Entrepreneurs are often idea-generating machines. That’s why so many small business owners (mistakenly) believe that expanding their product or service line is a steady solution to grow profit.
Pause with me for a brief 90 seconds to find out why proliferating your products or services could have a destructive effect on your bottom line. Let’s find out what you can do to grow profit and stay focused!
One way that chaos manifests itself in a small business is by focusing on sales more than profit. And the best way to focus on profit is by focusing on your MVL or your most valuable line.
I go into great depth about this in my book, The Focused Business, chapter six. I’m going to through a quick run through for you here.
First, list every line of product or service that you offer. For instance, if you’re a tire company you might list tires and brakes, alignment, and even clothes if you’re selling that in the gift shop.
Then we want to focus on the profit per unit on each of these. That’s most important. Also, we want to consider a subjective idea of how much do we enjoy selling all of these items. That’s also important.
Then you’ll be able to look at that list and make a determination of what your most valuable line is. And I’d like you to share that in the comments section below. What’s your MVL?
Also, if you have question you’d like me to answer in a future video, ask that below as well.
Thanks for watching. Now go focus on your MVL!
Join the conversation: What’s your MVL?
I respond to every question and comment. So, please, join the conversation!
Ready to add another “0” to your paycheck? Dave’s new book The Result offers you a simple formula for getting the most out of your career where it counts the most: your pocketbook. For a practical, proven formula for getting what you want, download, click here.