Today we share how to achieve the ultimate F-bomb in business. Hopefully, all of you in business, want more clients. Actually, more quality clients, ideal clients, clients that you love working with. Those additional clients will lead to what you ultimately expect which is increased revenues and profits.
The question is, can you immediately generate more clients, revenues, and profits? The answer is actually, no. We as coaches don’t look at these three outcomes as the main focus. We look at how to get there to ultimately deliver on those outcomes. Your clients are the outcome of your leads x your conversion rates. This will give you the correct number of clients you have. Your revenues are a result of those clients x their average dollar sale, and the number of transactions per year of which will give you your revenues. Your profits are the result of your revenues x your margins. This is the money that ultimately goes into your pocket.
So my question to you is leads, conversion, average dollar sale, number of transactions and margins. Would all of you be able to recite those numbers or write them down of exactly what it looks like in your business? Because here’s something to think about. If you can’t, you’re like a runner in a race that doesn’t know where the starting line is. You want more, but you don’t know where you’re at, to make the shifts, adjustments, and increases to get better, to essentially deliver more. You’re just hoping more shows up.
Take a look at your leads, how can you increase your number of leads? Where are the leads coming from? How many different sources are they coming from? Your conversion rate, are you measuring the conversion rate on all these different areas to find where the real source of money is coming from? Never forget the phrase ‘where your focus goes, your energy flows.’ When you know where the money’s coming from, that’s where your energy and focus is going to go so you can create more of it. This process will lead to you gaining more clients.
Your average dollar sale. Are you increasing your prices? Are you working on being the best in your industry so you can warrant higher prices? Or are you just trying to undercut everybody else by being the lowest bidder? Be careful as people understand that they usually get what they pay for. In addition, remember that it’s quality clients and customers you want to attract, not price-shoppers.
The number of transactions, do your clients know every product and service you offer? This will produce your revenues. Finally, and hopefully, you have a budget, you’re sitting with your bookkeeper, you’re doing your QuickBooks, you’re looking at all your line items weekly and monthly, so you’ll know how to make the shifts to increase those margins, to ultimately deliver more profits.
I encourage you if you’re not doing this, tune into any Action Coach around the world. If you’re local, call me, Coach Michael, and I will walk you through it. One thing I will guarantee you, if you do not know these numbers, you’re winging it. You’re absolutely, positively winging it.
Think about the desired amount of bottom-line income you would like to generate this year. You can enter that number in your profits, work the five ways numbers backward, and know exactly what statistic in each area you would need to produce to get that desired amount of income in your pocket. That’s pretty powerful information when you have it.
When you master your five ways, when you know those numbers inside and out, you’re making all the little shifts in those areas for you to get more clients, revenue, and profits, you can then teach your team the process. And only then will you achieve the ultimate F-bomb in business, which is freedom. Freedom to have the Business work for you so you can do what you like, when you like, with who you like.
Only when you systemize your business can you achieve the ultimate F-bomb of freedom. Learn and practice your five ways. If you need help, reach out, I’ll guide you through it. I guarantee, it’ll change your business and give you more of what you’re really looking for.