|5 Ways Calculator|
Five Steps to Super Profits
ActionCOACH Business Coaching Chassis …
Most business owners only want to work on the three areas of the chassis that refer to results (Customers, Revenues and Profits), and not the five areas that can transform your business into a profit powerhouse.
Let us explain the parts of the chassis your ActionCOACH will work on with you …
1. Your Number of Leads
Just because the phone is ringing doesn't mean the cash register is. It is very important to test and measure how many leads you get each month as well as where they come from.
2. Your Conversion Rate
When we ask the average Business Owner about their conversion rate, they take a stab in the dark, and tell us it's between sixty and seventy percent. We get them to measure it, and most times we find that it's more like twenty or thirty percent. You should feel great, in fact, you should be excited, because if you're getting by at twenty or thirty percent, imagine how well your business would be running at sixty or seventy percent. Remember, double your conversion rate and you've just doubled your sales.
So … Number of Leads x Conversion Rate = Number of Customers
3. Your Number of Transactions
Once again, here's another goldmine; most business people never collect a database of their past customers, let alone write to them, or call them and ask them to come back.
4. Your Average $$$ Made
So … Customers x Transactions x Average $$$ Sale = Turnover
Turnover: Another result. Most business owners know the answer to this one. Yet they most probably have no real idea as to how they got to it. Of course, you want more of it, but you can't get more turnover. What you can do is get more transactions and a higher average dollar sale from the total number of customers you deal with.
5. Your Margins
So…Turnover x Margins = Profit
Profit: Another result that every business owner wants more of, not realizing you can't get more profit, but what you can do is get greater margins on the revenues you've got.
And that's it. The business chassis is the basic model that dictates the profit levels of every business on earth. By simply breaking down your sales and marketing efforts into these five areas and understanding how each affects the other, you're halfway there … and, most definitely way ahead of ninety percent of businesses out there.
Remember that your ActionCOACH has at least 344 different ways, (about fifty or sixty for each of the five areas) to help you multiply your profits … Contact ActionCOACH today to see how just a few small changes in each area can impact on your bottom line.
Download the 5 Ways Calculator app for your I Phone.
The ActionCOACH 5 Ways to Profit Calculator is based on the version developed by Brad Sugars and can be used a number of ways. Enter your “baseline” numbers and calculate your “baseline” profit. Then, increase each factor by just 10% and see the affect it has on the bottom-line.