How use marginal gains to increase your profit – Birds on the Blog

How use marginal gains to increase your profit

If you want to increase your profit you need to be paying attention to is the concept of Marginal Gain.

It is the idea that if you identify the elements that influence your business profit and set yourself to track and continuously improve them over time, that will add up to a huge difference in your bottom line.

Once you identify them the next step is tracking.

When I talk about tracking is not just about tracking the results.

It is useful to track results of course but you can’t really control them.

What you can control are your actions towards achieving the results and that is what will keep you on track.

Here are some examples things that will make a difference in your bottom line:

Understand your market and have a strong message

One of the reasons I see people not wanting to choose a niche is the fear of missing out.

They think that if they choose a target audience that they will lose all the other clients.

However, what ends up happening is that their message get so diluted that no one can identify themselves.

Instead create a message that you client can recognise, think of the conversation that is going on in their head and speak to that in your copy.

Once you define your message validate it by talking to people that fit your ideal client, engage with people, comment in their posts or blogs.

Make sure you track how many people you want to speak to each week and observe the results.

Don’t focus on sales, focus on offering

The most uncomfortable thing when you are in a sales conversation is to be desperate for the sale.

People can feel the desperation and all they want to do is to put the phone down as soon as possible.

It is important that you detach yourself from the outcome of each call in order for you stand in your power and serve your client in the best possible way.

A very useful thing for you to do is to get excited about having these sales conversations and be present and focusing on impacting your client in a positive way by giving them a taste of what is like to work with you.

Some of the conversations will definitely convert into calls and when you focus on having the conversations and making offers as opposed to making a sale the pressure is off and more changes you will have of making the sale.

Make sure you track how many calls you are having as well as the conversion of these prospects into clients.

Know your operating costs

It is hard to make a profit on a constant basis if you don’t know what your operating costs are.

Operating costs are the costs of keeping your business up and running.

As a ballpark they shouldn’t be more than 30% of your gross margin.

You may not be in a position to cap them into the 30% mark at this point as you may be reinvesting in your business.

However, you can create a goal of a 5% improvement within the next six months for example and that will go straight to your bottom line.

If you want more tips on increase your business profits and pay yourself more, join my Facebook group where I give daily tips and answer questions about business finances and strategy.

About the Author Morena Russell

Morena Russell is a Profit Strategist and she helps mums entrepreneurs to create the structures and systems in their business so they can hit their financial goals month in and month out. Get my free report: "5 Mistakes Eating Your Profits Now & How to avoid them"!

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