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I’ve been building companies for almost 30 years now. One thing I’ve found in my own businesses, as well as associating with other entrepreneurs, is that a lot of us overlook opportunity.
If you’ve ever seen anything I’ve done, you’ve probably heard me talk about how sometimes entrepreneurs can get too much opportunity. We’re always chasing the next bright shiny object.
That’s not what I’m talking about now though.
In this series, I’ll be talking about opportunity inside your existing business. Because a lot of times there’s sales revenue sitting right under your nose and you’re overlooking it.
This is because you get up every day and go through the mechanics of running the business. When this is all you’re doing, you end up missing a lot of this stuff because you’re so close to your business.
Have you ever heard the saying “Can’t see the forest for the trees”? It’s very much like that.
When you’re in the business working in the business every day, it’s sometimes easy to miss these profit opportunities. As I’ve talked to entrepreneurs over the years, it’s been very simple for me, from an outside perspective, to pinpoint where these profit opportunities were.
I created this checklist so my readers could use my method as well.
I often say that “Service to humanity is man’s greatest lot in life. We get back in direct proportion to what we give to the universe, but you’ve got to give a gift first if you want to get one back.”
It’s simple to go to a thing like this list and use it almost like a money hunt. Go and look for those hidden profit opportunities, those hidden, overlooked assets in the business. It’s like an Easter egg hunt for entrepreneurs! What’s funny is that when you get into it, they all seem really simple.
I was like “Duh, why didn’t I see that?”
The fact is is that we’re just close to our businesses and have to take a step back.
This could be great for a retreat or if nothing else, an offsite day. Maybe pull your top team members together, go rent a board room at a hotel, grab some refreshments and snacks, and pack them in there for a day. Get them away from what’s going on and the mechanics of running the business on a day to day basis. Take this checklist and go down it item by item.
If you’re more of a video person check out the first episode of my Cash Flow Catalyst series on YouTube, we are talking about the same topic.
Now! Let’s get into that list.
If you have an existing business, you have an existing client base. If you want to make more money from the existing business, one of the best things you can do is to look at your existing client base.
Don’t look at it as these are your customers or clients.
Look for your best clients.
You can look for things like
A lot of people look at their client list and try to group everybody in together. In almost every business we have pockets of different types of clients, but we also have our best clients. The ones that bring in the most revenue, they’re easy to sell, they’ve fallen in love with your product or service. They trust you.
Look for those particular types of clients and cater to them. If you look at the Pareto Principle, the 80/20 principle, it’s not that everything is always 80/20 it could be 90/10, or 70/30. The idea behind the Pareto Principle is there are certain categories or areas that are smaller than the whole but out produce all of the rest combined.
So if you look at your client base that same way, it’s very likely there’s 10 or 20 percent of your client base that’s producing 60-70 or 80 percent of your sales revenue in your business. Look for those people and find ways to cater to them.
So if you’ve already built a customer base, think about this, you’ve already spent the money once before. You’ve already expended that client acquisition costs, generated the leads, went through the conversion process, and maybe you paid your salespeople for converting the sale.
Once you identify this category of customers that have the highest productivity, focus on them with special care. What you’ll find is that you can actually model those best clients and go find more people just like them.
That’s it for number one on my 17 part list. Check back soon for number 2.
American entrepreneur, investor, and philanthropist with more than 26-years experience starting, building, buying, and selling companies in publishing, media, advertising, software, e-commerce, textiles, training, real estate, and consulting. He's Founder & CEO of Harbor City Capital.