by Asa Beavers
When you hear people talking about sales goals, they are almost always referring to gross sales. You'll hear them say "I want to do $1,000,000 in sales. I want my company to grow to $10 million, $100 million, even a $1 billion."
But, which is more important - gross sales, or net profits? Shouldn't the goal be to dramatically increase net profits, the money you keep after paying your expenses? It just doesn't go hand-in-hand that by doubling your sales you double your profits, does it?
In many cases quite the opposite happens. Sales may increase, but the profits lag far behind.
Perhaps a better idea is to prune your business. Stop calling on the unprofitable and time consuming accounts so you can reduce your costs and dramatically increase your profit margins. Focus on your 'A-class' customers. Improve the quality of service you provide them. Make them raving fans who refer lots of other business to you. Find additional products and services to sell to those 'A' clients.
To grow your business, focus on these three things:
- Prune your customer base and stop calling on those who take up lots of your time, but don't do much business with you.
- Give your best customers incredible, outrageous levels of attention and service. Under commit. Over deliver.
- Create a profile of your ideal or "best" client, then find more clients who match it.
By implementing these 3 strategies you'll have more fun, and make lots more money.
About the Author
Asa Beavers is a small business coach and consultant. He shares tips, techniques and strategies with smalll business owners to boost clarity and focus, create strategic action plans, and increase sales and profits. Visit his website at www.redlinebsg.com, email Asa at asa@redlinebsg.com, or call 919-367-0790.