How to Double Your Profits in 7 Days with 1 Strategy!

First some background introduction, before we go into how to DOUBLE your profit with 1 strategy… so please read on. The majority of small businesses struggle with money - i.e. low profit or lack of cash flow. The struggle is not having enough, or it being available consistently.

Business owners tend to fall into the trap of running a busy-ness where they don't have enough time to achieve what they want to achieve.

Here's a question... would you prefer to have scenario 1: $1Million Turnover working 60 hours a week yourself or scenario 2: $800,000 Turnover working 40 hours a week?

After personally mentoring over 120 business owners 1 on 1 I've observed the majority of business owners fit scenario 1. But when asked which they prefer all say scenario 2.

In your business you have a figure called your operating profit, or net profit. If you divide this into your total Turnover you obtain your operating profit percentage or net profit margin.

What few people in business realize is you can double your net profit margin with just 1 strategy!

Before you think about this understand this, businesses fail the majority of the time due to low profitability - i.e. they operate with a low percentage of profit.

Your total Turnover is like a bragging figure but consider this...

Its far better to have a business that has a $500,000 turnover with a 20% operating profit than it is to have a $1,000,000 Turnover business with a 10% operating profit, even though the take home profit is the same.

If that's the case then profit is more important to you than simply Turnover. With double the Turnover it’s normal to need to manage double the staff, hence why it’s better to have higher profit margins than higher Turnover.

With this understanding you then start to realize it’s better to have less customers if your Turnover is higher than simply getting more customers at the same profit.

Here's where the numbers reveal a way forward.

If you were to put your prices up by 10% on everything what would happen?

You may get less sales (even though I have proved in hundreds of business actual case studies you rarely do), but if you got less sales or customers would it matter if you had a lower Turnover if you made more profit?

Remember how we agreed it’s better to work less hours with higher profit than more hours with the same profit?

So what few businesses understand is the power of numbers.

If your net profit margin was 5%, if you put your prices up by 10% your new net profit margin would be 14%! So not only would you have increased it, you would have nearly tripled it!

If your net profit margin is 8% it would go to 16% - i.e. double, so that means your net profit would be double as well. If your net profit was $50,000 it would now go to $100,000, with 1 strategy and 1 decision.

If your net profit is 12% then a 10% increase in prices would increase it to 20%. Not double, but still it’s a massive dollar figure increase.

You may say, ‘what if I do lose sales as a result of putting my prices up?’

In the above example, if your net profit margin was 5% and your increased prices by 10%, you could afford for your total Turnover to drop by 20% before you were actually making less profit! So if your Turnover was $20,000 per week and you put your prices up 10% with a 5% net profit margin then you could afford for your Turnover per week to drop to $18,000 and you would have more net profit, doing less work, serving less customers while also freeing up time.

If your weekly Turnover dropped to $16,000 after the price rise you would still be better off as you would be saving 20% if the time serving customers, while making the same net profit!

Can you see the power of this strategy?

Always keep in mind profit is king, turnover is simply a bragging figure.

I have a client who had a turnover in his business of $40 Million+ a year with a 19% net profit margin. That's the power of this concept taken into the real world of business.

This was achieved with many strategies, not just one. This article is about one of dozens of profit margin increasing strategies that are part of the world's first proven, fully systemised small business management training program called Business Freedom.