Maximize your Business Profits - Week #4

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, 27 February 2015

This week and for the next 36 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!

THIS WEEK: we are working on IMPLEMENTING systems, changes, strategies to the revenue streams you have IDENTIFIED and ANALYZED the last 2 weeks. You will need to spend 3- 4 HOURS DECIDING what changes you will be making and then additional time following up on the implementation of the changes made to YOUR TOP 20%!

TODAY! We will work on Implementing changes based on the the Income and Revenue streams you IDENTIFIED and ANALYZED last 2 weeks. 

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, ELIMINATING the ones that are not working and adding NEW ones that do work!


Our goal this week, after ANALYZING the sources of revenue that you  identified last week, is to take the information you gathered and the details you noted, after making your LIST and to implement changes needed to MAXIMIZE your business profits! 

IN THE NEXT WEEK: Spend one hour the first time you sit down, and start making a new LIST of changes you want to make or implement in the BOTTOM 80% of your rated list. (see more explanation below). The next time you sit down - either the SAME day or the NEXT day, spend 2-3 hours deciding what to change/implement for the TOP 20% of your list. These are the MOST important changes so pick 1-3 things to change/implement and FOLLOW THROUGH making those things happen THAT DAY or within the WEEK.

POSSIBLE CHANGES: possible changes include ELIMINATING revenue streams, PHASING OUT revenue streams, CREATING NEW revenue streams, MAKING CHANGES to existing revenue streams.

START AT THE TOP:  Start at the top of your list and work your way down. For each item, look at the RATING you gave it last week and compare it with the other items. The items with the LOWEST ratings may need to be eliminated. You may realize that these lowest rated items are COSTING you company resources and not making you very much money, OR they may be LOSING money. ELIMINATE THEM!
Items in the middle of the rating system may need just small changes or tweaks to move them up on your rating list. They may be able to make you more money just by changing a few small things or by putting a few dollars into target marketing.

YOUR 20% HITLIST: After deciding action items based on the BOTTOM 80% of your rated list, spend 2-3 hours (bring your team in on this!) making some decisions on how to MAXIMIZE the items on the TOP 20%!

Your top 20% may only include 1, 2 or even 3 items or revenue streams. Invest some time and money making changes that will MAXIMIZE these sources. For instance, here are 2 examples (one product based business and one service only business).

#1 - PRODUCT based business - Lets use a business that sells windows and doors primarily and primarily to residential homeowners. Let's say the top 2 rated products sold (out of 15 total) were French Doors and Bay Windows with Window Seats. (The reason these 2 were the top rated is because they are popular and at the same time have the highest profit margin)  There are several ways I would suggest MAXIMIZING these 2 products:
1. "Feature" them for a 6 month period and put them on "sale" (commit to some target market online advertising for 90 days)
2. Contact all the clients who purchased new windows in the previous 12 months and offer them a discount and "trade in" on both French doors to replace their sliders and Bay Window(s) with window seats and have a financing package available to them ready made.
3. In each sales presentation going forward, slightly raise the prices of the average purchased sliders and large windows (where a bay window might fit nicely) and offer a DISCOUNT for the products you want to increase sales on and that you have a higher profit margin on.

#2 SERVICE based business -  Let's use a Janitorial business that does primarily commercial work. Let's say that when looking at the revenue streams for this business - the TOP rated profit margin is the FLOOR cleaning/waxing service but that this service is only being used regularly by 12% of the client list.
#1 - If you have marketing money to spend, the FIRST thing I would recommend is to spend few dollars on TARGETED marketing maybe even Business to Business in the immediate area where your clients are the most concentrated and FOCUS on FLOOR CLEANING/WAXING but also offer the regular cleaning services.
#2 - I would ABSOLUTELY plan some extra hours during the regular work day and visit each contact for each regular cleaning client that is not REGULARLY using the Floor cleaning/waxing service and offer them a deal for signing an agreement to use this service QUARTERLY for the next 4 quarters. If you have done a proper job of cultivating your relationships with your clients, this should be easy to do. Not all your clients can afford this service regularly, if then cannot, try to give them a service (for a deal) NOW or in the next 60 days - still a boost for your sales in next few quarters.



  NEXT week we will be IDENTIFYING and listing all of your PRICING and COST of Product, Manufacturing or Sales costs for your business. Don't worry! In 3 weeks, we will be back to REVIEW and make any ADJUSTMENTS necessary to the work you are doing this week and its associated follow up/results.


TIP OF THE WEEK! 

The Tip of the Week this week is - "SMALL CHANGES can MAKE A BIG DIFFERENCE!" As you sit down looking at the work you did the last few weeks, MAKE TIME to come up with strategies regarding the top 20% of your list and FOLLOW THROUGH with these changes.. it may seem insignificant to take the time to do this but it is NOT! 

 I have seen through my clients trial and errors, and even seen in my OWN businesses, very small changes, small tweaks in how you do things make a HUGE difference. 

If you would like to speak to one of our consultants to brainstorm possible changes for your business, based upon the work you have done in the last 2 weeks- visit our website and fill out a contact form we would be glad to help! TheMaxProfit.com

Looking forward to next week and the 36 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.


Renee Johnston
CEO
The Max Profit
Business Services Group