Maximize Your Business Profits - Week #5

Welcome to The Max Profit's 40 Weeks to MAXIMIZE your business profits!

Read all the way down to get the TIP OF THE WEEK!

Friday, 6th of March 2015

This week and for the next 35 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 Cost of Goods Sold (COGS) and PRICING on your Product or Services. NEXT week we will ANALYZE each item or group that you have identified, the FOLLOWING week we will talk about how to IMPLEMENT changes needed for you to Maximize YOUR business profits.

EACH WEEK we will also be offering a general TIP for Making More Money IMMEDIATELY along with this 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 COGS - or Cost of Goods Sold involves all of the DIRECT costs for the delivery of your PRODUCT or SERVICE.  We will also talk about making CHANGES to your LABOR, PRODUCT or MANUFACTURING COSTS in the weeks to come that will help your business reach its MAX PROFIT!

For the purpose of this topic - we will use 2 different Business TYPES:
1. PRODUCT business
2. SERVICE type business






No matter what "type" of business you have, or what industry it is in -  taking apart/looking at your Cost of Sales or Delivery of Service or Product, looking at  each item or group is not complicated.

IN THE NEXT WEEK: Spend TWO HOURS the first time you sit down for the initial GATHERING of your data that will be looked at. For the following 4 days, spend 1/2 hour each day OR just block out a 4 hour period and focus on this to get it done in one sitting.

MAKE A LIST/GATHER DATA: 
For the Product type businesses - pull lists of all the products you sell, produce or manufacture. Your goal NEXT week will be to fully analyze the following so gather all of the information needed to figure out all of the DIRECT costs of selling, producing or manufacturing each product or related group of products.
For the SERVICE type business: make a list or pull a report for each of the services you deliver to your clients. Your goal NEXT week will be to fully analyze the following so gather all of the information you will need to Figure out all of the DIRECT costs of delivering each service you offer. This will include labor costs, materials and tools needed for each job, etc.


SUGGESTIONS for each type of company:

1. Retail/Product resale businesses - list your products by category, type or by vendor type.

2. Service businesses - make a list of all the services you offer, by type or by category. If you are a construction company for instance, pull a model of the 5 or 10 "typical" jobs you have sold and provided over the last 6 months.

3. Manufacturing businesses - Come up with a complete list of each product/or group/type of products you manufacture and all the associated information you will need to ANALYZE your DIRECT costs next week.

Remember: This week we are IDENTIFYING your Cost of Goods Sold, and will need a complete list of all the jobs or products you provide and any information needed in order to be able to analyze each direct cost in detail NEXT week.  


TIP OF THE WEEK! 

As you are IDENTIFYING the COGS (cost of goods sold) for the products and services you sell, manufacture or provide for this 10 month project to find your business's MAX PROFIT, figure out your #1 SELLER, your #1 PRODUCT or SERVICE and either adjust your price slightly higher or negotiate with your vendor/materials suppliers to get those items slightly lower to increase your Gross Profit Margin starting NOW! 

In deciding which one of these to do, and maybe you will want to do BOTH.. First find out who your top 3 competitors are for this product and see what their price range is.. if possible, find out WHO is selling the MOST of this product and either match or BEAT their price slightly. On the cost side, contact the vendor or vendors on your TOP selling product, or the materials providers for your TOP selling product PRODUCED or MANUFACTURED by your business. Negotiate with your vendor/vendors for a reduction in all or some of your costs. If you cannot immediately get a reduction, politely thank the vendor and immediately send out your list of what needs to be purchased to your vendors top 2 competitors for a bid on pricing. 

This activity, WILL absolutely make you a higher gross profit starting right away! If you would like some coaching about your specific situation, or would like a representative to handle this project for you on a more in depth level, feel free to contact us, we have consultants that specialize in these types of negotiations. Visit our website and fill out a contact form: www.TheMaxProfit.com

Be BOLD! Take ACTION! You will like the results!

 

If you would like to speak to one of our consultants to brainstorm how to identify the direct cost of 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 35 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:  www.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 Inc.