Tuesday, March 1, 2016

Intelligent Trees, Gangrenous Limbs and the 120/20 Profitability Shortcut

Mel,

 

Trees are a whole lot smarter than we give them credit for.

 

When a tree senses that one of its old branches is sick, it doesn't marshal all its energy to fight the disease. And it doesn't shunt precious nutrients away from the healthy, fast-growing leaves that produce food for the entire tree.

 

Instead, it triggers an arboreal "nuclear option"... a defensive mechanism that severs the flow of nutrients to the branch. This walls off the decay before it can spread to the roots and kill the tree where it stands.

 

Trees literally amputate their own gangrenous limbs—on purpose.

 

Contrast that to the way most business owners deal with just about any sign of dysfunction in their business: ailing product lines, infectious customers, toxic employees.

 

The typical biz owner pours more and more resources into the infected area, putting the entire business at risk.

 

Just how damaging is this knee jerk "all hands on deck" reaction?

 

Ponder this mind-bender, courtesy of 80/20 math:

 

You know that 80% of your revenue comes from the top 20% of your products.

 

BUT...

 

That same 20% slice is also responsible for churning out 120% of your PROFIT.

 

Which means that you're bleeding out on that bottom 10%.

 

Most businesses could become much more profitable simply by jettisoning their least successful offerings.

 

This holds true in all areas of your business—not just your product lines.

 

The bottom 10% of your customers are costing you far more in support and damage to your reputation than they're worth.

 

The bottom 10% of your employees are wasting much more time cleaning up their messes than they're "saving" you by taking tasks off your plate.

 

The bottom 10% of your "great ideas" are costing you dearly by siphoning off time and energy from what will truly move the needle.

 

There's a very good reason why members in my Roundtable group see an average growth of 38%.

 

It's not just because they get better advice for their marketing, although we often roll up our sleeves and tackle marketing problems.

 

It's because 3 times a year, Roundtable members gather together,  fire up their chainsaws and ruthlessly lop off the unproductive parts of their business.

 

They cut out the rotting product lines that are draining their resources, and slice off the bad systems and habits that are sucking up their productivity.

 

It takes intestinal fortitude to amputate parts of your business like this—to systematically eliminate the weakest links in your business.

 

But when you do, you'll see that your business finally has the light, air and nutrients it needs to grow.

 

Carpe Diem,

 

Perry Marshall

 

PS: Contact Tiffany@PerryMarshall.com to apply for Roundtable 2 starting in May

 

 

 

***NOTE: This email address isn't monitored! If you need help, please email:

 

support@perrymarshall.com

 

 

Free Video

We manage our emails with Infusion. This Guide and Video explain my secret marketing sauce.
If you no longer wish to receive our emails, click the link below:

Opt-Out of Email Communications

 

Perry S. Marshall & Assoc
159 N. Marion Street #295
Oak Park, Illinois 60301
United States
(312) 386-7459
 
Having trouble viewing this email? Click here


No comments: