setting and meeting KPI’s, ROI’s, developing a team, putting systems to work in place, and carving your niche in the market. You are set up for success no matter what you face.
Schedule Time Weekly:
It’s important to pull back from the endless to-do’s / tactical items and look at everything on a whole so you can be the visionary you need to be to own a business. I suggest you do this weekly to ensure you’re getting a clear picture and setting your actions / strategies based on the current snapshot. By calendaring time every Monday and Thursday, you’ll be able to time-block and create the space needed to dedicate to brainstorming, pivoting, future visions, and anything else high level that you need to work on. Use Evernote, Google notes, MindMeister or whatever notetaking system or software you prefer, but make sure it’s something you can easily pull up to write and track notes, ideas, and see your current 90 day (quarterly) plan as well as past notes and plans.
During this weekly time, your snapshot should include first reviewing:
– the current numbers for the business
– the operating budget
– metrics tied to whatever you are currently focused on
Next, to be profitable (and stay that way!) you’ll need access to current metrics and your quarterly plan benchmarks to see where you are, as well as brainstorm ideas to meet those goals and numbers, in each of the following areas:
- Lead Generation (how are you getting people on your list, lead magnet, FB group, why they should be following you, are they a lead or potential buyer, existing funnels)
- Conversion Rate (what is your unique differentiator, how am I showing up, are values aligned and customers following path set for them)
- Number of Transactions (what type of ascension model do you take customers through)
- Average Sales (additional things I can be doing, upsell potential)
- Profit Margin (past vs. current margins, discounting or bonuses, new offers, upcoming promotions for ideal clients or buyers)
Begin to build your foundation NOW, and you’ll plant seeds of grow and profit for many years to come. Get clear on the 1 thing you wish you could do right away to start working ON your business vs. IN your business and let us know in The ReLaunch Effect – our private FB Group where we lift, inspire, and support each other and can help you take steps in the right direction.