company's sales revenue is $100,000 a year and the total cost of production & overheads are $80,000 a year. This means that the company's Net Profit Margins are 20%. If you multiply the Sales Revenue by the Net Profit Margins, you will get the company's net profits for the year.

Leads
X Conversion Rate
= Number of Customers
X Average Dollar Purchase
X No. of Repeat Business
= Sales Revenue
X Net Profit Margins
= Net Profits

In order to create value to your company and increase its profits, you must either increase leads, conversion rate, average dollar purchase, number of repeat businesses and/or net profit margins.

Now, the number of variables you can influence will depend very much on the role you have in the company. If you are the owner or are a department manager, chances are you can take action to increase all five variables and massively create value. If you are a salesperson, then you can influence leads, conversion rate, repeat business and dollar purchase.

If you are in operations, you can directly influence conversion rate, number of repeat businesses and net profit margins. If you do your job really well and exceed client's expectations, they will keep coming back and spending more. If you can work more efficiently and come up with strategies to improve the operational efficiency, margins will increase!

To what extent can you increase your department's/company's profits? Let's take a look.

Do you think it is possible to increase each variable by 10%? Of course! It is only a question of testing out different strategies and taking action!

Do you know that just by increasing each variable by 10%, profits jump 61%! This is the power of compounding. Small consistent increases in each variable create huge effects to the bottom line!

But this is not challenging enough. Now, think what can happen if, through innovation and hard work, you can help increase each of your company's variables by 20%.

When you increase each variable by 20%, profits more than double (149% increase)! Excited yet? You should be. A small increase in each variable will more than double your profits. If you're serious about doing that, take action and apply this right now!

Article Source: http://www.articles-galore.com

Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE audio CD program '7 Steps To Financial Freedom' here.

Products and Services mentioned in this article are available Here

         

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<img src='http://assets.bizjournals.com/twincities/images/National%20Roundup_icon*100.jpg?v=3'>Business news from around the Web: H-P expected to eliminate 30,000 jobs in restructuring (All Things D) Postal Service moves ahead with cost-savings plan that will cut 28,000 jobs (CNN) Economic index drops after six months of gains (USA Today) Gold sparkles after slump with biggest one-day gain since January (Fox) Strong Wal-Mart profit trumps bribery probe concerns (Reuters) Senators to Facebook co-founder who denounced U.S. citizenship: Don't come back. Ever. (CNN)<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=j2uJIxyYhNc:szSivErzVZ8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=j2uJIxyYhNc:szSivErzVZ8:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=j2uJIxyYhNc:szSivErzVZ8:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=j2uJIxyYhNc:szSivErzVZ8:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=j2uJIxyYhNc:szSivErzVZ8:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=j2uJIxyYhNc:szSivErzVZ8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
MN lost jobs in April, unemployment back to 5.6 percent
<img src='http://assets.bizjournals.com/albuquerque/news/joblessWEEBB*100.jpg?v=1'>Minnesota's unemployment rate dropped in April while the state reported losing 3,100 jobs. The state also reported that Minnesota's annual job growth rate was less than half of that nationwide. The Minnesota Department of Employment and Economic Development (DEED) reported Thursday that the state's seasonally-adjusted jobless rate fell to 5.6 percent. It had fallen to 5.6 percent in January, then rose in February and March to 5.8 percent. The 5.6 percent rate is the lowest since September of 2009....<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=Vb8zcZ8z2dg:6eMWisHVQI4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=Vb8zcZ8z2dg:6eMWisHVQI4:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=Vb8zcZ8z2dg:6eMWisHVQI4:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=Vb8zcZ8z2dg:6eMWisHVQI4:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=Vb8zcZ8z2dg:6eMWisHVQI4:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=Vb8zcZ8z2dg:6eMWisHVQI4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
Sun Country offers flights to new destinations
<img src='http://assets.bizjournals.com/twincities/suncountry*100.jpg?v=1'>Sun Country Airlines is offering new flights out of the Twin Cities to two vacation spots, plus expanding service to Boston and Seattle. Mendota Heights-based Sun Country announced its 2013 winter schedule Thursday, which includes new nonstop flights out of Minneapolis-St. Paul International Airport to Tampa, Fla., and Huatulco, Mexico. The carrier will fly to Tampa four times a week and to Huatulco on Saturdays. The company said it's also expanding its year-round service to Boston and Seattle. Sun...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=k1i9yLBBX0E:LxNjKZRK70Q:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=k1i9yLBBX0E:LxNjKZRK70Q:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=k1i9yLBBX0E:LxNjKZRK70Q:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=k1i9yLBBX0E:LxNjKZRK70Q:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=k1i9yLBBX0E:LxNjKZRK70Q:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=k1i9yLBBX0E:LxNjKZRK70Q:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
3M donation quiets the ape house at Smithsonian's National Zoo
<img src='http://assets.bizjournals.com/twincities/news/Wester.Lowland.Gorilla*100.jpg?v=1'>3M Co. is helping a noisy zoo take it down a notch. Maplewood-based 3M (NYSE: MMM) is donating acoustic tiles to the Great Ape House at the Smithsonian?s National Zoo, which is the home of six gorillas and six orangutans. The current facility in Washington, D.C., is filled with concrete and glass, which makes the experience at the Great Ape House so noisy that it's hard for visitors to hear guides ? or even each other. The installation of 1,430 tiles are projected to take noise levels down...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=5FTiqoO52Ok:isvNvPMFpNg:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=5FTiqoO52Ok:isvNvPMFpNg:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=5FTiqoO52Ok:isvNvPMFpNg:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=5FTiqoO52Ok:isvNvPMFpNg:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=5FTiqoO52Ok:isvNvPMFpNg:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=5FTiqoO52Ok:isvNvPMFpNg:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
Schwan's among MN firms honored for ethical practices
<img src='http://assets.bizjournals.com/twincities/images/Schwans.Logo*100.jpg?v=2'>The Schwan Food Co. was among three companies to win the 2012 Minnesota Business Ethics Award (MBEA) for promoting ethical practices in the workplace. Honored by the MBEA in the 13th annual competition on Wednesday were: Murphy Automotive Inc. of Lakeville, which owns five car shops in the Twin Cities, won in the small company category.Western National Insurance Group of Edina, an insurance provider covering property and casualty for businesses, was the medium-sized company category winner.The...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=o7ceQOQZaiA:qnSWAzSgjtw:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=o7ceQOQZaiA:qnSWAzSgjtw:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=o7ceQOQZaiA:qnSWAzSgjtw:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=o7ceQOQZaiA:qnSWAzSgjtw:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=o7ceQOQZaiA:qnSWAzSgjtw:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=o7ceQOQZaiA:qnSWAzSgjtw:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
J.P. Morgan loss grows; Buffett takes GM stake
<img src='http://assets.bizjournals.com/twincities/MorningRoundup*100.jpg?v=1'>Business news from around the Web: ? Skechers settles on 'Shape-Up' claims dispute (Portfolio) ? J.P. Morgan's trading loss said to rise by 50 percent (NYT) ? Facebook insiders are cashing out (WSJ) ? Google tweaks search, hurting some firms (WSJ) ? Berkshire Hathaway takes stake in GM, buys Media General (Bloomberg)<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XG1XIbIQasU:nXhcYjafhjU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XG1XIbIQasU:nXhcYjafhjU:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=XG1XIbIQasU:nXhcYjafhjU:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XG1XIbIQasU:nXhcYjafhjU:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=XG1XIbIQasU:nXhcYjafhjU:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XG1XIbIQasU:nXhcYjafhjU:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
Arden Hills: So about this old ammo dump ?
<img src='http://assets.bizjournals.com/twincities/MorningRoundup*100.jpg?v=1'>Now that Arden Hills won't get a Minnesota Vikings stadium, government officials want the state to follow through on pledges to help clean up the long-abandoned Army ammunition plant that was to be the stadium site. KARE-11 reports on the hopes of Ramsey County Commissioner Tony Bennett, who lives near the site and says it still has plenty of economic potential. Gov. Mark Dayton said the state should help Arden Hills clean up the site. Ryan Cos. once considered redeveloping it, but scuttled those...<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XbgVx5Ea_A0:ntIq8wF97oI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XbgVx5Ea_A0:ntIq8wF97oI:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=XbgVx5Ea_A0:ntIq8wF97oI:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XbgVx5Ea_A0:ntIq8wF97oI:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=XbgVx5Ea_A0:ntIq8wF97oI:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=XbgVx5Ea_A0:ntIq8wF97oI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>
Caribe owners try Kickstarter to relaunch restaurant
<img src='http://assets.bizjournals.com/twincities/MorningRoundup*100.jpg?v=1'>St. Paul's Caribe Caribbean Bistro, which closed last year amid Central Corridor light rail construction, could get a second life in Northeast Minneapolis. The Pioneer Press reports that Caribe's owners are hoping to use online fundraising tool Kickstarter to raise capital for the new Caribe at the site of the former Amici Bistro. Kickstarter has helped other eateries get launched. Hell's Kitchen used it to help fund its Angel Food Bakery expansion.<div class="feedflare"> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=6n8HS1hxc1o:tFLg0WdtxmY:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=6n8HS1hxc1o:tFLg0WdtxmY:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=6n8HS1hxc1o:tFLg0WdtxmY:V_sGLiPBpWU" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=6n8HS1hxc1o:tFLg0WdtxmY:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?i=6n8HS1hxc1o:tFLg0WdtxmY:F7zBnMyn0Lo" border="0"></img></a> <a href="http://feeds.bizjournals.com/~ff/bizj_twincities?a=6n8HS1hxc1o:tFLg0WdtxmY:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/bizj_twincities?d=qj6IDK7rITs" border="0"></img></a> </div>

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