Your goal in starting your own business should be to build a profitable commercial enterprise that works without you.

After all, systems should run a business, not the owner – and you don’t just want to exchange one job for another!

So, you should be looking to implement the systems and strategies that are most appropriate for your particular business’s needs (increase profitability, systems, controls, etc).

You need to assess the business in the five key profit generating areas:

  • Lead Generation,
  • Conversion Rate,
  • Average Sale,
  • Average Number of Transactions per customer, and
  • Profit Margins.

Those areas are highlighted in the following equations:

Lead Generation x Conversion Rate = # Customers

# Customers x Avg. Sale x # Transactions = Revenues

Revenues x Profit Margins = £ Profits

These determine the profitability of any business, in any market, in any industry.

So stay focused on the things that matter!

John Thornely
© John Thornely www.johnthornely.com 2008

To learn more about how YOU can
Profit From The Internet – Fast, visit
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