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How Can You Boost Your Net Profit Almost Overnight?

The answer is simple – focus on constraints.

Every business can grow, can be improved, can be more profitable. But the fastest way to do this is to focus on one area at a time.

The trick is to find the bottleneck, or constraint in the business.

For example, assume you ran a milk bottling factory & there are just 4 processes: buy milk, process milk, bottle milk & deliver milk. Let’s say you buy 10,000L a day, your machine can process 12,000L, the bottle machine could cope with 20,000 & the 3 drivers you have can deliver 5000L each per day.

What’s the constraint? Initially it’s the purchasing of the raw product itself – if you could buy more you should.  The next question is simply how much more?

Given the next constraint is 12,000 (the processing), there’s no point buying more than that … YET!  Address this and the next logical step is to find the next limiting factor.

Your business is exactly the same. It’s certainly much more complicated, but it’s still merely a system of systems.

What’s the constraint in your business right now?

One helpful thinking tool to find it, is to imagine you suddenly double the number of sales (or if you’re a service business, the number of leads) tomorrow.

Could your business cope?

What would break? Which system/process would crack with the strain?

That’s the ONLY thing you should be working on right now… increasing the capacity of that single solitary system.

It’s not hard to grow your net profit by 10-20% overnight once you start to see your business this way. Identify the next bottleneck, improve that system, remove the constraint.

Now rinse & repeat.

If you think that you have the constraints out of the way and are ready  to double the number of sales or leads coming into your business, give us a call. That’s what we do for businesses just like yours all day every day.

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