High Turnover, Not Enough Profit
Why You Can’t Seem to Turn a Decent Profit - Even Though Your Business Does a Solid Turnover
See if this sounds familiar…
You’re turning over an impressive revenue on paper, but your expenses are also high - and you can’t work out where it all goes.
What’s more, you’re…
I understand how you feel.
My family used to feel neglected. I’d miss sporting events on the weekend, and went through periods where we didn’t have a decent family holiday for years.
It’s not easy when both your profitability and personal cash flow are suffering, especially when tax time rolls around because while you’re juggling money to pay staff on time and taking some for yourself to stay afloat…
It’s a one-way ticket to burnout.
Yet you need to keep up with your competitors, who are constantly dropping their prices, in order to win enough work and gain market share in your industry.
What’s more, getting the work done on time for your growing list of clients isn’t easy - leading to deadline after deadline.
And then there’s the unexpected fires you need to put out.
Your days can literally fill up with managing people’s expectations and staff problems – instead of actually creating and driving your business in the direction you need to go.
Don’t Blame Yourself, Thousands of Business Owners Fall into This Trap
Yet if you continue along the same path, you’re going to continue to be stuck in the rut of:
Trying to make the same old tired strategies work, hoping they’ll deliver good results eventually
If you can't think outside the box and come up with a new strategy, method, model, or target market that will deliver better profits you’ll just end up flogging the same old dead horse.
Attempting to break the ‘profit squeeze’ by doing more of what you know
It feels like banging your head against a wall, as you desperately attempt to crack the code by working harder instead of smarter.
Continuing to feel stuck while never taking a holiday because you can't afford it
Although the intention is there (and you may even have the people that you could put in place to leave and go on holidays) you simply haven't got enough personal cash flow to just do it.
Bottom line: there’s just not enough fat in the business to give you any breathing space.
And if you’re anything like I was…
You’re angry with yourself because you don’t have the life you imagined
That ‘stuck’ feeling is terrible.
It feels like your only option is to push harder, and get more clients… yet if you don’t address the core issues, this will only make things worse.
So what’s the solution?
The most important thing you need to do is get out of your own way, and stop falling for these 3 common myths…
Myth # 1: Raising My Prices Will Make Me Lose Customers
This couldn’t be further from the truth…
Let me explain,
Have you ever walked into a bottle shop, looking for some wine to take to a friend’s house to dinner?
How did you choose the right one?
Unless you’re a wine aficionado, chances are you based a lot of your decision on price.
Human nature is to naturally perceive a product with a higher price tag as better, so while you may think raising your prices will repel clients…
The reality is the clients you lose will be the low quality ones. And when you dissect the numbers…
With as Little as a 5% Price Increase, You Can Afford to Lose as Much as Half Your Clients
| Price | Costs | Margin | Clients | Turnover | Profit | |
|---|---|---|---|---|---|---|
| $1,000.00 | $950.00 | $50.00 | 1000 | $1,000,000.00 | $50,000.00 | |
| 5% Increase | $1,050.00 | $950.00 | $100.00 | 500 | $525,000.00 | $50,000.00 |
| 10% Increase | $1,100.00 | $950.00 | $150.00 | 334 | $367,400.00 | $50,100.00 |
Let’s break this down…
If you charge $1000 per sale, and have $950 in associated costs, giving you a 5% profit margin…
You’d have to service 1,000 clients every month just to make $50,000 profit.
However if you put your prices up to $1050 (just 5%), you only need to service 500 clients.
Or better still, put your prices up by 10%, and now you only need 334 clients.
Imagine what you could do making the same money with 1/3 of the workload?
Myth # 2: Letting Go Of Low Quality Clients Will Destroy My Cash-flow
The old adage ‘the customer is always right’…is wrong.
Dead wrong.
Yet for some reason most business owners cling to the notion that changing up your business model and releasing bad clients will kill your cash flow - the only thing keeping you afloat.
The problem is…
Some clients are bad payers and need constant chasing to get them to make a simple payment.
Others are high maintenance, demanding constant attention and constant change even once the project is completed.
Some are just plain rude and disrespectful, making it difficult for your team to keep a positive attitude, which kills morale.
The reality is, you’re far better off firing your worst clients as they suck huge amounts of energy from you and your team.
Once you remove them you have vast amounts of time and energy to put into:
Just think - how much could your business boom if you spent the same time on growing it, as you do on putting out fires?
Myth # 3: Growth By Working Harder Is The Answer To Making More Profit
I once had this belief too - that no matter how tight things were if I just did more work, I’d be able to trade my way out of trouble.
It reminds me of Dave, a mechanic I used to know.
He was brilliant, there wasn’t anything he couldn’t fix.
Yet he wasn’t so great with systems, procedures and paperwork - and would often wait so long to even do the bill for his customers, that he’d forget which replacement parts he was meant to charge them for.
When things got tough, instead of putting up prices, or refining his processes or even chasing up money he was properly owed - he would put his head down, drum up more work from his client base and get to work.
Working 6 days a week and 70+ hours his entire life he missed his son’s basketball games, didn’t see much of his kids when they were young (they were in bed by the time he got home), and only ever managed 1 overseas holiday in his life time.
Then Covid hit and the pressures blew up until one day he had a heart attack and dropped dead on his front porch as he arrived home from work.
63 years old and he never saw a single day of retirement.
Stuck in a trap of his own making, never able to gain the perspective of stepping back and seeing things from a different angle.
Bottom line:
Working Harder and Doubling Down on the Same Old Strategy is NOT the Solution
It leads to more stress, more headaches, and a long life of hard work where you never get a chance to enjoy the fruits of your labour.
Take it from me - you want to figure out:
And you want to do it before it’s too late.
After so many years on the rat wheel it’s easy to feel like your dreams will never come to fruition.
It’s how I felt many years ago, and it’s precisely what Brett Hall was going through when we first met…
“I wish I’d done this 5 or even 10 years ago”
Brett learnt that letting go of the reins actually allowed his business to grow. He gave himself the space and time freedom to step away from his business and spend more time with his family. And everything shifted…
His biggest regret? He now wishes he had done this 5 or even 10 years ago!
Check out what he says in the video.
Andrew Booth is another case in point…
"75% increase in turnover in 18 short months with a whopping 40% increase in average sale value"
In just 18 short months, Andrew’s turnover has grown 75% as a result of our work together. What’s more, his average sale has jumped by a whopping 40%.
He’s now on target to double his business turnover within 2 years while getting off the tools, handing over all inspections to his team, and bringing on a manager to run the entire business - so he doesn’t even need to step foot in the door.
Check out his testimonial.
Reg Boston from Bellagio Homes transformed his business in just 12 months…
“Just 1 year in and we’ve never been in a better, clearer space - I’m stronger and more effective”
After working together for just 1 year, he’s never been in a better, clearer space to seize upcoming opportunities and continue their stellar business growth.
Listen to what he has to say in the video.
I could go on and on.
The reality is your business can become the dream you first set out to achieve. All you have to do is follow these 5 processes:
1
Shift your mindset and cultivate new beliefs.
Sustainable growth, increased productivity, and time freedom is all possible. We all want to make more money in business, but how do you do it without having to work harder? There is a science and a process, which is precisely what I’ll show you.
2
Implement the right systems, procedures, structures and leadership style for the stage of the business you are in right now.
Who you need to be as a leader of a business evolves; you’re not the same leader you were in your first 5 years of business. Your style needs to adapt depending on the stage. We’ll identify the stage and style of systems procedures and leadership you need to implement for where you’re at today.
3
Gain the certainty of a clear pathway and structure, which gives the confidence and courage to make the right decisions.
Gaining clarity not only gives you certainty, but builds confidence because you understand precisely what steps to take to build your dream vision. Being crystal clear on the destination makes decision making simple.
4
Discover why you're not getting what you say you want, and why you’re not doing the work you know you need to
You must understand how and why your neuropsychology is in conflict with your dreams. Once you are clear on how to hack your neurobiology, you’ll bring your subconscious in alignment with your goals, and stop self-sabotaging yourself.
5
Develop the number one personal success skill for scaling a business: self-awareness.
There is no more important skill to cultivate in life and in business. Being aware of who you are, your tendencies, destructive patterns, vulnerabilities, fears, doubts and subconscious beliefs gives you back total power over choosing the life and business you love - and it’ becomes as easy as choosing dinner from a menu.
Following these processes in business (and life) will give you total certainty and confidence, while alleviating stress and fear.
Why Should You Work With Me?
Having over 33 years of experience in business (which I’ve now stepped away from, because I have it fully managed), I come from real world experience, not a textbook or coaching course.
That experience has allowed me to reach a place of total financial independence and time freedom, thanks to having an automated business that meets my personal needs with little involvement.
I’ve been where you are now, and I’ve achieved the dream - and that’s why I believe I can guide you on the road to success and freedom, so you too can achieve that deep sense of worth that comes with financial independence?
What’s more, as a certified neuro-change practitioner, I understand the human behaviour that drives our results at a very deep level - and I’m able to use innovative neuroscience strategies to evolve personal business leadership.
Move From Confused & Overwhelmed to Inspired and Certain With My Pentagon Business Transformation Framework
Pentagon Business Transformation Framework 5 Steps Process
Ready to Start Building Your Dream Business?
All you need to do is click the button below to book in your complimentary 30 minute ‘Roadblock Removal’ Initial Discussion. There’s no cost and no obligation, just an opportunity for us to:
What Is A ‘Roadblock Removal’ Initial Discussion?
It’s a complimentary friendly chat
There’s absolutely no charge and no pressure. Spend 30 minutes with me, and I'll show you the 3 greatest blocks that are holding your business back.
We’ll discuss your reasons for wanting to create your dream freedom business
I’ll ask you a series of questions to determine precisely where you’re at right now, where you want to go, and what’s been stopping your growth.
We talk in depth about your vision for the future
It’s often the most exciting part of the discussion. If you’re like most people, you can see where we want to get to, you're just not sure the exact steps to take. I’ll answer any questions you have and give you my guidance for the best path to turning your freedom business dreams into a reality.
You will meet with me personally
I’ve sat with dozens of business owners going through what you’re experiencing. I can see in an instant what could take you a lifetime to uncover.
Only then (if you choose to), will we discuss potential next steps
It’s not for everyone, but if you decide it’s right for you to start working together on your business, we can map out a plan for achieving your goals based on your unique vision, personal timeline and situation.
We’ll have a conversation about your obstacles
To get where you want to go, we need to be clear on (and have a strategy for) the obstacles that are in your way. We’ll have an honest discussion about your biggest concerns or worries, what has or is stopping you, and my best perspective on resolving them so you are 100% comfortable with the entire process.
Give me 30 minutes and I’ll take you from overwhelm to clarity. What’s more, you’ll take away three insights and a completely different perspective on what’s possible for you and your business.
Leading up to your initial discussion you’ll probably be feeling unsure about whether this is right for you. You’re curious but you’re probably wondering;
But I assure you, you’ll walk out with an exact plan to overcoming the challenges you’re facing right now, and moving from where you are to where you want to be.
Now the balls in your court…
Will you continue to do the same thing over and over again hoping it'll get better, while thinking…
"If I Just Work Harder, Get More Clients and Deliver More Value -Eventually it Will Fall into Place"
Will you continue to spin dozens of plates, stressing yourself out in the process?
Remember, without intervention this pattern will keep on running. And like many business owners, you could end up like a rat on a wheel, always chasing the cheese but never quite arriving.
You’ve worked hard for your business, and…
You Deserve to Take More Time Off and Have it Run Itself
Imagine being able to find good people and structure their role so effectively, they become so good they effectively become a ‘clone’ of you.
What if you could develop a leadership style and ethos that inspires your team to take as much responsibility, control and care (with the same work ethic) as if they were the owner of the business themselves?
A business that runs independently of you, day in day out taking care of itself, managed by others yet continuing to bring in the same profits it always has?
It can be done, make no mistake about it.
In fact, in many cases, the work you do ‘ON’ your business rather than ’IN’ your business ultimately produces a more efficient business model producing greater profits than ever before…
…While allowing you to step away and have the time, money and freedom to spend with your loved ones.
That’s my dream and my wish for you and for all of my clients.
To your success,
Torrin Minutillo
