Looking to add more revenue to your business? Aren’t we all!
If you’re starting to see stagnation in your P&L Statement, there are a few ways you can help breathe life back into your business, and continue to grow.
Today I’m going to share 5 different profit maximizers you can use to help overcome the lull and make some profit in the new year.
Profit Maximizer #1: Buy Another Business (Or a Segment of a Business)
I’ve been saying this for years…
Business leaders wildly underestimate just how impactful M&A’s (Mergers and Acquisitions) can be.
Adding “external” revenue streams are a great way to grow your wealth and also expand your business to reach new customers.
Unfortunately, very few small–medium sized business leaders actually consider looking outside their company for opportunities.
And boy are you missing out if you’re one of them!
Purchasing another business just makes sense
After all, an established business already has…
- An existing customer base
- Internal processes that are ripe for optimization
- Revenue coming through the door every month
- Employees with years of knowledge and experience in their industry/segment.
- Etc… you get the picture.
Plus, if you’re choosing the right business, you’ll gain access to a whole new audience you can begin to serve with cross promotions.
Not to mention, investing in established businesses is WAY less risky than funneling your money into startups—which by the way, can have a 75% failure rate (and possibly higher!)
Profit Maximizer #2: Test And Optimize Your Pricing
I’ve talked about this in a previous article, but it’s worth mentioning here as well.
You may find that a simple change in your pricing structure can uncover a ton of income you were previously missing out on.
I’ve done this with a few of my businesses and we end up seeing profit increase of up to 54%.
And don’t think the only way you can improve your pricing structure is by raising prices.
You may find that decreasing your prices might also open you up to a different audience that’s more bountiful than your usual one, so test out both!
Profit Maximizer #3: Reposition Your Brand
Another profit maximizer you can use to revamp business and up your profits is by repositioning your brand.
There have been some monumental changes that have come out of the pandemic. Customer behaviors are different, and entire business ecosystems have changed (think: event planning, restaurants, car dealerships, etc…) since the pandemic started.
So if you’ve found that your business (or your customers) have gone through some changes, it may be worth your while to consider repositioning your brand so that it resonates better with your ideal customer profile.
However, this maximizer is not without its risks, so move forward with caution and lots of consideration. And don’t feel like you need to reinvent the wheel just for the heck of it.
Profit Maximizer #4: Increase Your Ecommerce Presence
Like I mentioned in #3, the pandemic has really changed the landscape of purchasing.
So if you aren’t taking advantage of Shopify, Etsy, Amazon, QVC, or any other ecommerce selling options, you should be.
Ecommerce is no longer just for online-only businesses. Restaurants, mom-and-pop stores, and even animal shelters are jumping online to keep business going.
Even if the world goes “back to normal,” the one thing you should change for good is to continue taking advantage of digital selling whenever you can.
Profit Maximizer #5: Refine Your Insights And Drive More Sales
This should go without saying.
You should regularly check in on your marketing and sales tech stack to comb through the data.
After all, you’re paying good money for it, so you might as well put all that data to work!
The information you gain can help you make better decisions about:
- Product development
- List growth and expansion
- Offer positioning, and more
Customer insights are essential to optimizing your business so you’re not leaving money on the table.
If you can implement even 1 of these profit maximizers, you’ll start seeing a positive impact on your bottom line in no time.