Do you have a lot of nails or is it that you only have a hammer? The problem needs the correct solution or you only get a temporary fix. But you also need to identify the correct problem.
If you want to make more money, naturally the obvious answer is to increase sales.
However…
Is the problem truly that you want to make more money or is it that you want more money at the end of the month. If you want more money at the end of the month, it’s time to go on a diet with your cash.
Here’s why.
Increasing sales is awesome, but imagine multiplying the result of the sales increase if you streamline everything underneath it… Instead of just using the hammer, imagine if you had a screw driver, pliers and wrench, (glue, Velcro and duct tape, too)!
If you sell pair of jeans for $100 and buy it for $50… great your profit is $50.00. Let’s say you have a sale and sell 30. You get an extra $1500 (30x$50) – now, prior to the sale you negotiate a better the cost of the jeans to 40 dollars… woo hoo you make an extra $300. But what happens if you negotiate the price of the advertisement in the paper to sell the jeans for $20 less. There’s an extra $20. Other reductions can include cost of your office supplies, paper for the cash register, sale bags… etc., how about your credit card processing fees. Look at all of the things you “must” do for the sale and concentrate on reducing the cost. Let’s say, the sale bag drops 10 cents and the credit card processing drops .5% and 5 cents a transaction… well… your increase sale of 30 balls for $1500… is now, 10 cents a bag, 55 cents a credit card, $20 for the ad and $300 or $385 extra. NOW, each and every sale of jeans is an extra $10.65 just by negotiating better prices. If your sale goes great and you sell an extra 20 pair of jeans… you make an extra $213 by doing NOTHING.
That’s found money.
Search for it all the time! That’s how I “found” an extra $900 by selling water! Check out Episode #151.
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Action Steps
1- Find Hidden Money – start looking at what it costs to create transaction! Create one new opportunity.
2- Install my free app! (SmallBusinessClubApp.com)
Question:
What solution did you find when you looked for more money?
Podcast:
Listen to Episode #162 of the Two Minute Commute audio blog Podcast
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