The Power of Compounding Profits
Jo Rawald • February 3, 2025
The Hardest Skill You Need to Master to Hit Seven Figures
Let’s be real. Growing a seven-figure business sounds like a dream until you’re knee-deep in the daily grind, drowning in invoices, marketing strategies, and wondering if it’s all worth it. Maybe you’ve heard the phrase "work smarter, not harder" and rolled your eyes because, let’s face it, it sounds like something only billionaires with private chefs can say with a straight face.
But here’s the truth. The secret to hitting seven figures isn’t about working harder, launching another service, or even chasing the next shiny business trend. It’s about mastering the most under-appreciated skill in entrepreneurship—compounding profits.
The 1.4% Rule - The Simple Math Behind Doubling Your Profits
If you improve 12 different profit-driving areas in your business by just 1.4%, your profits can double. Yep. You read that right. No magic wands or overnight miracles required. Let’s break this down.
Picture your business as it were a puzzle with 12 key pieces - things like pricing, lead conversion, customer retention, and productivity. Instead of stressing over one massive change, you focus on optimizing each area by just 1.4%. These small gains stack up, compounding over time into something massive. It’s like giving your profits a secret superpower.
Where to Start - The 12 Profit Levers That Change the Game
If you’re wondering where those 1.4% improvements should happen, here’s a cheat sheet of the 12 areas that move the needle:
1. Cut Costs
- Trim unnecessary expenses and reinvest in profit-driving activities.
2. Market Dominating Position
- Stand out by positioning yourself as the go-to authority in your niche.
3. Compelling Offer
- Craft irresistible offers that convert like crazy.
4. Increase Prices
- Small price adjustments can have a huge impact on profit margins.
5. Upsell & Cross-sell
- Offer complementary products or services to increase revenue per transaction.
6. Bundling
- Package services or products together to increase perceived value.
7. Downsell
- Provide a lower-tier offer for customers who might walk away.
8. Additional Products & Services
- Diversify revenue streams with new offerings.
9. Drip Campaign
- Nurture leads with automated follow-ups to boost conversions.
10. Alliances & Joint Ventures
- Partner with others to expand your reach and revenue.
11. More Leads
- Increase your lead generation efforts to get more potential clients in the door.
12. Digital Marketing
- Leverage online strategies to maximize visibility and attract customers.
Real Talk - Why Most Business Owners Struggle With This
Compounding profits sounds great in theory, but most business owners sabotage themselves in two ways:
1. They Think Bigger is Always Better
- They chase massive overhauls instead of small, strategic shifts. This leads to burnout, frustration, and feeling like they’re running in place.
2. They Underestimate the Power of Tiny Changes
- A 1.4% improvement sounds like nothing until you realize it’s the same principle that makes compound interest so powerful in finance. The little things matter more than you think.
The key is consistency. Small, deliberate actions build momentum and create exponential results over time.
It’s not about working harder—it’s about making smarter, more strategic moves.
The Sneaky Truth - This Strategy Works Even If You’re Short on Time
I know what you’re thinking. "Sounds great, but I barely have time to breathe, let alone analyze 12 different areas of my business."
I get it. But here’s the beautiful part of compounding profits—you don’t have to fix everything at once.
Start with one or two areas that feel doable. Maybe it’s increasing your prices by 1.4% (a barely noticeable change for your customers but a game-changer for your bottom line). Maybe it’s tweaking your follow-up emails to boost conversions slightly. Whatever it is, small adjustments add up, and before you know it, you’re seeing real results.
The ‘Aha’ Moment - Why You Need a Profit Simulator
Numbers don’t lie, and seeing your potential profits mapped out in real-time is the fastest way to get motivated. That’s why I created a Profit Simulator—a self-guided tool that shows you exactly how small changes in your business can lead to big financial gains.
Maximize your success with my Business Coaching to:
✅ Explore a Self-Guided Simulator
to see the numbers in real-time
✅ Receive a Customized Profit Report
showing exactly how tiny, strategic shifts—just 1.4% improvements in 12 key areas—can double your profits
✅ Watch an Exclusive Video
revealing how the world’s top business owners use counterintuitive thinking to earn more while working less
If you’re the type who prefers a more personal approach, I also offer a free 20-minute discovery Zoom
where we’ll chat about your goals, pinpoint opportunities, and create a customized plan to help you thrive.
Your Move - Are You Ready to Unlock Your Business’s Profit Potential?
Success isn’t about working harder or waiting for a big break. It’s about leveraging the small, strategic shifts that add up over time. And the best part? You don’t have to figure it out alone.
Click below to take action:
You already have what it takes to achieve incredible success. I’m here to help you every step of the way. Let’s get started!
You ever walk into Costco for one thing, and leave wondering what the heck just happened to your life? That was me last night. All I needed was paper towels. Just one 12-pack brick of industrial absorbency, thank you very much. But the moment I stepped through those magical warehouse doors, it all unraveled. First, I saw a velvet chaise lounge I definitely don’t need. Then - it was a six-tier spice rack. A kayak. A weighted blanket. A 5-lb tub of Gummy Bears I haven’t stopped thinking about. By the time I made it to checkout, I was $312 deep in, “Maybe I’ll use this someday ” purchases. And that’s when it hit me. This is exactly what shiny object syndrome looks like. Not just in Costco. In business. You start with a clear goal - launch a course, a new service or a new product, finish your website, close three new clients. But somewhere along the way, you get distracted by someone else’s launch, a new app, a Canva template you’ll definitely use one day. You buy a course. Download a funnel template. Rebrand your business at midnight. Before you know it, you’re carting around half-baked ideas and unopened tools you never actually needed, and your real revenue-generating work is buried under distractions. It’s a costly habit. Not just in money but, in time, clarity, confidence, and momentum. Here’s your wake-up call => If it doesn’t drive sales, systems, or sanity - put it back on the shelf. You don’t need more stuff. You need a strategy that works. One that moves your business forward with intention and impact. So if you’re tired of carting around the chaos, and ready to focus on what actually gets results - I got you. Check out the free resources on my site or book a quick call. No pressure. Just clarity, next steps, and a bold plan that keeps your eyes on the prize. Download your free Focus to Profit Blueprint so, the next time distraction shows up dressed as a business breakthrough, you’ll know the difference. With Grace & Grit, Jo Jo Rawald Growth Architect for Women Entrepreneurs | Lean Six Sigma Black Belt 📞 (305) 934-0006 | ✉️ jo@jorawald.com www.JoRawald.com | @xojorawald www.QueenKongBiz.com | @queenkongbiz
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I went to a networking event yesterday at Rosie’s Bar & Grill in Wilton Manors. Tropical-chic to the max. You know the kind of place - upscale casual, strong cocktails, mandatory valet. Now usually, I’m all about valet. But not yesterday. I wasn’t there to sip martinis or hang around all night. I could only stay for 20-minutes. That means - I was on a serious 20-minute mission: say hi, shake hands, peace out. Then, get back in my car to jump on a Zoom meeting! I certainly wasn’t about to drop $20 just to park my car for 20 minutes. No way! I pulled into the valet area, looked the guy dead in the eye, and said, “I’ll be in and out faster than your last relationship. Can I just park it right here?” And bless his heart - he said yes. Honestly, that should’ve been my win for the night. But then I met Sean Gac-Guerrier. Sean’s the Marketing Director at Excel Title, Inc. We started talking about dogs - and **cue the angels singing. We clicked instantly. Not two strangers meeting, more like two childhood friends who hadn’t seen each other in a decade! Sean showed me a photo of his dog, Dottie. I pulled out pics of my girl, Adelaide. Then he pulled out a photo of Dottie that stopped me in my tracks. Sean had a photo of what Dottie would look like as a human. Not a cartoon. Not a filter. I’m talking AI-generated, fully humanized, real-world, cardigan-wearing, intelligent-and-intimidating Dottie. I was mesmerized! It was as if Pixar and the FBI teamed up to design her. I looked at Adelaide’s pic… then looked back at Sean… and blurted out, “I need to humanize my dog!!” And I did. I went home, found the exact AI prompt, uploaded Adelaide’s photo, answered a few fun questions about her personality, and style - then… BOOM. Human Adelaide was born. Tall, lean, cozy-chic, with that unmistakable “don’t-mess-with-me-but-I’ll-still-hug-you” vibe. She looked like she ran Homeland Security and still had time for tacos and espresso martinis on a rooftop. Honestly? I stared at the image for like five minutes. Because it wasn’t just about making something cute. It was about seeing something familiar - something you know - come to life in a new way. Here’s the AI Prompt if you want to try it yourself:
Your business is not a side dish. It’s the main course—and it deserves to be treated like one. In this no-BS blog, I’m calling out “leftover” business strategies that leave women entrepreneurs stuck, stressed, and scaling in all the wrong ways. Discover how to build a business that’s bold, sustainable, and built to outlast trends using my BAMBOO Framework.
Too many women are stuck in the hustle—working nonstop, solving the same problems, and barely seeing the return.
You didn’t start your business to burn out. You started it to break free.
If you’re ready to ditch the stress and build a business that actually pays you back, this is your moment.
Join me LIVE in South Florida at Brains, Brilliance & Bold Moves—where I’ll show you how to scale smart, simplify your systems, and make way more money doing less.
🍷 Dinner, wine, and your profit breakthrough: www.jorawald.com/Brains-Brilliance-and-Bold-Moves
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Chaos costs you time, clarity, and cold hard cash.
This blog is your wake-up call:
🛠️ Simplify your operations
💸 Stop bleeding profit
📈 Build a business that works for you
Read it. Apply it. Start making smart money moves →
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You’re just leaving money on the table—and this blog breaks down exactly how to stop.
If you’re underpricing, over-delivering, or relying on guesswork to grow… you’re leaking profit.
Let’s fix that.
I’m giving you the tools to:
💰 Price like a pro
📊 Package for profit
🎯 Sell with strategy
Read it, bookmark it, share it with your business BFFs →
👉 www.jorawald.com/youre-leaving-money-on-the-table-lets-fix-that
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If your messaging is vague, cute, or confusing, you’re basically invisible.
This blog is your wake-up call to get crystal clear, magnetic, and straight-up undeniable.
You’ll learn how to:
🧲 Attract the right people (without chasing)
📢 Clarify your offer
👑 Show up as the go-to expert in your space
Because your next client isn’t on the fence—they’re just unsure if you are the answer. Fix that here →
👉 www.jorawald.com/the-right-clients-should-be-coming-to-you-theyre-watching-but-do-they-know-what-you-do
One Zoom call. That’s all it took to blow up how I coach—and rebuild it into something way more powerful.
If you’re overcomplicating your client process, trying to “do it all,” or feel like coaching is starting to drain you… this blog is your game-changer.
Inside, I break down:
🔥 The shift that simplified everything
🎯 How I get faster results (without burning out)
💡 What most coaches get totally wrong
If you’re a coach or service provider who’s doing the most and getting the least—read this NOW.
👉 www.jorawald.com/this-one-zoom-call-changed-how-i-coached-forever