There are six areas in a business in which you can make changes and increase your profit. I have listed the areas below, along with some examples of the changes that could be made:
1. Increase the number of people who receive your message
– By adding a video (or improving the existing one) on your web site
– By carefully choosing the words in the titles of your marketing emails
2. Increase the number of people who take action on your message (your ‘leads’)
– By giving immediate value and a compelling call to action
3. Increase your conversion rate (the number of enquires converted into customers)
– By developing a relationship based on value and trust
– By speaking to their hidden desires and hidden fears
– By demonstrating credibility and authority
4. Increase the number of times each person buys from you
– By keeping in contact with them and giving further value for no charge
5. Increase the price of your product or service
– By increasing the perceived value of the product
– By exceeding their expectations with add additional value
6. Increase your margins
– By reducing the time and cost of product production
Making a change in any one of these areas will have an impact on your profit. In the unlikely event that you were able to make a positive change of exactly 1% in all of the six areas, listed above, you would actually get an increase in profit of 6%. An increase of 2% would give an increase 13% and an increase of 3% would improve profits by 19%.
Given the right approach, it might be possible to improve things by 15% – which would result in a massive 131% improvement in profit.
Obviously, it would not be possible for uniform changes to be made across all six areas. It might never be possible to increase the number of times someone buys from you or it might be impossible to reduce production costs. However, it may be possible to increase the number of leads you get, your conversion rate and even the price of your product or service.
The mistake a lot of business make is spending too much time focusing on trying to make improvements in just one area while other areas might actually be stagnating or getting worse. Cutting price to increase conversion rates for instance.
So, what stops people from making improvements in all aspects of their business? It turns out that the reason will fall into some of the following nine areas:
I. Information: They do not know what the need to know
II. Skill: They do have the skills to do it
III. Belief: They don’t believe it is possible or believe that it is impossible for them to do
IV. Time: They don’t have enough
V. Well-being: They don’t feel up to taking on a new activity because they are too stressed or don’t have the energy.
VI. Motivation: The can’t sustain the momentum or they never get around to starting – they procrastination
VII. Other people: It is not up to them – boss, partner, kids, parents, etc. want them to do other things
VIII. Money: They do not have the funds or can’t justify the expense in changing,
IX. Fear: They don’t even like to think about it. For instance, they might feel sick at the thought of actually asking for a sale because it would be too pushy and they hate rejection.
Recognising the areas in which you can make improvements and realising what might be stopping you is the starting point for increasing your sales.
What step will you take today to start increasing your profit? Please let me know by commenting in the box below. For more information about implementing changes or getting past any obstacles to success, please contact me on firstname.lastname@example.org.