The Secret To Making More Money

Whether your goal is to keep your business running, increase your take-home salary or grow your business, you need to increase revenues. 

You have probably heard this before and never had the knowledge or support to make it a reality. Here’s what you need to know - to make more money, you need to focus on customers, pricing and marketing. 

1. Look for ways to increase revenue instead of cutting costs

 No one has ever cut their way to success.  

The problem with cutting costs is there are only so many costs that you can cut. Also, reducing costs often causes lower levels of customer service, poorer delivery of services and decreases team happiness.

While prudent spending is always advised, what we want to avoid (within reason), is cutting costs. Instead of looking to cut, cut, cut, you should look for ways that you can grow.  

As one example you can ask your customers what they need help with and look for new opportunities to provide them with solutions to the problems they are facing.

By delivering what clients are asking for you’ll be growing your business as well as keeping your clients happy.  And we all know happy clients mean more referrals!

If you are playing cutthroat business and have decided that you can cut your price to win business - you are sorely wrong. 

If you are in the construction industry at the moment in Tasmania, business is busy! Demand is at an all-time high. If you think that keeping your prices low just to keep business is a good idea, you are wrong. 

Demand is so high that even if you increase your prices by a substantial percentage, I am sure you will maintain business and reap the benefits of the extra income. Analyse the industry prices and match yours accordingly (identifying the value of your service/product). 

If you need support with growing your business or figuring out where your prices should sit - get in touch, schedule an appointment: https://businessabundance.online/contact 

2. Get rid of low-profit work and replace it with higher profit work

Do you know what your profit is for each of your clients? If you can identify the client with the best profit and talk to them instead of the clients with small margins, you will increase your revenue without really trying. 

Not all clients are equal, and while there are places for all clients, if you’re too busy to take on more work you should be looking to drop off your clients in your bottom 20% to allow your business room for more profit and growth in the top 20%.  You don’t have to leave them high and dry, but you’ve got to move on.

You’d be surprised how much time that businesses spend servicing clients that make up little of their profit generation. 

If you’d like some help identifying this in your business, you’re welcome to get in touch with us.

3. Invest - Increase the number of sources that income comes from

You’d probably already know that money makes money.

Whether it’s generating interest in a bank account or buying property and getting you gains that way, having money at your disposal certainly helps you create more wealth.

Sometimes it’s easy to focus on one source of income, but what happens when you lose it?  What happens when you try to force it to generate more income than it really should?

Having multiple sources of income is a great way to create better cash flow and build your wealth.  It’s also a great strategy to reduce risk because if one source of income dries up, you still have the other income coming in.

Don’t be afraid to look outside your business for opportunities.