Secrets to Massively Increasing Profits

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Shutterstock_295127180Secrets to Massively Increasing Profits

Every business owner’s goal is to increase profits.  So why isn’t every business massively profitable? 

My opinion is that most business owners don’t experience massive profits because of three things. First, they concentrate on increasing sales and not on increasing profits.  Second, they are comfortable with slow steady growth that is in their comfort zone. And finally they don’t have a plan to increase profits.

Massively successful business owners do things very differently.  These are the steps I have watched highly profitable business owners take:

  1. Decide to not accept the status quo! They always look for ways to improve their profits by thinking out of the box.  They don’t just run their business the way all their competitors run their business. 

        The standard CPA firm has a bookkeeping section.  After reviewing and                     calculating costs I determined that this wasn’t a good use of our resources.  I now send the client to bookkeeping firms rather than us doing it for                 them. This allowed us to cut our payroll in half and increase profits dramatically even with a reduction in sales.

  1. If you really want to shake up your business and increasing your profits ask yourself the following question—How can you two times the sales and profits with half the effort? This question forces you to think outside of the box.

        One of my clients owns a medical supply company.  In this industry almost all of them sell to individuals who are paying with private insurance,                 Medicare or Medicaid.  Currently the industry is being squeezed by increased costs and lower reimbursement rates.  My client opened one of the first         medical supply retail store.  This sales model is mainly cash and eliminates all of the insurance problems and thus reduced payroll.  While many of             their competitors are currently struggling they are doing well.

        Want another example?  Consider what Netflix did that eliminated Blockbusters.  How about what Amazon has done to Sears and Toys-R-Us?

  1. Set small goals and you will achieve small results. Highly successful business owners set extreme goals that force them to step out of their comfort zone.  If my goal is to add 5 clients this month I can easily reach that by doing a few extra calls.  If I set a goal to add 50 new clients this month doing a little more of what I am already doing just won’t work.  I will have to think seriously outside of the box to get the new clients and perform the services promised to the customer in a profitable manner.
  1. They hire coaches, consultants and mentors who have been there before them to assist them in implementing their profit plan.

        The biggest mistake I have made in my business career was to try to grow my business alone.  I now pay about $2,500 per month to coaches and                 mastermind groups that help me reach my goals.  (Be sure to see my article on why coaches help business owners achieve massive growth.) 

        Yes I know a ton about running successful businesses and I have helped many business owners to become highly profitable.  But it is very hard to do so         for your own company.  I am too close to it and having a couple of other successful business owner’s help me become highly profitable. 

  1. The number one thing that highly successful business owners do is they implement their plan. They don’t just plan—they have a system for implementing their profit plan.  They have a system for monthly progress toward their goals and a system that creates accountability that forces them to reach their goals.

As you can see—achieving massive profits requires work and is not for the faint of heart.  But if you are serious about growing a highly profitable business there is no easy button and there are no shortcuts.  But you’re working hard now—so why not work hard and be massively profitable.