Double your Sales - Growth Strategies for Small Business

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www.cpSphere.com

Orange Office17215 Studebaker Rd. Suite 390

Cerritos, CA 90703

P: 1.562.860.8637

Los Angeles Office5777 W. Century Blvd. Suite 1500

Los Angeles, CA 90045

P: 1.310.645.0707

PARTNERS IN SUSTAINABLE GROWTH

Growth Strategiesfor small business

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


GROWING YOUR BUSINESS IS JUSTLIKE…

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


… LOSING WEIGHT.

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


EAT HEALTHY, EAT LESS,ANDEXERCISE

The secret formula for losing weight is:

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


WHAT IS THE SECRET FORMULA FOR SMALL BUSINESS GROWTH?

http://wandrlust.com/rosetta_floral_300_wallpaper_4166_prd0.htm

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


GENERATE DEMAND ANDSERVICE IT PROFITABLY

The secret formula to grow your business is:

http://wandrlust.com/brunswick_green_japanese_floral_wallpaper_4177_prd0.htm

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


Quick Survey

Increase in Sales / Revenue

Increase in Market Share

New Products

More Employees, Equipment, Plants

Mergers / Acquisitions

All of the above

What does Growth Mean to You?

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Cerritos, CA 90703

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INCREASE IN THE CASH YOU KEEP=

INCREASE IN PROFIT

Real growth is:

http://wandrlust.com/traditional_turquoise_floral_wallpaper_4321_prd0.htm

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


PROFIT = REVENUE – EXPENSES

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Cerritos, CA 90703

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REAL PROFIT

REVENUE – EXPENSES

INVESTMENT

This formula is called Return on Invested Capital (ROIC)

=

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Cerritos, CA 90703

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INCREASING PROFIT WHILE KEEPINGINVESTMENT CONSTANT IS:

THE HOLY GRAIL OF BUSINESS

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


SO,

LET’S START OUR QUEST FOR THEHOLY GRAIL WITH A STORY…

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Cerritos, CA 90703

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P: 1.310.645.0707


MIKE,AN AMBITIOUS ENTREPRENEUR LIKE SIR RICHARD

This is the story of:

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


MIKE’S GREEN POWER INC PLUG INTO THE POWER OF THE SUN

ANDDISCOVER THE CLEAN BENEFITS

Mike’s business is:

Everlite - Mini Solar LightEverlite - Compact Solar Light

Flash Light Battery Charger

Headlamp Cell Phone Charger

http://www.moosineer.com/MooseMain.asp?Option=Detail&ID=Solar+Battery+Charger

http://www.moosineer.com/MooseMain.asp?Option=Detail&ID=Everlite+-+Solar+LED+Headlamp

http://www.moosineer.com/MooseMain.asp?Option=Detail&ID=Turbo+Charge+Cell+Phone+Charger

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


ONE DAY, MIKE GETS A CALL:“Mike, it’s Joe from cpSphere. How are you?”

“Great, Joe, great.”

http://wandrlust.com/phanthom_lime_wallpaper_4262_prd0.htm

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


Current Income Statement

Revenue 5,000,000 100%

Direct Costs 3,000,000 60%

Gross Margin 2,000,000 40%

Overhead 1,000,000 20%

Profit 1,000,000 20%

Last Year’s Profit: $800,000Increase in Profit: 25%

So, Mike’s business does look like it’s in great shape.But is it?

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P: 1.310.645.0707


BUT: $300,000 GENERATED ONLY $200,000 IN INCREASED PROFIT

Last year’s investment : $300,000

http://wandrlust.com/red_birds_and_butterflies_wallpaper_4264_prd0.htm

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Profit Center 1 Profit Center 2

Avg. Unit Price 30 20

Units Sold 60,000 60,000

Revenue 1,800,000 100% 1,200,000 100%

Direct Costs 1,350,000 75% 450,000 37.5%

Gross Margin 450,000 25% 750,000 62.5%

Overhead 300,000 16.7% 300,000 25%

Profit 150,000 8.3% 450,000 37.5%

PROFIT CENTER ANALYSIS

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


SEEK GOOD GROWTH&

AVOID BAD GROWTH• Develop an effective way to model and test new products

• Identify the best products and customers

• Understand where to focus your efforts in sales, marketing, and investment


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Cerritos, CA 90703

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P: 1.310.645.0707


…AND EXECUTE YOUR STRATEGY, BECAUSE, ACCORDING TO FORTUNE MAGAZINE:

“ONLY 10% OF STRATEGIES ARE EXECUTED SUCCESSFULLY.”

But Mike is different.

He gets things done.

He took his idea and really ran with it.

http://wandrlust.com/gold_branches_and_leaves_silk_4450_prd0.htm

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


“MY PRODUCTS AREN’TSELLING IN HIGH END STORES!”

Now, a few months have passed, and Mike has

generated a noticeable increase in both his top line

and profit, while keeping investment constant.

But he has a problem, so he gives Joe a call:

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


Basic Pricing Structure3 Elements

Direct Cost $3

Overhead $1

Profit $1

SELLING PRICE $5

Other Pricing Considerations:• Customers• Distribution Channels• Competition• Internal Compatibility

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


DEFINE YOUR VALUE PROPOSITION,BUILD BRAND IDENTITY, AND INCREASE THE VALUE OF YOUR PRODUCTS / SERVICES

Price is a reflection of perceived value:

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


SALES ARE DOWN!A few more months have passed…

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Cerritos, CA 90703

P: 1.562.860.8637



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“So, Mike,” Joe asks:

“Is your sales force focused on finding out what your company can do for its customers?”

“ Are territories too big or too small?”

“ If it’s organized now on a geographic basis, should your sales force be reconfigured by industry sector instead?”

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


Salesperson Ranking(1 – 10)

Sales ($)

Commissions($)

SALES FORCE ASSESSMENT TOOL

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707



Sales ($)

Commissions($)

David 9

Steve 7

Craig 5

Jackie 4

Michael 3

Allison 2


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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707



Sales ($)

Commissions($)

David 9 900,000

Steve 7 700,000

Craig 5 500,000

Jackie 4 200,000

Michael 3 100,000

Allison 2 50,000


Sales people with a ranking of 5 and above can be trained to become superstars.

So you should train them!

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


IMPLEMENT A SALES PROCESSA top notch sales team is a must for top line growth:

A well defined and well executed sales process will help you to create a steady revenue stream, and therefore, reliable sales forecasts, so that you can get out of fire fighting mode, plan the future intelligently, and operate profitably.


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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


CREATE A STRATEGIC GROWTH BUDGET

• Send a clear signal to employees that you are committed to top line growth

• Centralize and prioritize all growth activities

• Measure results / return on investment

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


FUND THE GROWTH BUDGET

• Reduce expenses

• Shift resources from shrinking products and

markets

• Reallocate budgets

• Utilize outside financing

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


Jose’s Quest is Over SO, WITH JOE’S ADVICE,

MIKE FOUND

THE HOLY GRAIL.

He understood what were the most critical growth strategies and actions:

• Create a focus

• Define a clear value proposition for customers—

and reflect it through branding and pricing

• Build a top notch sales team

• Implement a sales process

• Create a growth budget

• Avoid bad growth

And he understood what growth really means:

• Real profit (ROIC)

[email protected]

www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


YOU SEE, GROWING YOUR BUSINESSIS JUST LIKE LOSING WEIGHT.

AND WHAT’S THE BEST WAY TO LOSE WEIGHT?

LOSING WEIGHT GROWING YOUR BUSINESS

Select a healthy diet Find the opportunities, and focus

Begin the right exercise program Define a custom growth plan

Stick to it Execute

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www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


SO DON’T TRY TO GROW YOUR BUSINESS ALONE:

YOU WILL HAVE A BETTER CHANCE OF SUCCESS WORKING WITH YOUR TEAMAND A TRUSTED ADVISOR.

Weight Watchers is the most successful weight loss program: Their secret is social interaction.

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Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


WOULD YOU LIKE TO DOUBLE YOUR SALES IN NEXT 4 MONTHS?Sign up for:

120 Days Business Growth Program

FEE: $2,500 +% of increase in sales

GUARANTEED RESULTS!

Call: 1.310.645.0707 or Email: [email protected]

mailto:[email protected]?subject=Please%20Sign%20me%20up%20for%20120%20Growth%20Program

[email protected]

www.cpSphere.com


Cerritos, CA 90703

P: 1.562.860.8637



P: 1.310.645.0707


cpSphere is the leading management consulting company working to create, deploy and execute growth strategies for small and mid size businesses.

If you want quick results, combined with continuous improvement, cpSphere is definitely your partner for success.

President. Food & Beverage Company

I would recommend the personnel and the methodology of cpSphere to any business owner who wants to grow quickly and cost effectively.

CEOManufacturing Company

Client Testimonials:

cpSphere has delivered an average 20% minimum bottom line improvement for our clients.

Double your Sales - Growth Strategies for Small Business

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Transcript of Double your Sales - Growth Strategies for Small Business