One of the common mistakes entrepreneurs and business owners make is to chase the hottest trends, rather than follow the tried and true paths to cash. There is so much focus on the ‘shiny and new’ that people often overlook the most obvious revenue channels that are right in front of them.
Some of the statements and questions that I hear during a discovery call with prospective clients are:
- I need more marketing ideas!
- Where can I find my ideal clients?
- My profit margin is low and I don’t know how to increase it.
- How do I stand out from the competition?
These comments come from both 7-figure CEOs and business owners. You see it doesn’t really matter what stage of business growth you are in, the fundamental principles of marketing and sales (the lifeblood of all businesses) are still valid at each stage. Whether you’re trying to get over the plateau to 6-figures+ or scaling to 7-figures+ the basic business quest is the same: you want to make more money, get more clients and have a greater impact – without working harder, giving up your weekends or sleeping less!
While it’s great to find that one easy button that’s going to skyrocket your success, that is rarely how business growth plays out in the real world. Typically, it’s a combination of 2-3 really dialled in and consistent strategies that contribute to a business’ overall success.
Here’s a look at two paths to cash that many entrepreneurs overlook. Consider how they can help your business and how they can be integrated into your marketing and sales efforts.
Offer More Products or Services to Existing Clients.
If you’re always hustling for new clients as existing clients “end” their work with you, consider ways to offer more products or services to your existing customers.
Do you know that it costs five times as much to attract a new client then it does to keep an existing one?
When you extend a client’s time with you through retention, you save money on marketing costs, become more efficient with your time AND increase your profit margin. It’s a trifecta!
Take existing clients further on the journey with you or serve them more deeply. Think monthly retainers, group masterminds and continuity programs. Ask current clients: How else can I best serve you? What more can I support you with? Let the market inform the development of your next product or service. That’s the simplest and easiest way to grow sustainably.
I recently implemented this strategy with a client of mine and she increased her revenue by 30%. She spent next to nothing on marketing and sales, by offering a very specialized group program to existing customers, based on the results of a client survey we developed together.
If you haven’t raised your rates ever or even in the last year or two, it’s time to re-evaluate and likely raise your prices. Are you keeping pace with typical pricing for your services? Many business owners are significantly undercharging for their services. And too low rates give a false impression of lesser services.
Raise your rates to stay current and to demonstrate your own ongoing professional development and deep expertise. Consider at least a 10% increase … or even up to 50% if you’ve not raised them as you’ve advanced in your business. And if you’re still charging by the hour – that’s a big money leak.
I have a client who had been suffering from a low profit margin. She couldn’t understand why there was such a tight margin of cash in her bank account every month. She recently ran her numbers and discovered that the price for her main service offering is lower than the total all-in cost of delivering the service. Lower! Which means that for every client she delivers her service to, she’s barely breaking even or in some cases losing money. She’s essentially paying her clients, to work with her. We redeveloped her pricing strategy to not only include a healthy profit margin but to better match her ideal target client, too. The result is that her and her team are working smarter, not harder and they have more money in the bank.
If you found these paths to cash valuable and you want more, grab a copy of my no-cost guide: Fast Path To Cash. It’s a resource designed to help you create consistent cash flow, predictable results and double (or even triple!) your revenue, with much less effort. The actionable strategies in this guide will help you navigate the most common sales and marketing mistakes, so that you can earn more money by working smarter, not harder. Get details here.