HOW TO MULTIPLY YOUR 
PROFIT, PASSION & PRAISE

​Shannon Phelps

​If you haven't read Parts 1 or 2 yet, then click the button below and definitely start with those!


​Now that you have created the foundation for a business that changes the lives of your ideal clients, it’s time to work ON your business and make some profit!


Now that you have created the foundation for a business that changes the lives of your ideal
clients, it’s time to work ON your business.

​Don't Have Time To Read The Entire Guide Right Now?

​How about you download it as a PDF so you can read it and do the exercises in your own time?

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PART 3: 
HOW TO MULTIPLY YOUR ​PROFIT

​INTRODUCTION

​The word ‘profit’ congers up such negative feelings to so many people... women especially. We think of massive corporations, greedy bosses and that our business isn’t THAT type of business.


But if you don’t focus on making a profit, in paying yourself as much as you can, then you are out of business and can’t make the impact you want.


You need to move beyond the solopreneur/small business operator mindset that finance doesn’t apply except for tax time. You need to structure your business to give YOU the income that supports your magnet soul goals and makes a profit so you can keep growing and helping more people.


So here are the key steps to multiplying your profit:

  • Set up your financial structure so profit is a priority
  • Create a profitable funnel plan to increase your revenue
The word ‘profit’ congers up such negative feelings to so many people... women especially. We
think of massive corporations, greedy bosses and that our business isn’t THAT type of business.
But if you don’t focus on making a profit, in paying yourself as much as you can, then you are out
of business and can’t make the impact you want.
You need to move beyond the solopreneur/small business operator mindset that finance doesn’t
apply except for tax time. You need to structure your business to give YOU the income that
supports your magnet soul goals and makes a profit so you can keep growing and helping more
people.
So here are the key steps to multiplying your profit:
• Set up your financial structure so profit is a priority
• Create a profitable funnel plan to increase your revenue
That means EVERY time someone comes into contact with me they need to be able to take a step
forward, to grow, to achieve something they haven’t been able to do before.
When you start creating from this place, it makes everything you create valuable. Instead of just
getting up a blog post or throwing together some quotes for Instagram, you really think about what
your clients need to achieve RESULTS!
Instead of being like everyone else and trying to prove how much you know about something, you
create THE MOST VALUABLE content available... results & change.
We are living in a time where we can get the answer to any question almost within seconds. There
is so much information out there that, honestly, your clients don’t need more information... they
need a SOLUTION to their PROBLEM.
We have been taught that we need to be on every platform, and constantly posting content so
that we will be seen as an authority, be picked up by the Facebook and Google algorithms and
keep top of mind to our audience. But all of this comes at the expense of RESULTS.
If you want praise, you have to earn it and the only way to get it is by making a difference in
someone’s life... not Facebook’s, not Google’s, not to the masses, but to one single individual and
then repeat over and over again.
So before you punch out next month’s blog posts, facebook posts, instagram images, pinterest
images, emails to your list... look at the platforms that are working and stop the rest for a while.
Focus all of your energy on what’s working and help THOSE people as much as you can.
While praise seems like such an egoic need, it should actually be one of your highest regarded
metrics, not to boost your ego but to show you are making a difference in people’s lives.
And then with permission, praise become testimonials, and evidence for future clients that you can
help them in an amazing way... that you GET the RESULTS that THEY WANT.

​PRIORITIZE YOUR PROFIT AND YOUR INCOME

One of the greatest gifts you can give to your future is structuring your Finance’s so that all of your decisions become easy and so you create a business that is designed give you the income you need and for the business to thrive and grow so you can keep doing what you love.


The first step, before you can multiply your profit, is to actually MAKE PROFIT. You can’t multiply $0 profit and suddenly get $50,000 profit. You need to be making a measurable amount and then you will be able to multiply it with a profit growth plan.


I first came across this concept from a book called ‘Profit First’. Once I read it I knew instantly that it was a powerful tool that would help not only my business but clients who weren’t financially minded understand how to make spending decisions and make forecasts.


Whilst I can’t and don’t teach their entire strategy, I use the outline as the first step in the Financial Framework work that I do with clients.

CREATE YOUR REVENUE BREAKDOWN

​Most businesses have sporadic revenue... it’s never the same every month. That’s why using percentages of your revenue, instead of dollar amounts really helps deal with the peaks and troughs of both revenue and expenses... and helps even them out so that as long as you don’t have consistent declining sales, your expenses should always be covered.


So let’s start making you some profit!


I am going to give you the simple version so you can get started. There are more advanced strategies that I don’t have time to go into that create security in your business, make spend cutting and purchase decisions very clear and easy... but just re-framing this will put you miles ahead of other entrepreneurs.


Use these percentages as a starting point and then based on your own profit model and history, you’ll be able to tweak them to work for you. But the key is to decide what they are and stick to them.


The main reason to do this is so that you prioritize getting paid and not just taking ‘whatever is left over’ which I see as a virus within the entrepreneurial community. I keep saying, if you can’t pay your bills with the ‘leftovers’ from your business... then how are you supposed to keep impacting the world? You will need to shut down your business and get a job and be a statistic of business failures.


That doesn’t even consider the income you need to achieve your dreams and personal goals!


Decide NOW that you will prioritize your own income and your business will thrive.


The key areas you want to break your spending into, making sure that profit and your personal income is prioritized are:

  • Profit
  • Owner Income
  • Taxes
  • Expenses


Your Revenue is: 100%
Allocate a percentage of that revenue to each of the Outgoing / Spending Categories.

PROFIT

This means for every $100 you make, $10 goes straight to your Profit Account and at the end of each quarter you decide what to do with it... reinvest or take it as bonus income!

OWNER INCOME
This means for every $100 you make, $20 goes straight to your Owner Income Account and paid out either weekly or monthly... whenever you do accounts

TAX
This means for every $100 you make, $20 goes straight to your Tax Account and saved up for the end of the financial year.

NOTE: You pay taxes on PROFIT, not REVENUE so if you put 20% of revenue away, you should have enough for tax time... but please look at your previous Tax Statements and see if this will match it based on your current earnings and your tax rate and adjust!

EXPENSES
This means for every $100 you make, $50 goes straight to your Expense Account and used to pay all of your outgoing costs.


I get my clients to break down their expenses into the following 4 categories so if cost cutting is required, it becomes an easy decision: 

  • Essential Expenses
  • Not essential but important Expenses
  • Growth Expenses (Expenses that are used to increase Sales ie. Facebook Ads)
  • Luxury Expenses (These are the first to go and are usually subscriptions, education, apps and software)

If you also breakdown the expenses categories into percentages, you may be shocked to see what percentage is being spent on Luxury Expenses, that could be going to YOU or to Growth Expenses so you can increase Sales

This means for every $100 you make, $50 goes straight to your Expense Account and
used to pay all of your outgoing costs.
I get my clients to break down their expenses into the following 4 categories so if cost
cutting is needed, it becomes an easy decision:
- Essential Expenses
- Not essential but important Expenses
- Growth Expenses (Expenses that are used to increase Sales ie. Facebook Ads)
- Luxury Expenses (These are the first to go and are usually subscriptions, education,
apps and software)
If you also breakdown the expenses categories into percentages, you may be shocked to
see what percentage is being spent on Luxury Expenses, that could be going to YOU or
to Growth Expenses so you can increase Sales
This means for every $100 you make, $20 goes straight to your Tax Account and saved up for the
end of the financial year.
NOTE: You pay taxes on PROFIT, not REVENUE so if you put 20% of revenue away, you should have
enough for tax time... but please look at your previous Tax Statements and see if this will match it
based on your current earnings and your tax rate and adjust!

Now you can start to figure out what your sales needs to be to earn $X per year from your business.


Just say you want to have your first goal to make $100,000 per year before tax. That’s $8,333 (rounded to nearest dollar) per month.


This is how we reverse engineer your Revenue Targets based on what you want to earn in income!


$8,333 divided by 0.2 (20%) = $41,665

This is the formula:

(monthly amount) divided by (percentage allocated - above) = sales required


So you need to make $41,665 in Sales every month to guarantee $8,333 as owner income.


If $41,665 is the Monthly Sales, the accounts would be:
Profit 10% - $4,166.50
Owner Income 20% - $8,333
Tax 20% - $8,333
Expenses 50% - $20,832


If you are a consultant or sell high ticket programs, then you may not need this much for expenses and be able to allocated more percentage to owner income.


The flip side is that you look at that and wonder how the hell you are EVER going to sell that many ebooks to make $41,665 a month in sales... and you want to be making $500,000, not $100,000!


Can you see what an amazing tool this is to realize what needs to be done in your business to reach your goals instead of just plugging away day after day waiting for the jackpot to come in?


I hope this really gives you a sense of control and makes you realize that you need to be proactive in your business growth, regardless of whether you think profit plans and accounts are boring!

Your Revenue is: 100%
Allocate a percentage of that revenue to each of the Outgoing / Spending Categories.
While this seems so obvious, most people aren’t going to reach out to a faceless person.
If all you do is blast out content then the communication is a one way street and your audience
won’t feel comfortable contacting you to say thank you.
You need to be engaged with your audience. Answer questions on your social media platforms,
ask subscribers to reply to an email and answer a question... let them know you are there for them
and actually BE there for them.
Your content might inspire a question and when you answer it you have helped someone and in
that help, they feel closer to you and more grateful that you took the time to reply to them.
The more approachable you are, the more likely that people are going to contact you and let you
know how much you have helped them.
The other option is to set up a system to actually ask for testimonials and referrals.
You don’t need to be weird about it, but if someone has completed a program or worked with you,
then just reach out and ask if they have the time, if they wouldn’t mind filling in a quick survey. You
can say that you are always trying to improve your customer’s experience and their feedback is
valuable to you... the majority of people will do it! This will also give you constant feedback on how
you CAN improve and be more of a Mentor of Change!
Over
Sound a bit ‘out there’ for you? Give it a chance and keep reading... I promise you, it will be worth
it!
Do you have real tangible goals set for your business? A vision board? A bucket list?
As I work with high achievers and change-makers who want to make a massive impact, if I
surveyed everyone who reads this, most people would have the $1 million plus a year goal for their
business.
But why? What does this do for YOU? How does this impact YOUR life?
It’s obvious that you would be able to up-level most of your experiences and living conditions but
have you ever thought about the COST of creating this business working the way you do now OR
whether you actually really NEED this much money? Maybe it’s not enough to do the things you
want too? Is this what YOU really want?
Goals without soul and reality based outcomes are like genie wishes... They are so based
alongside fairytales in your mind that there’s no desire to achieve them.
When I work with clients, this is the first place we start... Knowing what the REAL desired outcome
is and then creating a plan to achieve this first.
When we set goals, we chose things that we think will bring us a certain feeling. It’s the FEELING
that we are trying to achieve, not the ‘thing’. That’s why you can really want something and work
so hard to achieve it, but once you have it you’re not satisfied for very long, as the feeling was
fleeting. So now you need something else, a new goal, to bring back that feeling.
This way of setting goals is so back to front. Firstly, you should figure out how you want to feel in
life and then set goals which align with these feelings... I call them ‘magnet soul goals’.
Sometimes the goals your currently aiming for don’t match the feelings you really want which is
why you will sabotage your achievements over and over again and not understand why.
Now you have these, it’s a matter of choosing the ones that will make THE MOST impact in your
life and create a plan to achieve them. When you are choosing them, also think about the journey
of achieving the goal... if the journey doesn’t also align with the feeling, it’s a big red flag that it’s
not the right goal and you will struggle to achieve it.
Seriously, this is magic in the making.

LATEST TRAINING:

DISCOVER THE 5 SHIFTS TO CREATE A BUSINESS THAT IS DESIGNED TO SCALE TO 6, THEN 7-FIGURES

AND IT'S NOT ANOTHER MARKETING STRATEGY... THAT'S WHY IT WORKS!


FREEDOM FUNNEL PLAN

Now that you know what your targets are, you can create a series of programs which keep increasing your revenue.


The legendary business and marketing expert, Jay Abraham, said there’s only 3 ways to grow your
business:

  1. Increase the number of clients
  2. Increase the average transaction value
  3. Increase the frequency of repurchase

Now to get ‘geometric growth’ you want to do ALL 3 THINGS! This means that instead of having a straight line increase, you get the results multiplying and that’s when your results explode.


Enter the ‘Funnel’.


Marketers have been selling this framework for a couple of years now and whilst there are hundreds, if not thousands, of funnel consultants ready to take your money to set up your funnel, without a strategic business model and profit growth plan underlying it... it’s just another tactic that doesn’t give you the results you need.


Digital Marketer are the Kings of the entire strategy that merges the funnel with the email marketing campaigns that set’s your Sales on fire, if you have the technical and strategic know-how to implement it all... and they were the ones who really popularized turning Jay Abraham’s ‘geometric growth’ into this funnel strategy that everyone now refers to... even though it has been around for decades.


Here is what a funnel can do for you...


LET’S LOOK AT THE NUMBERS ONLY FIRST


Using our $41,665 monthly target, we will keep the model simple and ignore the funnel to the point of sale  (opt ins, tripwires etc.)...


​If you have a $97 product, you would need to sell 430 EVERY month to reach $41,665 in revenue... that’s a lot and it would take a pretty big marketing dollar to reach that many people to make 430 sales. I’m definitely not saying it can’t be done BUT there is a better way to do this.

If you have a $97 product, you would need to sell 430 EVERY month to reach $41,665 in revenue... that’s a lot and it would take a pretty big marketing dollar to reach that many people to make 430 sales. I’m definitely not saying it can’t be done BUT there is a better way to do this.

$97 Product



​​430 Sales


$97 Product
163 Sales

$​41,710 monthly

​​Let’s introduce 1 more product at $797... this is what we need to reach $41,665 monthly:

$97 Product



​163 Sales


$97 Product
163 Sales

$15,811

​$797 Product


​20% from
previous 163
buy = 32

20% from
previous 163
buy = 32

$15,811 +

$25,504

$41,315 monthly

$15,811 +
$25,504
$41,315 monthly
$97 Product
163 Sales

​We have added only 2 of the 3 Geometric Growth Principles:

  1. ​Increase the average transaction value
  2. ​Increase the frequency of purchase

Just by adding 1 product we need LESS customers for our $97 product... 62% less! How much easier is 163 sales compared to 430?


What if you had another 1 or 2 tier of products... or added a monthly subscription... and then increased your sales up front!


This is called increasing your LCV ‘Lifetime Customer Value’ & it’s the name of the game to multiply your profit!

We have added only 2 of the 3 Geometric Growth Principles:
1 - Increase the average transaction value
2 - Increase the frequency of purchase
Just by adding 1 product we need LESS customers for our
$97 product... 62% less! How much easier is 163 sales
compared to 430?
What if you had another 1 or 2 tier of products... or added a
monthly subscription... and then increased your sales up front!
This is called increasing your LCV ‘Lifetime Customer Value’ &
it’s the name of the game to multiply your profit!

HOW TO DO THIS IN YOUR BUSINESS ADDING VALUE

It’s pretty easy to plug in numbers and come up with these amazing monthly figures... but how do you do this in YOUR business to ADD VALUE to your clients and not just think about making money?


The first step is to understand your customers. Now that you have figured out what your Zone of Magic is, you now need to uncover what the people who need this solution are actually feeling and searching for. What is the BIG PROBLEM that they are trying to solve?


Once you know ‘where they are at’ and ‘where they want to get to’ you can create your Customer Ascension Ladder... These are all of the steps that your customer will need to go through to get from ‘where they are’ (in pain) to ‘where they want to get to’ (solving the BIG PROBLEM).

Each rung of the ladder is a STEP that they need to go through to get the end result.


They may have 3 steps or 20 steps.


Once you have the steps you can look at this and ask ‘How can I create programs to help them get from where they are to where they want to get to?’


You don’t need to create 1 program to do it all... how can you break it down if it works, to create several programs?


How can you help them ASCEND up the ladder and be their ‘Mentor of Change’?

​ACTION STEP

Get out a piece of paper and on the bottom write a emotional summary of where your customers are at when they come into your funnel.


Then write up the top what they are like AFTER they have worked with you ​OR have achieved their hopes, desires and goals. You may only be able to take them part of the way of their entire journey to reach their goal but it's important to know this.


Now just write all the steps they need to take (whether you can help or not) to get from 'Where they are' to 'Where they want to get to'.


Mark the ones you can help them with and the ones you can't, do some research and look for some partnerships you can form so you can add another stream of revenue with high quality, valuable affiliate sales.


The next part will help you organize this into Program and Service idea.

PROFITABLE PRODUCT PYRAMID

PROFITABLE PRODUCT PYRAMID

How do you create programs that people are happy to pay high prices for so you can move them from low cost to high cost?


The key here is to think about it in terms of value. Value becomes, how likely they are to get the results they are searching for from your program/service.


Along with the Customer Ascension Ladder which is a small part of the ‘Customer Journey Profile’ my clients create, we need to create a Profitable Product Pyramid that not only moves the Customer UP the Ascension Ladder but also up the Value and Price Level.


You don’t need to fill in every level and feel the need to create 5 different programs, but this helps my clients think about programs and how each one fits in to their business model and the clients value model.


The secondary reason for the Pyramid shape is that you can have heaps of different lead magnets, 2-3 Core offers but as you move up the pyramid you will only have 1 Elite Package.


You may never create all of the programs you map out in your Profitable Product Pyramid, but you will see your business model and it will expand what you know you can do with your business.


The Pyramid also becomes your funnel... you start at the bottom and sequence your offers as you move up!

​I hope you have received a lot of actionable value so you can start creating a profitable business you love working in whilst making a HUGE impact.


If you would like to keep this in a downloadable PDF so it's easier to do the exercises then click the green 'CLICK TO DOWNLOAD' button below.

Over time you will get praise in all different areas: social media comments, email, phone, verbal
and who knows what else!
Instead of just letting it go, create a folder and save it all into there. Make sure you keep a clear
track of where it came from, what it was in relation to and the date so you know how to get in
touch if needed and you don’t use it for an irrelevant program.
Screenshots, pdf emails, video and audio are all ways to can collect your praise.
Being a systems junkie, pick a filename and use it so all is clear. For example:
20170515-ShanPhelps-FB-re cheat sheet.png
DATE-PERSONS NAME-SOURCE-REASON FOR PRAISE
If you get written approval to use something, use the same file name with ‘APPROVAL’ at the end
so you can keep them together.
Then when you are having one of those bad days just open up this folder and see how many lives
you have touched with your genius!
This was an exercise in one of Frank Kern’s programs. I have used this so much and whilst it’s
super simple, it’s genius at uncovering your most valuable strengths that you should use to grow
your business.
When I did this exercise, I was trying to grow my health coach business, yet all of my answers
were in business and marketing... surely a sign I was trying to create the WRONG BUSINESS FOR
ME???... sadly I kept going but now I understand what this tool really shows, I could never make
this mistake again AND I used it to create my current business.
This was an exercise in one of Frank Kern’s programs. I have used this so much and whilst it’s
super simple, it’s genius at uncovering your most valuable strengths that you should use to grow
your business.
When I did this exercise, I was trying to grow my health coach business, yet all of my answers
were in business and marketing... surely a sign I was trying to create the WRONG BUSINESS FOR
ME???... sadly I kept going but now I understand what this tool really shows, I could never make
this mistake again AND I used it to create my current business.

​Don't Have Time To Read The Entire Guide Right Now?

​How about you download it as a PDF so you can read it and do the exercises in your own time?

cloud-download
How to Multiply Your Profit - Discover how to multiply your revenue and get paid the income you want from your business - shanphelps.com, profitable passionpreneur, female entrepreneur, business strategy, funnels, Marketing Strategy, Tech Tools For Business, Business Finance Tips, Create Digital Products, Entrepreneur + Business, business tips, online business, entrepreneur tips, solopreneur, girlboss, ladyboss
How to Multiply Your Profit - Discover how to multiply your revenue and get paid the income you want from your business - shanphelps.com, profitable passionpreneur, female entrepreneur, business strategy, funnels, Marketing Strategy, Tech Tools For Business, Business Finance Tips, Create Digital Products, Entrepreneur + Business, business tips, online business, entrepreneur tips, solopreneur, girlboss, ladyboss
How to Multiply Your Profit - shanphelps.com - increase profit, grow your business, sales funnel, marketing funnel, finance for entrepreneurs, marketing strategy, create a product