What do I mean by “profit leak”? I mean the “things” that cause you to loose profit.
If your business is just you then you probably think you don’t really have any profit leaks.
There may be the odd bit of subscription software you could cancel but that’s about it. Right?
Your biggest profit leak is YOU
No matter how big or small your business is you are its biggest profit leak.
What do I mean?
The decisions you make directly affect your profit. Here’s a classic example….
You decide not to follow up on a lead. That missed opportunity could have turned into a nice piece of work contributing profit to your business (and your pocket) but you decided not to follow it up.
I’m sure you gave yourself some great reasons (aka excuses) why it was OK to ignore it.
Let me be very clear on this, by ignoring that lead, and all the others like it, you are throwing away potential profit.
Over the space of a year that can mount up to a significant amount of lost potential profit.
You can work some if it out just by adding up the value of proposals that you didn’t convert. The figure will be larger than you think. Then add in the ones that didn’t even get to the proposal stage. The figure gets bigger and bigger.
It could have bought a lovely present for someone important to you, it could have paid for a holiday, or you could have saved it for a rainy day.
But instead it leaked straight out of your business.
It doesn’t matter as it rarely happens
I bet it happens more often than you are allowing yourself to acknowledge.
25% of my current client base thought they needed to improve & increase their marketing to increase their number of leads and therefore sales.
When we started to look at the data they already had a significant amount of enquiries. In fact they had loads and they were all inbound (people were knocking on their door to give them business).
So what was the issue?
They weren’t following up properly once they had issued the proposal (in some cases not at all!).
They converted some because the customers got in touch and commission the work, the others didn’t respond.
That’s OK as they wouldn’t have ordered it anyway
Nope! These are the ones that have placed their work with the competitors instead because they did follow up.
Is that happening to you?
Are you doing a great job of the initial sales conversation but then letting someone else “steal” the business from you because you didn’t follow up.
Don’t be that business. Don’t let the fear of the follow-up put you off.
Don’t discount potential leads because you “don’t think they’ve got the money” or “they aren’t really serious” because some of them will be.
So you want to grow your business?
Get the fundamentals right first. Make sure you are following up properly. If that isn’t your strong point get a system to help you like SalesRadar
Start doing better follow-ups and stop helping your competitors grow their businesses!