Your Profit Triangle - Part 1



Interesting conversations I’ve had with clients around what they're number one job is, and also what the different team members number one jobs are.


Best way I can explain it is with what I call my profit triangle.


So as the owner your number one responsibility is profitability because in a business if there is no profit, there is not going to be a business in a very short amount of time basically until cash runs out.


Considering the profit triangle, profit is right at the top of the triangle.


What comes below are the parts that influence profit.


They are sales or income to the business then Cost of goods which is what we pay to produce the sales and then fixed expenses.


So those are the three things that form the next part of the triangle.


Then we go, even deeper and I just want to talk about but about the sales part today. This is generated from the number of leads, then conversions of leads to prospects, average dollar sale, and then repeat business.


Looking at those different values, who owns or is responsible for each of them?


Ultimately, you are, as the business owner, who is responsible for them,


But if you've got team members, who is owning each of those numbers, who owns lead generation? Who owns conversion rate and so forth.


Go back and have a look at your profit triangle and start to make sure somebody is owning each of those.


As the business owner, you own the profit


And if you're a one-man band, then you own all the bits of the triangle for now until we

get the next level and bring on other people.

Have a fantastic day.



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