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The Collective Power of Minor Improvements in Your Numbers

Business owners often don’t appreciate the collective power of relatively minor business metric changes to dramatically improve their bottom line.

It’s business magic!

See the examples that follow and then overlay your own metrics for your business

SAMPLE CO YOUR BUSINESS NUMBERS

Total leads (last year) 5000
Conversion rate 25%
Clients 1250
Transactions per client 2
Average sale value $75
Turnover (1250* 2 * $75) $187,500
Average Margin 25%
Profit $46,875
Let’s say we grow by 10%, 25% or 100%, how will this effect profit?

Current 10% 25% Doubled

(100%)
Total leads (last year) 5000 5500 6250 10,000
Conversion rate 25% 27.5% 31.25% 50%
Clients 1250 1512 1953 5000
Transactions per client 2 2.2 2.5 4
Average sale value $75 $82.50 $93.75 $150
Turnover (1250* 2 * $75) $187,500 $274,428 $457,734 $3,000,000
Average Margin 25% 27.5% 31.25% 50%
Profit $46,875 $75,467 $143,041 $1,500,000

The compounding effect by the time it works through to the bottom line is really business magic!

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