Category: Profitabiity

Create a Market Dominating Position or Perish

Most businesses are me-too with very little differentiation. They have not created a unique position in the market place, and if they have, are not communicating their uniqueness to the outside market. A market dominating position (MDP) is simply any value-added customer perceived benefit, or a combination of benefits, that differentiates you from your competitors, and does so in a strong enough manner that makes your business the logical choice in the minds of your prospects and customers. One great example is Domino’s Pizza, which built stores in areas with lots of colleges, which was fast hot pizza, targeted specifically for hungry college kids. A contemporary example would be stock trading start-up Robinhood with a hassle-free signup process, a sleek website design and zero fee trading.

Some key ways to differentiate yourself from the competition includes level of service:

Convenience – location, availability, ordering, delivery, and ease of payment

Speed – loan approval time

Education and training – on-line training for 24/7/365 access

Removal of potential risk – what is your guarantee

Quality

Security and safety – are your restaurant strictly following CDC guidelines

Another key category is selection. In Netflix’s case, all they had to do was match their competition in the areas of selection, and innovate int he area of convenience.

And finally, price such as single or fixed pricing. Businesses can differentiate themselves by offering a set price. Fixed pricing can be used for most businesses to establish an MDP when you use a little imagination. What about a divorce attorney that charges a fixed price for a divorce?

Your MDP will never be 100% complete and you will need to continuously innovate your business to stay unique. With the proper marketing you can then communicate that uniqueness to the market and crush your competition.

P.S. Do not leave this blog until you have a plan of action!

PPS. If you’re looking for a proven system to grow your business …. we created business development software and high-end step by step training to support it…

I can find any business owner $100,000 in 45 minutes without them spending an extra dollar on marketing or advertising.

Visit me on optaprofit.com to find out how or book time on my calendar https://optaprofit1.youcanbook.me

Don Vanpool … AKA “The King of Cash”

How to Profit through Time Management

 

Manage Time Like Money

 

Why did you get into business for yourself? Was it to be your own boss? Choose your own hours? Have more time with the family? Spend more time doing what you love? Chances are, you answered yes to all these questions.

 

These days, you probably wonder where the time went. Why you spent 12 hours at work and barely made a dent in your to-do list. We already know that time is a key resource for you and your business, but it’s also a key resource in your life. Harnessing and leveraging time is the only way to enjoy life and have a profitable business at the same time.

 

Time will never manage itself. The decision to make a pro-active effort to manage your time must come from you. Once you have committed to taking ownership for your own time management, there are a host of tools available to you.

 

The Five Culprits of time Theft

 

  1. Your Email – How many times a day do you check your email? Is Outlook or Mail constantly running on your desktop.
  2. Your Smart Phone – Smart phones have created convenience, security and the luxury of telecommuting, but also the ability to work day and night.
  3. Your Open-Door Policy – If you make it easy for your staff and associates to interrupt you, they will.
  4. Meetings – How many times have you been to a meeting that was scheduled to be an hour, and ended up lasting three?
  5. You! – Every person has daily habits that sabotage their ability to work effectively and efficiently.

 

Simple Strategies for Profitable Time Management

 

  1. Set clear priorities
  2. Use your skills – delegate your weaknesses
  3. Create and keep a strict schedule
  4. Be decisive
  5. Manage telephone interruptions
  6. Keep your work environment organized
  7. Keep your filing system (digital or paper) organized
  8. Say goodbye to perfection
  9. Plan your work, work your plan

 

Choose the top 3 to 5 tips from this article, write them down with corresponding actions and start getting time back tomorrow. For example, if you are going to set a strict schedule, three actions might be to establish the schedule, communicate it to your staff, and re-record your voicemail message.

 

PS. Do not leave this blog until you have a plan of action!

 

PPS. If you’re looking for a proven system to grow your business …. we created business development software and high-end step by step training to support it…

 

I can find any business owner $100,000 in 45 minutes without them spending an extra dollar on marketing or advertising.’

 

Visit me on optaprofit.com to find out how

 

Don Vanpool … AKA “The King of Cash”

How to Double Your Referrals

What if I told you that you could put an inexpensive system in place that would effectively allow your business to grow itself?

For most business owners, a large part of their customer base is comprised of referral customers. These people found out about the company’s products or services from the recommendation of a friend or colleague who had a positive experience purchasing from that company.

If your business benefits from referral customers, you will find that these customers arrive ready to buy from you, and tend to buy more often They also tend to be highly loyal to your product or service.

 

A referral program can:

  1. Save you time
  2. Deliver more qualified customers
  3. Improve your reputation
  4. Speed the sales process
  5. Increase your profit

 

You don’t “get” customers, you buy them. The money you spend on advertising, direct mail, and other promotions ideally results in potential customers walking through your doors. Referral customers cost less and require less time investment than any other customer. That means you can spend that time making them a loyal customer, or a devoted fan.

 

Here are some ideas to get you started:

 

  • Past relationships – Former colleagues, associates, customers and friends

 

  • Suppliers and vendors – They can be a great source for referrals because the presumably deal daily with businesses that are complementary to your own.

 

  • Customers – This one should be obvious

 

  • Employees and associates – Give your employees and associates a reason to have their friends and families shop at your business with a simple incentive program.

 

  • Your network, associations and special interest groups.

Some simple strategies include just asking, offering incentives, being proactive (referral cards, gift certificates, free seminars and closed-door sales), providing great customer service and simply staying in touch with all your potential and converted customers.

 

These are just a few examples of some of the referral programs in our system. Hope this helps and happy selling.

P.S. Always remember: The first rule of Alzheimer’s Club: Don talk about Chess Club

PPS. If you’re looking for a proven system to grow your business …. we created business development software and high-end step by step training to support it…

I can find any small business owner $100,000 in 45 minutes without them spending an extra dollar on marketing or advertising.

Visit me on optaprofit.com to find out how

Don Vanpool … AKA “The King of Cash”

 

 

Cash is King in Good Times and Bad

Often business owners are directed to spend heavily on advertising and marketing programs, when looking at her companies cost structure would provide more benefit – at least initially. It will take considerable success in top line growth to match even a 5-10% improvement in variable costs/cost of goods sold.

Some areas to focus on include:

  • Misaligned pricing to her targeted margins
  • Constant or excessive discounting
  • Supplier price increases
  • Warranty and returns
  • Scrap
  • Excess inventory

By focusing on these levers, a 10% improvement can increase profitability by as much as 35 to 40% improvement in revenue, depending on the margins of the business. And in the current economic environment this leads to much needed cash.

In the area of pricing and discounting the business owner can create bundles of goods, innovate her business and benchmark industry standards. As suppliers increase prices, and they do, the business owner can get competitive quotes, set up group purchasing agreements and negotiate longer terms. And for warranty/return issues and scrap, a lean program can identify and eliminate unnecessary waste in her business.

When the business owner has a clear roadmap, she should assign specific owners to key initiatives, establish improvement targets and consistently review to establish accountability. By consistently delivering on plan, she will quickly see improvement in both operating margins and cash balances. And that additional cash can then be used to invest in marketing programs to drive leads and conversions of new customers.

While we provide programs that will triple your leads and double your conversions, focusing initially on the profitability setting right in front of you is often the best option.