3 Ways To Increase Profit In Any Business
Every business needs to make profit to survive so what are the 3 ways to increase profit within any business model?
Hi Trish Davies, here to talk about generating revenue, putting money in the bank, ultimately making profit. Profit is the name of the game, if you are not making profit you don’t have a sustainable business.
Every business owner tries to think about ways to make that profit. Sometimes sitting for hours to come with a strategy, a blueprint, the master plan. Frustration enters the game because in many ways people try to overcomplicate things. Some of the most successful ideas have born fruition out of simplicity.
The nature of business is that you must have something to trade. Your products and services are the things you trade to people who become your customers. Within the previous sentence holds the 3 ways to increase profit and this should be your focus.
That focus must be on creating a revenue generating system, an eco-system so to speak. An eco-system that focuses on bring people into your business, retaining them and selling them more higher value products and services.
Can you see what is starting to unravel here? It is a simple system in principle and the 3 ways to increase profit in your business. Right time to stop skirting around the system and teasing you. Here is what you need to do to make your business profitable.
3 Ways To Increase Profit In Your Business
It doesn’t mater if you are just starting out or if you have been in business for a while now. This system will work for you to increase your profits if you implement it. That is the key, taking action on what I am about to share with you.
I have already established that a transaction is a trade between you and your customer. You need customers coming through your door either physically or virtually depending on your business model.
A side not on that is that as the world evolves most business is going to be done online. That’s not to say traditional businesses can’t survive, they can but must adapt to what I am going to share.
The first way to increase profit in your business is to get customers. I know that is not a ground-breaking piece of information as it has been around since the beginning of time.
Attracting Customers To Your Business
You must become proficient in attracting customers to your business. That relies on your marketing and advertising efforts and the message your deliver. Your customers are looking for solutions to their problems which are your products and services. Notice I have made that plural which will become more relevant in the last step to increasing profits.
You must market yourself so that people connect with you and your story, to start building that relationship. Typically, the way to attract customers to your business is through a low entry price product or service.
This is basically an appetiser for your customer to sample. Think about the last time you went to a restaurant. When you first sat down at your table you weren’t offered a coffee or a brandy as that would be what you have at then end of the meal.
You would be offered a drink as you were deciding what to have off the menu. Then you would order your starter, main meal, desert and then coffee or nightcap. This point leads me nicely onto the second way to increase profits.
Sell More To Existing Customers
The restaurant example is perfect because you already have the customer as they walk through the door. When you get them inside you have a captive audience, so you offer them more products.
This is where many business fall down because they don’t get this concept. This is where you start to increase the profit you make from your customer. All marketing costs are incurred getting the customer in the first place. Again, look at the restaurant example.
They most likely would have spent money on an advertisement offering a special deal. When people see that advertisement interest and awareness is initiated. The person decides to go in but if they only had a drink then the restaurant would not make any profit.
They would hardly breakeven but once the process of the starter, main, desert and coffee kick in the profits soon mount up. The perfect example in the restaurant industry is McDonalds and those glorious golden arches.
Say you walked into any McDonalds and just ordered a cheeseburger for $1. There is no profit for McDonalds on such a small order value. That is why the person behind the counter says, “would you like fries with that?”, then it would be “would you like a milkshake?”. Finally, they might say “how about an apple pie?”.
If that person took all of those upsells the order value would go from $1 to around $10 and that is where they make their profit. They have you in the door and sell more stuff to you.
Now for the cherry on the cake as I am using a culinary theme. How to make the ultimate profits for your business.
Sell High Ticket Products & Services
Now admittedly establishments such as McDonalds don’t have what are called high ticket products. They do rely on volume, but they have a proven sales funnel in place. A sales funnel is where you have products and services lined up one after the other.
They compliment the previous step of the funnel, but each time increase in value. Now this is where it gets interesting and can work in most business models. Even the restaurant I first mentioned because someone could be celebrating a special event.
Therefore, the restaurant may have high end Champagne costing $1000 per bottle. That is a nice addition to the customers bill with no extra work of cost involved.
So, look at your business model and define what products and services you can provide at a premium price. For example, starting at $1000 then $2500, $5000, $10,000+.
Now you may thinking that’s not realistic, but I can assure you it is. I know of busines models in the traditional and online world that have such sales funnels in place. In fact, I have them in my own business models which include real estate investing, direct sale marketing and my personal coaching business.
This is where the majority of your profits lie, and they are easier to sell to existing customers. Existing customers who know, like and trust you. These customers will spend the big money with you, I have seen it time and time again.
Now I know I have been detailed in this article, but the formula is simple and straightforward. These are the 3 ways to increase profits for your business.
- Get Customers
- Sell More To Those Customers
- Sell High Ticket Products & Services
Need More Help?
I hope that at this point you have had many lightbulb moments and that your head is spinning with excitement. These principles work hands down but if you are unsure how you can implement them in your business then my Build Your AU program can help you put together the pieces.
The program is predominantly designed for online business but the core elements to the program are these. To hep you position yourself with authenticity and authority and then attract the ideal business.
If you are an existing traditional business then I can show you ways to take that experience and convert it online. Maybe you are a coach, trainer, skilled craftsperson, basically anything I can help turn your expertise into a suite of products and services.
A suite of products that start with a low entry product or service where you will break even. Then behind that have a profitable sales funnel in place which ascends in price to bring the big profits to your business.
Now if this interests you then I have something very special to offer. I have created a video series which shows my Build Your AU program in action. If you click the button below now then in just a few minutes you will have the first video sent straight to your inbox.
Running a profitable business is a lot more straight forward if you break things down and simplify them. The 3 ways to increase profit formula I have shared with you simplifies that process to give you that clarity. I hope that you have received value from what I have shared and remember to register for the video series.
Helping you build your authenticity, authority, and audience.
Trish Davies
Build Your AU
Recent Comments