How one small change could double your profits
Business owners often get to a stage where they feel like they have hit a plateau. Business is going ok but what they really want is to grow, bring in new clients, free up some time and increase profits. It’s sometimes difficult knowing where to start when you are immersed in it all. Here we will look at an example of how we helped one of our clients discover the small changes they can make to individual drivers of their business that can have a huge impact on the success of their business.
Identifying key financial drivers
At Rosslyn Associates, we help business owners identify and work on the important things, to help them build the business they really want. By looking at and understanding the numbers, listening to what our clients want, and breaking things down into parts, we can help our clients identify the strengths in their business. These are the things keeping the business going in the right direction. We also help to identify which parts of the business need work and may be preventing our client from reaching their goals. Examples of different financial drivers are things such as lead generation, conversion rates, pricing, customer retention etc. Making small changes to individual drivers can have a massive effect on the business.
The growth equation
A great example of the value of this process when put into action is the progress we’ve had with one of our businessaction clients. We’ve just entered our second year working together on the businessaction program. We began the new year setting goals using the growth equation. To start the process off, we had a look at the financial figures from the previous year’s accounts, as well as non-financial data such as customers won in the year, customers lost in the year, number of lead enquiries, conversion rate and number of transactions. We then explored some of the figures together to identify which figures the client was aware of, which they were surprised by and which they feel could be improved. The growth equation works as a great tool to show the impact that changing one of these non-financial figures can have on a business’ overall profit. For example, in this situation we discovered that our client’s most critical financial driver was conversion rate of new business. When we looked at the impact of improving conversion rate from 35% to 50% we found that this would lead to doubling of profit!
Accountability
It was great to see that such a small change in one specific part of the business could have such a massive positive effect on the company’s profit, but it’s what we do with this information that will make it reality. The next step was to explore together the most important things that our client could do to increase their conversion rate and see their profit double. These could be things such as getting a contact management system, improving follow ups, building relationships, sharing case studies etc. Once our client decided which courses of action they felt would be good for their business to increase conversion rate, we then created an accountability plan to ensure everything that has to happen to reach their goal will get done.
We will continue to have regular one to one meetings to make reaching the target easier. During the meetings we will look at how things have progressed, what’s going well, what isn’t going so well and if there are any parts of the plan that need to be focussed on or tweaked to ensure that with our support our client gets the results they want.
How we can help you reach your goals
If this sounds interesting and you want to take your business to the next level, please get in touch. We can help you discover the changes that need to be made to get the outcome you desire. Once you know what is it is that needs to happen, we will help you put a plan in place to ensure the right courses of action take place, all the while supporting you and holding you accountable along the way. If you choose our businessaction package, we will work closely together to ensure you get all the support you need to build the business you really want. Together we will regularly review your results and make sure you are doing all the things that are necessary to reach your goals and realise your dreams!
Get in touch!
If you would like to discuss how we could help you grow your business, please call the office on 0131 445 1825 or email info@rosslynassociates.co.uk. One of our team will be happy to have a chat about how we could work together!
