In Business, do you…
- Work excessively long hours?
- Get paid less than the people who work for you… or not at all?
- Lie awake at night wondering how you can pay wages… or your suppliers?
- Have a cash flow problem?
- Get little financial return from your business despite the effort, commitment and investment?
I bet these have been your experience from time to time.
Let me ask you this
Have you set goals related to your business earning more turnover or profit? Now there’s nothing wrong with these kind of goals because like it or not, we are all in business to make money. However, in our experience you may be wasting your time.
Let’s explore why!!
Most business owners set their financial goals by looking at the previous year’s results and targeting an extra percentage increase in turnover (usually between 10 and 20%). At the end of the year they are either happy or not happy with what profit they make.
It’s pretty black and white, but here’s the thing…
- Working from the previous year’s financial result to predict the next year’s income and expenses limits your growth potential.
- The practice of adding a further 10% to expenses and setting the goal of increasing your income doesn’t work. Why? Firstly because your focus is on the outcome (money) NOT the reason why you want to make more money.
- Developing a budget to find out whether you can put excess into savings or eliminating debt is putting the cart before the horse.
- While we agree it’s important to review your expenses to see where they can be cut, cutting expenses is never a sustainable way to grow your business.
- In our experience the areas that business owners cut in their business when things get tight are training/education, marketing and eliminating team members. Sometimes these areas are the most vital to ensure the growth of your business continues
We help you by taking you through a process of discovery which includes the following:-
- Identify why you want to make a profit – your lifestyle. How much do you need?
- From the previous financial years we work out your fixed expenses.
- We do projections to figure out your gross profit figure.
- We brainstorm with you to find ways to reduce your cost of sales percentage.
- Using the previous information we calculate what your turnover for the next year will need to be.
- We reverse engineer how many products or services it will take to achieve your projected turnover.
- By reverse engineering your conversion rate we discover how many leads are needed
- We teach you the most efficient way to track the numbers. Remember; you can’t manage what you can’t measure.
Why does it work
This works primarily because your focus shifts to your goal (your why).
Secondly, your Number of new traffic, conversion rate, number of jobs, average $ sale, turnover, cost of sale and fixed expense targets become how you achieve it.
I don’t know about you but if I can work out how many more customers I need to achieve my profit targets, it makes running my business so much simpler. That’s why traditional turnover or profit goal targets do not work
Meet our Wealth Coach
With over 20 years of experience in coaching business owners, managers and individuals, Faye has the knowledge, understanding and passion to facilitate others’ business development, change and growth. Faye has a very strong conviction that business is not all about the money, it is more about what the money can do for you. Having worked with teams of 2 to 2000 Faye knows that the right people with the right skills in the right place are the greatest asset of the organisation. Faye is highly artful in sharing her knowledge and experience gained and insightfully helps others to apply those learnings to their own situation
It’s a blessing becoming a mother but an even greater blessing being a grandmother
Outside of Work
Faye enjoys spending time with her husband Rob, children and especially her grand children. When she’s not working you’ll find Faye walking along the beach, watching her favourite movies, such as The Blind Side or discussing the meaning of life, sipping a red wine
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