Want to QUADRUPLE your Net Profit?
That probably sounds like a ridiculous question right… but the truth is, 4X’ing your net profit is actually more achievable than you may think!
How, you might be thinking?
Well, all it takes is a collective series of strategic and minor tweaks within your business.
Let’s look at an example…
Say, your current monthly figures look something like this:
But what if we improved each of these figures just slightly…
Let’s say you focus on your marketing first.
You choose to move away from platforms like Hipages and stop spending $120 a click on Google Ads… and instead, you begin focusing on building strong marketing infrastructure that is actively driving more leads to your business and giving you more opportunity to win work.
From this change in approach, in a few months let’s say you’re quoting an extra 20 quotes per month… So, that’s an average of 70 quotes per month. Pretty realistic and conservative increase right?!
Now, say you work on optimising your sales process, focusing on capturing the right information, weeding out tyre kickers, increasing conversions AND enhancing customer experience… And this allows you to convert 10% more of the leads that come your way.
So, now you’re at a conversion rate of 70%. Pretty reasonable…
This means you’re now doing 49 jobs every month instead of 30, filling some of those gaps in your pipeline, where you’re sitting around doing nothing, costing you and the business money!
Now, because you’ve got better marketing infrastructure and a customer-focused sales process, the perceived value of your service goes up too, so you also decide to raise your price by 15%, raising your average job value from $2,000 to $2,300. Only $300. Not much right?
Now, because you’ve raised your prices and improved some efficiencies in how you actually deliver work, your gross profit margin also increases 10%, from 20% to 30%.
So, now your Gross profit is $33,810!
Now, let’s reasonably assume that your overhead costs have now increased $1,000 because of additional variable overhead costs associated with more work.
That means your Net Profit is now $19,467 every month!
That’s a MASSIVE 400% increase in Net Profit by making just a few small improvements across the board!
Over 12 months, that’s an extra $174,804 in Net Profit!
Don’t believe this is possible for you?
Well, we recently showed our latest client case study Reeza, from Goodfellows Electrical, exactly how to add more than 30% to his Gross Profit margin which ended up 5X’ing his Net Profit from just a few small changes in his marketing, sales, pricing and positioning AND STILL be able to afford to lose up to 70% of his existing customers… this won’t happen however (he’s had no backlash yet)!
Now, don't expect to 4X your Net Profit over night! This process of transformation takes time and commitment. You need to focus every week on making incremental 1% improvements in each of these key areas.
But just imagine where you'll be in 12 months time!
Small hinges swing big doors.
If you're an electrician, plumber, painter, carpenter, or any other trade business owner who is looking to take your business to the next level, click here to learn more about how our team can help!