FREE eBook: 8 Steps Local Small Business Owners Need to Take to Make $100,000 in Profit
Are You Ready to Double or Triple Your Profits?
In today’s episode: We discuss my new FREE eBook: 8 Steps Local Small Business Owners Need to Take to Make $100,000 in Profit? Not just the ebook, but a workbook as well. I want each of you to maximize your profits no matter where you are today. So this eBook should help you achieve whatever profit goal you want to hit! Check it out at localsmallbusinesscoach.com/8steps
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Episode 83: FREE eBook: 8 Steps Local Small Business Owners Need to Take to Make $100,000 in Profit
Welcome back to the Local Small Business Coach Podcast. I am your coach, Tammy Adams.
Today we are going to talk about the new FREE eBook on hitting your profit goals!!
Hey everyone, I am so excited. Last week I completed this free ebook that I have been working on. You might recall back on episode 3 where I introduced my belief that every local small business owner should be able to grow their business to over $100,000 in profits.
You see, the IRS has published several articles stating that the average local small business owner makes somewhere between $35,000 – $50,000 a year. For many new business owners, that number is more around $2,000 a month or $24,000. That is crazy, you are worth so much more!
I then started this mission to help get folks to this $100,000 in profit. The thing I did first was to layout what I felt were the 8 steps to get there. Those of you that have been listening for a while might recall back in episode 4 where I broke each these steps down.
Later I even did a short video and spreadsheet to help you out.
So, why this ebook?
Since those first set of episodes, this theme has really stuck with me. Between the feedback I’ve received and the research I’ve done, I have come to realize that many of you have a huge desire to increase your profits. To better provide for you family and your future.
Knowing that podcasts are great for creating ideas, especially since most folks listen while they drive or work, they aren’t always great at capturing the action items you want to take or remembering all the steps.
So, I set out to create a free downloadable ebook that walks you through the steps to get your profits up to 100k. Plus, with the ebook, you get a workbook to capture the steps you plan on taking.
By the way, if you are already at $100,000, no worries. These steps are about increasing your profits no matter what level you are at. They work if you are doing $35,000 a year or $135,000.
Now, if you haven’t heard those two episodes, or you are looking for a refresher, let’s walk through the 8 Steps that you need to take to get double or triple your profits!
8 Steps Local Small Business Owners Need to Take to Make $100,000 in Profit
Step 1 – You must set aside 2-3 hours a week to start working ON your business and not just IN your business.
You might recall we discussed this in more detail in episode 2. A huge number of local small business owners are solopreneurs. This means that most of you are wearing every hat in your business. You are running around like crazy and unfortunately spending most of your time on the “doing” of the jobs. As long as 99% of your time is spent on the “doing” you will never grow beyond your current capacity.
Why is that? Because you never spend the time you need to work “on” your business like a CEO would. You also can only “do” so much. At some point you are stuck on how much you can do. So, it is very important that you start with this step before tackling any of the others.
Now, when is the best time to schedule this? Ideally, you would spend your first hour of each day working “on” your business. However, some of you need to get an early start on your jobs, therefore you will want to set aside time at the end of the day. Worse case, set aside your first few hours on Monday or time on Sunday afternoon.
Remember, you need to make this time a habit. The best way to make it a habit is to pick the same time each day or week. Whatever you pick, make sure you fully commit and block your calendar during this time. Make it a sacred part of your week.
Step 2 – You need to Identify the gap between what you are currently doing today in sales and what you are needing to do to hit your $100,000 target
So, let’s say for example, you are bringing home $5,000 a month or $60,000 of profit a year. To get to the 100k, you know you need to grow your business by $40,000 in profit. But, exactly how much sales does that equal?
Assuming your existing sales are around $125,000 which covers product costs, your expenses and that $60,000 in profit. Your goal is to figure out how much more in sales you need to do to make that extra 40k in profit.
You do this, by figuring out your product costs and your expenses which will then in turn tell your profit margin. Now, I’m not going to bore you with math on a podcast, that is cruel and unusual punishment. But I will give you the quick highlight.
Let’s say that your profit margin is 55%, then you just need to take the $40,000 in profit, plus any additional expenses you expect to have and divide it by .55. OK, I hear your screaming now at me. I’ll stop. But here is the cool thing. Not only do I break this down in the eBook, I have created a spreadsheet you can use to figure this out.
But let’s just assume you did this and discovered that you needed an additional $105,000 in sales to hit your goal annually or $8.700 a month.
This number is important as this new sales goal is what drives our next couple of steps.
Step 3 – Now that you know your need, it is time to Create some Sales Ideas
Knowing you need this additional $105,000 or $8,700 a month, allows you to realize how big you need to think. How are you going to build your sales to hit this new number? Later we will look at costs but in this step, just focus on ways you can increase your sales.
I want you dreaming just like you did when you first started your business. You remember how you thought you could tackle the world and nothing was off limits. I want you thinking just like that. Toss out all your ideas. But whatever you do, DO NOT say “I can’t do that”. Do not think it is too big, don’t not worry about time or resources. Those come later. Right now, it is all about thinking about how you can create the sales you need.
Remember back in episode 20 where we talked about the 3 Ways to Increase Your Local Small Business's Sales. You might recall you increase your sales by either increasing your customer count, by increasing your dollar average or by increasing your customer frequency. So when you brainstorm, look at all three categories.
Some areas to look at would be…
- What are products you can add to your mix?
- What services can you add?
- What “add on” products can you sell.
- How will you get folks to come in more often
You get the idea. Just brainstorm and write it all down!
Once you have these ideas, you move onto step #4
Step 4 – Time to Develop a Gameplan with your Sales ideas
Once you have a nice healthy list of ideas to drive sales, it is time to start figuring out what it will take get those sales. Once again, don’t get hung up on having the time or resources. That is coming up in a later step. This step is all about figuring out how you can drive those sales ideas.
What does your marketing plan need to look like? Do you need Facebook ads? Local newspaper ads? Following up with past clients? Toss out tons of ways you can drive those sales ideas.
In the earlier step, you might have discovered a great add on idea. So in this gameplan section you might write something like, for every X Service you will push Y Add On. What type of success rate do you need. For example, you might sell an add on for $25. Let’s say you can get 1 out of 4 customers to purchase it. You have 25 customers a week so that means you sell 6 of them for $125 a week, which can lead to $6,500 in sales a year. Never underestimate the power of those add on items. You just need a gameplan on how you will drive those sales.
Another item to look at is your website. Can it be improved to drive more sales? Put this in your gameplan as well. Same thing is you could leverage any social media? Some businesses do very well for example with Instragram or Pinterest.
What will be your gameplan to drive your sales ideas
Step 5 – Look for ways to reduce your costs and expenses
There are two ways to increase your profit. One way is to increase your sales Another way is reduce costs. In our last two steps we discussed driving the sales side, not it is time to attack the costs and expenses side of your business.
When looking at your expenses. Are there areas that you are over spending or not watching. A typical expense that gets wasted with local small business owners for example is gas. If you have to run to Home Depot or Lowes multiple times during a job, you are wasting both time and gas.
Maybe your losing money due to not collecting your invoices due to poor follow up? I can’t tell you how many business owners fail to not follow up on their invoices. Even worse are those that never send the bill out in the first place. I recommend local businesses all the time to help clients around their home. I can’t tell you how many of them never bill the client for those services. I’m always amazed at how much business is never paid for.
As for costs. How can you get your products cheaper? For example, local hardware stores tend to charge more than the big box retailers. I’m all about shopping local but if you are already at a big box retailer, get all you need for upcoming jobs. Are there other suppliers you could use? Can you pull your resources with other folks.
Is your money tied up in too much inventory? Inventory that you aren’t using in the next few weeks is like having dollar bills just sitting on the shelf. Can you buy better?
Are you losing money due to waste? For example, cutting things wrong or buying the wrong stuff that you can’t return. If you own a QSR or restaurant, are your employees putting too much food on the plate or in the food? Are your food costs are too high? Do you even know your food costs? Think of all the holes in your business. In episode 57 we dived into your product costs more.
Step 6 – Identify Core Processes that Are broken in your business
Now in this step, we want to start identifying ways to come up with more time to do your additional sales. The best way to come up with time is to identify any core processes that are broken in your business or that can be improved. By the way, not only do you save time by working in these, odds are you will uncover some profit leaks as well.
You want to think of things you do over and over and could automate more. For example, instead of running back and forth every day to a supplier, can you go once a week?
Instead of spending hours on your quotes, can you create a spreadsheet that contains all the parts you need to speed up the process? Are you answering the same question over and over? Can you put the answer on your website or on your bids? How can you address these questions up front. Maybe a video people can watch? Think outside of the box. You will be amazed at how much time is lost due to repetitive action items. If you don’t believe me, track this for a week and see how much you address over and over.
Another great way to save time is to think of all the areas that you hate doing because they take up too much of your time. How can you make them quicker?
If your book keeping is taking hours, maybe it might be time to hire someone to help out?
Yes, it might add to your costs, but you might find that by freeing up your time, you can knock out an extra job a week and it will pay for this person plus you will still have time to spare to create even more sales. Which now leads us to step 7.
In Step 7 – You need to identify what resources you need to achieve the gameplan you have been building.
How much is your time worth? Not what you want it to be worth, but rather how much money does your time create when you are working the sales side of the business. Let’s just say it is worth $50 an hour. In this step, you want to identify processes that you could pay $10 – $15 an hour for. By hiring people to do these tasks, it opens up your time to create more sales at the $50 an hour.
Let’s use the example of getting a bookkeeper. If you hired someone part time for 10 hours a week to process your bookkeeping and invoices and you paid them $15 an hour you are looking at $150 a week. If your time is worth $50 an hour due to what you can produce in sales, those 10 hours a week you pick up are worth $500. Now you can easily pay this new bookkeeper plus have more profits and sales to boot.
What other resources could you use? Maybe it is a piece of equipment, or maybe an online program, maybe it is having someone work on your website or do you social media for you?
What are the tools, resources, & people that will help you hit your goals?
Fight the urge to say I CAN’t or I can never afford that. That type of thinking isn’t going to get you to $100,000! Trust me, you will find a way if you really know it will have a great return on your investment. You just need to have a plan.
Which brings us to our
8th and Final Step – YOU MUST SEE YOURSELF AS A $100,000 PROFIT BUSINESS.
Far too often you are your own limiter as to what you can accomplish. If you don’t believe you can, you won’t. If you don’t think like a $100,000 profit business you will never become one.
So many local small business owners think small. They are happy if they can just pay their bills. The problem is, if you think in these terms, you will never break the bariar to higher levels. You have to vision yourself at this new level.
You also can’t think about all the reasons why you can’t get there. Rather you need to see them as hurdles and think of solutions to the problem. They aren’t a wall you can’t penetrate. There is always a solution. Your mindset is half the battle to you getting to a $100,000 profit.
I’ve made this challenge before, spend the next week really believing you are a $100,000 business. If by the end of the week, you aren’t seeing big changes in how you view your business and decisions you start to make, then fine, go back to your old ways. But I bet you will see and feel the difference when you believe in your heart you are a $100,000 profit business.
Time to Wrap Up & Get the Free eBook: 8 Steps Local Small Business Owners Need to Take to Make $100,000 in Profit
Now, if you are ready to make some serious changes to your take home pay, if you are ready to take your business up a notch or two, then it is time for you to head on over and get your free eBook: 8 Steps Local Small Business Owners Need to Take to Make $100,000 in Profit. You can go to LocalSmallBusinessCoach.com/8steps and your free ebook and workbook today.
Ok, time to bring this episode to a close. Hopefully your head is swimming with ideas on how you can get your business to $100,000 in profit. Remember, it all starts with you sitting down that first time to work ON your business. Then about working on your plan each week. You can do amazing things when you have a plan.
Don’t forget to get your FREE eBook over at LocalSmallBusinessCoach.com/8steps
I’d love to hear feedback on what else you could use to help you get to that $100,000 goal. I’m also thinking about putting a very detailed course together. So let me know if this might be something you would like. Shoot me an email at firstname.lastname@example.org.
And as we wrap up this episode I want you to know, that I realize being a local small business owner can be a lonely gig at times. But you don’t have to do it alone. Just know, I’m always here for you.
By the way, If you like what we are taking about, then make sure to subscribe to the podcast so you don’t miss an episode, if you love the podcast and what we are talking about, then please leave a 5 star review so other local small business owners know this is a podcast that they can’t miss.
And don’t forget to visit the website at LocalSmallBusinessCoach.com to leave your question for me to possibly answer on the podcast in the future. You can leave it via the Speakpipe button or just shoot me an email.
Meanwhile, I wish you the best in your business and remember: Great Customer Service, coupled with Great business practices will set you on the path to Great Profits!
Bye for now…..
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Podcast Website: LocalSmallBusinessCoach.com
Leave your Message on the website with the SpeakPipe Button or just email me at Tammy@LocalSmallBusinessCoach.com
Our Training Materials for Local Small Business Owners: TrainingforLocalSmallBusinessOwners.com
Starting a Local Small Business Website: StartALocalSmallBusiness.com
My Recommended Bookkeeping Program for Local Small Business Owners: Freshbooks Link
Why? Helps you invoice quicker and more importantly, get paid quicker. Let’s you know when your clients have opened the email and they even help send reminders. Clients / customers can pay right from their phone or computer. Give it a Try: Freshbooks
**Freshbooks is an affiliate link. This costs you nothing. I only recommend due to how much folks have loved it. I am paid a small commission but trust me. Even I use it. Try it for free for 30 days and see if you don’t love it too!
Today's episode, as well as all of our episodes, is brought to you by trainingforlocalsmallbusinessowners.com. Where we provide free tips, tools and resources for your local small business. So whether you are just starting out or you've been in business for a while and want to learn more ways to increase your profit, boost your sales, improve your processes and develop stronger teams then head on over once again to trainingforlocalsmallbusinessowners.com..
And if you are Thinking of Starting a Local Small business, over at StartALocalSmallBusiness.com we have lots of free tools and resources to help you get your local small business started. Plus, we now have a more in-depth course to Help Get you going. It has 12 modules, 50 mini videos and 13 downloadable tools a person can use to start their local small business. You can find the link once again at StartALocalSmallBusiness.com. I also have set up a special discount code for listeners of the podcast. At checkout, just add the code PODCAST to save 25%.
See you on the next episode!
Two Great Books to Help You With Your Small Business:
Highly Recommend all Local Small Business Owners Read the eMyth by Micheal Gerber. You will learn some critical things about running your business.
The second book is one I wrote based off a popular example I always use when folks are trying to understand their role as a leader with their people. Check it out.