THE ONLY REAL GROWTH IS PROFIT GROWTH
The only real growth is profit growth. This is the statement that I encourage all business owners to keep in a highly visible place in their office. The bottom line is the measure of growth, not how many offices you have or how many people work for you or your sales volume, etc.
All business efforts have to be developed with the goal of increasing the bottom line. Every marketing plan, every budget, every plan has to lead to an increase in profit. For example, a business that is not quite covering its expenses is not going to do any better by opening a similar business in other areas. Do what is necessary to become profitable, have money in the bank and then let’s talk about structured growth.
Going back to the basics is always the best place to start a journey for profitable growth.
- Growth should be “branded” growth. Every management and marketing effort should be concentrated on building an exclusive brand for your business. Building a brand is difficult and takes consistent effort, but once you are branded it is very difficult to be knocked off by your competition.
- Remember the true role of marketing: to create perceptions of unique added value in the minds of your target market. Take a look at your current marketing efforts; are they directed towards creating the unique added value?
- Being sensitive to the needs of your customers. What does being “sensitive” mean to you? Growth relies on building relationships through knowing and caring about your customers. How is your current business model fulfilling this important need?
- Use the 80-20 rule (it states that 20 percent of what you do gives you 80 percent of the desired results). Do you know what your top 20 percent is? Are you focusing on that part of your business?
- You cannot delegate growth, you must manage it yourself.
- Growing profitability by focusing on small income service/products may never get you where you need to be. Focus on chasing the whales in your target market, not the minnows.
- Have a written BizQuack Vision Based Plan. This should be referred to daily and encompass action plans and accountability.
Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack
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