Sounds great, right? More profit without working any more time. Honestly, not only is it possible, but it’s probably the key to your success. Having recently attended a Global Leadership Summit, I heard Chris McChesney speak on his book The 4 Disciplines of Execution and it set my world on fire – again! It affirmed what I have been saying all along: Do Less. Better. To Completion.
So as you are getting sucked up into the whirlwind (day job as 4DX says) of wearing too many hats and trying to do it all, where do you start? It’s a simply, but not necessarily easy process and here are a few steps to get you heading in the right direction:
- FOCUS – small word, HUGH impact. Determine what are the 1-2 WIGs (wildly important goals) that you will work toward. The law of diminishing return tells us if you try to do more than 1 or 2 at any given time, your results will be so diluted, that they will have no meaningful impact.
Your WIGs are things that will have a massive impact on your business. Spend some time away from your business and seek outside counsel to help you determine what WIGs will have the greatest and most lasting impact on your business. HINT: how can I build a sustainable business that will run without me. That’s far more profitable in the long run than you being the sole, or even primary, source of revenue.
- NICHE MARKETING – every time I go to a networking event and I hear someone tell me they market to “small and mid-size businesses” I cringe a little bit and ask them: “Great, but what’s your sweet spot?” Without a doubt, the riches are in the niches. And, that doesn’t just refer to your target market, it also applies to your product or service offering. Chinese menu is great, right up until it’s completely confusing.
Get crystal clear on who you are marketing to (email me for our Client Analysis Tool). Develop compelling messaging to connect with that specific target while offering the most RELEVANT service mix. This is also something you’ll have to visit regularly because your market is a work in progress and your strategy has meet those market changes in real time.
Done right, you will qualify leads fastest and you will substantially increase your close ratio leading to … yes, you guessed it: more profit generated from less leads!
- DO NOT COMPETE ON PRICE – for many, when they do not get an immediate yes to their proposal they have an almost instinctual reaction to lowering their price. Please, don’t do it. Or, they get to budget and pricing discussion during the qualification and they state their pricing in apologetic tones. (Honestly, it hurts a little just to type those words). Or, they think they can “work with any budget”. Oh no you can’t!
Know your value. Know your target market’s pain. Know your competition. And, possibly most important, know your costs – ALL your costs. Think sustainability: what will it cost me to deliver this service when I am no longer the one producing all the revenue. Measure your variable costs to deliver that service, your fixed overhead costs. And, measure your marketing and client acquisition costs (this one might make your head spin a little). A great foundation for building this data is to track all time for all team members – billable or not.
When you stop discounting to close business you end up closing the right business. And, when you measure all your costs, you will probably raise your prices. And what do both of those mean, yup – increased profit.
More profit while working the same or less hours is a paradigm shift for many. It takes strategy, execution and the right mindset.
This article originally appeared in C3Workplace.
This article was written by Donna Miller from Business2Community and was legally licensed through the NewsCred publisher network.