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The One Word That's Silently Killing Your Business

by ewenmack
6 replies
You have control over it.

Most think they don't.

It can make your business a constant stress
or it can set you free.

The one word is margins.

Your gross margins.

This is the best explanation I've seen on the subject,
by Paul Lemberg.

Go watch now...

Paul Lemberg - Margin Magnifier Effect - 100% Profit Increase

Best,
Doctor E. Vile
#business #killing #silently #word
  • Profile picture of the author Oziboomer
    I thought you were going to say "Red Tape"

    ...but that's two words.

    Yes many business owners believe they have no power over their margins but they are the ones who tend to base their pricing on their competitors.

    What do all new business owners do?

    Go out and look at the competition and then usually position themselves in the "middle".

    What happens to the average business?...

    Out of business in 2 years or less.

    Thanks Ewen for the reminder...

    ...I've got a few other things I'd like to share here but they will have to keep for later...

    In the meantime if you want to see what making an improvement in margin can have for your business there were a few tools I posted here http://www.warriorforum.com/offline-...ml#post9822032
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  • Profile picture of the author SlfMastery
    Hey Ewen:

    Kind of reminded me of your "Tipping Point" post.

    This kind of reminded me of how Jay Abraham advised to don't go looking for new customers. See how else you could HELP your client and sell more to the SAME client.

    Always love your threads! Thanks for this share.
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  • Profile picture of the author jamesfreddyc
    I've been using the gross margins on my subscription SaaS services to base commissions on --- it's one of the better approaches from what I can tell as it allows me to immediately set things up minus expenses (which can change). As long as I have that GM I can really be flexible in my payout and profit calculations.
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    • Profile picture of the author Kiwigal
      This is a very interesting read. We run a small business and have found that during quiet times our competitors have given away GM for turnover- with their costs still remaining the same.
      We did the opposite and increased our margins for the stormy road ahead, as far as we were concerned it was a sink or swim and we reckoned on a third less sales then the previous financial year, (give or take).
      Our calculations are on track for being correct and the market has begun to improve.
      If not for increasing our GM, reducing cost of sales I guess we could have easily been down the gurgler.
      Many other factors are involved here but the principles mentioned by Paul Lemberg are very true.
      Why sell a business for nothing, if that's the case why be in business.
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