Recently more Small Business Owners (SBOs) are chattering about their Business Performance. I love this and wish it were like this all year round, but it doesn’t seem to be the norm for the rest of the year!
It’s February and most SBOs are busy starting their tax preparation to close out last year’s business. There is an intensity in the air about Business Performance.
This is the stuff that gets me all jazzed up! It’s definitely one of my favorite times of the year.
Why? Knowing how YOUR Business is performing matters to your overall success.
Understanding YOUR Business Performance is paramount for you as a SBO. When you practice this, you can improve it’s performance almost instantly.
Last week, I was working with a client. He was having a tough time – completely frustrated. We looked at his financials and there was the ugly truth staring back at us once we looked at his different areas to generate revenue!
NOTE: We weren’t able to identify what to work on until we reviewed his Business Performance. Once we started, we immediately saw it.
What was the problem? His focus was always to gain more customers for one particular offering (product or service).
Why is this a problem? This particular offering had a very low profit margin.
Now there is a strategy of using a low profit margin product to begin working with customers to showcase your expertise. Once they appreciate you and the impact you provide, you can easily introduce an offering to them that provides you a larger profit margin.
There is nothing wrong with the above strategy – it’s good. However it isn’t what my client was doing.
Even though my client had a product with a phenomenal profit margin and was just as easy to attract customers to purchase, his focus was on introducing the lower profit margin offering.
This client’s situation is a common and serious problem for many SBOs.
It also comes with an simple correction – if you know YOUR Business Performance.
The only way we were able to make a swift and simple adjustment was because he had all his financial records kept up to date. Instantly we could review how the different offerings were performing and we could see what the profit margin was for each.
Once we could do this, we were able to change his focus to the offering that would help him be more profitable.
Here’s even better news: In 1 hour we created a new marketing campaign to attract more customers to his higher profit margin offering.
The Key Learning Lesson to this Business Performance Lesson:
Keep YOUR Business Financials updated. Review them monthly to learn where you could make more revenue and cut more expenses.
Having YOUR Business Performance Records (AKA: Financials) up to date, allow you to make appropriate adjustments with minimal effort. Ultimately leading you and YOUR Business Performance to greater gains.
What can you do to make a swift Performance Power Move to be more profitable? Feel free to share in the comments section or ask a question.
Brilliant Breakthrough, Inc. provides Small Business Coaching & Strategies
to Simplify Strategies & Align Actions
to Further YOUR Profitability, Peace, & Potential
Call Maggie (262) 716.7750 for YOUR No-cost Consultation
p.s. Mastering YOUR Marketing Message will attract more customers to you than you ever could have imagined!
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