We not only want to make money in our business, but we also want to be able to keep as much of the money we make as possible. That is the difference between revenue and profit. Profit is what you have left over after you pay all of your expenses. Here are 5 simple ways to increase the profits in your business.
- Lower expenses. A great way to give your business a boost in profit is by reducing the amount of revenue used to pay expenses. Can you get products and services for your business for less than what you are paying? Saving money on what you have to pay is simple enough. Are you a tech hoarder? Let go of subscriptions and memberships that you are not using and stop buying tech ahead of your immediate need for it. Sadly, you may never use some of the things you’ve already invested in. What else are you paying for that you are not receiving the intended value of or using at all? Take an accounting of your monthly expenses and get rid or lower expenses as necessary.
- Correct pricing. A lot of us price our offers too low. Maybe you want to prove yourself first. Maybe you are trying to be the lowest-priced option to beat out the competition. It does NOT serve you to underprice your offer. When priced on the value of the transformation to the client, you are able to justify higher fees. The objection voiced is sometimes that our offer is priced too high, however, the real issue is that you have not succeeded in showing the proper value of your offer for the price. Charging the right price for your offer brings more money into your business allows you to reach revenue goals sooner.
3. Client excellence. Do not make the mistake of putting more time and energy into marketing for new clients before you properly serve your current clients. A satisfied client brings the best kind of marketing… word of mouth. You’d be surprised how much you can increase your revenue by simply being great at what you do. 6-figure businesses have been created on word-of-mouth marketing alone.
4. Ask for referrals on a clear offer. Lean on your network to send referrals your way. The key is to ask them to send potential clients for a specific offer rather than have them try to regurgitate what you do in general. Making sure they aren’t confused by arming them with a simple solution to pass on will work wonders for the clarity needed to sell the offer before the referral even reaches you.
5. Create a fanatical tribe. When you are just starting is a great time to go all in to connect with potential clients by giving more value, more often. Most of us never over give in value like when we first begin in business and are building our credibility. But those clients that encounter you during this time can become the beginning of your fanatical tribe if you take the time to really get to know them and show them that you care about getting them to the transformation. You get to know them and how to best help them, while they get to know you and trust that you can. Having these founding members of your tribe helps to grow your credibility when they share their like, know, and trust of you and your expertise with others.
If you would like to explore defining clarity or reclarifying your business, let’s talk. ShaCannon.info/talk