The Hidden Secret Business Strategy #1

How to Radically improve Sales Figures and Profitability of Any Business

Do You know by How Much your profits will improve from Exponential Sales Growth?

Most business owners have a split brain. The left side does not work with the right side. Is that how your business decisions are made?

If your accountant is managing the financial side and you are looking after sales that is definitely the case. Few businesses integrate the financial management side of their business with sales and marketing. After all most business owners are not financial geniuses – right?

Here is a simple illustration … work through the numbers as far as possible without calling out to your accountant! Say you can increase your sales by a modest 10% (If you can not achieve that contact me asap for help there).

Start with the present financial position and say your current gross profit – before tax is 100 (It could be $100,000 or $1million or $100million – just use 100 as the model which you can prorata against actuals).

Now come down to looking at net profit – retained earnings – after tax money in your hand. To make calculations easy we will set a tax rate of 40 cents in the dollar – which is the average rate of Corporations in the US today – which is based on a Federal rate of 35% plus State Taxes on income.

That means you have left in your hand only 60 out of the pre-tax profit of 100.

Now let’s look at sales increasing by 10%. Most business operators will say their Gross Profit becomes 110 – and net profit becomes 106 correct?

Wrong!

If you can increase sales without spending another dime there is an improvement in gross profit of 10 but without cost. You should be able to increase Sales by spending 10 on advertising or accross the board in your business operations. What if I give you that $10 to cover costs gratis? Yet you can deduct that spend as a business expense. The increased profit of 10 can go to your bottom line after tax. In which case your total net profit increases from 60 to 70. That 10 improvement in your after tax position is greater than a 10% increase. Percentage 10 on 60 – it should equal 10/60, and if you use a calculator it should get down to around 16.66%

However if your accountant is holding the purse strings none of this will be possible. What you must do is give up some of the tax dollars which your business throws away. Instead of the stream of lost revenue going down the tax rat hole you should direct some of that cash back in to your business. That is recycle your tax money – it is yours and you are entitled to make decisions as to how to use the money you make. Can you think of a better use for the money you earn than handing it off to the IRS to be gone forever?

Of course there is. Recycle the cash as it comes in to do more business – generate more sales and deduct the extra costs involved.

By this time your accountant will be feeling quite dizzy – wondering when it might all stop? Let them leave room and go to the sick bay.

You can take charge of the money in your business for a change and make more money with it – if that has any appeal?

Of course all of this seems quite strange at present. It will take a bit of getting used to. Which is why you need to connect with me for a No Obligation Free Online Consultation – to see how this strategy might be used in your business. Please do not delay as there are a few people Santa has to attend to.

Yes you will think it is Xmas – as what I am prepared to do is give you Free Money for your business development and sales expansion. If you hurry!

Now it is good that your accountant has taken some fresh air – as the next part would certainly make them feel woozy. Go back to the extra 10 sitting in your till – tax free. What do you think is the best thing to do with that money? Yes, put it on number 9 and let the wheel spin again. That can be put back in to your business to generate another 6 of after tax profit so your total net earnings increases to 76. But the wheel does not stop there – reinvest that extra cash and let the wheel spin again and again. Yes each time the winnings is slightly less as you are putting back fewer dollars – as the taxman does take a percentage of what you make.

How would you feel if we grabbed the croupier’s arm and made him release some of the dollars they scoop up – and left more on the table for you? For starters this year you could save around a quarter of your tax. That would result in 10% more of your income remaining in your hand for reuse in your business. Instead of a 40 cents in the dollar tax rate you could whittle that down to 30 cents in the dollar. Each time the wheel spins never losing more than 30 percent of the profits your business makes. However by reinvesting the extra after tax profits in advertising for example sales should increase. (If your sales are not increasing when you spend money on advertising there is another reason to call in the troops to fix that problem in your business). Assuming that your advertising is effective then simply reinvesting every additional after tax dollar of retained earnings there will be an exponential increase in sales and along with the greater revenue at less cost an even bigger improvement in profitability.

In case you missed it. Here it is again. The extra advertising is financed from the money you save in tax. Thus there is no real increase in cost for you to be able to increase the spend on advertising. Thus sales increase for zzero cost to you – financed from improved financial management of the tax you currently make provision for at 40 cents in the dollar.

Oh you say that your tax rate at present is not as high as 40 cents? That is fine – whatever the rate you are currently paying in tax you can still apply this same principle – cut your tax leakage down to save 10 % of your income this year.

Next year it can get even better. Why? Well there are certain costs associated with setting up the system in place so your business can derive the same benefit each year – year after year. Once the first year’s set up costs are incurred the ongoing expense is minimal – which can mean you do even better each year – further expanding the compounded exponential growth of Sales and Profits in your business.

Note: there is No out of pocket expense for your business. All costs are met from tax benefits. It is just that some of the first year tax benefits are spent on setting things in place. In case you are wondering how much you have to pay for my services? It is Zero, Nought, Nada – not a brass Razoo. How? The taxman will pay me – a percentage of what you and I can make together – just split the improvement.

There is a 100% Guarantee of a Zero Cost results only Profit Share.

How does that sound?

If that has some appeal instead of just watching your tax dollars gurgle down the drain make an appointment for a Free Online Consultation asap to explore how to apply the strategy in your business today!

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How to Radically improve Sales Figures and Profitability of Any Business