For all the energy and time we expend running business’, at the end of the day it all comes down to your bottom line. Quite often when we are busy dealing with the day to day tasks of running a business its easy to forget the bottom line and that’s a BIG mistake. Remind yourself of whats important and re-focus your efforts around these 7 profit generating areas.
The following 7 things are key to increasing profit margin in any business. Take a look at them and ask yourself…”What activity do you perform within your business that directly relates to these areas?“
- Lead Generation
- Conversion of those Leads into Profitable Sales
- The Monetary Size of Each Sales Transaction
- The Number of Purchases an Average Customer Makes
- The Profit Margins Your Business Operates On
- The Average Buying Lifetime of a Customer
- The Number of Referrals Generated by Each Customer
Look at how you spend your time running your business on an average day. If your doing things that don’t fit into any of these areas, ask yourself if they are really necessary.
Don’t fall into the trap of spending too much time working IN your business, rather than working ON your business.
Speaking personally, I am sometimes guilty of getting caught up in the operational tasks of my businesses. Its important not to neglect thinking about and implementing business development tasks.
Use the 7 things above to focus your thoughts and efforts on how you can move your business forwards towards bigger rewards.
I will try and share some more detail around these 7 areas with you in the near future because just getting one of them right can change your business overnight.