How to make additional bucks during 2017
Whether you are a startup or small business in consultancy, when you’re about to hit the Q2 mark, this usually stands for another great opportunity to double check your tasks and re-establish your goals.
If you’re all about boosting revenue, some business adjustments tag along together in order to increase profit.
Let me share 3 simple advice to win additional money during the rest of your business year:
Turn your products or service into an investment, not an expense.
If what you offer is simply thought as ‘just another service, it’s more likely seen as an additional expense to your customers. Let’s face it, nobody enjoys expenses. People will always seek for a bargain, but see, that’s definitely an advantage for you! Customers already give importance to an investment whereas an expense is just another headache. Strive positioning your brand as profitable for your customers, not only during the current present, but also for the long run.
When you talk about your business, let people know how much you offer irreplaceable experiences or unique qualities. If price is pops up into the discussion, avoid the words ‘cost’, rather refer to it as investment. Another useful tip is when talking about budget, know your customers goals with your product. Make sure you consider them while establishing your price for the value of your work and services.
Price per value, not for time-frame.
A common denominator is pricing based on the time you invest during a project, which more often than not, it means it degrades your job during the process. Some projects might take longer to accomplish than others, but could deliver the same value. Does this mean you should charge more to customers when, at the end of the day, the result is practically the same?
Customers are interested in final products and all the benefits it could offer them. Let’s suppose one client is so confident a website redesign for his business will provide additional $25,000 per year. If you charge at a rate per hour, perhaps you might make around $1K or $2K. However, if you offer your service as a feasible investment which will provide profitable returns in a near future, placing a price tag of $5K sounds more reasonable when you place value over the project rather than just a simple service.
Keep your accounting in order.
Plenty of business owners and founders are passionate about what they do and have little interest (or time for that matter) for constantly handling balance sheets and what not. However, keeping daily track of cash flows and income statements are key pieces to learn (and avoid) mistakes.
For instance, your income statement shows where you’re making minor mistakes and where you should focus your energy. Paying attention to these numbers can make a huge difference from a rising business to a falling one. It also helps you identify areas where (and should) increase value in your projects.
There are plenty of business tools available for business owners everywhere which allows them monitoring what’s working and what’s not.
Money issues are at the top of the list more often than not. When you check your quarterly results, it’s strongly suggested to spend time making minor tweaks in order to achieve those goals you’re aiming for.
Once your clients can relate the value they invest in you and your business, you’re on your way in becoming a trustworthy partner. When your time invested in your work is fully understood and appreciated, your services will start to sell by themselves thanks to a positive rep.