The Business Building Process Part 3
A key question you need to answer is how many of these profit centres does your business focus on. Unfortunately, most businesses only focus on 1 or 2 and even more unfortunate is that they are usually focusing are the wrong ones to improve profits. Most businesses focus on trying to improve the most expensive profit centres; lead generation and number of transaction per customer and as a result this hinders profit generation.
FYI, my Action International coaching process has over 282 proven strategies for improving your profits. But more importantly than that, we identify which strategies, directed to which profit centre, will produce that most significant improvement in profits for your particular business.
Below is an embedded excel spreadsheet. Insert your businesses numbers and see for yourself what a difference small improvement in five profit centres can make to the profits of your business.
Instructions:
1. Double click on the chart. You will see it turn into an excel spreadsheet.
2. Type in tour KPI numbers for the past year under the column labeled "Your Numbers" in the appropriate rows (Yellow Highlighted);
1. Number of warm leads.
2. Your conversion rate of these warm leads to paying customers.
(Number of warm leads / total number of sales)
3. Average number of transactions per customer.
(Number of transactions / number of customers)
4. Average dollar sale per transaction.
(Total sales revenue / total number of transactions)
5. Profit margin
(Total Revenues-Total Expenses / Total Revenues x 100)
3. All the calculations are done for you automatically.
(Please Note-In my coaching program that we can choose from over 280 strategies to improve your businesses performance. It is not too hard to expect a 10 or 20 % improvement in each of these areas if the strategies are implemented and managed effectively. That is what my business coaching program is all about and the core part of the business development efforts at the Mastery and Niche stages. These are the foundation stages upon which the future stages must rest.)
FYI, my Action International coaching process has over 282 proven strategies for improving your profits. But more importantly than that, we identify which strategies, directed to which profit centre, will produce that most significant improvement in profits for your particular business.
Below is an embedded excel spreadsheet. Insert your businesses numbers and see for yourself what a difference small improvement in five profit centres can make to the profits of your business.
Instructions:
1. Double click on the chart. You will see it turn into an excel spreadsheet.
2. Type in tour KPI numbers for the past year under the column labeled "Your Numbers" in the appropriate rows (Yellow Highlighted);
1. Number of warm leads.
2. Your conversion rate of these warm leads to paying customers.
(Number of warm leads / total number of sales)
3. Average number of transactions per customer.
(Number of transactions / number of customers)
4. Average dollar sale per transaction.
(Total sales revenue / total number of transactions)
5. Profit margin
(Total Revenues-Total Expenses / Total Revenues x 100)
3. All the calculations are done for you automatically.
(Please Note-In my coaching program that we can choose from over 280 strategies to improve your businesses performance. It is not too hard to expect a 10 or 20 % improvement in each of these areas if the strategies are implemented and managed effectively. That is what my business coaching program is all about and the core part of the business development efforts at the Mastery and Niche stages. These are the foundation stages upon which the future stages must rest.)
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