“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 manyleads (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.
2020 is the time to get focused and very serious about your return on investment when it comes to social media.
It isn’t ALL about reach, likes, shares and comments.
It’s about generating leads for your business that convert into paying customers.
Measure your results by your bank balance 😉 If it’s going UP you are winning, if it isn’t you are slipping backwards or making no progress an that can feel very frustrating.
All the viral content in the world isn’t going to show up in your bank account unless you start paying attention to growing your audience.
Your Marketing Strategy For Growth
I’ve designed and developed my Free 30 Day Kick-Start Marketing Planner For 2020 to sift & sort through a never ending onslaught of tips, strategies and ideas on how to do this, that and everything else on social media but very few focus on one of the most important component parts ,, strategy.
I’ve designed the planner as a simple step-by-step plan that anyone can follow.
It not only provides you with asimple social media strategy to follow BUT it actively encourages you to build your audience and your network at the same time without getting dizzy or overwhelmed.
Business Building In 2020 Means Having A Balanced Approach To Social Media And Growing Your Audience
A frequently asked question I get asked A LOT is:-
“How do I get more organic reach with my updates on Facebook?”
It seems to be a somewhat flawed plan to think that social media is somehow a magic tool that can offer you a “free way to build a global business from your dining room table.”
It isn’t. It takes effort & a lot more work than most people think.
Organic reach on Facebook like it was in 2014 when you could reach 70,000 people with a £10 budget isn’t coming back.
There are over 2 billion Facebook users all posting regular updates of their own & viewing others doing the same.
We Are Awash With Content …
Add to that all the estimated 10 million Facebook Groups and a further 90 million Facebook Business Pages all vying for eyeballs on their content and it’s safe to say every piece of content you create is a teeny tiny boat in a massive ocean of content.
We are awash with it.
Most small business owners focus their time and attention on creating content to share (that’s darn good practise in my book and an absolute necessity for any business owner today.)
But so many small business owners, solopreneurs and entrepeneurs are reluctant to focus just as much effort, attention, time and money on growing an audience to share the content with.
Free 30 Day Kick-Start Marketing Planner
So I devised my Free 30 Day Kick-Start Marketing Planner For 2020 to address that much needed balance where posting updates to social media AND growing your network integrate together without you getting overwhelmed or in need of a lie-down in a darkened room.
2020 Is Perhaps When Social Media Comes Of Age And Small Business Owners Accept It And Embrace It
In case you hadn’t noticed, every small, medium or large business in the world is in publishing today.
CONTENT was always king but in today’s world great content is the absolute royal flush winning hand.
Social Media updates
Adverts & Promotions
Motivational or Thought Leadership Quotes
Worksheets & Checklists
Or Any Type Of Video, Audio, Text or Image based content you can think of
Are You Just Posting Or Are You Growing?
Without it in today’s social media driven economy you are going to struggle to attract attention to you, your brand, your offers & your business.
If you’ve been using social media for a while now and finding it hard to see a return on your investment, how much time and money has been spent focused on building your audience?
Or building your network?
Or building on your unique message, style or brand?
Today in a much more mature social media world you need tocalm down, stop trying to take it all in and just focus on strategies that build an audience that LOVE what you have to offer.
Focus On Growing, Building & Engaging
There are no shortages of people with problems you can solve.
Once you focus on that, every social media update you create, offer or promotion that you have running will yield far better results.
Instead of blasting your updates to a giant sea of largely un-interested people hoping you strike it lucky …
Take the time to focus on growing,building and engaging a targeted audience of like-minded people who love what you & your business offers them.
From there you’ll start to cultivate a warm, responsive audience that will be 100x more likely to become a customer of yours in the future.
Or become a brand ambassador to everyone they know looking for what you offer..
Either way it’s a win / win marketing strategy for 2020 and beyond.
Finances And First Base According To T Harv Eker…
I remember a few years back listening to T Harv Eker relay most people’s approach to finances (we’ve all been there) in a story about Baseball.
He made it hugely entertaining by saying most people ran their finances with everything coming from first base. First base being your current account.
Where do you pay your bills from? – First base
Where do you pay for your vacation from? – First base
Where do you save for a rainy day from? – First base
Where do you do your grocery shopping from? – First base!
You get the drift. 😉
Today’s First Base in Marketing? Social Media …
Where do you spend the vast majority of your marketing efforts? – Social Media
What marketing do you do on a daily basis for your business? – Social Media
Where do you intend to spend more of your marketing budget this year? – Social Media
Where is most of your time being sucked up into a vacuum of activity with least tangible results? – Social Media
Where are most of your sales coming from?…. silence.
If you want to start seeing tangible results from your social media activities create a more balanced approach by integrating your social media updates & being creative with building your audience & network at the same time (being strategic.)
A Lesson Learned From Simon Cowell
Which one of the above is the odd one out?
The answer is Justin Bieber who built his own audience on YouTube before becoming a massively successful recording artist.
ALL the others were contestants on Simon Cowell’s X Factor show or American Idol, some winners, some runners up but all became well known recording artists in their own right thanks to Simon Cowell’s magic formula.
He takes a dozen or so complete strangers and over the course of 10 weeks or so he turns at least 1 of them into a global recording artist with a following so big he can guarantee a return on his investment from the show.
He Builds An Audience First
He focuses on building an audience for the up & coming artists and seeing who the public like, respond to and follow.
So what should you focus on building in addition to being busy creating and posting content?
With my traditional business Contemporary Log Living we’ve done exactly that since 2011 and in January 2020 we’ve seen our best ever start to a New Year.
What do I attribute that to the most?
Our Facebook page audience & our email list which has been built relentlessly over the last 8 years from zero to where it is today.
It gives us the ability to run promotions to that audience whenever we choose.
The best News of all is that you do not need 100’s of 1,000’s of people to create a successful business. For most small business owners 1,000 x sales of a £200 product or 20 sales of a £1,000 product or service would be enough to create a total transformation.
In 2020 a balanced approach to social media and building your audience will yield far better results than just social media alone.
If you are looking for a better return on investment in 2020 and beyond and want to know what to focus on, put far more effort into building a targeted audience for your products & services.
You will find it almost impossible (there are always exceptions) to build your business for free. If you have a low budget focus on blogging or video as your #1 & #2 marketing strategies.
Build in a budget spend into your marketing mix. It’s never been easier to find your target audience (Hint! they are on Facebook every day!)
If you want a seriously good place to start, don’t pass up my Free 30 Day Kick-Start Marketing Planner For 2020 it’s a step-by-step pan to follow for the 30 days, then you can repeat it every 30 days until it becomes part of your every day.And it’s totally free!