There are three ways to improve your bottom line with maximised profits:
- Sell more stuff
- Reduce the cost of making and delivering the stuff
- Reduce your below the line costs
Lets concentrate on No.1
In order to sell more stuff you need to have more opportunities (or sell larger quantities, but we’ll ignore that for now as well) to sell. This means making more people aware of your ability to supply said stuff and provide sufficient evidence that your stuff is great. In other words you need better marketing.
The question is: How do you make your marketing better?
or, more precisely, how do you get a better return on investment from your marketing resources – both time and money?
There is, thankfully, a very simple answer to that: concentrate on the marketing activities that deliver the best ROI.
Lets look at this in more detail.
Imagine that you use five different marketing activities to generate your sales opportunities:
Presuming you know how each of your sales opportunities happened upon you (you do know this don’t you?) you can track their path through your pipeline, see how many opportunities from each marketing activity turn into sales, and then compare the total sales value (for each activity) to the money you spent.
You now know which marketing activities are delivering the best, and worst, ROI.
So, in order to improve the bottom line you simply have to concentrate your budget on the best performing marketing activities. More sales opportunities should deliver more sales, with the money flowing down to the bottom line.
I hope this helps and gives you something to think about over Christmas and the New Year