When most people hear or read an outrageous title like that they immediately think, “it’s too good to be true”. Or, they think it’s some sort of investment scheme.
In truth, I’m certain you know that all people do not get the same results. Some do great and others do extremely terribly. And, it doesn’t seem to have anything at all to do with their innate skills. Instead, it seems to be some combination of good luck and fantastic circumstances.
Turns out those things help, but they’re not the most important reasons for the major differences in results.
Besides, were talking about a 10 to 1 return aren’t we?
So how do you increase your own personal productivity or the productivity of your entire team to get results like that? Well, as it turns out, you can uncover your pot of gold with just a few steps.
Let’s dive in and find out exactly how to do it.
- The Pareto Principle. In essence, this means that 80% of your results come from 20% of your efforts. This applies to everybody and all things. So, step one is to identify the most productive things you’re doing (the top 20% most likely) and make certain you consistently execute those activities.
- Leverage. You may remember what Archimedes said to his students centuries ago, “Give me a lever long enough and I can move the world.” For you, this might include things such as creating joint ventures and alliances versus trying to do everything yourself. And, using other people’s money instead of all of your own. Plus, outsourcing everything that you’re neither good at nor like doing.
- Overlooked assets. This is where many are able to get extraordinary returns. What we’re discussing here is reviewing all of the aspects within yourself and your business, department or project. The objective is to find one or more areas where you can get at least $10 for every one dollar in cost or $10,000 for every $1000 in investment. But, you get the point. Frankly, you should be able to do much better the first few times you do this exercise. Dig out a piece of paper and a pencil or pen and let’s start looking. Here’s some excellent starting points:
- Products and services. See if you can find some potential add-ons, options, modifications or substitutions which would generate a much higher gross profit margin. Remember, we’re looking for returns of 10 to 1. Focus on those first.
- Staff. Look over your current employees and potential employees to see if they can produce more. This frequently arises by using some hidden talent or underused talent they have that is going unused.
- Marketing and advertising. This could be an excellent place to look because there’s often significant amounts of money that are misspent or misused in this area. We’re trying to find the ones that are giving you the biggest “bang for your buck” so you can emphasize those. At the same time find the ones that are not doing you any good and stop doing them entirely. The return on that is infinite.
- Processes and procedures. Look at every system and program you have running in your business. You may find one or two that you should stop doing entirely. However, you’re certain to find several where you can get superb results from simple modifications.
- Cost savings ideas. Scour your entire business to find as many ideas you can. Most of the time, these don’t require any investment at all. Some of these you can eliminate entirely. Others can be modified significantly to save considerable amounts of money.
Here’s why this lesson on getting more profit is so vital to do.
Imagine that you’ve got a $1 million business with a 10% bottom-line. That means you’re making $100,000 per year net.
If you are able to identify one $10,000 idea from the list above that generates $100,000, you’ve doubled your profits for the year.
A cost savings idea is even more valuable, because the cost is zero. In this case a $10,000 savings is equivalent to $100,000 in revenue.
So, this is not an intellectual exercise. The lesson you have just learned is a simple and easy to execute concept that can be the best thing for you to do right now.