5 Strategies to Instantly Add $20,000 to Your Bottom Line

Are you looking for simple yet effective ways to increase your business’s profitability?

Boosting your bottom line doesn’t always require thousands of dollars or hundreds of hours.

Sometimes, small, strategic changes can yield significant results.

Here are five simple strategies you can implement right away to add at least $20,000 to your bottom line.

1) Reduce Expenses

Every dollar saved is a dollar earned. It’s a fundamental yet often overlooked principle in business. Reducing expenses is one of the quickest ways to increase your profits. Here are some steps to get started:

• Cut Unnecessary Expenses: Review your financial statements to identify costs that may no longer be necessary or could be reduced. For instance, we saved $10,000 a year by reviewing the subscriptions we had.? One our clients saved $20,000/year in accounting fees.
• Renegotiate with Suppliers: Don't hesitate to renegotiate terms with your current suppliers. Bulk purchasing, longer contract terms, or paying early can sometimes lead to better rates. Suppliers value long-term relationships, so make it clear that you are looking for a mutually beneficial arrangement.
• Switch to More Cost-Effective Alternatives: Review the suppliers you’re currently using. Are there cheaper alternatives that offer the same value? Sometimes businesses stick with familiar suppliers out of habit, without considering more cost-effective options.

By carefully reviewing and optimising your expenses, you can find quick wins that add up to significant savings, directly impacting your bottom line.

2) Put Your Prices Up

Raising prices can be daunting for many business owners, who are scared they will lose customers. However, if you provide a valuable product or service, a small price increase is often justified and can lead to substantial profit growth.

• Assess Your Market: Before raising prices, check your competitor’s pricing. Are your prices in line with your competitors, and do they reflect the value you provide? Understanding your pricing in the market is a key to making informed pricing decisions.
• Communicate Value: If you’ve added new features, improved customer service, or enhanced product quality, make sure your customers know. Communicating the additional value they receive will help justify the price increase.
• Implement Gradual Increases: You don’t need to make a significant jump all at once. A small increase of 5-10% is often enough to boost your profits without noticeable pushback from customers.
• Know the Impact: In many cases, you can put your prices up and lose some customers and still make the same income.? And the ones you lose are the ones who complain about your prices anyway!? The impact on customers will vary depending on your Gross Margin.? For example, if you Gross Margin was 30% and you put your prices up 10% you could lose 25% of your customers before it impacts your profits.? Please let me know if you would like a calculator to help work this out work this out. ??

Remember, your customers are willing to pay more if they perceive the value in what you’re offering. Don’t be afraid to charge what your product or service is worth.

3) Add-On Sales

Add-on sales are a powerful tool for boosting revenue and profits. By encouraging customers to purchase complementary products or services, you can increase the average transaction size without acquiring new customers.

• Identify Complementary Products or Services: What additional items or services would complement your primary offerings? For example, a lawyer we worked with asked every client “By the way, have you updated your will recently?”? He sold an extra $20,000 in wills just with that one question alone!
• Train Your Team: Your employees should be trained to recognise opportunities for upselling. Teach them to suggest additional products or services that would benefit the customer based on their purchase history or current needs.? It is great customer service and also boosts your bottom line!
• Create Bundled Offers: Bundling related products or services together can provide perceived added value to the customer while increasing your average sale amount. For instance, a hair salon might offer a discount on a set of hair care products when purchased with a premium haircut package.? Or a home theatre shop may package up a tv and speakers.
• Use Checklists: Make it easy on yourself and your customer by using a checklist. This way you are not leaving anything to chance. A checklist will help you cover all the bases and it shows you’re prepared.

By making it a habit to suggest additional items that truly add value to the customer’s experience, you can drive more revenue (and profit) without much additional effort.

4) Follow Up Your Leads and Quotes

One of the most common reasons businesses lose sales is due to lack of follow-up. If you’ve taken the time to generate a lead or provide a quote, it’s crucial to follow through. This small step can often turn a “maybe” into a definite “yes.”

• Implement a Follow-Up System: Use a customer relationship management (CRM) system to keep track of leads and quotes. Automate reminders to follow up with prospects who haven’t responded to your initial contact.
• Provide Additional Value: When following up, don’t just ask if they’re ready to buy. Provide additional information that might help them make a decision, such as case studies, testimonials, or a limited-time discount.
• Answer Questions: If potential customers have questions or concerns, you can address them by following up. Whether it’s price, features, or timing, proactively resolving their questions can lead to the sale.
• Personalise Your Approach: Tailor your follow-up communication based on the customer’s needs and preferences. A personalised message shows that you value their business and are committed to meeting their needs.? Get permission to follow up when your present your quote or offering.

By maintaining consistent communication and adding value in your follow-ups, you’ll increase the likelihood of converting leads into paying customers.

5) Run a Promotion to Your Database

Your existing customer base is a goldmine of potential sales. Running a targeted promotion can drive a surge in sales and significantly boost your profits.

• Segment Your Database: Not all customers are the same. Segment your database based on purchasing behaviour, preferences, and demographics. This will allow you to tailor your promotions more effectively.
• Craft an Irresistible Offer: Create a promotion that provides real value. This could be a discount, a bundle offer, a free upgrade, or exclusive access to a new product or service. Make sure the offer is relevant to the segment you’re targeting.
• Create a Sense of Urgency: Limited-time offers or exclusive promotions for loyal customers can drive quick action. Use phrases like “limited time only” or “exclusive offer” to create a sense of urgency.
• Test and Measure: After each promotion, analyse your results. What worked well? What could be improved? Use this information to refine your next promotion and make it even more effective.

A well-executed promotion to your existing customers can generate significant sales quickly, with minimal cost.

Remember, these strategies aren’t about reinventing the wheel. They’re about making smart, simple adjustments that can lead to meaningful results.

Ask yourself: What small shift can I make today to add more profit to my business?

To your success

Rueben