The 5-Step Plan to Grow Your Profits Tenfold

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The 5-Step Plan to Grow Your Profits Tenfold

I’m constantly giving business owners tips on how to increase their profits. Once they understand that it’s time to take action, however, many of them ask the same question:

“Well, where do I start?”

And it’s an excellent question. What’s the right way to go about putting this knowledge into practice?

I’ve constructed a simple, five-step plan that will help you not just double or triple your business’s profits but even grow them tenfold. Keep reading to learn how to put these five important steps into action!

1. Write Down Your Goals and Reasons for Being in Business

Most businesses have goals, but not all goals are good goals. Your goals should be big enough to challenge you and always keep you moving forward. What’s more, these goals need to be meaningful to you. If you’re not passionate about meeting these goals, make no mistake — you’re going to find a way to sabotage them.

Once you have figured out your goals and your different reasons for being in business, write them down. When you take the time to write something down, it’s easier to commit it to memory.

2. Commit to the Hard Work Needed to Build a Niche-Dominating Business

What I’ve observed is that there are usually one or two companies that dominate any given niche — often controlling 80–90% of the customer base. The remaining businesses are left fighting for the scraps and are often struggling just to survive.

Of course, the businesses that dominate their niches didn’t arrive there by accident. They worked tirelessly to be in that position.

If you want to be among the best, you need to put in the same effort. You must also be willing to adapt. If something isn’t working for your business, you need to have the courage to change it.

3. Create a Plan to Jumpstart Your Business, Sales, and Profits

What’s harder than increasing profits? Capturing and maintaining momentum throughout your business, sales, and profits once you start to see improvement.

In my book, The 90-Day Profit Reset, I cover this issue in detail — how to set your business up for sustained success, not merely a hot start.

4. Take Consistent and Systematic Action Each Week Toward Building a Profitable Business

Far too many business owners are in the business of putting out fires. In other words, they wait for the next thing to go wrong, and they focus all their energy on resolving it.

The problem with this approach is that your business never really improves; it merely stays afloat. To improve your business and increase your profits, it’s critical that you commit to learning, understanding, and mastering the profit formula:

A 10% increase in qualified leads

+ a 10% increase in the conversion of these leads into paying customers

+ a 10% increase in the annual sales amount per customer

+ a 10% increase in referrals from current customers

+ a 10% increase in customer retention

= a 10% increase in sales

+ a 10% increase in gross margins

– a 10% decrease in product costs, overhead expenses, and income taxes

= a huge increase in profit!

If you’re not consistently setting aside time each week to work through this formula, the reality is that you’re going to struggle to grow your business’s profits.

So, I recommend that business owners commit a minimum of four hours each week across 50 weeks to this. Think about all you could accomplish for your business in 200 hours per year — creating and improving systems, putting new programs together, building new products, improving capital and cash flow, and growing your profits.

5. Set Up a System That Holds You Accountable for Change

Despite your best efforts, willpower alone won’t be enough to propel you and your business forward. Every business owner needs a system to keep them in check whenever they start to waver.

Your accountability system might include multiple people — from mentors, consultants, and coaches to a spouse or peer. These people will not only make sure that you have a realistic timeframe for your goals, but also help you stay focused so that you make consistent forward progress.

At the same time, these people should also be a source of support, encouragement, and creativity. Finally and perhaps most importantly, they should be able to give you a stern wakeup call whenever you start to fall behind.