How To Predict Your Profits Using The Bradley Sugars Calculator

How To Predict Your Profits Using The Bradley Sugars Calculator

“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

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.

Conversion Rate

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.

Customers

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?

Total Revenue

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

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.

Summary

  • 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.

WEBSITE : SALES FUNNEL : TRAFFIC

Be kind, stay positive & believe in yourself!

Want A Stronger Business After The Lock Down? Focus On These 3 Things Now

Want A Stronger Business After The Lock Down? Focus On These 3 Things Now

“Without strategy, execution is aimless. Without execution, strategy is useless.” Morris Chang

It’s Coronavirus Lock Down Week 5 In The UK As I Am Writing This …

Wow! It’s challenging this lock down stuff isn’t it?

On a personal level I’m finding most days going along at half-speed productivity wise as we attempt home schooling our 9 year old Grandson with our amazing daughter (furloughed from her job) on hand to assist.

Add to that Zoom calls & virtual team meetings, customer relations & the constant battle of trying to book the next online delivery slot for food and supplies and you have the perfect environment for a total business melt down working from home or not.

Social media seems to be a huge mix where furloughed employees coping with job uncertainty and less income mix with SME’s with their heads in their hands dealing with zero income plus an undetermined timeline to work with.

The word unprecedented doesn’t even begin to get close to the impact this virus is having on SMEs of all sizes.

Zero Cashflow For Businesses Through No Fault Of Their Own

What business owner factors in a sudden cashflow forecast of zero for several months in a row? Especially one that lands on their desk in less than 14 days and is completely outside their control?

Entrepreneurs however will accept the self-responsibility of the situation and find a way to work though it.

It’s the perfect storm for an economic disaster of epic proportions and yet at the same time there was a huge reality check this week of the dangers associated with this virus as it took one of our family members before his time.

So as the dust settles into some kind of new routine, I thought I’d share 3 things you can implement today that will help your business emerge stronger after the lock down measures ease.

They are all things you can do in small bite-size chunks over a week or two that will repay you over the weeks, months & years to come as things slowly but surely return to the new normal whatever that will look like and whenever that is.

1. Tweak The Titles, Images & SEO On Your Top Posts & Pages

"lock down small business ideas"

Blogging is not a one time event. Revisit it, rework it, add to and whatever you do SEO it effectively!

Blogging is not something you “do” and then forget about it.

Never Do The Minimum For Blogging

If you write the minimum amount of words, include the minimum amount of content, copy & paste generic tips, don’t include eye catching branded images, fail to research keywords effectively and don’t craft catchy headlinesyou should reconsider blogging as a strategy for your business!

Unless your SEO (search engine optimization) is good and the content is high quality you are unlikely to see your blogs at the top of the search engines or attracting customers to you & your business.

Now For The Good News …

The good news is that once you have taken the time to write your content, you can go back in to your posts and improve them!

This is a fantastic way to improve your blog and as hardly any small business owner does it and that puts you at a great advantage if you do.

All it takes it a little time (we have that one as a gift right now) and a little practice.

Ideas You Can Do Right Now

Here are some ideas to improve existing blog posts:-

  • Create new branded feature images
  • Write new headlines (don’t change the permalinks if the blog post has search engine traffic) if it doesn’t re-write it as a new post & add some current statistics.
  • Add a video.
  • Re-write the meta description.
  • Do some keyword research on the topic and add links to relevant articles you find on authority sites for key things you mention.
  • Add a lead magnet in the post.
  • Add social share buttons at the bottom of each post.
  • Increase the word count to 1100 words.

2. Carry Out A Full Social Media Audit

"Lock Down Small Business Ideas"

Are Your Social Media Profiles Up To Date?

One of the smartest things you can do during the lock down period is to refresh and update your social media presence by carrying out a full social media audit.

The key to successfully executing this AND keeping a template to work to now and in the future is to set up either a Trello Board or an ASANA board.

(Tip! I’m seeing Trello being used in very creative ways for sharing boards inside info-products right now, so much so I’d recommend it for both tips 2 & 3!)

Here’s What A Trello Board Might Look Like To Plan Your Audit

Social media is fast moving & ever evolving & so is your business.

So the two can quite quickly get out of date or start to look stale.

And if you use scheduling tools & focus on the content creation side of social media you may not even realise that the image you have been using isn’t even on brand anymore.

And the link you use in your profile doesn’t work or isn’t relevant to what you offer.

Work through each social media profile & bring them up to date

Start with the platforms you focus on the most and work through each one until they are all:-

  • On brand
  • Relevant
  • Current
  • Link to something relevant to your audience

3 Brilliant Ideas for your links:-

  1. Link to a Social Page. I love Peg Fitzpatrick’s Social Page idea (I will be creating a video about this next month so stay tuned!)

2. Link to a free webinar or masterclass. Vanessa Lau has this nailed on her Instagram profile. It’s a great way to deliver value & build relationships that can effectively build your followers & business all at the same time.

3. Gemma Went uses a Quiz in her Twitter bio link which works well as a lead generation / get to know you process which positions Gemma as the great coach & mentor she is

3. Create An Editorial Calendar & Plan Your Post Lock-down Promotions

The more you plan ahead NOW the quicker your business will pick up new business as the lock down lifts

We all have to find ways of living with the Coronavirus until a vaccine is available or the virus phases out for good.

Either way business is not going to be “normal” for some time yet.

So the more you can plan, re-work the way in which you operate your business with social distancing measures in place and be ready to IMPLEMENT your promotions & offers NOW the easier you will transition out as the lock down measures start to ease.

By creating a visual Trello board of your business content & promotions over the next few months you can quickly start to map out a strategy to get leads & sales flowing even if it takes a few months yet for life to feel more “normal” again.

Look for opportunities that have presented themselves to you during these unprecedented times.

There will be a shift in what people VALUE more coming out of this period of time that smart entrepreneurs will be ready to respond to.

Right now trends are showing us that uppermost in people’s minds right now include:-

  • Mindfulness
  • Fitness
  • Self-improvement
  • Digital business
  • Online marketing
  • Own business

Bonus tip! Study some of the best TV adverts at the moment that meet people “where they are at” & use some of the best ideas in your marketing efforts.

Summary

  • The Coronavirus has affected everyone and will continue to be a challenge for all SME’s for many months to come.
  • It looks like some of the lock down measures will be eased in May 2020 although social distancing will still feature in our lives and business lives for some time.
  • The better you plan your own exit strategy, the quicker you can start easing some of the pressures created by the lock down.
  • SEO blog posts & top pages – IMPROVE every post or page in some way.
  • TRELLO boards are the perfect way to plan & organise a Social Media Audit or your own exit strategy content & promotions.
  • Use the time you have (and it may be far less than you think if you have children around) to think of adapting to whatever the new world looks like and go gently with your social media activity at these ultra sensitive times.

If this content help you in some way, please feel free to eave me a comment below & I’ll be happy to answer any questions you have.

Be kind, stay positive & believe in yourself!

P.S. Did You Grab A Copy Of The Planner Yet?