Boost Your Profits

Boost Your Profits

“I’ve got revenue, but where is the profit?”
  • Have you ever noticed that no matter how much money you make, you seem to find a way to spend all of it?
  • Or maybe you’ve had the experience of growing your business only to find that you are making less and less on more and more?
  • Are weak profits and inconsistent cashflow resulting in unmet financial goals?

All this pain and uncertainty uncertainty around profits is a result of a lack of a plan.

Interested in this service? Don’t hesitate to get in touch with our team!

Your Profit Improvement Plan

Most people are taught that –
Sales minus Expenses equals Profit.
So if this were the formula for profit, what are the two ways you can increase your profit?

Making more profit just isn’t a two dimensional formula. Making more sales (on products with low / no margins) will send you broke and blindly reducing expenses can find you cutting the very expenses that are make you money.

Few people are familiar with the real formula for profit (as we are never taught this in schools). This profit formula actually gives you 7 ways you can dramatically increase your profit and business value!

Leads x Conversion =
New Clients + Existing Clients = Total Clients x Retention x How
Much x How Often =
Revenue x Margin = Profit x Multiple = Value

7 ways to dramatically Increase Your Profit

1

Increase Leads

2

Increase Conversion Rates

3

Increase Retention Rates

4

Increase How Much your customers spend with you

5

Increase How Often your customers spend with you

6

Increase your Profit Margin

7

Increase your Business Sale Multiple

If you implement the new profit formula, you will -

The incredible power of 10

If you were to work out your numbers using this equation and then focus on strategies to improve each key area then you would have a vastly different result.

Consider the numbers for an example marketing agency –

100 leads X
50% conversion rate =
50 new clients +
275 existing clients =
325 total clients X
80% retention rate X
$1,250 per project X
2 projects per client =
$650,000 of revenue X
20% profit margin =
$130,000 profit X
3 x business sale multiple =
$390,000 business valuation

If we were to make a 10% improvement on all areas then you would have a 43% increase in revenue. Let me explain…

110 leads X
55% conversion rate =
60.5 new clients +
275 existing clients =
335.5 total clients X
88% retention rate X
$1,375 per project X
2.2 projects per client =
$893,101 of revenue X
22% profit margin =
$196,482.22 profit X
3.3 x business sale multiple =
$648,391.22 business valuation

Apply the same process 2 years in a row and you will experience a

That is the incredible power of 10.
Small changes to the numbers that matter most can make a radical impact to your revenue, profit and business value.

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