Boost Your Profits by Working More Effeciently
In order to boost your profits, you must work more efficiently by focusing on your highest revenue producing activities. These five or ten profit boosting activities can increase your revenues 16 to 81 times. So, here's the million dollar question; 'What specific activities should you be focusing on?'
At GrowthSource Coaching, we’ve come up with a three-step process for answering this question, so that you learn to work more efficiently and effectively, boost your business profits and stay focused on activities that generate revenue.
Step 1. Boost Your Profits by Identify Your Passion and Purpose
Passion is one of the most potent forms of energy in the universe. It emanates from your heart and soul, and sends out a powerful electromagnetic frequency into the universe that attracts people and resources to help you pursue that passion.
Passion is contagious. When you express passion, people are automatically attracted to it. When you’re passionate about what you do, your product or service speaks for itself. If you’re not passionate about your business, you might want to reconsider why you went into business in the first place.
So the first big question is: what are you passionate about?
Next, look at your purpose. Are you in business merely to accumulate wealth or do you have a strong desire to help others? Most very wealthy people have a higher social and moral purpose that goes beyond the simple quest to make money. Yes, they went into business to enjoy a great lifestyle, but they also did it to make a difference in the lives of others.
When you can match up your purpose and your passion, magic happens. It puts you in front of all the others who have lukewarm enthusiasm for what they do. What is your purpose in business, how does it match up with your passion, and how do you combine the two to make the world a better place?
Step 2. Boost Your Profits by Identifying Your Strengths
Everyone has strengths and weaknesses. In order to succeed in business, you must get very clear about your unique abilities and then focus on them almost to the exclusion of everything else.
The biggest mistake entrepreneurs make is thinking they have to do everything themselves. Nothing could be further from the truth!
Successful entrepreneurs know what needs to get done and then they figure out how to get it done, not how to do it themselves. If an important task or activity matches their personals strengths or unique ability, they do it themselves. If not, they delegate or outsource it to someone else.
Don’t buy into the notion that you will become a better business owner by shoring up your weaknesses. That’s a sure recipe for mediocrity. Instead, identify your strengths and spend most of your time using them to perform the highest-impact activities in your business.
Step 3. Boost Your Profits by Managing Your Time
This step is actually a misnomer, because when you get down to it, it’s impossible to manage time. What you can do is manage your activities by tracking where you spend your time on a daily basis and using that information to help you focus on high-impact activities.
As CEO/owner of your business, one of your most important tasks is identifying the highest income -generating activities in your business and devoting a minimum of 80 percent of your time to those activities. This principle works whether you’re a “solopreneur” with one product or a giant conglomerate with multiple lines of products.
For example, many years ago Corning was suffering a major slump in growth and profits. Management conducted an extensive study of all their product lines and (surprise!) came to the conclusion that about 20 percent of their products generated a significantly higher return on investment than 80 percent of their other products. Based on these findings, they eliminated all the unprofitable product lines and focused the entire organization on the profitable ones.
The results? Corning actually made more money by selling fewer products to fewer customers. They identified their best clients, found out which products made the most money, focused only on those, and their revenues and profits went through the roof!
The only problem was that it took Corning a long time to make the adjustments. We’re going to show you how to do it in a couple of weeks.
Spend Your Time Wisely!
Start by identifying the activities that need to occur in your business in the following areas:
•Sales and marketing •Financing and accounting
•Administrative and human resources•Research and development
•Manufacturing and operations •Other
For the next two weeks write down every activity you do in these areas and how much time you spend doing it.
A high income-producing activity would be making a sale or something that leads directly to a sale. A high-impact activity would be something like producing a great website or making sure that your ad copy is properly written to make sales for you. These activities don’t directly make a sale, but they play an important role in generating revenue.
To determine whether an activity represents one of your unique abilities, ask yourself two questions: What do I play at that other people consider work? What drives me crazy when other people don’t do it as well as me?
For example, you may excel at pulling together all the details needed to see a project through. Or, conversely, you may be good at seeing the big picture that needs to be considered before getting to the detail stage. Regardless of the skill involved, the key is to identify what you do well because you love to do it.
Once you have answered these questions, track all your activities over a two-week period, noting how much time you spend on each activity each day. Before the two weeks is up, you will probably begin to see that you need to be spending more time on some activities and less on others. You will also begin to see that there are lots of activities that you should not be doing. This doesn’t mean they don’t need to be done, only that you should not be doing them.
Work More Effeciently by Deciding What Activities You Should be Doing?
For the entrepreneur and small business owner, the highest income-producing activity, bar none, is generating revenue. Every day, your primary focus should be on how your company will generate more revenue. If you’re not spending a minimum of 80 percent of your time on income-generating activities, your business will struggle to grow and increase revenues.
But what about financing, HR, operations and all those other activities you just identified as crucial to your business? Here’s the challenge: for a small business, generating revenue must come first and management second. Otherwise your business will never grow to the point where management becomes as important as sales.
If your personal strengths lie in sales and marketing, then you need to spend a minimum of 80 percent of your time performing these activities. However, if your personal strengths lie elsewhere, hire an expert to do the sales and marketing for you and focus your time and energy on those high- impact activities that match your personal strengths. The secret to growing revenues and building a successful business is to focus only on what you do best and hire or outsource everything else.
Will that cost a lot? Sure. But it you’re focusing on your highest-impact activities and they are generating 16 times more revenue for you, then you can hire all the people you need and still make a lot more money.
Stop thinking, “I can’t afford that” and start thinking, “How do I do that?” Work On Your Business, Not In It.
Big businesses get built when the owner leverages his or her personal strengths through the use of other people’s unique talents and abilities. In other words, successful business owners focus on their highest income-generating activities and then build great teams around them to do all the other important activities they don’t do well.
To build a great team, you must overcome the typical entrepreneurial thinking that you have to do everything yourself. More important, you need to stop working in the business and start working on it.
The easy part is filling out the time sheet and identifying your highest revenue-generating activities. The hard part is changing your habits and routines so that you actually begin to work more effectively.
Habits and routines are the biggest killers of entrepreneurial dreams. Changing them requires rewiring your brain so that you start thinking like a high achiever. One of the best ways to do that is through positive affirmations.
Each morning, start your day with a positive affirmation that sounds something like this:
“I am a motivated, highly successful business owner. Each day I focus at least 80 percent of my time and energy on the highest income-producing and highest impact-producing activities that I need to be doing in my business. I am most effective when I work on the business rather than in it.”
Visualize yourself doing the high-impact activities you need to do, and then record how you spend your time every day. By mentally seeing yourself doing the right activities and then tracking the fact that you actually do them, you begin to erase the old behavior patterns and replace them with newer, more effective ones.
Boosting your profits by working more effeciently is all about training your mind to seeks out the things you are passionate about and that involve your strengths. Once you know this, devoting the right amount of time on these actives will casue your revenues and profits to skyrocket!
When You Grow, Your Business Grows