Here is a "Five Ways" formula which can work in any business. Very simply, if you focus on the following five things you can multiply your bottom-line results.
- Leads
- Sales conversion rate
- Average dollar sale
- Average number of transactions
- Profit margins
Here's how the "Five Ways" formula works:
Leads x Sales conversion rate = Customers
Customers x Average dollar sale x Average number of transactions = Revenue
Revenue x Profit Margins = Profit
To start getting the greatest benefit from the formula, try boosting your profit margins by at least 10%. Increasing profit margins is easiest and least expensive for most businesses, while generating more leads is generally hardest and most costly.
You can also boost profits by raising prices. Few people will notice a small increase in price, preferably on your best selling item, but you will immediately notice the difference in your profits.
Remember, all businesses need profit to survive, thrive and contribute to their owners, customers and community. The quicker you can generate higher and more consistent profits, the closer you'll be to achieving your own vision of success.
Read more at: entrepreneur.com
