What are the key drivers of strong financial performance in your business?
As business owners, we usually want more of certain things as we grow our businesses–more clients, more revenue, more profit. But how can we break things down to understand more clearly what drives these outcomes and take concrete steps to improve them?
ActionCOACH's Business Chassis, also known as the 5 Ways, does exactly that. Think about it–the number of clients you have depends on how many of your leads you convert. Thus, the number of Leads and your Conversion Rate are the first two components of the Business Chassis.
After you get a client, you want them to do business with you repeatedly and to spend more with you each time. So, the Average Number of Transactions and the Average Dollar Sale are the next two components. Multiplying your number of leads times your conversion rate times the average number of transactions per customer times the average dollar sale gives you your revenue.
Finally, the fifth component is your Profit Margin. Multiply that by your revenue, and you get your profit.
Here's where it gets interesting. Did you know that (1) putting a new strategy or two in place for each component of the Business Chassis and (2) improving each of the 5 Ways by just 10% increases revenue by 46% and increases profit by 61%?
So, where do you find these strategies? Simple. ActionCOACH has 344 total strategies to choose from. And the really good news? You don't need 344! You just need someone to help you think it through and choose a few to dramatically affect your results. Get started and see how quickly you can benefit from the power of the 5 Ways.
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