Welcome to TheMaxProfit's 40 Weeks to MAXIMIZE your business- ANY business's profits!
Read all the way down to get the TIP OF THE WEEK!
Friday, 20 February 2015
This week and for the next 37 weeks, we will take apart your business and work on each part in 3 week blocks. In each 3 week block we will IDENTIFY, ANALYZE and then IMPLEMENT changes to make in each part of your business that WILL yield results GUARANTEED!!
If you participate and follow along each week, applying small changes and tweaks to your business model/operations, you will see BIG results in increased profits for your business. Even if you can - or only choose to try one or two of the 3 weeks blocks, you will see positive results GUARANTEED!
We will be analyzing the following areas of your business:
1. INCOME / REVENUE streams
2. PRICES / COST of product
3. SALES / LEADS programs and methods
4. What your Business OWNS and how to maximize that
5. What your Business OWES and how to minimize that
6. MARKETING
7. EXPENSES - Facilities and other costs and how to minimize those
8. PRODUCTION and OPERATIONS
9. HUMAN capital - how to minimize the cost of Payroll and Managing Employees/Contractors
TODAY! We will work on ANALYZING the Income and Revenue streams you IDENTIFIED last week. NEXT week we will Implement changes based on the items you have identified so we can start MAXIMIZING your business profits!
Each week, we will be offering a general TIP for Making More Money IMMEDIATELY along with the informational blog that can be applied to ANY business.
I will be available to you throughout the rest of the week for any specific questions you have regarding YOUR business and identifying, analyzing or implementing any changes, methods or systems for your business!
This week's topic INCOME/REVENUE streams involves any money that comes in to your business, and from any source. We will also talk about making CHANGES to revenue streams and adding NEW ones!
ANALYZING the sources of revenue that you have identified is our goal this week. The purpose of the analyzation is to have all the information needed to make an educated decision on what changes to implement next week.
IN THE NEXT WEEK: Spend one hour the first time you sit down, and start detailing out the revenue sources you have already identified. For the following 4 days, spend 1/2 hour each day OR just block out a 3 hour period and focus on this to get it done in one sitting.
ANALYZE YOUR LIST: pull out the list you made of the major categories and their sub categories of income streams/ all the sources of your money INTO your business.
START AT THE TOP: Start at the top and work your way down..looking at each major category and analyzing each sub category under it. Look carefully at the notes on the right that you made last week on "who" (person or which company) you work with on each of these revenue sources, and WHO in your company works with that person or company.
CAREFULLY ANALYZE : For each item, do the math/ put down the details of how much you make per unit after direct cost of sale or how much your average "job" or "project" is from this source. ie: If you buy pocket knives for $50 for each gross (34.7 cents each ), and these knives are sold in person, by sales people at events (say "gun and knife shows") and for each sale, the sales person takes 50%. The knives are prices from between $15.00 each and $25.00 each (average sale being $20 each)
Facts: Average gross profit = 19.70 each ($20.00 average sale - .35 average cost each)
Average number sold per show = 200 (19.70 x 200 = $3,940.00 average gross profit per show)
Current number of shows per year - 8 (8 shows x $3,940 = $31,520.00)
PRIORITIZE the LIST: After carefully analyzing each revenue source and comparing them, prioritize each source in order of importance to the business model. If there are 30 revenue sources for example, #1 may be the one that brings the company the MOST money daily and yearly and #30 could be the one that brings in the LEAST amount of money.
RATE the LIST: RATE (or GRADE) each item on your list. Rate on a scale, then give a number for each number on the scale. When we get to next week, we will pick the first 20% of items with the HIGHEST/BEST scores and spend time developing those sources, money and time marketing those sources for the next 90 days.
Some of the categories you may use to RATE your sources could be - EASE of SALE; EASE OF MARKETING; PROFIT MARGIN; LOCALITY to SOURCE; EASE OF PRODUCTION; COST OF SALES; COST of Human Capital; MATERIAL COST etc...
Remember: This week we are ANALYZING your income sources and all the pieces associated with them including material or product cost, all costs associated with each product that is sold, made, produces or manufactured. All the costs, major and minor associated with providing services; all costs associated with completing jobs that are sold, etc. This is meant to be an exercise that helps business owners/managers pay attention to the ACTUAL costs (including all the little things and associated costs that they don't monitor regularly) remember though: ONLY the costs associated DIRECTLY with the Job, Product or Sale.
NEXT week we will work on how to IMPLEMENT changes based on the list you have made this week.
TIP OF THE WEEK!
As you are ANALYZING the products and services you sell for this 10 month project to find your business's MAX PROFIT, pick 1 product or service that is at or toward the TOP HALF of your list that you can start focusing on selling MORE OF NOW.. to increase your sales starting THIS WEEK!
example: a Janitorial Service Company does daily and quarterly cleanings, provides floor services, light fixture services and occasional painting services to its list of 80 commercial clients. Currently, and for the last 8 years, the companys sales/workload is represented below:
DAILY and QUARTERLY cleaning - 80% of workload
Floor Services - 15% of workload
Light fixture services - 4% of workload
Painting Projects - 1% of workload
In order to increase sales starting NOW, TODAY and to really BOOST sales for the Quarter and for the Year, The sales team could commit to spending an additional 3 hrs for the next 10 workdays, then an additional 2 hrs for the 10 workdays after that, solely focusing on personally inspecting each clients building and preparing proposals for seriously needed paint projects and identifying the person able to make that decision, followed by an in person meeting selling those projects. For a company that has properly cultivated the relationship of the decision makers in their clients companies, there should be a significant amount of additional contracts for these projects put in place.
If you would like to speak to one of our consultants to brainstorm picking apart your list for your business - visit our website and fill out a contact form we would be glad to help! TheMaxProfit.com
Looking forward to next week and the 37 weeks to follow and getting to know some of you while helping your solve some of your biggest questions/puzzles.
Check out our website at: TheMaxProfit.com and if you need help with your business, fill out a contact form and one of our consultants will contact you. You can also give me a call (or text) directly at 360-490-7045.
Have a great weekend!
Renee Johnston
CEO
The Max Profit
Business Services Group
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