How to Increase the Value of Your Business and See More Green
A general rule in your financial success in business is that you cannot increase profits directly, only indirectly. You must have a specific strategy. The only thing that you can do to increase profits is to improve the variables that ultimately determine your level of profitability. When you improve these variables about your business, you will increase profits and favorably affect your bottom line.
Here are top ways to aim for, to increase the value of your business.
- Generate leads and convert those leads into paying customers. Increase your conversion rate and have a plan.
- Get your customers to buy more from you and to buy more frequently. Perhaps incentives or discounts will convert one-time shoppers into repeat customers.
- Up-sell each customer so that he or she buys more each time. Even non-tangible goods often have upsells. For example, if you’re a boutique law firm, see if your general-business client also needs estate planning for their personal life.
- Seek ways to raise the price or to lower the cost of the product or service without decreasing the quality, thus increasing profits.
- Improve your advertising and promotion so that it costs you less to acquire new customers. Meet with media experts to analyze the effectiveness of different approaches.
- Try to increase existing customer referrals. Don’t be afraid to ask a customer who is clearly happy to mention your business to their contacts.
- Eliminate costly services and activities. Study where your money is going, and trim the fat where necessary.
- Reduce your break-even point and/or raise your prices within the margins of acceptability.
Remember, there is no “pot-o-gold” waiting you for at the end of the rainbow. You will likely not be capturing the Irish Leprechaun who will grant three wishes in exchange for his freedom. You do, however, have the ability and means to increase your profitability by applying your analytical business skills and acumen on the points discussed above. If you do so, you may just find that “pot-o-gold” you have been looking for!