Why Simplifying Business Increases Profits - Patti Keating

There are three reasons why simplifying your business can help you increase your profits.

Specialist Versus Generalist

When you simplify, you make more money because simplification causes you to specialize. When you let go of doing all of the things at which you are not an expert, you allow people to come in and support you. They take over the things at which you’re mediocre at best. You can focus on your skill, your mastery. As business owners, we often take on too much in team building and business management, but we also do this with our product or service delivery.

So when you look at what your best skillset is, and you take away all of the other things, you’re seen as a specialist. So you go from a generalist to a specialist.

People Can Hear You

Simplification also results in a clear message because you understand your expertise. You can communicate to the people who need what you offer. When you speak in generalities, nobody hears you. When you speak specifically to the pain a person is in, they might raise their hand and say “I really want to talk to you!” or they might think “My sister-in-law sure needs that.” Or, they may think “That’s not for me.” but that’s OK, too. They will come to these conclusions because you’re speaking clearly about the specific expertise you have.

You Master Your Craft

When you simplify your business, the value you provide to the market is higher because you’re doing what you’re best at. So, what you’re actually delivering is valued higher. Your perception is raised in the marketplace because you’re the go-to person for the one specific skillset that you’re delivering.

Think of a surgeon compared to a family practitioner. You go to your family practitioner for a number of things. You may have cut your finger. You have a cold. Your shoulder is aching. You can go to your family practitioner for any of these issues.

But if you have a heart attack, you go to a heart specialist. If you need surgery, you go to the surgeon specifically for that one organ. The heart surgeon gets paid more because of his specialty. The same is true in business–when you follow this model, your profits will increase.