Smart Business Hack: How To Make Money From Profit Centres

Smart Business Hack: How To Make Money From Profit Centres and Business Clusters

Small businesses struggle with profit.
There’s a long road from having a business idea to setting up a business that actually makes profit over and over. If you’re in business to make profit then you must understand the impact of the Absence of Viable Profit Centres and Business Clusters.

Its not every time and in every circumstance that your business whether small businesses or any business for that matter will make profit. You can manage your business such that you can run your profit centres that are ideal and make you money even in a recession.

If you want to position your business for more profit, you need to know three major things.

  1. What is a profit centre?

 

A profit centre is a skill, ability, product; service that people need and when sold produces a shelf price return that covers the cost of production + a minimum return of 20-25% in addition to the original cost of production. If you make a shoe for $500 you should be able to sell it for at least $600.

So how can you identify, exploit and maximise your profit centres?

Understand this: 

You must be able to position your business
so that you can still make profit
even if selling cost becomes
nearly the same as production cost.

>You need a business model that ensures a lot of people need your products.

>You need to know how to strategically leverage interest for maximum profit. I call this the Circle of Similar PrincipleTM and I teach it in my business coaching classes and workshops.

 Press more to learn more in the Live Radio Episode below on Smart Business Hack: How To Make Money From Profit Centres and Business Clusters.

 

Please follow the Max Your Business Radio Show at our Facebook Learning Centre and Twitter Learning Centre to be part of our live class when we go on air.

Note:
This is a live radio version and contains advertisement material from some of our sponsors.
Please bear with us.

 

Smart Business Hack: How To Make Money From Profit Centres and Business Clusters

Essential Financial Management Skills for SMEs and Startups

Essential Financial Management Skills for SMEs and Startups.

Yay! So this June we took our Max Your Business program on radio. What began as a humble 150 day podcast is now being beamed across Nigeria and on the internet. We have set up our Max Your Business page and Max Your Business on twitter to manage your engagement and feedback and keep things social awesome.

In this episode, we focused on Poor Financial Management Skills as the second Challenge of SMEs and Growing Businesses and shared some ways how to solve them.

 

Catch the highlights of today’s show below.

A company with good sales but poor financial management can still fail. 

Financial management involves three major areas –

#1 Financial literacy – this simply means you know what money is, how to get it, keep it, and multiply it.

#2 Financial intelligence – this means you understand how cash and you can position your business to profit.

#3 Financial discipline – this is the ability to keep the money you get and ensure you don’t spend all you earn. Budgeting, saving, investing are all financial management practices.

Financial management tips to help your business.

#1 – Smart Capital expenditure

#2 – Operating expenditure: You can effectively manage your cash flow for instance, by avoiding credit or introducing a cost surety policySomeone who will pay on behalf of a defaulting customer.

#3 – Lowering expenses

Click on the link below and press play and enjoy the 5 minute business quick-class on Essential Financial Management Skills for SMEs and Startups.

Challenges of SMEs: #2-Poor Financial Management Skills

 

Please follow the Max Your Business Radio Show at our Facebook Learning Centre and Twitter Learning Centre to be part of our live class when we go on air.

Note:
This is a live radio version and contains advertisement material from some of our sponsors.
Please bear with us.

Thank you.

 

Essential Financial Management Skills for SMEs and Startups

Max Your Business In 60 Seconds Ep126

Max Your Business In 60 Seconds Ep126

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS Pt 8
#6 Affirmations  Max Your Business In 60 Seconds Ep126 (107 downloads)

This is a big deal when it comes to getting things done and accomplishing great feats in business. I will deal with affirmations before this podcast series are over. Watch out for more this June.

Here’s how to make affirmations work for you. instead of the traditional way you go through your targets and plans in your business do the following.

Your sales targets, for instance should be boldly written on boards.

Then when you discuss strategies with your team, use words like this “we inspire a sharp increase in consumer engagement with our products/strategies” OR “We achieve a 400% increase in sales within the next 7 months” then you can go ahead and expatiate your strategies.

The point is to always keep your words in present perfect tense. That’s all for now –

 

Max Your Business In 60 Seconds Ep125

Max Your Business In 60 Seconds Ep125

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 7  Max Your Business In 60 Seconds Ep125 (109 downloads)

#5. Using “We” instead of “I”

Besides the professionalism perception that this brings for your business, if you want to attract partnership and networks and connections it’s time to start using “We” in conversations and plans and vision casting.

As an entrepreneur realize that,

Words are not just words. They are triggers that result in profit or loss.

Speak as though you have a great team and partnership behind you at every turn. This is how to attract the right partnerships and connections.

The power of visualization is increased by your choice of words.

What you are saying about your business is exactly what you’re attracting to your business.

 

Max Your Business In 60 Seconds Ep124

Max Your Business In 60 Seconds Ep124

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 6

#4. Stop saying ‘I can’t’ start saying ‘I Can/I will figure it out;  Max Your Business In 60 Seconds Ep124 (89 downloads)

During the 9 years of my corporate life, I worked across a variety of industries from Oil/Gas exploration, operation and maintenance to management, administration and then consulting.

I was able to go acquire many skills and apply them to my profit because I had learned to stop saying the very common phrase “I can’t” from my speech.

The words “I can’t” are so powerful that even when you say them in reference to something you can actually do, somehow you are not able to do that very thing! When you say “I can, or “I will figure it out” in response to strange, difficult tasks and targets, you find a way to achieve them.

Now this doesn’t mean you can magically do everything.. It means you are willing to try to find a way and open yourself for solutions to come to you.

Start using the word “I will figure it out” today. “I will figure out how to bring my company from debt to a $13,000 profit in 6 months” You will actually achieve your goals.

 

 

Max Your Business In 60 Seconds Ep123

Max Your Business In 60 Seconds Ep123

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 5

Max Your Business In 60 Seconds Ep123 (94 downloads)

#3. Swap ‘I hope to’ for ‘I plan to’ In my second episode of the Max Your Business Radio Show, I told my audience that hope is not a strategy. and i am telling you now –

In business, hope is not a strategy

You realize that once you use the word “hope” in any sentence, you are saying that you ae expecting some external force or third party to to carry out that task.

You may also be saying that it is not in your power. Using the word “hope” in other words, has become  way to escape from responsibility.

For example, instead of saying “I hope to get a chance to talk with that expert concerning my business”, you should rather say, “I plan to get a chance to talk with that expert concerning my business.”

You may realize that a problem is only value waiting to be released and using the words plan instead of hope, trigger the beginning of a decision making process in your mind.

This process in turn begins to set in motion the necessary conditions to realize or manifest that plan…or desire.

 

Max Your Business In 60 Seconds Ep122

Max Your Business In 60 Seconds Ep122

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 4  Max Your Business In 60 Seconds Ep122 (93 downloads)

#2. Swap ‘have to’ for ‘want to’ Bernard Roth recommends a simple exercise: The next few times you say “I have to” in your mind, change “have to want.

“This exercise is very effective in getting people to realize that what they do in their lives — even the things they find unpleasant — are in fact what they have chosen.

So what are you experiencing in your business?

If it’s good, then you can celebrate because that’s the result of what you’ve been saying.

If your business results have not been good enough, then focus on properly talking your way into the right outcomes.

And when you experiment with a different language, you may realize that a problem isn’t as unsolvable as it seems, and that you have more control over your life than you previously believed.

I see you maximizing your business to greater levels of success. This is max your business in 60 seconds .

 

Max Your Business In 60 Seconds Ep121

Max Your Business In 60 Seconds Ep121

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 3

#1. Stop using ‘but’ start using ‘and’  Max Your Business In 60 Seconds Ep121 (89 downloads)

You’ve heard many times that words have power. Somehow in your business, you perhaps have not taken it very seriously, now is the time.

You might be tempted to say, “I really want to invest in this business, but I have fees to pay”

Instead, say, “I really want to invest in this business, and I have fees to pay.”

“When you use the word but, you create a conflict (and sometimes a reason) for yourself that does not really exist.” In other words, it’s possible to invest in the business and still pay your fees — you just need to find a solution.

 

On the other hand, when you use the word and, “your brain begins to consider how it can deal with both scenarios and it creates and suggests solutions to try,” Maybe you can borrow money from family, friends or low interest cooperative, maybe you can sell some valuables.,

Using but in your statements a lot negatively conditions you against the possibility of solutions.

As you change your speech pattern and choice of words, you will maximize your business to greater levels of success.

 

Max Your Business In 60 Seconds Ep120

Max Your Business In 60 Seconds Ep120

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 2.  Max Your Business In 60 Seconds Ep120 (94 downloads)

If you want to achieve great success in business, you must learn how to effectively talk your way into business success.

Now I discovered while watching interview videos of many successful CEOs that they talk almost the same way. There were so many similarities between their words and speech patterns and that got my attention.

I researched deeper and discovered “The Achievement Habit,” a book by Bernard Roth a professor at Stanford University.

In his book Roth suggests several speech changes that can make you more successful and I will share some with you in the next episode of max your business in 60 seconds.

 

Max Your Business In 60 Seconds Ep119

Max Your Business In 60 Seconds Ep119

HOW TO TALK YOUR WAY INTO BUSINESS SUCCESS pt 1

Ever thought about affirmations and motivation as well as neuro-linguistic programming?  Max Your Business In 60 Seconds Ep119 (95 downloads)

All these will help you condition your business for exponential profit.

In the world of business, there are two kinds of networks – Live Networks and Virtual.

Live networks are those connections you have that are physically present in your circle of life and business. Virtual networks are people who are profitable to your life and business whom you have not physically met yet.

Behind every business challenge is a missing relationship and they will come if most of us entrepreneurs don’t just go blowing off our mouths without thinking.

You see, the way you speak not only affects how these two networks perceive you but also has the power to shape your behaviour and your results! Using one word instead of another could make all the difference in how much business success you achieve.

 

Max Your Business In 60 Seconds Ep118

Max Your Business In 60 Seconds Ep118

How To Keep Your Brand Fresh – Top 3 Ways Pt 3

Ambush marketing. Max Your Business In 60 Seconds Ep118 (90 downloads)

Perhaps you’ve never heard of ambush branding. Here’s how it works. You maintain your marketing campaigns on a plateau and anticipate changes in the polity, regulations and economy.

This helps you know when exactly to intensify brand campaigns, products/service launches to coincide with the shortfalls of your competition.

A typical example is Indomie. Their products are marketed as an alternative to staples such as rice and pasta.

But do you notice how their adverts and new product launches into the Nigerian market increase seriously every time there is inflation?

 

 

Max Your Business In 60 Seconds Ep117

Max Your Business In 60 Seconds Ep117

How To Keep Your Brand Fresh – Top 3 Ways Pt 2

Collaborate Max Your Business In 60 Seconds Ep117 (96 downloads)

I’ll tell you a story about Didi and Kuaidi in China. These guys are a taxi cab hailing service who were rivals fighting for market share. But when faced with the competition from UBER. Didi and Kuaidi had to merge and form a stronger force.

As at September 2015, the merged company had a taxi market share of a massive 99%.

The moral of the story is maybe you should stop positioning your brand as a competition with another brand and instead look at the option of collaborating in a win-win situation as much as possible to form a mega brand.

Max Your Business In 60 Seconds Ep116

Max Your Business In 60 Seconds Ep116

How To Keep Your Brand Fresh – Top 3 Ways Pt 1

Max Your Business In 60 Seconds Ep116 (137 downloads)

As a smart business person you know that times come and go in real life, faster than they do in business. This is because the world of business is constantly trying to keep up with everyday life. So if you have a brand that produces products and services and you want people to buy from you now and in the future you must keep your brand fresh and there are four ways to do that.

Evolve. While you want to maintain the overall profitable brand emotion on your consumer and customers, you also want to make subtle changes over time. I have watched Coca-Cola bottles change shape and design over the last 26 years since I first saw a coke.

The trick is to make sure you keep making those little changes that make your brand more beautiful and appealing to your target market.

 

Max Your Business In 60 Seconds Ep115

 

Max Your Business In 60 Seconds Ep115

10 Lessons: How To Make Consumers Buy From You

Lesson 10 – Negative post-purchase behaviour  Max Your Business In 60 Seconds Ep115 (102 downloads)

If the experience with the product was average or disappointing, the consumer will go through the steps of the buying process again during his next purchase. The next time however, he will tend to ignore the brand that has caused dissatisfaction.

The post-purchase evaluation is important because a satisfied customer is very likely to become a loyal and regular customer.

In addition to optimizing the customer experience, a guarantee, an efficient customer service, and a specific call-centre are assets that improve post-purchase behaviour.

 

Max Your Business In 60 Seconds Ep114

Max Your Business In 60 Seconds Ep114

10 Lessons: How To Make Consumers Buy From You

Lesson 9: Positive post-purchase behaviour  Max Your Business In 60 Seconds Ep114 (109 downloads)

Once the product is purchased and used, the consumer starts to evaluate whether he has made the right choice in buying this product or not.

He will feel either a sense of satisfaction for the product or a disappointment if the product has fallen short of expectations.

An opinion that will influence his future decisions and buying behaviour. If the product has brought satisfaction to the consumer, he will then minimize stages of information search and alternative evaluation for his next purchases in order to buy from you.

This will produce customer loyalty.

Max Your Business In 60 Seconds Ep113

Max Your Business In 60 Seconds Ep113

10 Lessons: How To Make Consumers Buy From You

Lesson 8 – Purchase decision  Max Your Business In 60 Seconds Ep113 (101 downloads)

Once your consumer has evaluated the different solutions and products available to meet his need, he will be able to choose the product or brand that seems most appropriate to his needs and make an actual purchase.

His decision will be affected by things like the quality of his shopping experience or of the store (or online shopping website), the availability of a promotion, a return policy or good terms and conditions for the sale.

For example, a consumer may quit the idea of opening a bank account because of a rude bank worker.

 

Max Your Business In 60 Seconds Ep112

Max Your Business In 60 Seconds Ep112

10 Lessons: How To Make Consumers Buy From You

Lesson 7 – Alternative evaluation:  Max Your Business In 60 Seconds Ep112 (107 downloads) Once your consumer has information on your product, he will still not buy until he makes an alternative evaluation.

Alternative evaluation is done in two ways.

1- Objectively. Here he looks at the features and functionality of your product/service.

2- Subjectively – here she looks at perception of your brand and reputation.

Each consumer evaluates your brand differently so someone can buy your product just because they like your product name and not at all for the functionality of your product or service.

Max Your Business In 60 Seconds Ep111

Max Your Business In 60 Seconds Ep111

10 Lessons: How To Make Consumers Buy From You

Lesson 6: External information  Max Your Business In 60 Seconds Ep111 (99 downloads)

This is information about a product or brand received from friends or family. It could also come from reviews by other consumers.

It could also be from the news, official business sources such as advertising.

During the consumer buying decision process, the consumer will pay more attention to his internal information /information from friends, family or other consumers.

 

Max Your Business In 60 Seconds Ep110

Max Your Business In 60 Seconds Ep110

10 Lessons: How To Make Consumers Buy From You

Lesson 5: Information search Max Your Business In 60 Seconds Ep110 (104 downloads)

Once the need is identified, the consumer seeks information about possible solutions to the problem. Consumers rely on two major processes to make a buying decision.

Internal information: This comes from previous experiences he had with a product or brand and the opinion he may have of the brand.

Internal information is sufficient for purchasing regular stuff like toiletries and commuting. When it comes to major purchase with a level of uncertainty or stronger involvement e.g trainings/high-value workshops etc.

 

Max Your Business In 60 Seconds Ep109

Max Your Business In 60 Seconds Ep109

10 Lessons: How To Make Consumers Buy From You

Lesson 4:  Classes of Needs  Max Your Business In 60 Seconds Ep109 (100 downloads)

We’re still looking at Influencing Consumer Buying Decision and there are 3 basic classes of needs, why people eventually buy your products/service…

Functional need: the need is related to a feature or specific functions of the product or happens to be the answer to a functional problem. Like getting a coach that helps you sort out your business needs for more profitable finances.

Social need: the need comes from a desire for integration and belonging in the society or for social recognition. Like buying a new luxury car to “show” that you are successful in life.

Need for change: the need has its origin in a desire from the consumer to change. This may result in the purchase of anything new, just because change is needed e.g toothbrush

 

Max Your Business In 60 Seconds Ep108

Max Your Business In 60 Seconds Ep108

10 Lessons: How To Make Consumers Buy From You

Lesson 3: Stimuli  Max Your Business In 60 Seconds Ep108 (91 downloads)

Internal stimuli (physiological need felt by a person e.g hunger or thirst) which opposes the external stimuli such as contact with an advertisement, or the tantalizing smell of freshly baked cake…I am a sucker for cake…

Stimuli pushes consumers a step further in making a buying decision.

 

Max Your Business In 60 Seconds Ep107

Max Your Business In 60 Seconds Ep107

10 Lessons: How To Make Consumers Buy From You

Lesson 1- The Need Pt2  Max Your Business In 60 Seconds Ep107 (133 downloads)

Let’s say you hire out your barely used new car for cab services at N20,000 per day, you may not get a driving partner to accept this deal because your price is perceived too high for the “cab service need” So this won’t lead to a purchase.

Now if you on the other hand take, say a 70% remuneration, giving 30% earnings to your driving partner, you’re likely to get multiple applications or offers.

The recognition of a need by a consumer is caused by different factors.

Max Your Business In 60 Seconds Ep106

Max Your Business In 60 Seconds Ep106

10 Lessons: How To Make Consumers Buy From You

Lesson 1- The Need  Max Your Business In 60 Seconds Ep106 (86 downloads)

Purchase is the last stage of sales. Do you want to know what happens before and after this purchase? What makes them buy from you?

Need recognition is the first and most important step in any buying process. If there is no need, there is no purchase. Need = Consumer Problem + Desire to solve it.

This means not all needs lead to a purchase. As a business, you need to make them buy from you but the way you do that has to be perceived as “acceptable”.

Max Your Business In 60 Seconds Ep105

Max Your Business In 60 Seconds Ep105

25 Worst Sins of Branding. Sin #25 Finale Mentality. Is there something else you can do? Is there another problem to be solved?  Max Your Business In 60 Seconds Ep105 (89 downloads)

Is there one more step you can go to give your customers the best service and products?

Is there anything more you can do to create new and exciting but profitable platforms for brand expression?

 

Or have you arrived?

Do you have a finale mentality?

Is your last successful campaign your best ever?

 

The moment you arrive as a business, you’re on your way down!

There’s always something more. There’s too much good yet to do.

 

What are you waiting for?

Sorry Business is growth, there is no grand finale

Keep going

Max Your Business In 60 Seconds Ep104

Max Your Business In 60 Seconds Ep104

25 Worst Sins of Branding. Sin #24 Colourless Brand  Max Your Business In 60 Seconds Ep104 (98 downloads)

This has nothing to do with brand design and colours. I’m talking about a brand that does not inspire emotion.

Every now and then I meet and entrepreneur who says to me “I don’t want to come across as offensive or rude, I want to do what people will love”.

My answer is usually something that sounds like “You don’t want to please everyone. In fact, you can’t. Worse than that is being ignored”

Being ignored is as easy as doing what will please everyone. There is no everyone! There is only the market segment you are trying to appeal to. Okay?

So get out there and do you! Be hot or cold. Not both.

Be aggressive, be colourful.

Stink if that’s your niche and you’ll be surprised that there are consumers who have fetish for stink

 

Whatever you do, do not be a brand that can be ignored.