Do you want to double your profits in the next 7 weeks? Pete Williams reveals the 7 levers you need to use in this week’s podcast.
The 7 Levers of Business to DOUBLE Your Business Profits in 7 Weeks!
Pete Williams explains the 7 Levers of Business in this podcast. Pete Williams is the award-winning author and entreprenuer behind the 7 Levers system. Pete runs a number of highly successful businesses. They include Simplyheadsets.com.au, Infinititelecommunications, Springcom, and earHeroSports. Pete lives in Melbourne, Australia. Melbourne is known as the sporting capital of the world. Excepting that beacon of sporting excellence at Elland Road, Leeds of course.
The 7 Levers of Business
The 7 levers of business or how to double your profits. Every business is about profit. His thinking was, if we are here to make a profit, WHAT actually drives that profit?
Any business. Telco, Ecommerce, Online SAAS, Bricks and Mortar, etc. The 7 Levers is a really good blueprint of what you should do. Doing the right stuff.
This graphic explains the 7 Levers.
The 7 Levers Explained.
The SUSPECTS Lever
This is how many people are aware of your business. If you are a footwear retail store, this is how many people walk into your store.
The PROSPECTS Lever
How do they become prospects? Back to the footwear store. This is how many people try on a pair of shoes. These people are interested.
The learning here is that many businesses put EVERYBODY into one bucket, called Prospects. Some are actually Suspects and some are Prospects. Suspects are visitors to your website. Prospects put their hand up and say “I’m worth your time”. Such as, opting-in for your free report.
The conversations are very different. Someone walking into a store – most retail assistants say ‘hi, can I help you?’. Versus a conversation with someone slipping on a pair of shoes in your store, the conversation is all about the product, and getting them to loosen their wallets.
A free consultation – your web-page is about selling suspects on the consult. When you conduct the consultation, you are tailoring your services to the prospect.
The CONVERSIONS Lever
How many of the prospects,
- download the free report?
- take a trial? or
The AVERAGE ITEM PRICE Lever
What’s the average price of the stuff you sell? i.e. Shoes, shoe cleaners and socks. Be really clear on what is your average item price. Work out all the different stuff you sold last year. Then divide by the number of items sold.
The AVERAGE ITEMS PER SALE Lever
Here the sale would be a replacement inner sole. Buy the running shoe plus an additional item. Such as, an inner sole. This will give you more longevity with the shoe.
With Graham’s firm, Finely Fettled https://www.finelyfettled.co.uk you would count postage and print as part of a singular product. An additional item is copywriting.
The TRANSACTIONS PER CUSTOMER Lever
This is about getting customers to buy from you again. The easiest customer to sell to is a previous customer.
The MARGINS Lever
What are your margins? How do you keep the most cash in your business? This lever is about tweaking your margins by negotiating contracts, lowering costs.
HOW do I DOUBLE my business?
Don’t overwhelm yourself.
By getting 7 10% wins, you’ll double your business. Look at each of the 7 areas and get a small 10% increase. All the little changes compound and magnify your results. AND DOUBLE YOUR PROFITS.
EXAMPLE – give yourself 4 to 6 hours per week per lever.
SUSPECTS. You currently have 100 people walking into your shoe store per day. What could you do to get that to 110? For a local business, spend a couple of hours and do an Adwords campaign. Do a Google Local Listing. Stick an A Frame sign outside your front door.
PROSPECTS. Test the calls to action, your headline and your free report offer. Train your receptionist to capture and qualify more callers. Get your shop assistants to say ‘have you been here before?’. A chance to educate the visitors about your store.
CONVERSIONS. If you offer a free consultation, use a consistent process every time. Use a thought through list of questions. Questions that lead your prospect to a sale. What is the ideal questioning sequence to convert a prospect?
AVERAGE ITEM PRICE. Most businesses have price elasticity of 10%. Put up your prices. Value add.
ITEMS PER SALE. Offer complementary products. Like insurance for accountants. Go from 1 items per client to 1.21 per client
TRANSACTIONS PER SALE. Put something in place to go back to clients. Remind them about your range of services. Chase replacement sales. This is all about email sequences.
MARGINS. Get on the phone. Speak to suppliers. Have you got the best rebate in place? You might pick up 10% savings against overheads.
He has monthly meetings to brainstorm 10% win sessions. On each area. Brainstorm. Then pick the best idea. Implement. Continually look for these wins.
Realistically, what would expect from the 7 Levers?
First time, you’ll stumble. Second time, you’ll reach the goals. After that your cycle gains will be smaller, but the process will become ingrained.
Do this now. In the next 100 days.
How to Contact Pete Williams?
Buy his book. Cadence A Tale of Fast Business Growth