Small Business Strategist at Fuller Business Development and Author of the Book Profit Yourself Healthy
Dave helps business owners do two things, earn more and worry less.
Many of his clients have been able to double their bottom line, have substantial increases in sales, increase their profitability and reduce their stress levels.
Tactic that has had the biggest impact on Dave’s success
Focusing on the 7 Key Areas of Profitability which enabled him to reduce stress levels
Result if you follow the steps in Dave’s session
Earn more and worry less
Full session with video, notes, audio and discussion inside EHQ Club. Learn more
Expert session snapshot
Okay, so let’s focus on, I said we focus on the seven ways to increase profitability. Now, every business has the same model, okay.
And the model is that we all have visits from our prospective customers. We all have prospective customers, these are our prospects. We have current customers and we have past customers, there’s a percentage of these customers that buy this is called our conversion rate.
So if we can increase the business from our prospects, if we can increase the business from our current customers, and we can increase the business from our past customers, we’re going to increase our profitability.
If we can increase the percentage of people that are buying, this is our conversion rate. So these people are coming into our business, are coming in contact with us in some way. If we increase our total number of our conversion rate, we’re going to increase our total number of transactions.
So Liam, if we take our transactions, we multiply by our average sale, we get our sales revenue. Okay, this is for all businesses, we get our sales revenue.
Now we take our sales revenue with times by our gross margin, our gross margin is that difference between what we’re selling our cost and service for and what selling our product or service for and what it costs us. So we all have a gross margin, we figure out what the gross margin percentage is, we times that by our revenue, we get our gross profit.
Now, if we subtract our overhead expenses, then we get our net profits. That’s how business works. Okay, that’s the simple business model that every business works under. So how do we double our profits? Well, we need to focus on these areas.
So you know, if our visits from, if we can increase our profit, you know, and I’m going to go into this a little bit later, but let’s, we’re going to run through right now, these areas, again, that business owners that your listeners need to focus on if they want to increase their profitability.
So, first thing we need to do is increase the number of visits from prospects. So we need to understand who are prospects and this is really about marketing land. So you know marketing is changing in digital age, as we all know, and I’m sure that some of these, the people in your summit are going to be talking about marketing. You know, they’re experts in marketing. So, you know, your listeners need to focus on that.
But we need to figure out how to attract these people, how to do too. So it’s really three things. We need to attract them with a marketing, we need to give them a reason to believe in us and we got to give them a call to action. And I’m sure all your marketing people are going to tell you that.
Okay, but that’s what we need to focus on, we really need to focus on. Most businesses focus on trying to get more prospects in but I encourage the people that I’m coaching to really focus on the current customers, because these people already have a relationship with us.
If we can figure out how we can go deeper with them and offer them more of our products or services, we can increase our sales we can increase our profitability really simply without spending a lot of money.
Okay, so how can we get our customers to buy more often, okay. So to under do this, we need to understand who our target markets and who are our customers current customers. So we need to write down who they are, what are they feeling.
You know, are they stressed? Why are they stressed? Why are they buying from us? Is it because, you know, if we have a retail business, for example, why are they coming in what is the need, what is the pain that they’re feeling, okay, we can understand that pain, then we can do something.
We can understand what they need, we can understand what our products or services are that can fill that need. And then we really need to understand what we’re providing. Okay?
And that has to be different from our competition. We have to understand what our differentiating factors, what we do better than our competition is. And when we do that, we can get we can get into the minds of our customers and we can really focus on.