SMALL OFTEN LEADS TO BIG!
By Graham Skinner
Master-Mind Alliance® – Chico, CA
Minor changes can have a major effect. The thought of growing a business is daunting for many an owner of a small business. Sadly, this can stand in the way of true prosperity. The reality is that growth can come much more easily than would ever have been thought possible – just by making small, easy to manage changes.
It’s said that the flapping of a butterfly’s wing in Brazil caused a major event (a tornado) in Texas some years ago. While the veracity of that actual event is open to interpretation, it is a fact that that minor mathematical changes have huge effects in Quantum Physics. Well guess what, the same is true, and demonstrable, in analyzing the financial statements of businesses.
For instance small increases of, say, 5% in several key metrics such as gross revenues and gross profit margin in conjunction with corresponding reductions in some expenses can yield over 25% additional net income in most businesses. 25% in additional net income (i.e. CASHFLOW) with a relatively minor increase in gross revenue! Obviously results will be different in each business, however the concept remains the same – small, easily implementable changes lead to more cash flow.
In fact we have seen multiple situations wherein net income doubled by implementing strategies to make changes of just 10% across the key functions of leads, conversions, transactions, prices and profits. Imagine what happens when you really focus and increase one of those areas by 50% – the numbers become exponentially fantastic. This is how you can take a 6 figure business to a 7 figure business in one year.
So, look at those reports your accountant or your accounting program produce for you. Figure out what YOUR metrics are and how you might improve them just a little bit (or a big bit if you’re ready). If you have no accountant or accounting program, get one – used properly, they pay for themselves quickly.
If you would like ideas on how to interpret your numbers and implement manageable change then contact us. We’ve been there, we’ve done that and we’ve paid for ourselves many times over.