INSIGHT business coaching
Your Sales Breakpoint Tells You How to Grow
Understanding your breakpoint will help you learn which tasks and skills you need to master to grow your company BY STEVEN C. BURSTEN Addition wallpaper in Yves Blue Reverse, a with the more. Current customers will never notice 5 percent higher here are two business models collaboration for window treatment lifestyle brand Mitchell Black. pricing. You deserve it, so charge it. companies: personal home business and retail managed business. With a personal home business, you Strive for two customers a week. Marketing is as important as sell and decorate yourself. It can literally be run from design, sewing and operations. To grow, you have to invest in your home and has no employees and very low overhead. The yourself. Marketing is just that—an investment that requires alternative is a retail managed business, in which you operate both time and money. Past customers have good potential to a retail store, manage an office and employ a decorating staff. become customers again, so email them or send postcards. Select a high-income neighborhood nearby and do outreach. Be Are you happy with your current level of income or business? sure everyone knows who you are and what you sell. Stop at Your choice is always to love your level—or change. Your breakhomes with windows in need of coverings and real estate signs. point is a number that tells what you should do to grow deThey are high-potential clients. Winners spend up to $300 to pending on whether you are below or above that number. Unget a new customer. Make sure you budget accordingly. derstanding your breakpoint will tell which tasks you need to master. Get some help. Now is the time to begin bringing people into your business, even if it’s just on a contract basis. Unload bookChange is never easy. But doing it brings personal pride and keeping and installation. Get sewing help from craftspeople you the potential for better income. If you want to grow, here are trust. Hire a contract installer. breakpoints to guide you.
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Personal Home Business Breakpoint: $100,000
Are you a new interior design professional, a drapery workroom that has hit the wall or an installer who is working too much for too little money? Are you ready to decrease stress and stop limiting your potential? Here are some actions to take depending on your current annual sales. IF YOUR SALES ARE BELOW $100,000 PER YEAR Raise your prices. Gather your courage and begin charging 30 | wf-vision.com | Jan + Feb 2019
IF YOUR SALES ARE ABOVE $100,000 PER YEAR Set a goal for a higher gross margin to achieve a higher net profit. Your net income should be 25 to 30 percent of sales. If not, raise your pricing! Work with a mentor and they will show you how. You need a good selling system to raise prices and not lose customers. Make strategic hires. Start when you have about two customers a week. Plan on having your part-time assistant spend two hours
