We all earn our livings by serving other people in some way. Creating profits occurs when you produce a product or service that people want and need and are willing to pay for at a price that’s in excess of your total cost of producing that product or service.One of the most common questions that I get from business owners is “How can I increase my profitability?”
Here are a few practices that you can use to create additional value for your customers and additional profits for your business:
The key is to focus on one of the below ideas listed, maximize revenue from it and then move on to the next. Of course, this choice should be made with extra consideration to your budget. If, like most small-business entrepreneurs, you have a limited budget, you’ll want to focus on revenue streams (like selling products) that will produce results quickly. But, every stage of your business calls for you to do something different, depending on where your business is at.
- Raise Your Prices: Try raising prices only on your most popular products and services. Since they account for most of your sales, this strategy will have a dramatic effect on your revenues. With careful planning and a tactful approach to informing your clients or customers, you’ll discover that a price increase not only boosts your sales but can also transform your business.
- Pivot your business: If your company is progressing too slowly despite the amount of work you have been putting into it, then you may need to consider pivoting. You may need to pivot your business or revenue model, market or product.
- Sell online: If your offline business involves selling products, you should consider online sales. Your two platforms (online and offline) can share resources, including marketing and inventory. Think about ways you could promote your service online. This can be effective no matter what type of service you offer. For example: You could book appointments through your website that directs visitors to your physical location.
- New Product/Service: What makes customers choose your product over others? What problem does it solve? What attracts people to your products or services? It is imperative that you make the value clear about what it delivers to the consumer. When you define the features of your product/service, it becomes easier to develop attractive and targeted strategies for the right audience you are trying to reach out to.
- Use Social Media to Your Advantage: When you create new content, launch a new product or service, be sure to share this across the social media platforms you are active on. Tips: Research the best days and times to promote your business, check which actions have the best results such as content format (videos, images, text), find out what your competitors are doing and find out their strengths and weaknesses.
- Bundle products or services: Many small businesses have found success by selling products and services as a package rather than individual offerings.
- Discounted offers: It is a fact that discounting increases sales. In order to successfully run discounting, you should know your profit margin and breakeven point. For example, discounts can be applied to limited products.
- E-mail Marketing: You want your e-mail efforts to pay off in sales. By sharing information about your business through e-mails, you help your customers see how valuable your product or service is. There are a few types of e-mails that generally help drive sales more than others, which is: Promotional e-mail, New Arrival e-mail, Holiday e-mail, Reorder e-mail, Product Use email, Industry News e-mail, and a Newsletter e-mail.
- Ask for Referrals: Generating revenue from clients that already like and trust your brand or service is much more cost-effective than spending money acquiring new customers. If you provide clients with a great experience, they’ll want to do business with you in the future and will likely send referrals your way. Almost any business can implement a customer referral program by offering current customers products or services for referring new customers or clients. You could also ask your customers for testimonials and then use that on your website and in sales e-mails or newsletters.
- Upsell and cross-sell: Don’t stop with just closing the sale. Offer related products, services, and other value-add on that may increase your profits.
Would you like to know which strategy is right for your business? Are you unsure of what is your next step to take? Then, let’s have a chat and discuss which of the strategies would work best for you right now. My passion is to help entrepreneurs, like yourself, to succeed!
The FIRST 5 people that set up an appointment with me (link provided below) will have a COMPLIMENTARY Strategy Session with me to discuss your business and to work on the next best step for you to take to increase your businesses profit. My complimentary sessions always get booked the fastest, so don’t delay and pass up on this opportunity! I look forward to our appointment together.