PODCAST - The Fastest Way to Make Your Business More Profitable Without More Leads
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Today on the show, I'm gonna share with you the fastest way to increase profits without having more leads, without actually bringing more customers into your business. I run something called the Plug the Profit Leak Challenge, and I've had clients of mine on day two, just two hours into the challenge, uncover more than $100,000 of profit sitting in their business.
And today I'm gonna share with you how that is even possible. And if [00:02:00] you want, you can actually buy a ticket to my next challenge by going to plugtheprofitleak.com. But let's dive into it. How is that even possible that your business already has six figures sitting right there? Really what I do when I work with a client for the first time, so you and I, we're working together, this might be the first time.
Maybe we've worked together before, whatever it is. I have a three-step process that we go through in order to really unlock profits in our businesses, and it all starts with step one. Step one is something I call ROI alignment. Yes, alignment. Two Ls. That's how important this is. Alignment. This may be the most important thing in your business, is ROI alignment.
What we need to do, and this is what we do in my Plug the Profit Leak Challenge, is we look at your business and the ROI, the return on investment. ROI [00:03:00] equals return on investment. What are you looking at getting as a business? What is the return on investment? You're investing in watching this video right now, listening to this podcast episode right now.
You may invest in my Plug the Profit Leak Challenge. When you invest in something, you want to get a return. Well, guess what? You are not the only person, the only stakeholder, that wants a return. You know who else wants one? Your customers. And guess what? That's not all. Your employees, your team members, and even if you only have one or two, or if you're the only employee or team member, you have a return on investment that you're looking at getting by running your own business, by being the only team member for your business.
Well, what we wanna do is we wanna look at the ROI that you and your business is looking at getting, the ROI that your customers are looking at getting, and the ROI your employees are looking at getting, and [00:04:00] any other stakeholders. Because if you are selling B2B instead of B2C, business to business instead of business to consumer, then your customers aren't actually gonna be the ones that make the purchase decision.
You're also gonna have buyers. You have buyers that are purchasing for your customers. So what we wanna do is take all of these circles. When we take all of these circles, each of these circles represents the ROI that this group is looking at getting. And when we see where the overlap is, this is how we align the ROI of these groups.
This is what we focus on with our businesses. When you align the ROI that you, your buyers, your customers, and your employees are looking at getting, you have a [00:05:00] business that creates a win, win, win, win. And this is the concept I call ROI Pie. So let's dig into this a little deeper. You started your business for a reason, or you do what you do for a reason.
And yes, there's probably some passion there, but there's also a time and monetary investment, the I, that you do every single day that you show up for your business. And there's a return that you are looking to get from that investment. That is the win that you're looking for. Now, the buyers that you serve, the buyers that purchase whatever you do, maybe sell products like my clients over at Cashmera, maybe sell services like my clients over at CoStar Group or SellASal.
Maybe you sell both. Maybe you sell certifications. Maybe you sell e-learning programs, whatever it is. Someone [00:06:00] is buying those things. And if you sell B2B, which I highly recommend that you sell B2B in addition to B2C, so B2B What I like about B2B is you can sell one to many. Business to business. You're a business, you're selling to a business.
A business has a lot of people that they serve, their employees. So if you can sell to a business to serve their employees, that is more than just one sale. That's a lot of sales in one transaction. Or maybe you're B2C. If you're a B2C, then you're selling one to one. If you're B2C, then your buyer is gonna be the same as your customer.
If you're selling B2B, your buyer is gonna be different. You can do both of these things. I do both of these things. And what's interesting here, though, is buyers have specific ROI they're looking at getting. And the ROI that buyers are looking at getting is most likely impacting the financial statement of the organization.
How do we increase profits? How do we increase revenue and decrease expenses? [00:07:00] How does what you do-- how can you show buyers that you're able to do that for the problem or challenge that they're looking at investing in? Now, they're investing for customers, though. So what is the win your customers are looking at getting?
'Cause the win of your buyers may be different from the win that your customers are looking at getting. The win of your customers may be to be more efficient and effective at their jobs so that they can spend less time doing their jobs. They have more time for their friends and family. Maybe there's specific challenges that they have.
If you're selling software like one of my S&P five hundred company clients, CoStar Group, organizations purchase their software for a reason. The buyer purchases it because they've been told that every license of software they invest in increases the value of an employee by a hundred thousand dollars.
That's why they buy it. The customer, the end user, probably doesn't care about that as much. What they care [00:08:00] about is do they have a tool to actually do their job better? And if it makes it easier, then that's the win that they're looking for. Now, the last win is your employees, your team members. Let's say even if you're a solopreneur and you are the employee or team member.
Yes, you wanna make money. Yes, you wanna serve people. You wanna serve your customers. But you also don't wanna be working all the time. What is the return on investment that you're looking at getting, that your employees are looking at getting for supporting what you're doing? They probably wanna make decent money.
They wanna be good at their job. They want a way to grow at their job. You want a way to grow. So let's figure out what that win is and we align it. And when we align all of these things, this is how we grow our businesses. This is how we increase profits without getting any more leads, 'cause we're focusing on the most important thing.
That's step one, identifying what that most important thing is. So once we've identified what the most important thing [00:09:00] is, we move to step two And using one of the most powerful principles that you and I can instill in our businesses and in our lives, called the 80/20 rule, also known as the Pareto Principle.
What is this rule? So what the 80/20 rule says is that 20% of what you do creates 80% of results. So 20% of what you do in your business is creating the majority of results in your business Well, the opposite is true. 80% of what you do in your business is only creating 20% of results. So this is why in step one, we use this concept of ROI pie, and this is what Darren did in my Plug the Profit Leak Challenge, is when we were going through ROI pie, he aligned everything and was like, "Oh my God, if I focus on this and this, and I cut all of this other stuff out, I'm freeing up at [00:10:00] least $100,000 of profit in my business."
And that's before even bringing any new work in from the focus. 'Cause when we focus on the 20%, what this gives you and I the permission to do is let go of the 80%. This could be the 80% of expenses in your business that aren't actually driving the needle, that you're just spending money and you're not getting a return on.
Say 80% of the time that you're spending in your business, you don't have to do that anymore. This is a huge unlock. But really, we gotta figure out what's important first by aligning ROI with ROI pie. Once we do that, then we just focus on the 20%, and we're able to cut out so much waste in our businesses that we didn't even know was there.
And once we cut out the waste, and we put our energy, our time, our money into the 20%, we're able to exponentially grow our businesses. Now, one of my mentors, Graham Cochrane, he took this equation one step [00:11:00] deeper. If the 80/20 rule is true, you know what else is true? The 64/4 rule. What is 64/4? Well, 4% of actions or what you're doing in your business creates 64% of results, and vice versa.
64% creates 4% of results. This is where you really need to zone in, and this is where when we were looking at, if you're watching this as a YouTube video, the little overlap of these four ROI circles, this ROI pie that we created, was real small. That's great. It's okay that it's small. It's small because that little overlap is the 4%.
That 4% of your business is driving 64% of results, and the opposite is really where I invite you to cut. If 64% of what you do in your business is only driving 4% of results, we can definitely cut that 64%. That other 16% over here is 80 minus 64 is 16. [00:12:00] I mean, 16% of what you do in your business is driving 16% of your results.
You can keep that, but cut out the 64%. This is how people like you in my Plug the Profit Leak Challenge are able to find more than 100K in their business per year just in the challenge, and I want that for you, too. Then we get to step three. So we've identified what we need to focus on, and we've seen that when we focus on what we need to focus on and we cut everything else out, we're able to free up profit.
Well, now that we know that there's specific ROI that our customers are looking at getting, our employees are looking at getting, our buyers are looking at getting, our customers, our buyers, our employees, they need to know that we know what they need. How do we do this? Well, through education. Now, I'm not talking about taking people through structured programs.
I'm talking about we need to make [00:13:00] sure that when we're serving anyone, that they know how to get the most out of what we are offering. They need to know that we exist and that we exist to solve their biggest problem. They need to know that we have identified that the ROI that we are able to produce is the ROI that they're looking for.
That's it. But in order to do that, we need to educate them. This is what my S&P 500 company clients do. This is what my small business clients do. This is what my clients in between do. We harness the power of education to increase profits in our businesses by making sure that we're serving our buyers, our customers, and our employees by creating win-win-win-wins.
Now, I invite you to grab a ticket to my next Plug The Profit Leak Challenge. In this multi-day live group consulting and advisory experience, we dive into your business, we [00:14:00] align ROI, we come up with what you need to focus on so that you can unlock six figures or more of profit in your business during the challenge, and then we leverage education to scale your business to serve your buyers, your customers, and your employees And you so you can all win you can go to plugtheprofitleague dot com to grab your ticket, and I'll see you in the next challenge
Thanks for tuning in to Learning Transformed. Now, if you're designing a transformational learning experience and wanna skip the overwhelm of trial and error, check out our e-learning platform finder. Just answer a few simple questions, and we'll match you with the right platform, plus an extended free trial.
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AI is rising and so are we
