Making more money in your business as a small business owner, as a contractor, no matter what you're doing is possible. It could be your side hustle. Watch this video as I share with you three tactics that you can implement starting today to help you start making more money in your business.
If you've hit a plateau in your business and you're stuck and not knowing what to do to take your business to the next level, to start making more money, increase your bottom line profits, then you're going to want to hear the three tactics that I'm going to be sharing with you right here that you can actually start implementing in your business. They can be your go-to tactics whenever you hit this roadblock. And guess what? It's been proven with hundreds of my clients and now is your time.
Tactic number one is all about SALES.
Sales and building up your business. I like to call it business development. This is the first key to increasing your profit margins, making more money in your business. What happens a lot of times we get out there. We're working on projects. We're so busy working on projects because we're working in our business that we forget to work on our business. Here's the thing. Sales is something that you should always be doing in your business. The only way to really make sure that it happens on a consistent basis is that you have a sales process.
You have to have a process for always having a steady flow of leads coming into your business. A process for working those leads. Then closing those leads into clients, projects, and awards. You have to take them through that cycle. You're going to have to figure out, what does that look like for your business?
The other thing you need to know about your sales process and building up your business is…
How long does it take for a potential customer to go through that sales cycle?
What is that customer journey?
How long is it?
Having a sales cycle will help you prepare and be able to make more money in your business. Of course, it is based off of your capacity and your ability to perform. You have to work on that as well. The first thing is what...
Increasing your business development, having a process around that, and always, always focusing on sales.
Tactic number two is all about knowing your NUMBERS.
I know people shy away from numbers.
"Oh, I don't like the paperwork. Well, I'm not a numbers person."
You got to get over that and get on those numbers. You need to know your numbers at all times. I'm talking about numbers as it relates to, for example, say your workers.
How much does it cost to have a guy come work with you?
Whether it's an employee, independent contractor, subcontractor, what does that usually cost for a day's work?
You need to know that basic number.
Not to mention how many hours will they have to work to complete a particular task.
You need to know about how long does it take to drywall a hundred square feet , lay plumbing for a thousand square foot building.
You need to know basic material cost.
For things that you use all the time in your business, you should know how much the materials cost on average. Of course, it fluctuates. It's going to go up, but you should have a basic idea. Of course, you're going to verify the numbers every time. But you should have a basic idea of how much materials cost. You also should know your overhead costs.
This one is juicy. I'm going to tell you how to do something that, yeah, this is definitely going to increase your bottom line profits and help you with making more money in your business.
One little SECRET.
You remember me talking about knowing your numbers? Let me share with you this one little secret that you can use to start making more money in your business and increase your profits. Remember I said, "Know your numbers, how much the project is going to cost."
When you tabulate all of that, bam, pop 50% onto that. 50% profit off the bat. Bam. Do that, and there you have increased your revenue by what? 50%. Now, of course, that may not always hold true, just depending on the project, the size, and things like that where 50% may not be able to... You may not be able to do it. Try it sometimes. See what happen. Pop 50% on there. Bam, watch those numbers increase, and watch you make more money. Take the number times 50%. Bam, that's profit.
Tactic number three is SCALE.
I'm not sure if this is the most important one, but it definitely will help you grow and allow you to make more money for sure. Technically, I think if you did this one, it would open up the other two for you as well. Doing more sales and knowing your numbers, and that is... Are you ready? Are you ready? All right. Cool. Guess what it is? It's time to scale.
You can't do it all yourself. You can't grow a business past a certain level and you're providing a service all by yourself. You can only do so much.
Here's how I like to lay it out for my clients. The first way to scale is you always want to look at is ways to AUTOMATE. What can you automate in your back office so that it gives you more time to go out and make more money? Automate where you can. Thank you for technology because that will be your key.
The second way to scale is creating SYSTEMS. Creating systems around things first. You have to get it out of your head and be able to share it with other people so that they can help you in your business. So that they can help you be successful and they can be successful at the task at hand. Don't set them up for failure. Let them know what the systems are and what the processes are that you're using.
The next way to scale is to hire the right PEOPLE. Let me repeat that. This is very important. Automate what you can. Create systems. Then hire the right people to help you grow your business. I always like to say lift as you climb because this is really, really key in that if you do that lift as you climb and you're sharing what you know with these people that are helping you grow your business and you want them to be vested in the growth of your business, then it's important that you share this information with them.
Don’t expect them to just come in and get it. I see a lot of small businesses fall down on this part. They're going through this cycle of hiring people all the time. It's like,
"Okay, light bulb moment should come on at some point and say that if you're hiring a bunch of different people and you're firing them, it's not them, it's you. You got to figure that out."
Automate where you can
Create the systems
Then hire the right people
If you're curious about that, I'm going to put a link in the description with one of my books, Entrepreneur Extraordinaire, where... I think the chapter starts on page 207.
I talk about creating systems, hiring the right people that's vested in your growth and helping you grow your business. As well as you stepping into being the true visionary leader of your business that you were meant to be.
There you have it. Now you know exactly what tactics to start implementing in your business to start making more money.
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I'll see you back here real soon. Bye for now.