“You have within you right now, everything you need to deal with whatever the world can throw at you.” – Brian Tracy
If COVID-19 has left you wanting a more sustainable business model that can be predictably profitable, you’ll love using the Bradley Sugars Calculator to work on the areas of your business that will have the most impact.
How is everyone doing?
Most small business owners I have spoken to in recent weeks have been pretty relaxed about their businesses despite the unprecedented disruption caused by the recent COVID-19 lock down in the UK.
Chances are changes have happened within your business and a shift in your thinking has been challenged and met.
COVID-19 will either have broken your business model completely, interrupted it’s flow in some way or presented you with opportunities you’ve never had before.
For most of us, it’s time to get on with doing what needs to be done, set smart goals for the next 6 months and forge ahead with refreshed business plans for 2020 / 2021 and beyond.
And as for the demand for digital marketing?
Focusing on ways of generating more leads for your business is a strategy at the forefront of many small business owners every day.
But is it just a simple question of more leads = more profits?
You don’t need a crystal ball to predict the future profits in your business when you break it all down into the key areas that will have the most impact.
The Bradley Sugars “INSTANT” series of books (available from Amazon) were written over a decade ago but are still a goldmine for ideas, sales copy, advertising strategies and more.
But it’s his profit calculator that appears in almost all of his books that is so fascinating.
It breaks down the sales process for any business into the key areas that will have the most impact.
Let’s take a look at them and then piece them all together into a valuable profit calculator for your business.
Leads are the lifeblood of any business, whether they flow into your inbox digitally or walk into your store or shop on foot.
If the marketing on your website attracts interested prospective buyers to your company, it’s generating leads.
And the great thing about today’s business world is that there is NO SHORTAGE of LEADS.
They are everywhere.
From Facebook, Instagram, Pinterest & YouTube to online & offline publications of all types.
One of the most essential lead providers that is unbeatable at delivering consistent leads every day for any business is Google.
There are 1,000’s of ways to generate leads and there are potentially hundreds of thousands of people who would be interested in what you have to offer IF they knew you existed and what you were offering.
How many leads (interested people) you generate on a daily, weekly or monthly basis will depend INITIALLY on the effectiveness of your marketing strategy.
If you are not generating any leads for your business your conversion rate is going to be zero.
But if you have sales people in your business and a steady flow of leads coming your way you will know roughly how many people you talk to about your products & services that become paying customers.
Or with a digital based business or an eCommerce store it will be how many website visitors become paying customers.
That is your conversion rate.
And the higher your conversion rate is the less leads you will need to generate to make your business more profitable.
If you are paying good money to generate leads and your conversion rate is low, work on your conversion rate as it’s a key area that most small business owners skip as less important than generating more leads.
However there is a lot of business to be won simply by focusing on this key area of your business.
Some business models have a lower value product or service and a high number of customers. For example: Primark.
Other business models sell high ticket items to a smaller customer base. For example: Luxury yachts or cars.
Both can be extremely profitable.
A digital based info-product based business can create a hybrid of both and become incredibly successful too.
When you know the amount of leads your business generates per month and you multiply it by your conversion rate you have a predictable way of calculating how many new customers your business will have every month in the future.
Number Of Transactions
Do you operate a business that has repeat customers annually or are they a one-time buyer?
Mc Donalds has a business model that retains their extensive customer base amazingly well and continually uses promotions such as Happy Meal offers to keep people coming back for more.
Alternatively you might offer a high value coaching program that might attract just a handful of new coaching clients per year but they could be paying six figures for it.
It’s part of understanding your business model and how it works for you.
Either way the Bradley Sugars profit calculator will tailor the calculation to exactly match your business.
Average Sale Price
Looking at your past sales and revenue per customer will give you an average sale price per customer from which to base your calculation.
A factor that can influence your overall profits massively is the average amount of money each customer spends with your and your business.
If you think about Mc Donalds again, the “do you want fries with that?” question is a key part of their strategy to increase the average spend per customer.
This area of your business is potentially one of the most exciting as it challenges you to think about offers and promotions that can help you do the equivalent in your business.
What could you bundle together or add-on to an existing product or service?
Once you know:-
- How many leads you generate every month
- Your conversion rate to sales
- And the average sale price each customer spends with your business
You will know how many sales you have made to date and how much sales revenue that has generated for your business.
Margins are the percentage of the sale that is profit for your business.
In a digital based business the margins are extremely high and with low overheads and a digital product it eliminates a huge percentage of the costs of a more traditional business.
Most traditional businesses operate with either a margin as a percentage or a mark up on a set cost.
A small increase or decrease either way can make a huge difference to your overall profitability.
And Finally Your Profit
Without exception I haven’t met a business owner yet who didn’t want more leads, more sales and more profits.
But profits can only appear once everything else is in place and you know your numbers.
Then it becomes predictable and exciting all at the same time, as you are likely to see many different ways you can work on the different areas of the Bradley Sugars Calculator to boost your business and increase profits.
Putting It All Together
To accurately predict the future of your business:-
The Bradley Sugars calculator works like this:-
- LEADS X CONVERSION RATE = CUSTOMERS
- CUSTOMERS X NUMBER of TRANSACTIONS X AVERAGE SALE PRICE = TOTAL REVENUE
- TOTAL REVENUE X MARGINS = PROFIT
Work on one area of the calculator to see how it affects your profit.
Eg What would adding £10 to the price of each of the products and services do?
What would happen if you increased leads by 20 per month?
What would happen if your conversion rate went from 1 in 4 to 1 in 3?
Leave me a comment below about what you are going to work on and why.
The COVID-19 era for business is still unfolding and constantly changing as the real effects to the world economy is not yet fully known.
But the fundamentals haven’t changed.
In a recession it’s innovation and adapting to change that will produce the best results.
And results are predictable once you know your numbers and run them through the Bradley Sugars calculator.
- Lead generation should be something your business is focused on every day whether it’s a digital business or a traditional one. They are the life blood of any business, COVID-19 or not.
- Leads are essential but conversion rates change the outcome and turn interested people into paying customers.
- Increasing the average spend per customer is a great strategy for making each sale more profitable.
- Margins will be a reflection on how much profit you make overall.
Whatever effect COVID-19 leaves on your business or the economy a successful strategy to work on that moves your business forwards each month is exactly what the Project Lifestyle Club is all about.
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Be kind, stay positive & believe in yourself!