How is it that two businesses that are virtually doing the same thing in the same market place can experience massive differences in profitability?

You just need to look around at hairdressers, beauty salons, restaurants and almost any other kind of business to see what I mean. Some seem to be powering ahead while others are struggling to make ends meet. Some never do.

There are many different factors that contribute to this including previous business experience, knowledge of the industry you are in and the ability to find the profit gaps in
your business. By finding and focusing on these forgotten or unknown areas of your business can achieve amazing results.

Helping my clients to find the profit gap in their businesses involves utilising a series of questions aimed at pinpointing where a business could often be making substantially more money but isn't. It is not unheard of for a small business to find up to $10,000 more in just one month of trading if they know where to look and what changes need to be made to take advantage of that knowledge.

To get you thinking about where the profit gaps may be in your business, here are some thought provoking questions to get you started:

• How long has it been since you price checked your competitors to make sure you have not been left behind in your market? Too often I see business owners too frightened to increase their prices until eventually they can no longer pay their bills. Review your pricing every three months and increase prices on at least 25% of your services or products.
• When is the last time you asked your customers what it is they want from your business? Are there additional products or services that your customers are going elsewhere to obtain?
• If you are a service based business, are you focusing on promoting the services that will make you the most profits rather than worrying about low profit services?
  Where you focus your energies and marketing is where you will see the greatest results. Get focused on the important stuff!
• Is your staff costing you money? How are you measuring the productivity and return on investment of each member of your staff? Are you overstaffed or offering too many hours work to some less than productive staff members?
• Can you identify which products in your business are your "heroes" and how are you maximising their impact on your bottom line?
• What incentives and motivation are you providing to your staff to ensure greater productivity is achieved and maintained?
• How are you using your current database to market to your best customers - the ones who have already spent money in your business?
• When is the last time you looked at the expenses in your business to see where you are paying too much for what you are getting?

And as a final thought, if you are spending more time working in your business rather than on your business, chances are you just have created a job and not built a business!

Pam Stellema
Phone: +61 7 55296 467
Mobile: +61 (0) 431 975515
email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Web: www.pamstellema.com.au

Coaching for Business and Life
Accredited Trainer & Assessor
Group Facilitator
Justice of the Peace (Qual)