Every business owner on the planet is in the PROFIT business. No profit, no business, simple as that. Also owning a business that doesn’t make a profit is not a fun thing to do with your life! So you had better come to grips with your numbers and keep moving them in the right direction. Surprise point 1! You can’t simply wave a magic wand and get more profit directly. You have to focus on the key variables in your business that cause your profit number to go up or down.
These 6 ‘magic’ numbers are: 1. Number of leads, 2. Conversion rate on the leads, 3. No of times each customer buys from you 4. Average selling price for each product 5. Average gross margin on all your products, and finally 6. Total fixed expenses for running your business. Surprise point 2! You won’t find some of these key numbers in your financial accounts, so you must keep separate records of them if your are to test and measure and then take action to improve them. For example, no. of leads, conversion rate, average sale price, number of time a customers buys from you, are not in your accounts!
Ignore these key numbers at your business peril!