Hidden Profits in Plain Sight: Simple Steps to Boost Revenue and Cut Costs

Is there hidden profit lurking in your business? For many small businesses, revenue can flow in but slip away just as quickly—leaving owners wondering where all the hard-earned income has gone. In a recent episode of The Tiny Marketing Show, I sit down with profitability strategist Peter Giordano III to explore how businesses can uncover these hidden profits. By setting realistic revenue goals, trimming unnecessary expenses, and maximizing customer value, they reveal simple but effective tactics for transforming revenue into sustainable profit. Curious about finding untapped income within your own business? Read on to discover the strategies that can help you take home more by making the most of what you already have.

Why Hidden Profit Matters

For small businesses, focusing solely on revenue growth isn’t always enough to ensure profitability. By uncovering hidden profit, businesses can take home more revenue without having to continually ramp up sales. Giordano, an operating strategist, explains how understanding the true mechanics of your business can be transformative: “All gears in a business—sales, marketing, and finance—are connected. When you move one, the others respond.” It’s about optimizing what’s already in place to make every revenue dollar count.

Subscribe to the Tiny Marketing podcast on YouTube or your favorite pod platform.

Setting Realistic Revenue Goals

Too often, entrepreneurs set revenue targets that don’t align with their actual needs or goals. Giordano and Block recommend a three-tiered approach to setting financial targets:

1. Need – The essential revenue to cover your fixed costs and stay operational.
2. Want – The additional revenue for goals like paying off debt or adding to savings.
3. Desire – The revenue that would allow for extra benefits, like vacations or dream projects.

By categorizing expenses in this way, you gain a clear understanding of what you truly need to earn. Giordano also suggests adding 30% to cover taxes, which many entrepreneurs overlook initially.

Identify Your True Revenue Goals Using a Formulaic Approach

One of the most insightful takeaways from the episode is Giordano’s approach to calculating maximum revenue potential within the business model you already have. Begin by analyzing:

• Fixed Costs – Your regular expenses to run the business, such as rent, utilities, and salaries.
• Variable Costs – Expenses directly tied to delivering your service or product.
• Pricing Strategy – Are you charging enough to cover these costs while generating profit?

By examining your service offerings, business model, and pricing, you can set revenue goals that are both ambitious and grounded in your actual financial needs. Knowing these numbers makes it easier to determine exactly how many sales you need to reach your goals.

Common Profit Drains—and How to Fix Them

Giordano outlines five key areas where profit is commonly lost in small businesses, explaining how entrepreneurs can reclaim it:

1. Unnecessary Expenses – Take a hard look at costs like software subscriptions, office supplies, or services that aren’t adding measurable value. Simplifying and reducing these costs can provide an instant boost to profitability.
2. Time Inefficiencies – How much time does it take to deliver your services? Conduct a time audit to identify processes that can be streamlined. Consider automating repetitive tasks or outsourcing administrative work to free up more time for revenue-generating activities.
3. Pricing Adjustments – Pricing is one of the biggest levers for profitability. Giordano explains how a well-positioned price not only boosts revenue but also attracts your ideal client. Assess your pricing strategy regularly to ensure it aligns with your value and market positioning.
4. Sales Volume – Increasing sales volume can be as simple as improving conversion rates on leads you’re already generating. Understand your customer journey and where prospects drop off. Optimizing your process here can lead to significant revenue gains without major additional investments.
5. Enhancing Customer Lifetime Value – This is a powerful way to boost profitability. Consider what additional services, cross-sells, or upsells would benefit your clients. A well-timed, valuable follow-up offer keeps customers engaged and increases the value they bring to your business over time.

Reverse Engineering Your Profit Goals

A standout feature of Block’s approach is the 2025 Growth Playbook Experience, which she describes in the episode as a full reverse-engineering process for revenue goals. By mapping out how many leads you need, setting revenue goals based on realistic conversion rates, and creating a content plan, businesses gain clarity on what it takes to meet their targets. Block emphasizes, “We often hear about high revenue months, but how profitable are they? If you’re spending $80,000 on ads to generate $100,000 in revenue, is that sustainable?”

Save Your Seat here.

Action Steps to Implement Today

For entrepreneurs ready to uncover hidden profit in their businesses, here are practical steps inspired by this episode:

1. Categorize Expenses – Define your “Need,” “Want,” and “Desire” expenses. Use this to set realistic revenue goals that meet both your business and personal needs.
2. Conduct a Time Audit – Identify time-consuming tasks that aren’t directly tied to revenue. Streamlining these can open up more time for high-value activities like marketing and sales.
3. Optimize Your Pricing – Revisit your pricing strategy. Is your current price covering costs, providing profit, and aligning with the value offered?
4. Refine Your Sales Process – Track conversion rates to understand how many leads you need to hit your revenue target. Aim to reduce any obstacles that cause prospects to drop out of your sales funnel.
5. Increase Customer Lifetime Value – Consider follow-up offers, upsells, or partnership opportunities that add value and generate high-margin revenue without substantial extra effort.

Explore $10K in 1 Day for Profitable Growth

If you’re intrigued by this approach, consider Giordano’s 10K in One Day offer, a popular service where he helps businesses uncover $10,000 in profit within a single day. Designed as a fast-paced yet comprehensive analysis of your business’s expenses, pricing, and operational efficiency, it comes with a money-back guarantee. As Block attests, Giordano has successfully implemented this strategy for other business owners, and many have found it eye-opening.

Mention Tiny Marketing when you book your 10K in One Day and you get 25% off!

DM Peter to get started.

Scale Smarter with Tiny Marketing

With a thoughtful approach to business expenses and revenue, you can uncover new profit potential right where you are. By defining clear revenue goals, assessing costs, and optimizing pricing, you’re creating a roadmap for sustainable, profitable growth. For more insights on maximizing your B2B business’s profitability, tune into The Tiny Marketing Show, and be sure to check out the 2025 Growth Playbook Experience for a guided plan toward meeting your goals in the coming year.

If you liked this, you'd love the VIP list, where you get first access to new offers, masterclasses, and podcast episodes.