Fine Tuning your Products and Services - Russell Colbourne

Russell Colbourne - "Your Money Machine"

Introduction:
Your business is Your Money Machine.  In this Show – I’ll take you under the hood of your enterprise and show you how to fine tune your business.  Get ready for lift off as we add rocket fuel to your profitability!  This show is focused on businesses that have launched and are preparing for exponential growth

Most companies deal with more than one product or service. Inevitably, some products/services are more profitable than others—and you can’t make sound business decisions without knowing which is which. Understanding which products or services are most profitable, gives you the basis for marketing, inventory and pricing strategies.

Show Objectives:

Dispel the myth that Quantity is better than Quality
How to leverage your Accounting system to find your largest money makers
Understanding the difference between Vanity Metrics and Actionable Metrics.
Why you need to trim the fat, and how it leads to explosive profits. 

Key Issues

1. The “more is better” trap.
2. Which reports from your accounting system do you need, and how to read them! 
3. Where to trim, how much?!
4. How to make the most of what’s left over. 

What You Need to Do

1. List out your products and services in HIGH detail. Include:
   1. The cost of any products you buy for resale purposes/to build a final for sale product including shipping – Remember ABC Accounting?
   2. Time to create / spent on client 
   3. Final sale price
   4. Quantity sold
   5. Time to acquire / sell 
   6. Marketing / Other direct maintenance cost

 

1. Time / Cost analysis: Use the above information to determine an average cost per hour / cost per specific product.
2. Cut the bottom 20%! 
3. Regroup and Refocus on top 5% 

Shows
Previous: Episode F3.005 Standard Operating Procedures

Next: Episode F3.007 Chose Your Customers Wisely

Written by Russell Colbourne
Your Money Machine

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