“ 3 Keys to The Most Profitable Business” 2

Small Business Coaching - Business Growth



As a business owner, I’m sure you are asking yourself, “What do I do to make my business the most profitable business?” There is nothing wrong in asking that question. Yet, it takes work. First, you’d want to know what steps you have to take. That’s when your dreams could turn into reality.

After working with thousands of businesses, I’ve realized there is a part that separates the most profitable businesses. They follow 3 common rules; some exceptions apply. You might wonder, “But what about online businesses?” Yes, they find it easier to be more profitable but it’s not a rule. It works better for them because they have lower overhead expenses. Other rules for growth still apply, though.

As you may already be aware, you have to know your business condition. You need that before taking steps on improving it further. 

For example, I recommend using Intuit Quickbooks Online (QBO) - bookkeeping software. You can use it to review status of your business any time and from any place. All you need is access to the Internet. 

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As an Intuit QBO pro-advisor, I find it easier to help clients understand the health of their business. You could even connect it with LivePlan, which helps you benchmark your performance. It not only helps you with forecasting but also shows you your business profitability. It even helps you compare your performance versus others in the same industry. Obviously, that promotes faster growth. Who wouldn’t want that?

Now, let’s dive in and look at the three common rules that could make your business the most profitable business.


1) Qualify your leads

Many suggest that you have to build a persona of your ideal client. And unless you do that, you won’t qualify your leads. That sounds great. Yet, you know it isn’t easy. Just think about people who are just starting their business. Focus on leads who see value not only in your approach to solve problems but also the value of having you on their side. That means offer services to those who want you on their side – not only for your skills but also for the value you bring for them.


2) Reduce cost of goods

Materials you use to build your services are the goods that become part of your delivery. Your gross profit depends on them. The higher the cost of goods, the lower the gross profit. Obviously, you want to keep them low. What’s the best way then? Well, you could source your materials from different suppliers. Build better inspections. Get more price choices. Get more delivery methods. Insist on a longer warranty period. Finally, stretch your cash flow. Extend time to pay invoices through agreements.


3) Reduce fixed costs

Costs that hit your business whether you sell or not make up your fixed costs. For example: rent, utility bills and insurance. Interestingly, your payroll fits here too. That’s for your employees who consume costs, whether you sell or not. Your fixed costs not only reduce your net profit but also increase your breakeven point. That is the sales you need to meet your expenses. It is the ratio of fixed costs to gross profit margin. As a business owner, make sure that you know your breakeven point. That will get rid of your blind spots. You will now know your true expenses.


These are the 3 big reasons businesses become more profitable. Take these steps and see your business soar. Once you do, you will not be looking back any time soon.


Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––if you ever wanted to get ahead in starting your business, running your business or growing your business then invest in a business coach in Houston, and set up your FREE Explosive Business Results phone call. CLICK HERE.

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