Unleashing Latent Profit
Your business is brimming with profit, latent profit, untapped potential that, when realized, will create a more prosperous future for you and your business.
This potential for vastly improved results is closer than you may think, lying dormant in many corners of your company. If you mine your own business, you will find that you can create major profit breakthroughs, even in– and often because of– a period of economic distress.
Today, I want to describe a system for unleashing this latent profit in your business– The “Mine Your Own Business” System. This system divides the process of unleashing latent profit into three steps:
- Find it!
- Design it!
- Mine it!
In today’s newsletter, I will provide an overview of this system, and in my next three bi-weekly newsletters, I will describe each of the three steps of the “Mine Your Own Business” System.
However, to best understand how to mine your own business, you can call or emailYastrow & Company. We focus on helping our clients find, mine and enjoy the untapped profits that exist in and around your business. We share the valuable observations and insights we have gained while helping other companies recalibrate their approach to business and thrive in this new economic climate.
The “Mine Your Own Business” System
The “Mine Your Own Business” System is designed for one purpose, and one purpose only: To help your business be more profitable. It does this by helping you identify the best sources of latent profit, figure out how to unleash that latent profit, and then addresses the all-important step of implementation: The actual “mining” of latent profit. This picture illustrates the entire system:
Full-size “Mine Your Own Business” graphic
Here is an overview of each of the three steps of the “Mine Your Own Business” System:
Step 1 – Find it!
Where are the most lucrative sources of latent profit in your business?
What do I want my customers to do?
If you were going to drill for oil, you wouldn’t randomly choose sites to begin drilling. You would study and learn the lay of the land to choose, deliberately, where to invest your exploration dollars.
The same holds true as you seek to create a profitable future for you company. If you don’t identify where the latent profit is, you will likely end up focusing on immediate projects and urgent needs. You will squander your resources, much like an oilman who only drills close to home, just because it’s convenient.
Yogi Berra said, “If you don’t know where you’re going, you’ll probably end up somewhere else.” It’s essential to think beyond the immediate and urgent needs to understand where the best sources of latent profit truly exist, or you may end up drilling the wrong well.
This step of the “Mine Your Own Business” System, Find it!, is designed to help you identify your most lucrative sources of latent profit. It’s based on a deceptively simple idea: You don’t create the profits in your business, your customers do.
This is a humbling, yet healthy, thought. It was a stunning, yet clarifying moment when I realized that I don’t create the profits in my business, but my customers do.My job is to encourage my customers to act in ways that drive my results.
So, the best way to find the most lucrative sources of latent profit in your business is to understand the things your past current and or future customers have done, do or could do to impact your business results.
Find it! will be the subject of this newsletter two weeks from now, on May 4th. My goal is to challenge you and your team to find your most lucrative latent profit opportunities, enabling you to focus your efforts on your most important task: improving the state of your business.
Step 2 – Design it!
How can you create and communicate a persuasive story, encouraging customers to act in ways that unleash your latent profit?
How do you encourage customers to unleash your latent profit? Well, obviously, you can’t just tell your customers what to do; they won’t let you do that. What you need to do is make it possible for your customers to tell themselves what to do.
A customer does what a customer believes. Sometimes those beliefs are rational and overt. Sometimes, as Neale Martin writes in his book, Habit: The 95% of Behavior Marketers Ignore, customers’ beliefs about you reside at a habitual level, where they may not even consciously notice why they like, or don’t like, about doing business with you.
Customers will only create powerful, motivating beliefs about your company when the entire set of interactions and experiences they have with you blends to tell a clear, meaningful, unique story. This sense of Brand Harmony makes it easier for your customers to brand you in a way that makes them feel like they want to become more involved with your company.
The purpose of this Design it! step is to design the entire customer interface as a symphonic, harmonious whole that is easily understood and persuasively captivating for your customers.
Design it! will be the subject of this newsletter four weeks from now, on May 18th. If you attend the Mine Your Own Business Seminar, I will challenge you and your team to design the best ways to motivate customers to act in ways that unleash your latent profit. This will include exploring ways to improve your…
- brand story,
- products and services,
- and all interactions with your customers,
so that your customers feel closer and more loyal to you.
Step 3 – Mine it!
Creating the company to-do list, and doing it
Ok, so you’ve identified where your most lucrative sources of latent profit are, and you’ve designed the best ways to unleash that latent profit. How do you actually do it? How do you mine this latent profit?
When it comes to unleashing latent profit, your role, and the role of everyone in your company, is to do things that communicate the story you’ve designed, encouraging your customers to act in ways that improve your results..
Your company’s entire to-do list should ultimately be focused on giving customers reasons to act in ways that drive your business results. This focus will put your scarce resources to best use. Why should you do anything that doesn’t, in some way encourage profitable customer action? I can’t think of a reason.
Mine it! will be the subject of this newsletter on June 1st.
We’d love to help you and your colleagues “Mine Your Own Business.” Please read the upcoming issues of this newsletter, and feel free to call me to set up a time to talk about how you can find, design and mine the latent profit in your business. In these challenging economic times it’s more important than ever to “Mine Your Own Business.”