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How to Increase the Most Important Number in Your Business

So just what is the most important number in a business?

Marketers would say number of sales. Accountants would say break even. But what number matters most for business owners is related to what they want most out from their business ownership… freedom, or in other words a lifestyle with both time and money!

Too often business consultants and coaches are only treating symptoms, or they don’t give business owners what they truly want. They help you to grow your business – i.e. more turnover, which means more staff, more responsibility, more stress and no direct personal benefit.

So business owners take note and answer this question thoughtfully…

Do you want more hard work, more time away from your family, or to be at work in your business every hour of it’s operation, or do you want more money, more time and more freedom?

I haven’t yet met a business owner who wished they could work harder or longer hours.

They all want a better lifestyle. This is what is leading to the most important number in your business, or in any business.

It’s not your break even, or number of sales. It’s not your profits either, although that’s getting warmer. When people say they want to increase their sales or profits, what they are really saying without realizing it is that they want more turnover, and with it more responsibility from having more staff.

What matters most in business, which is the most important number in your business is… your Net Profit Margin!

This is your take home profit percentage. It’s a measure of how efficient your business operation is. Think about this, are you in business to work hard, or to work smart? Would you prefer to work more hours for less money or less hours for more money? Obviously the latter.

Do you realize the research collated over years of interviewing accountants has revealed that 90% of businesses make less than 10% net profit? Do you realize how many business owners even know their net profit margin? Very, very few!

Accountants are telling their clients their net profit margins are low, the accounting software doesn’t point it out so business owners are almost completely unaware of this most important number.

If your business turned over $1,000,0000 and had a 7% net profit margin it would have $70,000 net profit. If your business turnover over $500,000 and had a 15% net profit margin it would have a $75,000 net profit. Which business would be less stressful, easier to manage and more enjoyable to be the owner of?

The answer again is obvious. But why don’t businesses enjoy a 10% or higher net profit margin?

Great question!

Its because of a few reasons. First of all as mentioned the majority of business owners don’t even know their net profit margin. Second they don’t know its perilously low and so this makes their business dangerously close to financial disaster. Third, if a business owner has the rare insight to focus on net margin increase and not sales, they are lost as to how to do it.

Yes you can put your prices up, or reduce expenses, but there are 13 other strategies to increase your net profit margin few people in the world know, let alone teach business owners.

To explain how to implement a number of these 15 strategies isn’t something that can be explained here, but I will leave you with this one thought.

Is it better to have less customers paying you more money, or more customers paying you less money. all things being equal?

I suggest you look to see what your own net profit margin is (Net profit as a percentage of your total revenue or total sales income) and if it’s below 10% put your prices up 10% and see what happens. You might need to do it with some of your products/services first, but in every client of mine who has do so in over 59 different industries has benefited with an increase of net profit – instantly! Only one business in 11 years of business mentoring experience has experienced a detrimental outcome from a recommended 10% increase in all product/service prices and that was a video rental store.

So get started now. Look up your net profit margin and think about this. Your figure is the average of all product/service lines you sell. If you knew your gross margin on all these categories you would see that 80% of your profit (margin) comes from 20% or less of what you sell. There’s a clue I’ll leave you to ponder!

Home-Based Business Leads

Owning your own home-based business can be a dream come true for many people. And spending less money on gas – which is one reason people decide to stay home and having more time to spend with your family is another reason people decide to have their own home-based business are growing factors in the home-based business expansion that the home-based businesses are experiencing today.

But how do you get started owning your home-based business? What home-based business leads. Home-based business leads will give you all the: what, where and when and even how to owning your own home based business. These home-based business leads can be found all over the Internet if you know where to look and we’ll get you started on your way to owning a home based business.

Depending on what type of home-based business you are looking for, whether it is selling products or services, or a business where you help others set up their own businesses these home-based business leads will show you where to begin and what to do from there.

There are many companies that strictly work with home-based businesses that are called lead generators and they provide home-based business leads for the home-based business worker. Sometimes these services cost a minimal amount, sometimes you pay a monthly fee, sometimes a yearly fee and if you search long enough you may be able to find a free service for home-based business leads. These leads will show you what you can do to make a good living at a home-based business. Some of these leads will direct you directly to customers were looking for your product or services. Other leads generated from home-based business leads will only show you what to do to get the leads and then you’re on your own with what to do with them.

Home-based business leads will show you where to find customers and what types of businesses are popular at the moment. Currently businesses which promote weight loss, other work at home businesses, making money from home and ways to quit your 9-to-5 job are all popular at the moment. These are home-based business leads in the lead generators will show you where to find the information you need to either sell this information on your website or to help others began their own home-based business. People will pay you to help them start their own home-based business. And not only do you get the income from helping others help themselves, but you get the appreciation and gratitude and just that good feeling of helping others being able to help themselves. By helping others get away from the grind of the rat race, by being able to stay home with their families by working at home at a home-based business.

Beginning with the home-based business leads you can help yourself and boost your own home-based business with these home-based business leads, you can also help others increase their income with the home-based business leads. But home-based business leads are what everyone needs to begin a home-based business.

How My Internet Business Profited Even With the Declining Economy

Are you considering starting a work from home based business? You are not alone, it appears more people are looking at starting an Internet business, to combat today’s economy. With the gas prices skyrocketing, and the real estate decline, many people are looking for a legitimate Internet Business to handle the increase of the cost of living. Where entrepreneurs were once turning to the Internet as a way to generate an additional income, it appears that it is becoming more of a necessity to make money online.

It is predicted that by Fall of 2008 gas prices could exceed to over 7.00 a gallon. Making the commute to and from work difficult. Where we once took for granted getting in the car, many Americans are seeking alternatives. The gas prices alone contribute to a staggering 73.2% of new work from home based business starting. Real Estate Agents are looking into legitimate home based business to counteract the real estate decline. Just putting kids through college is becoming a serious concern for parents. Which may result in parents with college aged children being the more prominent age group to looking into new revenue stream with an Internet Business..

Where as our offline business appear to be taking a decline with the economy, the online business community is seeing a remarkable increase. Whatever your reasons for starting an internet business, it is increasingly important to make sure that you join the right opportunity. Making the right business decisions forth at the beginning can set your work from home business up to make money online long into the future.

Here is A Plan of Action For Starting An Internet Business That Will Profit.

1.) How Much Do You Need To Make – How much money are you looking to make per week, and per month. The commission rate will have a direct impact as to what work from home based business you choose to partner with. If you are looking to make money online, with a fast turn around then you may consider with the higher end commission base business. It becomes important to evaluate the earning potential within each opportunity.

2.) How Soon do I Need to Make Money – Are you looking to make money this month? Or are you looking for a more long term income? A large percentage of Entrepreneurs will turn to Internet Business to make money quickly, while some want to have a residual income that they can build slowly but will secure them for retirement. There are many work from home based business that are designed to handle both quick income, and long term income be clear as to what is the most important for your situation.

3.) What do I need to Know About an Internet Business – When starting an Internet Business you need to understand that you will have to learn how to effectively build your work from home business opportunity to profit. You will need to learn how to Market, and consistently build a client base. Getting the proper mentoring and training is suggested to increase your income in a more timely manner. Making sure that you are connecting and being trained by experts in the Internet Business field, and at the same time making sure they have a solid mentoring plan already in place that you can follow.

4.) How Much Time Can I Devote – You make be looking to start a work from home business opportunity, but many times people have a regular job to maintain until they can make money online. It is suggested to set a realistic time frame that you can devote to your online business, and be consistent to that plan. In order to organize it in a way that your Internet Business can profit talk to your mentor or mentoring team. How can they assist you, and how much time will you need to start profiting quickly? Once you have that time frame stick to it, and ask your mentoring or support team to provide you with a clear and concise task for you to do, so that if your time is limited, your time devoted will be put forth to making money online, and not toward figuring out what you need to do to accomplish that.

5.) Products And Services That Sell – As important as it is to find a Internet Business with products and services you would be interested in. It is equally important to find out what products are selling on the Internet. If you have a large product base that appeals to a large amount of the consumers it is not going to narrow your marketing efforts it is only going to enhance t.

6.) Advertising – Most of the time you are going to be presented with a website, either from the Internet Business you choose or from the mentoring team you may have partnered with. No matter how professionally designed, and appealing your website may be it is not going to help you to make money online unless you get buyers to see it. Marketing your work from home based business, is becoming easier then past. More mentoring teams are stepping up and showing new entrepreneurs how to utilize free online marketing solutions to profit. Set an advertising budget and talk to your mentoring team about what other marketing solutions are available that you can do for free. Having an advertising or marketing plan established upon starting an Internet Business will assist you in profiting sooner rather then later.

7.) Legitimacy – There are many legitimate work from home based business. It is more difficult for an Internet Business to circulate on the Internet that is not legitimate. However, it is equally important that you can feel confident in saying to clients that My Internet Business is a solid opportunity with solid products and services. Do your research on any work from home based business before starting it. In addition it is sometimes more important to make sure you are partnering with the right mentoring team. As they will be the ones training and you on how to make money online. If you feel confident about your opportunity, and your mentoring then it will be much easier to build your Internet Business successfully.

8.) Goal Setting – Many times people are leaving there corporate jobs and turning to online opportunities. Owning a work from home based business is different then going to a nine to five job. The benefits of starting your venture ranges from more time with family, tax benefits, to an increase in income. Whatever your reasons your mind frame and goals will have direct impact on your success. It is suggested by mentoring teams, to keep reevaluating your goals. If you reach an income goal, celebrate your success. Then set a new goal in place. This allows your Internet Business to continue to increase and allows you to create long term goals that will have your profiting long into the future.

9.) Pros and Cons – Whenever you start any new venture in life you should make a list of Pros and Cons. While work from home based business have a lot of Pros, their maybe some cons that you have to be aware of. Making a list at beginning and understanding what some cons maybe and how to combat them. Each persons life style and needs are different. Be realistic about what the benefits and the disadvantages maybe will allow you to create a plan of action so the disadvantages doesn’t stop your Internet Business from profiting.

10.) Life Change – People are turning to Internet Business to change their life for the better. Being clear with your family about why you are starting this new venture and explaining that it maybe a change in the whole family atmosphere can assist you as you make this transition. When your loved ones support, and understand the reasons for your new venture it will make the changes easier to adjust to.

Work from home business opportunities are becoming a more viable solution to combating the shift in the economy. More Online Business and Mentoring teams are catering to the average person, giving them a solid avenue to make money online. The increase in people starting an Internet Business is creating a solid market, that does not look like it is going to decrease. Where as starting a offline business venture with today’s declining economy is considered high risk, online business are becoming a more secure choice, due to the increase of consumers turning to the Internet. It is expected that even if the economy returns to a more stable time, Internet Business will remain solid as the business community recognizes as a solid and legitimate alternative to make money online.