Book Summary Preview : How To Multiply Profits

The Big Idea

While there are many books written about succeeding in business, very few of these are actually written by business executives, or people who actually run successful businesses. “How To Multiply Profits” is different because it was written by real business leaders from some of the world’s most respected companies.

Thus, the book offers real world insights, perspectives and advice on the most important issues for success from accomplished professionals who know what they are talking about. It provides a rare opportunity to learn from the best in industry and become an expert yourself on creating a successful business.

I. Creating a Strategic Vision to Achieve Profits

Change is something inevitable. There are changes we create and changes that simply happen to us. With this reality, the best way to manage the future is to be proactive and create it yourself.

This entails identifying clear goals for success, outlining a plan for execution, and challenging, empowering and developing your people.

The key to building a business is to begin with a well-articulated strategic vision. Often this can be said in a few words, but these words will be the basis of all that follows. For example, two entrepreneurs may decide to go into the dry cleaning business. But while one may seek to provide the best quality service, the other may envision to offer the lowest prices possible. This will take these two entrepreneurs down two different roads of doing business.

Establish a clear business philosophy founded on values of honesty, integrity, and open communication throughout the company, as well as concern, consideration and fair treatment for customers, partners, and employees.

II. Finding Your Profit Centers and Creating New Ones

Business in America is becoming increasingly more competitive, and most business owners are facing pricing pressures. One strategy to face this challenge effectively is to find your profit centers.

This is not easy. You can do this by first holding a strategic workshop with all the key leaders in your company and undertake a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of your company and your competitors. Next, talk to other people – friends in the industry, suppliers, competitors, trade journals and get their opinions on the industry.

In short, by knowing your company, your industry and your market, you will be able to discover a great new source of profits.

The best way to find your profit centers is through customer feedback. A good tactic in getting the right kind of feedback is to go to the top twenty per cent of your customer base and ask them some of these questions:

• Why do you do business with our company?
• How did you first come into contact with our company?
• Why did you first decide to do business with us?
• Why do you continue to do business with us?
• What do we do better than anyone else?
• What do we do well? What do we do poorly?
• What other products, services, or solutions would you like to see us add to our offerings?

The answers to these questions will point you toward the real profit centers of your business.

Yet another source for new profit centers is new markets. To discover these new markets, think laterally to expand your customer base. First, look at your customer base and the problems that you have solved for them. Then, have your team consider what other kinds of businesses have similar problems, and then try to solve those problems for these new customers.

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