| 5 Ways to Boost Your Business Income |
Introduction
The other day, a patient of mine asked me a question. By itself,
asking your doctor a question is not unique, but what makes this
question stands out is that this was not a question pertaining to
health.
He asked me whether the economic downturn ever affect the health
industry in general, and my practice in particular. My answer
was, "Yes, it does affect the health industry, but it does not affect
my practice very much because I have taken additional steps to boost
my practice." And I shared with him what I learned from Jay Abraham
and Ray Sugar. These two consultants get paid thousands of dollars
for their business advice.
5 Ways to Boost Your Business Income
The experts taught that if you own a business - any type of business -
there are 5 ways you can boost your business income.
Profit in any business comes from your business turnover multiplied
by your margins. In simple term,
Profits = Turnover x Margins
Turnover, in turns, is determined by the number of customers you
have, multiplied by the number of transactions each customer had with
you and the average dollar sale. Thus,
Turnover = Number of Customers x Number of Transactions x Average
Dollar Sale
The number of customers you have depends on your lead generation and
conversation rate of these leads. Thus,
Number of Customers = Lead Generation x Conversion Rate
By breaking down the process into small chunks, you will see that
your business profit is governed by 5 variables, namely
1. lead generation
2. conversion rate
3. number of transaction
4. average dollar sale
5. margins
These experts worked out the formula and found that by doubling each
of these factors, you can boost your business profits by an
incredible 67%.
Putting Theory into Practice
When I first learned this formula, it seemed so simple that it was
incredulous no one has taught me this before. Yet when I put the
theory into practice, the result was truly remarkable. I started by
making minor changes and adjustments to my normal practice and within
6 months saw a 20% increase in my turnover.
Summary
How much increased profit you can generate for your business depends
on your ingenuity and creativity in improving your lead generation,
conversion rate of your lead, the number of transaction per customer,
the average dollar sale and your margins. Only these 5 factors,
nothing else. Focus your energy on these 5 factors and you WILL
definitely improve your business income.
About the Author:
Tim Ong is a medical doctor and author of the online "Build From
Within" newsletter series. He is also the webmaster of The Self
Improvement Site (http://www.theselfimprovementsite.com) and Caring
For The Terminally Ill (http://www.caring-terminally-ill.com). You
may sign up for his free newsletter at
http://www.theselfimprovementsite.com/signup.html
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