Plus, how you can apply this strategy to your own business…
My marketing agency generated $420,000 overnight because of Open Book Management.
Here’s the story — plus, how you can apply it to your own business.
Outside of Open Book CFO, I own a digital marketing agency.
We’ve been using Open Book Management for about two years.
But, we recently took on a buyout loan that forced us to tighten up our operating budget.
Soon after, a recurring client (who paid us a tidy sum to manage their website and SEO), decided to part ways.
And just like that…
We went from a steady 15% to 25% monthly profit… to risking losing money that month!
It forced us to dig deep and figure out where our money was going.
The team came up with five initiatives based on the Effort / Impact map (which I covered in a previous newsletter), and picked one we thought would give us the best chance to remain profitable.
We’d been working on an overhaul to our content creation process, and decided to complete that project ASAP.
The solution?
We created an AI bot that now produces all the content we need!
The process is pretty much free now — just the cost of ChatGPT and one virtual assistant.
We also fired one person (who was producing subpar work), and let one vendor go.
We ended up saving over $7,000 per month… and the output is better, too!
The true impact of this is massive.
Let’s do the math…
$7k per month in net profit over 12 months is $84,000.
How much revenue would we have to generate to hit this same number?
Assuming 20% profitability, let’s multiply $84,000 times 5.
To reach $7k in profit per month, we would have to generate $420,000 in yearly revenue!
(At 10% profitability, the required revenue doubles — $840,000. Whoof!)
This extra profit will also allow us to reinvest and bring in even more revenue.
Now we can either attract new clients at a lower price point… or at the same price point, with faster and better results.
This story reminds me of a great quote.
In 1803, Jean-Baptiste Say (a French economist who coined the word “entrepreneur”), said:
“The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.”
But, you can only steer the ship if you know where every dollar is going.
And that’s exactly the approach we took!
Open Book Management’s transparency and Forward Forecasting allowed us to prevent a huge net loss before it happened, and make back an even bigger profit.
Do you think your business could benefit from automation and optimization using AI?
Or, do you want to learn how to squeeze more profit out of your current revenue through Open Book Management?
I’d love to talk about it.
Book a free 30-minute strategy call with me here.
Bring any questions you have, and let’s chat!
See you soon in the next issue of The Winning Agency,
— Nick Kringas
