Improve Gross Profits. The number one question I hear from new consulting clients is, “How can I increase sales?” I always ask, “Why do you want to increase sales?” They usually look at me like I just added a third eye in the middle of my forehead. But when I push them, they finally get to the fact that they want to grow their business, make more money, and get more cash in their bank account.
Now I can get them to understand that what they really want is an increase in profits.
But their question shows that most business owners think that increasing sales is the quickest way to increase profits. But is it?
Yes, increasing sales is important. We put a complete Marketing and Sales Boot Camp together to help small business owners grow sales without spending a lot of money on advertising (visit www.freeisbstrategies.com for more information). But it takes an investment of time, energy, and money to see results.
Improving gross profits is something the business owner can often easily accomplish without a large investment of time or money. In fact, it is usually the quickest way to increase profits and cash in the bank.
That is why you should work on improving gross profits before you work on increasing sales. Then the increase in sales will produce a much larger increase in profits and cash flow.
So take a step back from the sales and look at the big picture. Next? Stay tuned for our next blog, the third secret!
During our four-part Jumpstart Your Business Now webinar series at www.freeISBstrategies.com we will share our Private Coaching Checklist (55 Ways to Increase Profit Margins). This is the same coaching checklist we use to brainstorm multiple ways to increase a client’s profit margin.