3 years ago, my client came to me as they felt a little out of control with the business and had massive dreams for growth – they wanted to scale to the 7 figure mark.
In today’s episode, I’ll be breaking down their impressive profit increase, and importantly, how it came about so you can learn to do the same for your business.
The first thing you’ll notice about the name of today’s episode is that I am talking about PROFIT and not sales.
And the second thing you’ll notice, is that this is a bloody impressive increase – over 3 x higher!
In today’s episode, I’ll be breaking down this impressive profit increase, and importantly… how it came about.
Today’s episode is bought to you by my brand new challenge – The 3 Day Profit Booster.
DAY 1 Uncover why your business isn’t making more profit
Here’s the thing. Many of the ‘business experts’ are preaching Tik Toks, Reels, Pinterest and a thousand other ways to grow your business. But Sales do not Equal profit, so your bank account still feels bare. We will pull back the covers on your profit and discovering how you can add more $$ to your business bank account (not just the topline)
DAY 2 Discover and eliminate your money leaks
This is a crucial step in becoming a money master – knowing what numbers to look and where to invest vs where to cut costs. You’ll be giving yourself a bit of tough love (using my proven leak-buster strategy) that your back pocket is going to love.
DAY 3 Create your profit confidence strategy
Step from finance flailing to flying. I’m sharing my 7 step framework to become a money master and be confident in your profitability (and how you can rapidly grow it!). Boosting your profit is easy when you know how.
I’ll be conducting this training LIVE so please sign up via the link in the shownotes as I’ll be able to answer your profit questions live inside one of the 3 x calls.
Let’s chat about my client’s impressive success story.
So my client came to me as they felt a little out of control with the business and had massive dreams for growth! They wanted to scale to the 7 figure mark.
Most of my client coaching clients have that exact dream. $1m in sales. This is my zone of genius. But like most business owners, when I asked this client ‘cool, and how much profit?” They couldn’t really answer.
I’m not saying this at all to shame my client because to be honest… I would say that 95% of business owners I chat to or work with don’t really have a clear view of their profit or their profit plans.
So let’s start with the numbers, then dive into the HOW.
This client and I worked together for almost 3 years.
In year 1 their sales were $303k with a profit of $40k to $538 ($65k profit) to $728 (excl GST so it’s actually more than $800k) $140k profit.
A couple of things to note about this – you might wonder how on earth so much money disappears from the sales to the bottom line.
This is EXACTLY why I bang on about why profit is so important. You can make a million $ a year and literally spend it all back on the business. Or you could make $200k a year and make a $150k profit.
So what is a good profit to sales ratio and how did my client fare up?
The truth is, profit margins vary wildly across different industries. From doing some Googling across various accounting sites, I can see that at an average (which is a dangerous term to use as it will include the very high and very low) 10% is considered a good margin and 20% is considered excellent.
Which means that for every $10k you make a month, you only actually keep $1k of it as profit. Crazy huh?
Now maybe these numbers are blowing your mind, but as I said, different industries are wildy different. Maybe your margin is much much higher than this? Or maybe it’s lower.
My business averages 30-40% and I’m someone who re-invests heavily into my business as I’m in a growth stage.
So my aforementioned client was doing a margin of 12% in year 1 and 19% by year 3. Which is an awesome margin, particularly in their specific industry.
There’s lots of ticks in this story. Sales increasing, profit increasing and profit margin increasing- tick, tick, tick!
But the REAL thing you want to know is how!
So let me break down my framework of how I help my clients achieve extraordinary results.
And I want to be super clear, I am not claiming that it’s my doing…. They are the ones that do the hard work!
And this is the exact framework I used with this client and that you too can use to get a better handle on your profitability
1) Get super clear about your goals. I explain this a lot more inside The Profit Academy, but it’s not just I want to make a million dollars next year
2) Create a plan. I know I bang on and on and on about budgeting, but there is a reason for it. A budget is a plan for success. It’s no coincidence that all big companies create budgets, I don’t know why there is such resistance to do so in small business. Work out what your targets are, and then work out what you need to invest to get there.
Friendly reminder. You can’t get big shifts with small changes or small investments.
3) Track your numbers. There are so many different ways to do this, and my favourite way to track numbers is through various money meetings. I have them alllll the time and they are a great way to get across and stay on top of your money. Again money meetings is something I’m covering inside TPA Foundations. Tracking your numbers is a great way of checking in that you are staying on track to your plans. A great way of saying “am I doing what I said I would do?” and if things ARE going off track, creating a plan to get them back on track or to course correct.
4) Mindset work. The practical work is the foudnations which is why I’ve called my course the Profit Academy Foundations. But the mindset work is imperative to stay on track towards your big goals. And this client of mine really just kept on believing, investing and putting one foot in front of the other.
And that my friends is how I help clients to have epic income breakthroughs.
Most businesses do not have the foundations of success in place.
They don’t know their numbers.
They want to make more profit, but literally don’t know HOW.
If this is resonating, please check out my 3 day Profit Booster challenge and sign up via link in bio. Over 3 days, you will learn to uncover who your busines isn’t making more profit, eliminate your money leaks and create a profit confidence strategy.
Hope to see you inside.
To sum up today. Rapid profit growth is possible. And its possible for you!
If you want to make more money, you need to master your money. Have a profitable week!!