Mapping the DNA of your business

Business owners often think that they need to take dramatic steps to improve the profitability of their business. Many believe, for example, that if they want to double their profits they need to double their sales, or take on more people (bringing with them, many more headaches). This doesn’t have to be the case. The steps can be small and the differences slight….but they can have a big effect.

Did you know that the difference between the DNA of a chimpanzee and a human is only 2% but what a difference that makes! 2% less and you are learning how to crack open a nut – 2% more and you can fly a rocket to the moon.

So what’s the DNA of your business?

You may be surprised to find that there is very little difference between a successful and an unsuccessful business. To map the DNA of profitability in a business there are six simple areas where you can take small steps to improve and grow to make sure you are successful….lets look at them one by one:

1. Leads: All realistic, potential customers to your business. Keep abreast of these leads – work out the best source of them and keep going back there. (We get lots of our leads from these emails – that’s why we keep sending them!)

2. Conversion %: The customers who reach for their wallets, the ones who say ‘yes’. Once you work out what your conversion rate is you’re a step closer to working out why people are buying and then how you can up the rate.

3. Average £ Sale: Apart from the obvious step of increasing your prices, you can upsell too. Ask the question, add an additional product / service – do bulk deals, any little teaser can prompt an increase.

4. Transactions: Take a look at the transaction rate – can it be increased? (All this is good practise – it means you are analysing your business more thoroughly…)

5. Margins: It’s no use having a huge turnover and no profits. I said in Something For The Weekend 2 – ‘Face up to the Figures’ that you need to have a good handle on your key figures and this is the biggest one.

Remember the cliché “turnover is vanity, profit is sanity”

6. Customer Retention: so many businesses work really hard to gain new customers but do hardly anything for existing customers! It doesn’t take that much to keep them…. Make them feel appreciated. Ask them for feedback, check everything is ok, reward their loyalty and they will reward you back.

Whilst Most business owners are aware of these concepts but many don’t know what these measurements are for their businesses.

We find that simply measuring these elements on a consistent basis can increase the profits in a business and always (without fail) surprise a business owner!

We have proved time and time again that if you focus on making small changes in all six, they will have a multiplying effect which will deliver huge increases in profitability.

So change the DNA of your business – if only by 2% and see where it takes you. It could be the moon…

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