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, 13 Feb 2015
This week and for the next 38 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 IDENTIFYING your Income and Revenue streams. NEXT week we will ANALYZE each item that you have identified, the FOLLOWING week we will talk about how to IMPLEMENT changes needed for you to Maximize YOUR business's profits.
Starting THIS WEEK we will 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!
For the purpose of this topic - we will use 3 different Business TYPES:
1. RETAIL/ PRODUCT RESALE business
2. SERVICE / INTANGIBLE PRODUCT business
3. MANUFACTURING business
No matter what "type" of business you have, taking apart/looking at your incoming revenue and looking at each source is not complicated.
IN THE NEXT WEEK: Spend one hour the first time you sit down, and get a general overview of all of your revenue sources. 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.
MAKE A LIST: pull your Profit and Loss statement, if you use quickbooks or another accounting software. Do a report by "class" if you track classes in your books. List out all the major categories of income streams and "where" your money comes from
DETAIL out your LIST: look at each major category and list any sub categories under them. Make NOTES on each stream of revenue
ADD a COLUMN: over to the right, add a column after the notes with details of WHO you deal with on each revenue stream and WHO in your company (if there is a specific person) who handles this revenue.
SUGGESTIONS for each type of company:
1. Retail/Product resale businesses - list your products by category, type or by vendor type OR if you only have 3 total vendors for instance, get wholesale price lists from each supplier to sue for comparison next week. List any OTHER types of income ie: rent or affiliate income etc..
2. Service businesses - make a list of all the services you offer, by type or by category. For instance, if you are a janitorial company that also offers building repair services, you may have 2 main headings: cleaning services and repairs. You may also separate those into 2 categories: residential and commercial. You may then within repairs have 3 categories: floors, wall repairs and painting and "other". You may also have different categories within cleaning services. Be sure to identify any OTHER income sources such as tool rental fees, office space rental (if your company owns real property), investment income, etc.
3. Manufacturing businesses - make a list of all of the sources that you are selling your product(s) or any other income types. For example, if your company makes handbags, and has a retail store but also wholesales to other retailers and additionally has a website and sells your handbags online, your list may have 3 main headings: online sales, wholesale sales, retail store then within those categories may have 2 categories (each with different price structures) such as "one time purchasers" and "listed clients". After these are broken down, you may also want to pull a production list of the different types of handbags your company makes, with costs associated per each. You would also want to pull the pricing sheets from each of your vendors showing the cost(s) of the materials you need to produce each bag.
Remember: This week we are IDENTIFYING your income sources and all the pieces associated with those, meaning WHO you sell to, HOW MUCH you sell each product for, the COSTS associated with the sales of each product (this includes commissions paid on sales) This is also an exercise to identify OTHER income sources that we sometimes forget about or don't pay enough attention to. NEXT week we will work on how to ANALYZE the list you have made this week.
TIP OF THE WEEK!
As you are IDENTIFYING the products and services you sell for this 10 month project to find your business's MAX PROFIT, find 1 ADD ON product or service that you can start offering NOW! to increase your sales starting THIS WEEK!
example: a hair salon could start offering a $12 deep conditioning service each time a client's hair is washed for coloring/cutting. (in a salon with 4 chairs that see an average of 7 clients per day each, there is a good chance they could sell this additional service 25% of the time or MORE) if they only sold this service 25% of the time, the sales increase would be $2,520.00 for the month - if they sold it half the time - $5,040.00. IF the profit on each service was $8 each, that is a $1,680.00 PROFIT monthly or $ 3,360.00 monthly if this service is sold just 50% of the time!
If you would like to speak to one of our consultants to brainstorm some possible add on products and services 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 directly at 360-490-7045.
Have a great weekend!
Renee Johnston
CEO
The Max Profit
Business Services Group
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