It’s Sunday and as I write this and we begin to kick off the week there are several ways business owners are losing money and in many cases they aren’t even aware. This article is to help you look at your own business and evaluate where you too may have some leaking holes. I’ve spent several years working with some of the world’s greatest thought leaders, most successful entrepreneurs, and small business owners and as a result I’ve come to realize these things whether one or all five have a significant impact on business and the ability to boost the bottom line.
If you currently make $10,000 a month and want to make $100,000 a month you’re losing $90,000 a month. That’s over One Million a year in lost revenue!
Here’s a simple exercise you can do to figure out how much revenue you or your company is losing.
Desired Monthly Revenue – Current Revenue = Revenue Loss X 12 (months) = Yearly Revenue Loss
If you currently work with clients who drain your energy, and take up your valuable time you’re losing massive amounts of money.
We’ve all been there. There are times when all of us at some point have drained our cash flow, aren’t getting clients as fast as we desire, have bills, investments, and other things that need our attention immediately. Or, we got comfortable and forgot to ask for referrals so we chose to take a client that didn’t fit our ideal avatar.
First let’s address having an avatar for your business. Most business owners forget that if their client isn’t an ideal client they’re not only going to be upset and unfulfilled throughout the process of working together but they also aren’t going to be driven to work harder to get other clients simply because the mindset people have when they take on clients under pressure puts them in a very vulnerable position and as a result revenues, time, effort, energy and money is lost at a very rapid and excessive rate.
So it’s vital that you know who you want to work with, how long you want to work with them, how much value they bring to your business as a client and how valuable you are to their business and then do NOT deviate from your ideal client. I spend a significant amount of time discussing ideal avatars with clients because if you don’t have one you’ll end up working with people you hate who suck the life out of you and that’s going have a far greater impact on your business then you might realize.
If you currently charge per hour vs. charging for the value you bring to the market place you’re losing money.
Most businesses can easily double their prices. I’ve multiplied my prices many times during the duration I’ve been in business but one thing has been evident from the beginning the greater your clients results the greater their investment should be in you. I just spoke with an interior decorator the other day who charges $200/hr. in Los Angeles. In a competitive market like LA it’s important to differentiate yourself and charging per hour isn’t going to do that. I asked one simple question that shifted the conversation from a price per hour to a value added proposition for both the home owner who needs an interior decorator and the home decorator herself. That question was; “When someone invests in getting their home redone what can they expect to get when you’re done with their home?” The answer was a new life, a feeling of freedom, a calm place to relax, a home where they feel comfortable, a place to call their own where they can invite friends and family and share food, fun, and freedom to exchange stories and experiences together. That is priceless. A change in environment is a huge shift and weather you’re changing an environment as an interior designer or as a coach look at your offer from a value perspective NOT from a price per hour perspective and the quality of cliental you attract as a result will automatically increase.
If you currently spend hours trying to figure out how to get the publicity and build credibility in the marketplace you’re losing both Time AND Money.
Obscurity is the #1 killer of businesses. I’ve seen thousands of business owners struggle with not getting their message and product out into the marketplace and it isn’t because they aren’t driven it’s simply because they don’t know where to begin without spending thousands of dollars hiring a PR firm or running FB ads. Here are a couple ideas that will get your started.
- Become a guest on radio shows and podcasts
- Contribute to other people’s blogs, magazines, and online publications
- Create relationships with people who can help you accelerate your growth
- Systematize your process so it can be duplicated easily
- Don’t be afraid to pick up the phone and make the calls you need to get the attention you want. Producers, publishers, and journalists are always looking for unique angels and stories to share but they won’t know about you until you reach out and make them aware you have value to offer.
- If you are currently are overwhelmed with knowledge but aren’t implementing the right things and executing at the highest levels you’re losing money.
We have access to all kinds of information very few know when to take what action and how that effects their levels of productivity. I speak with people all the time who have the drive and desire to become successful but don’t know where to start and what it takes. We as humans like to over complicate our life and business and as a result we can’t figure out what should be the first step much less the next step. There are several simple, effective, and easy solutions to multiplying your business and bottom line it starts with a simple realization that if what you’re currently doing isn’t working it’s time to make a change.
Photo Credit: We Heart It