The 5 Pillars of A Successful Business
What happens when you apply the 80:20 rule to the activities required for any business to operate?
Extraordinary Profits
A Positive, Low Stress Working Environment
Continual Increases In Revenue and Profits At A Rate That Far Outpaces Your Competition
How do you achieve these goals? Well just take a look at how most companies are run and don’t do what they do. People in most companies spend the majority of their time on activities that have little or no impact on building revenue and profits. Let’s review the components of how to solve this.
First there are only five (5) areas of business that need your attention. Hold out your hand and look at your fingers and thumb – 5. Now follow with me on this because I am not in a room with you to reinforce the point. Hold out your hand and assign each of the (5) pillars as follows:
1.Sales – thumb
2.Gross Margin – index finger
3.Expenses – your “flip em” finger
4.Working Capital – next finger
5.Employees – pinky
80% of your time as an owner or CEO should be spent on these 5 pillars and 80% of the 80% should be spent on Sales and Gross Margin – the first two. When you spend the majority of your time on marketing the right balance of products and services that bring you optimum sales volume and gross margin, you can expect:
- Recruiting and retaining the best people is easy,
- Liquidity is abundant, and
- If any area of expense begins to be out of balance, it doesn’t hurt much while you are bringing it back in line.
Recently I met with a friend who has a professional service that has a healthy price point. Consider the economy is reported to be as week as it has been in 10 years, I asked him if he was feeling any impact. He told his next opening was two months out. Then he hired my company to bring him more targeted prospects. He has alway had a marketing focus the entire 15 years I have known him and he business does well every year. Repeat he has a continual focus on the marketing funnel and is working it all the time.
Spend 80% of your time on Sales and Gross Margin. An alternative is to have a credible firm drive targeted prospects to your business.
Sharing with all my readers the energy of peace, happiness and abundance
Steve Pohlit
The Profit Expert
Email Steve to schedule A No Obligation Consultation On Building Your Business Profits. Let’s discuss how to use cutting edge Social Media Marketing, Internet Marketing and Direct Response Marketing in the revenue building cycle of your business to drive your profits sky high.
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