Making money and growing your business is always challenging in the world of business. Are you wondering what is the missing piece to achieving more profit and value?
In the world of business, success often feels like a puzzle. Business owners constantly search for that elusive missing piece to unlock greater profitability and create lasting value for their ventures.
But what is this missing piece, and how can business owners find it? Over the last eight years, I have seen many clients find this missing piece to create value and sell their businesses for millions!
Understanding the Puzzle of Business Success
Running a successful business is like solving a complex puzzle. Many pieces need to come together correctly to achieve profitability and create value. From strategic planning and effective marketing to operational efficiency and customer satisfaction, each piece plays a crucial role in the business’s overall success.
Ready to dive into different strategies to make your business more profitable?
#1 – Review your pricing strategy 💰
Boosting profits can start with a simple review of your pricing strategy. Review your prices, ensure they match your offer’s value, and stay competitive.
Consider what it costs you, what others charge, and how much clients think your service is worth. Tweaking your prices smartly can help you make more money without skimping quality.
When you decide on your prices, consider the value you give customers. Set a price that reflects the value you’re delivering, but be careful not to overdo it and push customers away.
Often, the most expensive product is the one that sells, usually because it is better branded or more complex.
When someone tells me that my competitors are cheaper, I tell them, ”Some are cheaper, others more expensive; if you prefer to choose the cheapest option, that’s entirely up to you. We may not be the most affordable, and there’s a reason for that. Let me explain the value we provide…”
If you’re offering a distinctive and top-tier service, you must be prepared to step away if necessary.
#2 – Identify and eliminate low-value services ✅
Let’s begin with a question. Can you identify if some of your services make more money than others?
Look closely at your offer to see if any services make little money. If you find any, think about stopping or changing them. Focus on services that make more money and fit better with what you want for your business and who your customers are.
Low-value services for a service-based business that you may consider eliminating could include:
- Services that require excessive time and resources but yield minimal profit margins.
- Services that are highly specialized or niche, with limited demand or market potential.
- Services that have become outdated or obsolete due to changes in technology or industry trends.
- Services that result in frequent customer complaints or dissatisfaction, leading to poor reviews and reputational damage.
- Services that require extensive customization or customization, leading to inefficiencies and increased costs.
- Services that require significant ongoing support or maintenance without corresponding revenue generation.
- Services that do not align with your business’s core competencies or strategic objectives.
- Services that have a high level of competition and pricing pressure, making it difficult to maintain profitability.
- Services that do not contribute to your overall business growth or long-term success.
In 2024, I decided not to offer The Endgame, an online course launched in 2022 and instead created a 90-day live coaching program, The Profit Path Lab. Why? Because I didn’t want to provide ongoing support or maintenance for many years. The Profit Path Lab has a timeframe (a 90-day program), and after this program is completed, there are other packages for continued support, but if I decide not to offer them in the future, I will only stop promoting them.
#3 – Streamline your operations 💃
Making your business run smoother is important for saving money and making more profit. Find places where things are inefficient, duplicated, or wasteful and improve them. Use strategies to improve things, like automating tasks and using resources more wisely.
When you cut unnecessary costs and work more efficiently, you can make more money and help your business grow.
A few weeks ago, I chose to simplify my offer and review every expense. I cut over $1,000 of monthly fees! Take action today, and look at all your business expenses to confirm if you still need them to run your business successfully.
#4 – Upsell and cross-sell to existing clients 👏
Your current customers are important for making money and growing your business. Look for chances to sell them more things or different things to increase your sales and profits. Find services or products that go well with what they already buy and offer them.
WHEN YOU SELL MORE TO YOUR EXISTING CUSTOMERS, YOU MAKE MORE MONEY AND MAKE THEM HAPPIER TOO.
Your email list can be a powerful tool for selling more to your existing customers. By regularly communicating with them via email, you can inform them about new products or services and offer exclusive discounts or promotions. You can also provide special deals or discounts exclusively to your email subscribers, encouraging them to buy more from you!
#5 – Focus on high-value clients 🎯
Not all clients are equally profitable, and focusing your efforts on high-value clients can significantly impact your bottom line. Identify your most profitable clients based on revenue generated, contract value, and long-term potential.
Prioritize efforts to attract and retain similar high-value clients through targeted marketing and sales efforts. Focusing on clients with larger budgets and higher profit margins can optimize resource allocation and maximize profitability.
In 2023, I chose to no longer work with startups unless they are able to pay for our VIP Package (90-days of 1:1 coaching). This niche change has resulted in even greater profitability.
#6 – Improve your marketing and sales strategy 💡
Your marketing and selling plan is essential for making money and attracting customers. Take some time to review your plan and improve it. Clear your messages, target the right people, and show why you’re better than others. Spend your money on marketing that gives you more back, and focus on finding people likely to buy from you.
One strategy we use in 2024 is a FREE 4-day series, The Profit Path Workbook. Once a month, we teach business owners how to maximize their profitability and create lasting value in their businesses. 👇
#7 – Negotiate better terms with suppliers 🙋♀️
Reviewing supplier relationships can uncover cost savings and efficiency improvement opportunities. Negotiate better terms, discounts, or payment terms with suppliers to reduce costs and improve cash flow (instead of 15 days, negotiate 30 days or 45 days).
Explore alternative suppliers or vendors to compare pricing and quality and ensure you get the best value for your business. By optimizing your supplier relationships, you can lower expenses and increase profitability, which is important if you want to be more profitable and create value.
Remember to take action today. Implementing these strategies can help you maximize profitability and drive long-term success in your service-based business. By reviewing your pricing strategy, optimizing your service offerings, streamlining operations, and focusing on high-value clients, you can enhance profitability and position your business for growth and sustainability. Additionally, investing in marketing and sales, and negotiating better terms with suppliers, can further boost profitability and help you achieve your business goals.
Let me know, what will be your strategy to build profit and value in your business? 💕
