Expanding the Key Profit Drivers in Your Business

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Transcript:

The most successful businesses are those that have a plan to continually improve and optimize the core areas of business. Sometimes, the biggest growth opportunities don’t come from new initiatives, but rather, from taking the core processes the business is already doing and executing them more effectively. This has been the case for our team. Recently, our biggest, newest initiative is focused on people. It’s hardcore focused on recruiting, training, and mentoring. Other than that, it’s the same stuff, just going deeper and not wider.

When you do this, a small incremental improvement made in a few key areas can result in geometric growth in the business as a whole. If you take 5% growth in four areas, it’s not 20%, it’s 1.05 x 1.05 x 1.05 x 1.05. Opportunities for maximization can be found in almost every area of the business: lead generation, sales prospecting, pricing increases.

Optimization & Maximizatoin

The key is to understand specifically your company’s current process and results in each of these areas and anticipate the biggest areas of challenge within your organization. You can then mobilize your team with a clear plan so that you can target specific improvements that will have the most impact. Optimization is one of the most overlooked, but more important, opportunities for sustainable, geometric growth that exists within your organization. I see this in our teams.

We’re focused on getting something newer, better, or faster, but we’re not looking to do more with optimization. We’ve had a 120-day initiative for yard sign calls. We concentrate on answer rate and conversation. We examine which calls work the best and worst. We work with our inside sales person, that listens to each call. This is a great opportunity for optimization.

When you inspire and mobilize your team to focus on the biggest opportunities for incremental improvement and create and implement a clear plan, the results can be astounding. This is where you’re going to make some mysterious cash. The first part is increasing leads and driving more traffic; get more leads. This is a potential "shiny squirrel" for sure, but it’s getting more people in the front end of your business. Secondly, increase the effectiveness of your sales process. Mentally, in my business, I shifted towards Internet and yard sign leads. How can we provide value in messaging and content? I already have five ideas we could work on.

There are things we do in this coaching business I can also be doing in my real estate company. There are two conversations you have between in-person and online. It’s an opportunity to bring someone closer. Thirdly, it’s about increasing sales conversion and gaining loyal clients. Four is increasing transaction value and profiting more. Add more value. In our business, it’s about getting paid more commission, upfront or by transaction fees, or both. Five involves following up to receive more and get more referrals through a sphere of influence.