How to Increase Profitability

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Starting a business is one thing but making money is another thing. Especially if you desire to be a high income earner .

To make a lot of money in a business takes being brilliant on some basics. It’s amazing how many business people are too busy being busy to focus on these simple but effective strategies.

Here’s 3 strategies to help you understand what it takes to earn a high income:

#1. Sales Strategy. Nothing happens in business that really matters until a sale is made. It is vital to know sales psychology, communication and influence skills to get prospects to buy your products and services. Without this, you’re wasting your time.

#2. Marketing Strategy. Without the right marketing, your products do not get in front of enough people to make the number of sales required for high profitability. It is imperative, you focus on your marketing.

#3. Retention Strategy. This is the fertilizer of big profits. It’s your competitive edge because most businesses do not make the time for it. To impact the growth of your business, take time for retention.

Become brilliant on these basics and profit highly!

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Full Transcription

The following is the full transcript of this episode of Online 2 Millions with Steve Holloway. Please note that this episode, like all O2M episodes, features Steve speaking extemporaneously – he is unscripted and unedited. Filmed in one take. Subscribe to the free motivational podcast on iTunes or Stitcher.)

In this video I want to talk to you about my three key strategies for making profit in your business. I’m not just talking about a little profit. I’m talking about extremely high profit. E.g in one corporate client that I went into was less than 1 million dollars profit and by the time I left it was earning over eight million dollars profit.

I’ve taken with the same ideas, I’ve taken a client who had the lost ($750,000) for the year. Within 12 months had a 1.2 million dollar turnaround using exactly the same strategies I want to talk to you about in this video so let’s get with it. 3 strategies.

#1 Sales Strategy. Let’s just mark it down here on the flip chart. Number one is Sales Strategy. You need a sales strategy in your company and you need to be to able to look at your company as a sales funnel.

Don’t look at it any other way because nothing happens in business until a sale is made!

Let’s look at the company as a sales funnel and these people are out here in the marketplace and we need to get them in here into our sales funnel so that we can use sales psychology, communication and influence to get them to buy our products and services.

That’s first and foremost. In that sales strategy we need to have that process in place within the company. If that’s not in place you’re going to struggle with profitability.

So the first step is the sales strategy, putting the sales process in place. Once you got the sale process in place, what you want next is sales psychology.

In other words, your people including you have good sales psychology, good sales communication skill that influences customers to buy your products and services. That is a skill that is second to none.

Once we’ve got that skill in place, we can inspire people to purchase our products and services.

Right there, this could build your business different than it is right now. Even if you have a process in place and even if you have sales communication. Just by improving your performance in that area will increase your sales, therefore, your profitability if you’re running your company how it needs to be handled.

#2 Marketing Strategy. Next let’s look at we have a sales strategy in place but if we haven’t got any customers coming to the business then it’s highly unlikely that we’re going to have any more sales and more profit.

So we need a marketing strategy. We need to bring these people that are out there. We need to target that market.

We need to find out where they are so that we can put our campaigns, our marketing ideas in front of them.

E.g. if you were selling a menopause course and let’s talk about off line for a second, where would people be who would be interested in menopause courses.

Where would they go for information? One of the first places they are going to go is their doctor. So if you had some information in a folder on the desk or the table that’s in the waiting room, or up on the wall where they have all the different pamphlets, your might stand a chance that someone’s going to find your information. Then get in touch with you.

That’s what I’m talking about… targeting the market.

Online works exactly the same. We’ll talk about that in other videos but for now we just need to know that we need to be able to target that market. Find out where we are to put our campaigns in front them to entice them to come into our sales funnel so that we can use that great sales communication and inspire them to buy our products and services.

We need that marketing campaign. We need to understand what marketing is all about in order to build those campaigns. Understand what headlines mean, colors mean, what words mean, all that type of thing that will draw people into our business.

#3 Retention Strategy. The final point and this is a point that I want to say is your “competitive edge”. This is the one point that builds your business and sustains profitability. It’s awful difficult just bringing new customers in to sell them and then finding another customer and then selling them. That’s difficult to build any business.

Let me ask you a question before I write down the word of that. The last product and services that you can remember purchasing, did you get a thank you card. I’m not talking about an email sent to you or a text message marketing you. I’m talking about an actual thank you for doing business with us. A little 4 x 6 or a postcard sized thank you card. They go a long way!

I’ll bet that if you received any in your lifetime. You can count them on one hand. Unless you’re dealing with exceptional companies that’s more than likely where you’re at as well.. I have not received any more than 5 in my lifetime.

This next point, in fact, I’m going to write this one in red.

Wow! I call this the fertilizer of profitability. It’s called retention!

Keeping your existing clients in your business. Getting your existing clients, customers or patients, what ever word you want to give them, keep them coming back like a continuity program. Just keep bringing money back.

Maybe you want to get other products in your business to inspire them to come back and take a look at your product. Most importantly is to keep in touch with your current existing customers so that you’ve got new customers coming into the business, building the profitability. You are keeping the customers and continually making profit from the existing customers. You’ve got the best of both worlds.

That’s the three main ingredients for high profitability.

Make sure that you got sales in place. You are marketing to your target market bringing them into your business. You are continually keeping those customers for the life of a customer within your business.

That will bring more profitability – more sales, more people and more profitability into your business, the more you pay attention to these.