Page 79 - Paulisms: Gold Nuggets for Small Business

1. Overheads the same
2. Margins only slightly compromised
3. Volume of dollars down through the funnel of three
times the norm!
An additional point I should make is that we were able to scale up quickly, as we had worked on our systems and processes for twenty years. It was ready. It was not about people, it was about the systems we had in place. It is also a good example of the words in my ears from Malcolm Hughes: “Paul, there are two ways of making money: money working for you and people working for you.” It certainly was a case of people working for us.
Paulism: If you are struggling to grow and to take up the opportunity in front of you through capacity restraints or fear of taking that risk, or always struggling with meeting customers’ timeframes, consider a paradigm shift in your model and implement Paul’s Funnel Theory (incremental margin). It’s low risk, but the upside is huge!
3.3.2 The difference between mark-up and gross profit margin
If you have a room of salespeople or people doing quoting work, and you ask, ‘What is the difference between a mark-up and gross profit margin?’,