Posts Tagged: Grow

by rvdburgt

Lose weight and grow your Business

Is one of your goals to “lose” some excess weight? Why not have the same goals for your business?

When you hear people talking about sales goals, they’re almost always referring to gross sales. “I want to do 0,000 in revenues. I want my company to grow to million, million, etc.”

But which is more important, sales or profits? Shouldn’t the goal be to increase profits? The money you keep after paying your expenses? Doubling your revenues doesn’t equate to doubling 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 “trim” your business – stop calling on the unprofitable and time consuming accounts – so you can reduce your costs and dramatically increase your profit margins. This in mind, let’s look at company XYZ, Inc.

XYZ Inc. is a Mfg Rep Company. It does nearly million in total sales. The manufacturers pay commissions of 30 percent, so the company earns .8 million. The company pays out .5 million to its 30 employees and other expenses, leaving a 0,000 net profit. XYZ Inc. has nearly 600 accounts, but the bottom 200 accounts don’t do much business with them. They do, however, take up a lot of the sales and service time, effort and attention.

Doing an analysis, XYZ Inc. discovered their 200 smallest accounts spend only 0,000 annually, but take up more than one-third of the sales staff’s available time.

Considering the implications they came to these conclusions:

If they stopped calling on these small (the bottom third) accounts, sales would drop to .5 million Commission income would drop to .65 million from .8

However, they could reduce their employee count and related expenses by 1/3, or million (a 0,000 savings).The result would be a 0,000 increase in profit to 0,000. “Trimming” the business was step one.

Step two was to have the entire company focus their efforts toward improving the quality of service to their best, or their “A” Class customers. This meant the team could easily keep their best customers very happy, turning them into raving fans who referred additional business to the company. The bonus was that the prospective customers referred by the “A” Class customers were just like them – also “A” Class. They were also able to find additional products and services they could sell to those “A” Class customers.

The sales team identified their “ideal customers,” their qualities, size, values, culture, etc. – customers they wanted to do business with, and then went after them. The attitudes and morale of the organization changed. The salespeople were making more money, and everybody was having more fun because they were spending their time, energy, and effort serving their “A” Class customers. And, with their new found free time, they are able to look for new opportunities and clients with the same profile as their “ideal customers.”

XYZ Inc. can now set its sights on growing the company to million, and then million in sales, by doing business with only the “best” customers, with much higher profit margins.

So, how can you reduce some excess weight in your business this year?

Here are the three things we just went over:

Trim your customer base. Stop calling on those who take up lots of your time, are hard to deal with, price shop, etc., and don’t do much business with you anyway.

Create a profile of your “ideal customer,” and then find more clients who fit that profile.

Give your best customers a consistently incredible, “wow” level of attention and service.

“Under commit and over deliver”

Paul Chaderjian interviews Armenian National Committee of Hollywood (ANC Hollywood) activists Paul Seradarian and Rostom Sarkissian about the August 28th Small Business Tax Seminar, organized in collaboration with the office of the California State Controller John Chiang and the sponsorship of the Armenian-American Chamber of Commerce-Little Armenia Chapter, to educate and equip small business owners to succeed in the current economy. The seminar will cover a broad range of topics including the American Recovery and Investment Act of 2009, regional business opportunities and incentives, employment and payroll taxes as well as income, sales and use taxes. WHO:Armenian National Committee of Hollywood Office of California State Controller, John Chiang Armenian-American Chamber of Commerce (Little Armenia) Supporting Business Organizations (see list below) WHAT: Small Business Tax Seminar WHEN: Friday, August 28th 8:30 am Registration 9:00 am 1:00 pm Small Business Tax Seminar WHERE: Karapetian Hall 1614 N. Alexandria Avenue Parking available at church parking lot TO RSVP: Call the ANC Western Region office at (818) 500-1918. SUPPORTING ORGANIZATIONS: Thai Community Development Center; Thai Chamber of Commerce; Greater Los Angeles African American Chamber of Commerce Regional Hispanic Chamber of Commerce Community Redevelopment Agency of the City of Los Angeles; Hollywood Chamber of Commerce ANC-Professional Network and Consumer Action. The RSVP form is included in the …
Video Rating: 5 / 5

More Small Busines Articles

by Olando7

Creative Little Organization Idea – six Crucial To Suggestions Develop Quick!

If you are seeking for a creative little company idea the primary factor to search out for is a truly clever and easy idea that you can use over and above again to turn a good profit.

The greatest tips can pay out out millions and the wonderful point about it is that anybody can have them, no matter what your financial predicament is.

Most folks feel they are not imaginative and that they could never feel of a great idea, but this is complete bull to be sincere with you. The huge solution is that you want to have a good deal of horrible suggestions, and to have a good deal of terrible concepts you will need to put a lot of information into your brain.

That is why it is so crucial to keep up to date with what is heading on in the globe and to take in as a lot knowledge as you can.

Now let us get into some strategies to start off dreaming up the ideas:

1) The very first issue you want to do is get a google reader account and then choose a theme that interests you. If you like canines you may possibly go for “dog training”…

Now you want to open up google alerts and operate a search for “canine training”. If you put the feed from google alerts into your new google reader you will have every single piece of puppy training information that is heading on in the globe every single day.

two) You need to also keep an eye on business trends in common because this will support you have more rapidly achievement.

three) Now you want to take tips and thoughts you have from your puppy teaching details and mix these with your common business concepts to create your new imaginative tiny enterprise concept.

four) You’re organization really should remedy a enormous dilemma that a significant quantity of people are getting.

5) Hold a massive listing of all your ideas and proceed to study the ones that seem to be the most likely to succeed.

Final thoughts.

To be truthful with you the most innovative modest company thought is just a set of older ideas all mashed collectively to create one thing unique.

Don’t try to reinvent the wheel and hold your company as basic as feasible. I have observed this to be a good basis for any new business.

Also preserve a note of new suggestions on your mobile phone or on a pad. It’s wonderful to me how numerous great concepts that people just forget!

Great luck.

by changecase

If you’re looking for a creative small business idea the main thing to look out for is a really clever and simple concept that you can use over and over again to turn a nice profit.

The best ideas can pay out millions and the great thing about it is that anyone can have them, no matter what your financial situation is.

Most people think they are not creative and that they could never think of a good idea, but this is total bull to be honest with you. The big secret is that you need to have a lot of terrible ideas, and to have a lot of terrible ideas you need to put a lot of information into your brain.

That is why it is so important to keep up to date with what is going on in the world and to take in as much knowledge as you can.

Now let’s get into some tactics to start dreaming up the ideas:

1) The first thing you want to do is get a google reader account and then pick a topic that interests you. If you like dogs you might go for “dog training”…

Now you want to open up google alerts and run a search for “dog training”. If you put the feed from google alerts into your new google reader you will have every piece of dog training news that is going on in the world every day.

2) You should also keep an eye on business trends in general because this will help you have faster success.

3) Now you want to take ideas and thoughts you have from your dog training information and mix these with your general business ideas to create your new creative small business idea.

4) You’re business should solve a massive problem that a significant amount of people are having.

5) Keep a big list of all your ideas and continue to research the ones that seem the most likely to succeed.

Final thoughts.

To be honest with you the most creative small business idea is just a set of older ideas all mashed together to create something unique.

Don’t try to reinvent the wheel and keep your business as simple as possible. I have found this to be a good basis for any new business.

Also keep a note of new ideas on your phone or on a pad. It’s amazing to me how many great ideas that people just forget!

Good luck.