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Hey,
And just like that, welcome to December 2023 🤯
It’s that time of year when most of us start pulling out spreadsheets and calculators to crunch the year’s numbers. If you think there’s room for improvement (there always is!), then you first knee-jerk reaction might be to grab ahold of your expenses and start slashing.
It’s a natural place to start, right? It’s easy to do, and the math seems simple: cut costs, boost profit.
But is that really going to make the biggest difference for your business going in 2024?
There’s no reason to be out there wasting money — and keeping expenses in check is important — but it’s really not the biggest lever you can pull to increase profitability. You can only cut so far before you start hitting bone — and then what?
Your time might be better spent looking at the other side of the equation — generating more revenue. Sure, it’s a little more daunting than canceling a few subscriptions, but it’s more likely to make a much bigger difference in the long run.
Here are 3 things to chew on…
- Raise your prices. Yeah, it’s scary, but why? You’ve gained new skills, improved your services, and had to deal with inflation hitting your business too, right? Not raising your prices might actually mean you’re taking a pay cut.
- Find upsell opportunities. You probably have more than a handful of clients that absolutely love you — and it’s a whole lot easier to sell to them than it would be to try and convince someone new who doesn’t know you. Are you leaving opportunities on the table?
- Narrow your focus. Increasing profits doesn’t have to mean doing more or working harder — sometimes it could be a matter of trimming the fat. Don’t just analyze your profitability company wide — take time to see which services best suit your business.
If I had to place a bet on the agency that will be most successful next year, my money would be on the agency focusing on any of the 3 strategies above over the one that’s focused pinching pennies.
Imagine you sign up to run in a race and you really want to beat your time from last year. But, instead of getting out and putting in the miles to get yourself in better shape, you decide you’ll just wear less clothes.
Sure, being a little lighter could improve your time — but it’s not going to take you from worst to first.
Cutting your expenses to make yourself more profitable is similar… It may save you a fraction here or there — but it’s not going to transform your business.
With a little bit of focus, I promise you can outsell more than you could ever save.
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