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In this series, I’m 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.
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.
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!
If you are more of a video person check out the Cash Flow Catalyst series on YouTube channel, I explain everything here in a really easy to follow video.
Let’s get started on number 2: Killing your cash sucking advertising
When looking for these “hidden” profit opportunities in your business, don’t always look for more money instead, look to spend less money. Better yet get rid of things that aren’t productive.
If you had an employee in your business and they weren’t producing, what would you do? Either fix it or get rid of them, right?
In marketing and advertising, I find entrepreneurs just throwing money out there, it’s like slinging mud against the wall to see what sticks.
In the old days, before the Internet, it was a lot more challenging to track what worked then it is today. This is one of the things I love about the Internet.
In 2004 when I went all in with the Internet. One of the number one things that attracted me was that every click is measurable. Every visitor was trackable. I mean you could see everyone that’s coming to your website and it’s just gotten better over the last 10 – 12 years.
John Wanamaker said many years ago, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Well, with the Internet that’s not actually true anymore. Now, even in the offline world, you can put a mechanic or a piece in that makes your advertising trackable. Maybe a coupon code, something they have to bring in, or a phone number they call. In the offline space nowadays, there’s almost nothing in terms of marketing or advertising that can’t be tracked.
Even with referrals. If I was going to ask my clients to give me referrals and I had an offline local business, I would give them gift certificates to give to their friends.
Why? Because I can track that.
I can see what kind of customers were brought in from the referral, so now I know to invest more money at this end of marketing.
Let’s say we buy so adds on Facebook and people go to our page, we can track every bit. We then get on the phone and close the sale.
That’s measurable and trackable.
Look at your business. If you’re spending $500 a month or $5,000 a month or even $100,000 a month on advertising, whatever that number is, look at those ad dollars and find out what’s working and not working. We go through this same process at Harbor City inc.
We have a three-step process called Tests, Scale, Manage.
So testing is where we allocate a certain number of dollars every day for 10 days.
At the end of the first day, we may look at the results and see that men responded to this ad more often than women. Then the second day we scale, we’re going to eliminate or reduce the budget to the female audience and double down on the male audience. By the end of the second day, let’s say mostly men over 45 are responding. We’re going to reduce or eliminate the lower ages and double down on the upper end.
Now you’re “pruning” your advertising, this is that manage step I mentioned earlier. You’re eliminating the old and what doesn’t work and you’re doubling down on what does work. You’re going to see exponential growth in your business.
So not only do you eliminate expenses that are unproductive, but you actually put that money into things that are working. This is huge. It creates immediate cash flow and can create a multiplying effect on your profits.
If you would like to see the rest of my tips about opportunity inside your existing business, follow this link: JPMARONEY.com/CASHFLOW
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.