People Magazine recently profiled 63 people who have lost amazing amounts of weight and transformed their lives. Take Mike Bauler, for example. At 450 pounds, Mike was carrying the weight (literally) of unhealthy habits. But in 18 months, he transformed his life, shedding 225 pounds and becoming the kind of guy who competes in Ironman events. How’d he do it? By focusing on the basics: diet, exercise, and accountability.
So, what in the world does weight loss have to do with your business and profits?
Glad you asked.
The same principles that helped Mike achieve his goals can help you improve your profit margins—without needing to run a marathon (unless that’s your thing).
It took Mike 18 months to get to his goal, but a few simple basics listed below—done in tandem with a great accountability structure—can help you see improvements in as little as 30 days.
1. Reduce Friction
Mike began simplifying his life and saw results.
The more difficult (read: “frustrating”) it is for your customers to do business with you, the less likely they are to do so. Pretend to be your typical customer, and walk yourself through your sales process. Look for “friction points” where their experience feels awkward or redundant. These are the friction points that need to be resolved.
For example:
- Is your online checkout process quick and intuitive?
- Can customers find your phone number or contact info in seconds?
- Do you have a large “Buy Now!” button in the top-right corner of your website so they don’t have to scroll for it?
The simpler the process, the more likely customers are to stick around and hit “buy.”
2. Raise Your Prices
Mike decided that the low bar he had set for his health was actually hurting him. When he started asking more of himself, he started getting seeing improvements.
Too often we engage in a race to the bottom with pricing. We figure, “They’ll buy from me if I’m just a little ‘cheaper’ than the other guy.”
“Cheap” connotes bad quality. Ironically there is often a higher perceived value that accompanies a higher price tag. (The old you-get-what-you-pay-for mentality.)
Don’t go crazy and triple what you’re charging, but a reasonable increase of a few percent that makes sense for your industry could help you see instant results. Sure, you might lose a few bargain hunters, but you’ll attract higher-value customers who are happy to pay for quality.
3. Sell Larger Amounts
When Mike wanted to see bigger results, he pushed for longer workouts. For your business, this could mean selling bigger quantities or larger packages.
Most new customers won’t blink at this—they’ll assume it’s just how you do business. Meanwhile, you’ll increase revenue without significantly increasing costs.
4. Bundle Your Products or Services
Can you combine your offerings into a package that’s both easy to sell and irresistible to customers?
For example, Mike didn’t just focus on one aspect of his health—he bundled diet and exercise together to maximize results.
Pick a main item that is a high seller, and add smaller/weaker sellers to it that will complement it. You get to charge more, and the customer gets exposed to parts of your product line they might not have otherwise bothered with. Name the packaged service (i.e., “productize” it), and you make it simpler for customers to purchase because they can ask for it by name.
5. Eliminate Waste and Get Efficient
Mike had to get rid of a lot of junk food and get smart about how he ate and exercised to get where he is today.
What are you doing (or spending) that is eating up precious time and resources? Even a little more wiggle room in your margins can be a big deal! But you have to understand those margins first to know where you can do some trimming, so plan to get in the weeds a bit. It’ll be worth it, though.
Not every waste point is financial, but even time has financial implications. Look at how can you streamline your processes to avoid unnecessary steps. Can you do daily 10-minute stand-up meetings with your team instead of that Monday afternoon marathon staff meeting? (Which is especially ineffective when your team has all just had Mexican for lunch, btw.)
>6. Focus on best selling product/service6. Focus on Your Best-Selling Product or Service
Mike focused on two basic things (diet and exercise) and didn’t waste time chasing a lot of wild fads. He stuck to what he knew he could do best. You know who the star pony in your stable is. That thing you’re a rock star at doing or selling.
Make sure you are promoting it strategically so you have a consistent revenue stream from it. Even if it means putting some other shiny side projects on hold, focusing on your strengths is a proven vehicle to raise profits.
7. Add Value without Adding Cost
Customers love to be served in surprising ways, and they will reward that kind of thing with certificates of appreciation (read: “dollars”).
What can you add that costs you little, but helps them a lot? Servers in many restaurants have found that delivering an un-asked-for mint for each guest along with the check results in consistently bigger tips. (What would happen if they brought two for each guest?)
It takes some creativity and paying attention to the little clues your customer drops along the way, but adding true value is rarely expensive or difficult.
8. Lean on Your Team for Ideas
Mike didn’t tackle his weight loss journey alone. He leaned on family, friends, and trainers for accountability and support.
When it comes to your business, don’t be a one-person show. (Even if you are a one-person show!) Get the people in your orbit involved in discovering ways to streamline your processes, promote your products, brainstorm new ideas, and serve your customers better.
And reward their efforts with some fun treats to make the whole thing more of a “game” than just more “work.”
Everyone is in sales... and everyone on your team can bring something to the table. Not only will they help you find ways to maximize profits, but you’ll also build a better company culture along the way…which will most certainly make your business more profitable!
You don’t need to overhaul everything at once—just take the first step. Want to see results in the next 30 days? Start by analyzing your processes and identifying areas to improve.
Because whether you’re trying to lose weight or boost profits, the formula is simple: stick to the basics, stay focused, and don’t go it alone.
Need Someone In Your Corner?
Every successful transformation—whether it’s personal or business—requires support. If you’re ready to take your business to the next level, you don’t have to do it alone. Check out our article, Why Every Business Needs an Accounting Team in Their Corner, to learn how having the right support can help you tackle challenges, make better decisions, and grow with confidence.
Success isn’t a solo journey—let’s make it a team effort.
Topics:
