Date: August 28, 2020
Increasing profits may be easier than you realize. Here are some easy to implement steps that you can take right now to start increasing your bottom line.
- Forecast out your sales goals and break them into smaller, achievable action steps
- Reduce unnecessary expenses by utilizing leverage with vendors – if you don’t ask the answer is always no
- Start a passive revenue stream to supplement your operational revenue – monthly maintenance retainers, subscriptions, etc.
- Every week review your financial reports and every month fire your least profitable client as you bring on more profitable clients – we call it “the rinse”
- Know your worth, and then charge for it!
- Know the cost of each service so that you are pricing accurately and PROFITABLY
Many business owners I’ve spoken with said that they price their services “out of thin air”, “based on the competition”, or “whatever they think the customer will pay”.
Each of those strategies will leave revenue on the table. Your pricing should be based on the COST of the customer, your target profit percentage, and the value you are bringing them. Pricing is one of the most profound levers to increase revenue, unfortunately – it’s the one lever that most business owners get wrong.
If you never knew that customers COST you anything, or you’d like a pricing analysis to ensure you’re covering your costs and leaving room to make a profit – we’d be honored to help.