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How to double your net profit

Wouldn’t you just love a 95% increase in your net profit? I once read an article that talked about how simple it was to increase your bottom line. Please note, the article said simple, not easy.

The article pointed out, and the example below shows, all you have to do is reduce your cost of goods sold by 5%, reduce your overheads by 5%, increase your sales by 5% and you would enjoy a 95% increase in your profit result.

Sales $1,000,000 5% increase $1,050,000
Cost of Sales $500,000 5% reduction $475,000
Expenses $400,000 5% reduction $380,000
Net Profit $100,000 95% increase $195,000

Now if that seems like an incredibly ambitious objective, consider this. I signed up for a sales course many years ago on the basis of making small improvements. Fred explained it like this, “The number one golfer last year made $500,000 and the number 50 golfer made $50,000, one tenth as much. How many strokes on average per game of golf were there between each of their games?” We all took turns at guessing but no one was close. The answer? An incredibly low 1 stroke per game of golf!

All the number one golfer had done was to progressively shave off inefficiencies, inaccuracies and wasted efforts to be ever so slightly better than his competition and ten times his gross income. Can our software help you do that in your business? Let’s find out. Here are some of the ways we may be able to contribute to you attaining a similar result:

Let’s face it, if you are 100% happy with your business or you don’t feel any improvement is possible then you don’t need us. Just send this article to some one you know who is not as good a manager as you are. On the other hand, if there are some things about your business that you would like to improve then I have an incredibly important datum to pass on to you. At first glance it will seem a self-evident truth, logical, common-sense even. But as you mull it over you will come to appreciate the power in this statement and the desirability of taking appropriate action.

That statement is: If you do again today, the same as you did yesterday, then you will have tomorrow, much the same as you have today. So, in order to achieve results never before attained, you must employ methods never before tried.

The cold, hard truth is, if you do the same actions today as you did yesterday then you cannot expect to achieve different results tomorrow! I once saw an inscription on a mug in a novelty shop that said it all too plainly, “Insanity is doing the same thing again and expecting a different result.”

Unless you are testing and measuring the results of your promotions, and advertisements you cannot know what or when to change. If you want better results from your marketing efforts you are going to have to test and measure those you are getting.

Unless you are measuring the production of each of your staff, you won’t have an objective measure of who is pulling their weight and who is not, where you have improved productivity and where it has declined. If you want a more productive staff you are going to have to measure their production.

Unless you set targets or quota your staff’s production each week you will not be getting maximum productivity from them and their morale will be lower than it could be.

If you run a service business that does jobs, unless you measure how long it takes to do each job and the costs of completing it then you don’t know the profitability of your jobs or clients and you won’t know what to alter in your quoting or pricing structure.

Unless you have a company wide convention and system for naming, saving and retrieving documents then you and your staff will continue to waste time looking for files on the computer.

Unless you pay yourself first you will not get the business to make enough money to pay you adequately.

If all this sounds like a large change in your operating basis, I am not going to lie to you, it is! But it is probably a whole lot easier to implement than you think it is, especially with a computer system specifically designed to enable you to spend very little extra time inputting data (may be even less than you are at present) but provide you with a whole lot more insight with which to manage your business.

I know from my marketing analysis component of BizMan that people who read our material will sometimes hang on to it for a while before getting back to us. Sometimes for as long as five years! Believe it or not.

If you’re so busy that you cannot afford the time to do the things that will make you less busy, may I suggest you take a time out and review your priorities?

Before you put this in the pile of things to get back to “at some point in the future” pick up the phone and call Tom Grimshaw on +61 2 9552 3311 and tell him what you’d like Just For You Software to do for you.