SlideShare a Scribd company logo
www.profittrans4mations.com 
Contents of this Video 
1. The 2 Principles of Business Growth 
2. How Measuring Reveals Profit Opportunities 
3. How to Rapidly Increase the Profit in Your 
Business without Increasing Marketing Costs
The 2 Sides of Business Growth 
1. Analysing (figures you’ve measured) 
2. Strategizing 
 Poor analysis leads to poor strategy choice 
 Therefore the more you measure, the more you 
can analyse and the more opportunities you find 
www.profittrans4mations.com
Strategy Types Determine Progress 
Under these “Types” of strategies, there are 
hundreds of strategies to grow any business. 
Business owners often focus on Lead Generation 
but profit strategies are more important. 
Are your business profits increasing rapidly? If 
not, which strategy type are you focused on? Are 
you testing and measuring different strategies? 
www.profittrans4mations.com
Sample Measuring Opportunities 
Can you see all the profit leaks & opportunities here? 
There are a dozen strategies to increase profits from 
what these numbers reveal. Every one will increase 
profits – without risk of wasted time, money or effort. 
www.profittrans4mations.com
Strategies We Can Apply 
 This business could send out newsletters or offers to 
previous customers on services they haven’t bought, to 
actively generate more sales 
www.profittrans4mations.com 
 Google isn’t targeting good phrases (shown by 
conversion rates), so better phrases would help 
 High C/R lead sources are best, so increasing referrals 
and leads from alliances is easy when an effective offer 
for both is introduced
www.profittrans4mations.com 
Additional Strategies 
 Facebook ads capture people early in the buying cycle, 
(its showing here with very low sales), so it wastes time. 
Qualifying, not just these leads, but all will save time. 
 The biggest opportunity here is sales training (for 
qualifying to reduce Lead to Quote C/R, and to increase 
Quote to Sale C/R). Our systems would increase C/R 
from 33% to over 50% quite easily, which is a 50% 
increase in revenue.
www.profittrans4mations.com 
More Strategies 
 Do & Charge sales have high margins and no wasted time 
with quoting, so it’s a great source of sales, which are coming 
through real estate agents. Brining on more would be an 
excellent strategy and easy to do. 
 Leads from the website convert poorly. Good copywriting by 
taking the word “we” out and changing it to “you” would 
make a significant difference. 
Look at the difference these 8 simple strategies make…
The Achievable ‘After’ Numbers… 
Previous 
figures 
www.profittrans4mations.com
The Difference in the Result… 
Its an increase of $29,858/month, (equal to 
$358,296/year) – just by applying simple strategies, 
to opportunities – and it can be achieved without 
any ongoing cash-flow cost. 
Improving on multiple numbers is the key to HUGE 
profit increases. 
www.profittrans4mations.com
More Profit Opportunities 
We’ve just looked at a small aspect of measuring 
Sales & Marketing to identify profit opportunities. 
There are a lot more ways to measure, to make 
confident, profit increasing decisions by applying 
strategies. 
Bigger profit margin opportunities exist by 
measuring Production… 
www.profittrans4mations.com
Measuring Production Margins 
www.profittrans4mations.com 
$1 Million turnover - Split 80:20 
$800,000 x 3% = $24,000 
$200,000 x 12% = $24,000 
Net Profit = $48,000 (4.8%) 
6 months later… 
$800,000 x 12% = $96,000 
$200,000 x 5% = $10,000 
Net Profit = $106,000 (10.6%)
Actual Measuring of Production 
This is where BIG profit margin increase opportunities are 
found! This is a month summary. Red means a loss, green 
means profit. There’s a 16% margin difference from one 
service to another and 17% on materials. That’s HUGE! 
Opportunities for profit margin increases are everywhere! 
www.profittrans4mations.com
www.profittrans4mations.com 
What it all Means 
5% net profit margin on a $1,000,000 turnover business is 
$50,000, so a 16% difference is the equivalent of $160,000 
in net profit. 
16% is a HUGE amount of difference. It’s the difference 
between making zero profit and having $160,000 in cash in 
the bank! 
Are you seeing the power of what these numbers are all 
about? Can you see why the magic of measuring is what 
increasing profits is all about?
The 3 Legged Stool of Management 
Your business has 3 functions, win sales, do the 
work of the sale and get paid for the sale, seen here 
www.profittrans4mations.com 
Measure $ each 
week for each leg 
Now lets look at how 
to keep those 3 legs in 
a harmonious balance
Managing all 3 “Legs” of the Stool 
www.profittrans4mations.com 
This measuring 
tool with just 5 
numbers, gives 
you total control 
of your business. 
You see trends 
every week across 
all 3 areas.
Stress-Free Business Ownership! 
A major causes of stress in business is… having too 
many sales for your (production) capacity, or not 
having enough sales, or not having enough cash in 
the bank. 
Because this tool is measuring the previous 4 weeks, 
all the time, you see issues very quickly and avoid 
them, so no more stress – instead just peace of mind! 
www.profittrans4mations.com
More Profit Opportunities 
We’ve just looked at a small aspect of measuring 
Sales & Marketing and Production to find dozens of 
profit opportunities. 
Can you see there’s magic in measuring, and the 
power of applying strategies to numbers? That’s 
what we call Business Growth Planning 
www.profittrans4mations.com
www.profittrans4mations.com 
Real World Results 
What profit are you missing out on, by not being able to use 
these measuring tools to find profit leaks and opportunities? 
Could it be $100,000, $200,000 or even more? 
What difference would that increase make to your business & 
your personal life? 
None of our clients expected it, and doubted it would work for 
them, but it still did. Why can’t it work for your business too?
www.profittrans4mations.com 
Your Mission 
 Focus on measuring more, & you’ll find lots of profit 
opportunities & leaks to increase margins for free 
 Can you raise your prices? Measure your conversion 
rates before hand, to see if you actually lose sales 
 Work on new strategy “types” you haven’t tried 
 Consider the next Business Certainty Training. You’ll 
get 50+ top strategies from the 22 Types included!
www.profittrans4mations.com 
What’s Next? 
Step 5 
Systems for Profit Growth 
Get more free profit increasing content & videos… 
www.profittrans4mations.com

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How to Improve Profitability | Small Business Management Tips | Net Profit Margin | kpi examples

  • 1.
  • 2. www.profittrans4mations.com Contents of this Video 1. The 2 Principles of Business Growth 2. How Measuring Reveals Profit Opportunities 3. How to Rapidly Increase the Profit in Your Business without Increasing Marketing Costs
  • 3. The 2 Sides of Business Growth 1. Analysing (figures you’ve measured) 2. Strategizing  Poor analysis leads to poor strategy choice  Therefore the more you measure, the more you can analyse and the more opportunities you find www.profittrans4mations.com
  • 4. Strategy Types Determine Progress Under these “Types” of strategies, there are hundreds of strategies to grow any business. Business owners often focus on Lead Generation but profit strategies are more important. Are your business profits increasing rapidly? If not, which strategy type are you focused on? Are you testing and measuring different strategies? www.profittrans4mations.com
  • 5. Sample Measuring Opportunities Can you see all the profit leaks & opportunities here? There are a dozen strategies to increase profits from what these numbers reveal. Every one will increase profits – without risk of wasted time, money or effort. www.profittrans4mations.com
  • 6. Strategies We Can Apply  This business could send out newsletters or offers to previous customers on services they haven’t bought, to actively generate more sales www.profittrans4mations.com  Google isn’t targeting good phrases (shown by conversion rates), so better phrases would help  High C/R lead sources are best, so increasing referrals and leads from alliances is easy when an effective offer for both is introduced
  • 7. www.profittrans4mations.com Additional Strategies  Facebook ads capture people early in the buying cycle, (its showing here with very low sales), so it wastes time. Qualifying, not just these leads, but all will save time.  The biggest opportunity here is sales training (for qualifying to reduce Lead to Quote C/R, and to increase Quote to Sale C/R). Our systems would increase C/R from 33% to over 50% quite easily, which is a 50% increase in revenue.
  • 8. www.profittrans4mations.com More Strategies  Do & Charge sales have high margins and no wasted time with quoting, so it’s a great source of sales, which are coming through real estate agents. Brining on more would be an excellent strategy and easy to do.  Leads from the website convert poorly. Good copywriting by taking the word “we” out and changing it to “you” would make a significant difference. Look at the difference these 8 simple strategies make…
  • 9. The Achievable ‘After’ Numbers… Previous figures www.profittrans4mations.com
  • 10. The Difference in the Result… Its an increase of $29,858/month, (equal to $358,296/year) – just by applying simple strategies, to opportunities – and it can be achieved without any ongoing cash-flow cost. Improving on multiple numbers is the key to HUGE profit increases. www.profittrans4mations.com
  • 11. More Profit Opportunities We’ve just looked at a small aspect of measuring Sales & Marketing to identify profit opportunities. There are a lot more ways to measure, to make confident, profit increasing decisions by applying strategies. Bigger profit margin opportunities exist by measuring Production… www.profittrans4mations.com
  • 12. Measuring Production Margins www.profittrans4mations.com $1 Million turnover - Split 80:20 $800,000 x 3% = $24,000 $200,000 x 12% = $24,000 Net Profit = $48,000 (4.8%) 6 months later… $800,000 x 12% = $96,000 $200,000 x 5% = $10,000 Net Profit = $106,000 (10.6%)
  • 13. Actual Measuring of Production This is where BIG profit margin increase opportunities are found! This is a month summary. Red means a loss, green means profit. There’s a 16% margin difference from one service to another and 17% on materials. That’s HUGE! Opportunities for profit margin increases are everywhere! www.profittrans4mations.com
  • 14. www.profittrans4mations.com What it all Means 5% net profit margin on a $1,000,000 turnover business is $50,000, so a 16% difference is the equivalent of $160,000 in net profit. 16% is a HUGE amount of difference. It’s the difference between making zero profit and having $160,000 in cash in the bank! Are you seeing the power of what these numbers are all about? Can you see why the magic of measuring is what increasing profits is all about?
  • 15. The 3 Legged Stool of Management Your business has 3 functions, win sales, do the work of the sale and get paid for the sale, seen here www.profittrans4mations.com Measure $ each week for each leg Now lets look at how to keep those 3 legs in a harmonious balance
  • 16. Managing all 3 “Legs” of the Stool www.profittrans4mations.com This measuring tool with just 5 numbers, gives you total control of your business. You see trends every week across all 3 areas.
  • 17. Stress-Free Business Ownership! A major causes of stress in business is… having too many sales for your (production) capacity, or not having enough sales, or not having enough cash in the bank. Because this tool is measuring the previous 4 weeks, all the time, you see issues very quickly and avoid them, so no more stress – instead just peace of mind! www.profittrans4mations.com
  • 18. More Profit Opportunities We’ve just looked at a small aspect of measuring Sales & Marketing and Production to find dozens of profit opportunities. Can you see there’s magic in measuring, and the power of applying strategies to numbers? That’s what we call Business Growth Planning www.profittrans4mations.com
  • 19. www.profittrans4mations.com Real World Results What profit are you missing out on, by not being able to use these measuring tools to find profit leaks and opportunities? Could it be $100,000, $200,000 or even more? What difference would that increase make to your business & your personal life? None of our clients expected it, and doubted it would work for them, but it still did. Why can’t it work for your business too?
  • 20. www.profittrans4mations.com Your Mission  Focus on measuring more, & you’ll find lots of profit opportunities & leaks to increase margins for free  Can you raise your prices? Measure your conversion rates before hand, to see if you actually lose sales  Work on new strategy “types” you haven’t tried  Consider the next Business Certainty Training. You’ll get 50+ top strategies from the 22 Types included!
  • 21. www.profittrans4mations.com What’s Next? Step 5 Systems for Profit Growth Get more free profit increasing content & videos… www.profittrans4mations.com