You can make more profit and have more spare time by systemising your business and following the 5 step profit formula.
You should have properly written out processes so that everyone knows exactly what to do, when and in what order.
You need a lead generation process, a follow up process and a sales conversion process.
You also need systems covering financial procedures, admin, and team activities.
When you install systems you become more efficient.
You generate more business at lower cost and you have more spare time.
For a typical business if you make even 5% improvements in 4 key numbers you can add 40% to 50% or more to your profit.
Here’s how it works:
Initial 5% Improvement
Average Price* 1000 1050
Volume* 1000 1050
Variable Cost of Goods Sold* (700) (665)
Gross Margin 30% 36.67%
Gross Profit 300,000 404250
Fixed Overhead Costs* (200000) (190000)
Net Operating Profit 100000 214250 (+142.5%!)
You can easily see how putting a few systems in place and making small improvements in your key numbers can transform your business.