There are three types of businesses in any given industry; the leader, the average joes, and the benchwarmers. Look around in your space and you’ll see that it isn’t hard to see who’s who. (Which one are you?)
There’s one important thing that separates highly successful businesses from those struggling to get recognized.
No, I’m not talking about Tiger Woods or some golf tournament.
When I say PGA I’m talking about “Profit-Generating Activities.“
What Are Profit-Generating Activities?
Profit-Generating Activities are those handful of business activities that yield the highest results and have the greatest impact on your bottom line.
Not every business has the same exact PGAs , but most businesses have similar high impact areas.
If you take a step back and analyze your business in it’s entirety I’m sure you’ll find three or four of these high impact areas. Areas that if nurtured, could easily double or even triple your revenue.
As an entrepreneur, you’re dealing with a bunch of different moving parts so it’s very easy to lose focus of what’s really important. But ultimately, it’s your responsibility to take care of the high priority stuff first.
As cliche as it is, there’s a lot of truth to the 80/20 rule. There are a select few actions that are responsible for the lion’s share of the results.
Most people miss the memo though.
They either try to juggle too much, lack focus, or just don’t know what to focus on.
That said, I thought I’d share a few of the more common PGAs that I’ve seen in my experiences working with entrepreneurs.
Building Brand Awareness With The Right Audience
This is where the whole business cycle starts. For some businesses, their Achilles’ heel is that they’re terrible at building brand awareness. In some instances entrepreneurs are great at building buzz, but they’re not targeting their most ideal audience.
The truth of the matter is this, people can’t buy what they don’t see.
I’m going to be a best-selling author in the near future, so I’ve made it my business to write and ship everyday. As I’m working on my craft I’m building an audience for my books.
Are you getting in front of enough people? The more people the better. There’s an entire multi-billion dollar advertising industry that’s predicated on building awareness and getting in front of folks.
The other part of this issue is type of audience you’re exposing yourself to. Are you getting in front of your ideal target audience? The make up of your audience is just as important, if not more important, than the size of your audience.
The objective is to get in front of as many of your “best buyers” as possible. The more eyeballs you earn the more business opportunities you create.
High Quality Lead Generation
Lead generation is probably the most mishandled and overlooked profit-generating activities of them all. Your ability to generate high quality leads has an enormous impact on the growth of your business.
No leads, no sales, no business.
Getting in front of the right people can be challenging enough, so you have to make every opportunity count. What are you doing to get people to take the next step in the sales process? How do you go about turning prospects into leads?
As I mentioned before, the answer is not always going to be the same for every business. For traditional salespeople it might be prospecting via cold calls. For an online entrepreneur it might be building your email list. For a store owner it might be getting more in-store foot traffic.
No matter what type of business you operate, there is a very specific lead generation mechanism that needs to be in place.
Make sure you’re feeding it high-quality leads.
Increasing Your Conversion Rate
You can singlehandedly double and triple your revenue with this profit-generating activity alone. Increasing your conversion rate even by 3 percent could mean a couple hundred new customers or millions of dollars.
For example, let’s say you sell high-end, tailor-made suits for men at $2,000 a piece. If you sold 3 suits for every 10 prospects, you’d have $6,000 and a 30% closing ratio. Now let’s say you turn things up a notch and sell 5 suits of a possible 10, you’ve now earned $10,000 and a 50% closing ratio.
As you can see, by focusing on closing more of your existing leads you could grow your business exponentially.
Conversion rate optimization ultimately comes down to your ability to close deals. If you’re not the Mariano Rivera type, then you need to get hire a sales professional or coach to help you drive more sales.
Take some time to assess your sales funnel and see where you can make meaningful improvements.
Increasing Your Productivity
This is the area where I do battle most. I tend to spread myself thin if I’m not being intentional. And I can’t stress how important it is to make sure you make the most out of your every move.
Productivity boils down to two things: how you manage your time and what you do with it.
Time, like other resources, is limited. However, time is unique in that once it’s gone you can’t ever get it back.
So let me ask you….
How are you spending your time?
I’ve had to learn the hard way that planning and focusing are essential if you to maximum the return on your time and efforts. Ten minutes of planning could save you three hours of work.
Planning can also lead to more revenue.
It’s important to make your next move your best move. Be sure to review your processes every so often to make sure things are actually working. Make sure you’re on track to reach your goals.
See what things aren’t working then adjust accordingly.
Also, make sure you don’t bite off more than you can chew. A person can only handle so much before things start to suffer.
I’ve embraced essentialism this year and I’m already feeling a greater sense of clarity and productivity.
Focus on doing less better. Delegate if necessary.