Why Some Businesses Make Less Money

There are many reasons why businesses make less money. It could be because of the economy, changes in the market, or even bad publicity. But whatever the reason is, it’s important to discuss it with your team and see what can be done to turn things around.

If you think your business is making less money than others within your space, you should assess why this might be and take steps to change it.

Making some simple changes can help turn your business around so that you start seeing more profit.

(Below is a transcript of today’s featured video, “Why Some Businesses Make Less Money (and What You Can Do About It).“)

Most people underestimate the amount of work and strategic thinking - Predictable Profits

So when you think of a bell curve, 50% off all the businesses in your industry will earn less than everybody else. 

Having spoken with thousands of business owners over the last decade, there’s a dramatic difference between the top performers and everybody else.

So what side of the fence are you? Want to find out? 

Let’s start by answering a few simple questions:

  1. Do you monitor your KPIs at a minimum once a week? 
  2. Do you have a strong and compelling unique advantage in the market? 
  3. Can you charge premium prices and still have clients lining up to do business with you? 
  4. Are you constantly testing what’s working and what’s not working? 
  5. Have you built a culture of innovation so that you’re asking yourself a question like what needs to happen in order for us to deliver an even greater experience and a greater result for our clients? 
  6. Do you have a documented system in place for reengaging loss clients as well as reselling existing clients? 

 

So think about your answers; the more you answered ‘no’ to any of those questions, the greater the probability you are to be on this side of that bell curve that earns less than half of your industry. 

So if you want to increase your earnings, get a start by turning those ‘no’s into ‘yes’s.

So to get on that other side of the bell curve, it’s going to require you to monitor your KPIs at a minimum weekly.

It’ll require you to have a strong, unique advantage in the market.

You must have a strategy in place to charge premium pricing and still have clients lining up to do business with you.

You must test, innovate, and have a documented system in place for re-engaging lost clients and reselling existing ones. 

It’s all relatively easy to do and will allow you to get more out of your business.

So that’s something to think about.

“Most people underestimate the amount of work and strategic thinking that it takes to not only keep your company on the growth tracks, but to get it over to that to that next level.”

–Charles Gaudet

The idea of constantly identifying new revenue generation strategies may seem a little overwhelming… but it doesn’t need to be. Read all about Mastering The Money Wheel: The Secret To A Secure, Profitable Business.”

Also– nurturing leads through the sales funnel is decidedly under-practiced by most businesses. 65% of B2B marketers have not established lead nurturing in their sales and marketing processes. More on that on “Making Money From New Leads – How To Improve Your Sales Funnel.”

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