by MHolland | Jul 4, 2025 | Business Tips, Cash Flow, Selling Tips, Systems
Yes, you read that right.
You cannot increase sales.
Not directly, anyway. That is because sales are a result, not an activity. You cannot manage sales, profits, just like you cannot manage even weight loss directly—those are outcomes. What you can manage are the activities that lead to those outcomes.
This might sound simple, but it is one of the most misunderstood ideas in business. Let us fix that.
Stop Managing Outcomes. Start Managing Activities.
Let us use weight loss as an example. You cannot just decide to lose 10 pounds. What you can do is manage your eating habits and increase your physical activity. Those are the drivers. The weight loss is a result.
Sales work the same way.
You cannot just declare, “We’re going to increase sales!” and expect it to happen. Instead, focus on the activities that create sales.
The 3 Building Blocks of Sales
There are only three ways to increase sales:
- Increase the number of customers (of the type you want)
- Increase how often they buy from you.
- Increase how much they spend each time.
That is it. Every sales strategy fits into one (or more) of those categories. Let us break them down.
Get More Customers (The Most Expensive Way)
When people say, “I’m going to grow my business,” they always mean getting new customers. And yes, it is important—but it is also the most expensive strategy.
Marketing, advertising, lead generation—they all cost time and money. Worse, new customers often require the most handholding.
So yes, keep attracting new clients. But do not stop there.
Increase Purchase Frequency (Often Overlooked)
Want a smarter way to boost revenue? Get your existing customers to come back more often.
They already trust you. They have already bought from you. This is low-hanging fruit.
Ideas to increase purchase frequency:
- Send a monthly or quarterly newsletter with promotions or insights.
- Offer loyalty cards or referral bonuses.
- Pick up the phone and check in with past clients.
- Host client appreciation events.
True Story:
An accountant blocked off every Friday morning just to call clients and ask how things were going. Nothing pushy—just open-ended business conversations. The result? His revenue doubled. Clients appreciated the proactive care and naturally brought him more business.
Increase the Average Sale (Mastered by McDonald’s)
You already know the question:
“Would you like fries with that?”
That simple upsell script has added billions to McDonald’s bottom line. What is your version of the fries question?
Ideas to increase average transaction value:
- Bundle products or services into higher value packages.
- Upsell or cross-sell relevant add-ons.
- Implement a small price increase (even 5% can have a major effect)
- Train your team to ask value-focused questions.
Real Example:
One client raised prices 5% after a little convincing. Guess how many customers they lost? Zero. Loyal customers did not blink, and the increase went straight to the bottom line.
Think Compound Impact
Here is where it gets fun: if you improve each of the three areas by just 5%, the result is a compound growth effect that can add 20–30% more profit to your bottom line. Without finding a single new customer.
Want to see it in action? Try this quick exercise:
Profit Improvement Plan (Fill-in-the-Blanks)
| Component |
Current Position |
5% Improvement |
New Position |
| Number of Customers |
___ |
x1.05 |
___ |
| Purchase Frequency |
___ |
x1.05 |
___ |
| Average Sale ($) |
___ |
x1.05 |
___ |
| Sales Revenue |
___ |
= |
___ |
| Gross Margin % |
___ |
(same or better) |
___ |
| Net Profit |
___ |
(should grow!) |
___ |
Now subtract your current net profit from your new projected one.
That is your Profit Improvement Potential—from managing the right activities, not chasing the result.
Final Word
Stop trying to “increase sales.”
Start doing the things that lead there.
- Get more of the right customers.
- Stay in touch and serve them often.
- Raise your average sale with simple strategies.
And most of all—track what matters. Because what gets measured gets managed.
Thanks for reading…
by MHolland | Jun 27, 2025 | Business Tips, Remote Work, Systems
What is the difference between motivation and discipline?
Motivation is that flush of romantic dopamine that gets you all charged-up about starting anything new that excites you. A new business, a new garden, a new romance, a trip.
The shelf life of motivation? Anywhere from 3 seconds to 3 days, depending on the depth of your desire.
When starting a new business (or keeping one going) motivation is short lived. The hard work and hurdles soon take over and the excitement of that first rush is long forgotten, like a first date.
Discipline is needed. It is needed to keep the momentum on that motivation with what you started.
Discipline can best be accomplished with small, micro habits, done daily. I use a really great app, as most readers of my blog know, called Habit Tracker.
Disciple and motivation are both needed…
For an in-depth read on this topic, check this out:
Motivation Versus Discipline
How Your Daily Routine Transforms Your Workday
Routines operate like habits. The added ingredient is routines are usually set at the same time each day.
A routine could be defined as a “Scheduled Habit”.
The key to productivity is to set your daily routine as a rhythm.
For more on this topic, check out this blog:
Daily Routine – Transform Your Workday
Thanks for reading…
by MHolland | Jun 20, 2025 | Business Tips, Systems
As readers of my Blog know, I love using an app called Freedom…
The Freedom people also write great blogs.
The one I am about to share with you revolves around 3 words – “I’m locked in”.
No, they do not mean jail. The opposite. It is when you are a zone, in hyper-focus, and things get created and done better, faster, and with more originality.
Okay, so you are thinking, what is the big deal here?
Consider this – with all of the distractions hitting us in our always-on culture, humans have now devolved to a shorter attention span than a goldfish. The goldfish beats us by one second – 9 seconds versus 8 seconds.
(When I read that, my first thought was – how do they measure that? 😂)
It is a brilliant blog, well worth reading. One reason?
How about this – “those who can achieve deep focus are becoming exponentially more valuable”.
We intuitively know it is true because when you are hyper focused, in the zone, you just feel great.
I always wondered if sequestered monks would get bored. They do not look bored – they look serene and fulfilled.
Maybe they have always known something that we are just starting to get…
…that life spent distracted is not really living, that being focused on meaningful things, and not distracted is the key to happiness.
Here is the blog in full:
Locked in Focus
Thanks for reading…
by MHolland | Jun 13, 2025 | Business Tips, Remote Work, Systems
I really like what I learned from Tim Ferris…
You know, the 4 Hour Work Week guy? The title for that book sounds like so much hype, doesn’t it?
Yet it is good. Very good. Why? Because it is chock full of practical advise, not just grand ideas.
Many I put into place immediately and have never stopped doing them.
Here is an oldey blog yet still “plays” well:
The Not-To-Do List: 9 Habits to Stop Now
If you want to check out the 4 Hour Workweek for yourself, here is a link to download the first 50 pages:
The 4-Hour Workweek, The 4-Hour Body, The 4-Hour Chef – PDFs
by MHolland | Jun 6, 2025 | Business Tips, Cash Flow, Systems
Lately I have been truing my client’s thinking to focus on one Key Performance Indicator as the grandaddy of them all…
True, it is not a leading indicator, it is a results driven indicator. Once we calculate it, it is too late to change. It is done.
It is an indicator that I see as the great equalizer. It can apply to all businesses and used to compare results across varied industries.
The one KPI that rules them all is…. (drum roll, please) …
Net Profit Before Tax (NPBT)
Not revenue. Not gross margin. Not EBITDA.
Net Profit Before Tax is the ultimate scorecard for your business.
Why NPBT is King
Net Profit Before Tax is brutally honest.
It shows what is really left after you have paid everyone else — your staff, your suppliers, your landlord, your bank, and even yourself.
In the calculation I include interest, amortization, and owner’s market-based salary (even if only accrued as a reversing journal entry).
In other words, it includes all expenses up to taxes. Taxes is a distribution of profits, so we exclude that.
To be clear –
We’re talking net profit after paying the owner a fair market salary, covering interest, and recording amortization. It is your true business performance before the taxman takes his cut.
The New Reality – 5% is Break-Even
Today, 5% net profit before tax is the new break-even.
Why?
Because if you are only producing a 5% return, any bump in the road that is beyond your control (tariffs as an example) means you have no leverage to react.
It is doubtful, if you have been doing only 5% NPBT that you have much, if any, savings to meet a crisis, correct?
For the owner, as a person separate from working in the business, 5% is not enough to mitigate the financial risk of being in business.
10% = Solid. Sustainable. Smart.
At 10%, you have a bona fide business.
You have enough margin to:
- Invest in your team.
- Ride out a rough quarter.
- Sleep well at night.
Now you are not just surviving — you are building.
15% = Elite Territory
When you consistently achieve 15% net profit before tax, you have enough left over to:
- Pay your taxes when due.
- Save money.
- Pay down debt.
- Pay dividends to the shareholders.
15% NPBT is a benchmark of an extraordinary business. You have a business that has many things right:
- Correct, value-based pricing.
- Lean operations
- Strong leadership
- Loyal customers who value what you do
Why This KPI Works for All Businesses
Whether you are selling software, growing flowers, managing buildings, or doing construction work — NPBT works as a comparative KPI across every business.
It cuts through all the differences in industries, and gives you a simple question to answer:
“How much profit does this business really make after everyone gets paid?”
In Conclusion
Track your Net Profit Before Tax. Make sure to deduct interest expense, amortization, and a market-based wage for the owner.
To determine the market-based wage, calculate what it would realistically cost to replace yourself.
Hit 10%, and you are doing well.
Push to 15%, and you are building a business with swagger.
If you are sitting below 5% — it is time for a serious tune-up.
Look at your pricing first, then margins, fixed costs, and whether you are providing awesome service!
By the way, I am indebted to the Greg Crabtree a brilliant CPA who wrote the book, “Simple Numbers, Straight Talk, Big Profits!” for many ofg the ideas shared above.
Thanks for reading…
