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Ask any business owner what their business needs and you will get a host of different answers. Some will say "new equipment", others will say "better staff" while others will say "more time." Many will probably say they need all three! However, the most common responses will invariably be related to the following three areas:

1.     More Customers,

2.     More Revenue, and

3.     More Profit.

Ask those same business owners how they plan to go about improving the above and their responses will likely be something related to marketing. They will want things such as better salespeople, improved marketing strategies (and then they will say that half of marketing doesn't work anyway). Many will just have a collection of ideas without a specific action plan for growing these areas, and even less will have considered how they will be able to test the impact of their ideas.

Business Chassis:

 What many business owners don't realise is that every business ever conceived operates on exactly the same 'business chassis'. This is a very powerful, yet simple concept, that few are aware of. Understanding this principle can play a major role in determining the success of your business.  We call this 'business chassis' concept the 5 Ways Principle.

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The 5 Ways Principle:

The 5 Ways principle is a very powerful business tool that will enable you to have:

1.     Total control of your business growth

2.     Predictable marketing functions within your business

3.     Maximised profits in your business

The principle can be demonstrated with a simple formula:

Profits:

As you can see, customers, revenue and profit are the "outputs" or results in this formula. Leads, Conversion Rate, Average Sale, Number of Transactions and Profit Margin are the "inputs" that drive the "outputs". So if you want to change the outputs in the formula, you must first change the inputs. For example, if you increase the number of leads or the conversion rate then the number of customers will increase.

Compound Effect:

So what happens if we increase both the number of leads AND the conversion rate? Well, the two do not simply add together, but rather one multiplies the other. It has a compounding effect - this is the great strength of the 5 Ways Principle.

With a compounding formula, small improvements to each part of the formula can quickly improve your results in a dramatic fashion. There are five variables in this formula and each can be affected by a whole range of activities or strategies. There are dozens of strategies any business owner can implement that will improve each area to maximise profits.

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Focus on the Five Ways:

Number of Leads:

• To improve the number of leads, a host of marketing strategies such as advertising, direct sales, press releases, flyers, brochures, etc. are available.

Conversation Rate:

• Use of sales scripts, offering guarantees, selling exclusive products, and written testimonials are all great ways to increase your conversion rate.

Number of Transactions:

• Newsletters, exclusive offers to existing clients, and booking the next visit can all increase your number of transactions with existing customers.

Average Sale:

• Want to increase your average sale? Offer package deals, cross or add-on-sell other items, use a checklist, or offer financing plans.

Profit Margins:

• How about improving profit margins? Increase your prices, promote idle or slow time, reduce general & administrative expenses, etc. 

Test and Measure Your Results:

There are many different strategies to improve each area, although some that might work for one business may not work for another. That is why it is so important to measure the impact of every implemented strategy. If it works increase your activity, if it doesn't then adapt and adapt again until you find a winning formula or it is obvious it will never work. Testing and measuring is vital to maximising your profits.

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Opportunities for Profit Growth:

So, the powerful part of this principle is the power of compounding. A minimal increase in each of the five areas can quickly lead to double or triple digit increases in your bottom line profit. This approach is simple, but it takes discipline, focus and time - yet it can make all the difference between a great business and a business that just gets by.

So are you up for the challenge?

Find out how to maximise your profit building chassis at The Somerset Business Show.

-       Seminar: "5 Ways to Maximise Your Profits"

If you would like to explore how the 5 Ways Chassis can be used to maximise profits in your business why not book onto my Free 5 Ways seminar

This seminar will cover the five main areas that drive your business and deliver massive increases in your profits.

You'll learn:

1.      The '5 Ways to Maximise Profits'

2.      How to grow profits by 61%

3.      Profit building strategies

You'll also receive Complimentary Business Building Gifts:

1.      1:1 Profit building session

2.      Sales and profit building book

3.      66% discount on 90 Day Business Planning event

To book your ticket:

https://www.eventbrite.co.uk/e/the-somerset-business-show-tickets-31196435378

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