You too can increase profits without necessarily increasing sales!

How?

NewsletterThe “Profits Leak Detective Newsletter” offers regular tips and strategies to help you identify and plug those leaking profits.

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BONUS free report “7 Clues to a Profit Leak”, valued at $47.

How do you know that you should be looking for leaks?

Are there some clues or symptoms that are telltales saying that a
bit of drilling down into your business might pay some dividends?
Possible leaks could be anywhere.

This report provides 7 clues that should put you on alert for a profit leak.

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"Adam, over the past six years, I've had the pleasure of 'bumping into you' on at least three business and marketing related forums. Your contributionsto discussions have always been courteous, astute, incisive and practical,delivered with good humour, and based upon 'real-world' business experience. You are clearly an experienced business professional who actually knows what he is talking about. I wonder if your clients know what a gem they have in you? As one business professional to another, I salute you.

Good Wishes,
John Williamson - The Wealth Coach
www.thewealthcoach.com
www.retaildisplaysecrets.com

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I just LOVED "7 Clues to a Profits Leak".

Steven Walker - Profit Improvement Advisors
Calgary, Canada

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Thanks for the catch-up the other day. It's great to be working with a legend in the small business community.

AJ Kulatunga, BLKMGK ICT

Darwin, Australia

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The 7 Clues is a great.

What I like the most in the Seven Clues report is that it clearly explains that accounting is merely a subset of proper financial management and
that only the business owner can practise financial management. The accountant does the accounting, and in doing so supports the business owner's financial management. And the business owner uses the accountant's information, but relying on the accountant to do full-blown financial management is short-sighted.
The report nicely "grounds" an otherwise complex topic which many business owners are afraid of touching, so they often move ahead in blissful ignorance. The water hose and the soggy soil under the leak makes an excellent and easy-to-comprehend example, upon which the financial management concept is nicely built.

Tom "Bald Dog" Varjan, Organisational ProvocateurDynamic Innovations Squad
Professional Services Practice Development - Dynamic Innovations Squad      
Personal and Firm-Wide Performance Improvement for Management Consulting Firms
Practice Development Services for Management Consulting Firms

Vancouver, BC Canada

+++++++++++++++++++++++++++++
You have played a very important role in my development in business.

You were there with the right information at the right time, I thank you for that.
By adding the next level of systems, and marketing knowledge that you brought to the table we able to identify our objectives, acknowledge the gaps in our business and put in place the planning so as to achieve those objectives. Within 5 years we achieved 9 of our ten stated objectives.  In that same year we won the NT Telstra Small business of the year"

Greg Haigh
Director - Trade Group
Regional And Northern maintenance services
RANms

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Recent newsletters include:

  • How big is your profit gap?
  • How discounting destroyed value
  • Benchmarking for best practice
  • From all customers to some customers
  • How to take the guesswork out of growth
  • Should your USP be based on logic or emotion?
  • How to triple your quotation success rate
  • How to dramatically improve your quotations
  • How to make more effective decisions?
  • How to develop your USP
  • Do you want to make better planning choices?
  • Are youmaking these mistakes in planning?
  • How to use SWOT properly
  • Does your sales conversation balance the scales of justice?
  • The perils of profitless cash flow!
  • So what is more important, cash flow or profit?
  • Are you getting value from your pricing?
  • Do you report to yourself monthly?
  • Follow the money trail!
  • Performance also counts!
  • Get more bang for your buck!
  • Without measurement there can be no improvement!
  • Where would your business be without customers?
  • Using your monthly report to improve your profits
  • Just who is your customer?
  • And what do you know about your customer?
  • How branding can increase your profits!
  • Can branding make you more money?
  • How to balance the value equation
  • Tilting the balance in your favour
  • How to pin the tail on the donkey
  • Are you groping in the dark with your real cost of labour
  • Mastering core marketing principles
  • Building a 5P marketing plan
  • Profit leaking processes
  • Should you be trying to increase or decrease cash flow
  • At times it is folly to hasten
  • 5 steps to create your future
  • What will be the X-Factor in 2009
  • Lies, damn lies & statistics
  • How to use a squad profit leak detectives
  • Confidence leads to action
  • Increase sales - so easy to say
  • So you want to know how to increase sales
  • Is selling a necessary evil?

From little things big things grow, or they don't! Print E-mail

How to avoid disaster by a little planning far enough ahead!

Without proper planning even the little things can bring you undone.  Everything has a consequence - cause and effect.  On the other hand putting the right system in place early on will lead to success.

You will all remember the nursery rhyme "For the want of a nail".

For want of a nail the shoe was lost.

For want of a shoe the horse was lost.

For want of a horse the rider was lost.

For want of a rider the battle was lost.

For want of a battle the kingdom was lost.

And all for the want of a horseshoe nail.

"Garbage in, garbage out" to put it in more modern terms.  What you do up front with a project, or a job will determine its success.

Get it right up front - if you don't get the details of the order right, then you are unlikely to deliver the right product or service.

Indeed I had a very good example of this with one client.  He was a small manufacturer, but determined to do well.  Doing well was not becoming a very large business; rather he was looking to become very profitable.  I was called in and told that the team on the shop floor were continually getting it wrong.  Items would be delivered, and continually come back for rework and adjustment. 

Now it didn't take much to track down that the problem lay at the very beginning of the process - receipt of order.  Two problems kept arising here:  the tradesman doing the measuring would not follow the old dictum "measure twice, cut once", straight human error.  The second source of problems arose when a client came in the place an order.  No checking system existed for a client and the company to agree on sign off on the order.  Not surprisingly, orders were often wrong. 

And mistakes like this lead to rework, which is waste.  Waste which is compounded by the opportunity cost of sales lost while the rework is undertaken.

Now if they had not something about it the problem would have festered and grown, draining profits and reputation from the business.  Unfixed the problem would have eventually lead to the business being lost, creditors unpaid and staff laid off.

As it was the company had some unhappy customers, shop floor employees who were being unfairly blamed (imagine how they felt about it), and a frustrated owner.

All these consequences were arising for the want of a nail, or in this case, a check at the beginning of the process to prevent the wrong order going into the system.

So what can you do about it?  Do you understand your business process?  How you take an order, do the work, and deliver the product or service?  A simple process map showing each step can help clarify what you do.

Do you have some way of checking how well the process is working?  How long it takes to pick an order, or make a repair, provide a service, where there are delays, or rework?

And do you check whether the customer is happy?

It's simple really.  A basic system well thought out, and followed, that get's it right up front, will prevent a nail being lost.  And it will prevent the lost nail causing a lost shoe, and a lost horse - prevent consequence building upon consequence.

ag05

 

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PPS.  And your colleagues?

If you found value in this article, please forward it to colleagues and friends who might be interested.  They'll thank you and so will I!  Please attribute it to The Profits Leak Detective and include our web address http://www.profitsleakdetective.com

Do you want to reprint an article?  I have a wide variety of articles on identifying and plugging profit leaks you can consider for your website or newsletter.  I'm sure there's at least one which will answer some questions for you!  Please email me (click Contact Me) and I'll be happy to give you some choices and the required attribution line.

© Adam Gordon, Profits Leak Detective