1. BOOST YOUR MARKETING
Increase your marketing efforts. Bring in more leads. Get the word about your company out
More leads count to more profits, as you will get more clients. You can use online ads or leverage on an efficient offline method to do this.
Sometimes cold calling your earlier prospects, and leads can also help. Also, you can ask your existing customers for a referral.
2. REINVENT YOUR PRODUCT OFFERING
Optimize your product or service offering to improve conversion. Re-inventing your product or service offering can increase the likability of your product.
Eventually, it can drive to an improved lead to customer conversion. Sometimes even adding a bonus would help.
For example, a car wash services company can offer a gift of a non-slip dashboard mat. Although the mat may cost just $1, it might end up convincing the customer to accept a higher price. Plus, when they compare two car wash companies, your offering can stand out.
3. BUILD A PRODUCT PATH FOR YOUR BUSINESS
It’s about increasing the Customer’s Life Time Value (LTV). Add more products and services to your business, so that you add sensible offerings for your clients.
It’s called a product path or upselling. So a customer can buy a cheap ticket item and gradually you can move them through the product path to a higher ticket item.
An example of a Cleaning Services business would be to offer a yearly contract or a painting service.
So imagine, that the customer pays $50 and signs up for the cleaning service. The next step could be that the cleaning services company can offer them a monthly contract that runs for a year at $100 a month.
That’s a $1200 in extra revenue for one customer. Or, in the case of offering a painting service, it could lead to a sale of $2000 to $4000.
4. SYSTEMIZATION & AUTOMATION
Decrease your operational cost by systemizing parts of your company operations. You could do this by using,
Operational guides (which I showed you as an example in my previous post)
Build a Custom Software
Using Business Process Management (BPM) tools.
5. CHARGE MORE
Increase the price of your products and services. Are you charging market rates or below market rates for your products and services?
If yes, you should consider raising your price. Raising your price will filter out the cheap buyers who sometimes end up being the most demanding customers.
Also, charging more means you achieve a higher revenue with less number of customers. Which will also bring your operational costs and customer service costs down.
Outsource your operations. Are some roles in your company good enough to work from a remote location?
You can find Virtual Assistants online costing about $200-300 a week from the Philippines or India. You can also find plenty of freelancers on Freelancer.com and Upwork.com from other countries.
Freelancers and Virtual Assistants can offer a wide range of services from design and development, to cold calling and event organization even personal errands like scheduling a doctor’s appointment.
7. JOINT VENTURE PARTNERSHIPS (JV)
Create partnerships. When you create connections with fellow business owners, it could also add more revenue to your business.
Some JVs will be reference providers for your business, also known as Affiliates. They might be running a business similar to yours but your product could be an upsell for them.
And for some JVs, you could be the affiliate for their business. i.e. You could upsell your customers their products. And take a commission out of the sale.
These are 7 different ideas to increase your profits two-fold. If you want to read about 3 ways to increase the revenue of your business, then read my next article: 3 Ways To Add More Revenue To Your Business