3 Best Practices for Empowering Your Profitability
Profit – It’s such a simple word, but for your business, it’s the difference between seeing green or red. Discovering how to improve profitability doesn’t always mean gaining new business; it could also be as simple as raising prices or adjusting to annual payments instead of monthly.
A study by CB Insights found that 29 percent of businesses fail because of lack of funds. There are many ways to boost your profitability and avoid becoming a part of that statistic, but how do you know which best practices make the most sense for your business?
We’ve narrowed it down to three best practices that will help you see more green – and make your competitors green with envy.
Create a Lead Machine
Growing your business means you need leads, but how many leads does it take to increase profit, and how do you find them? We’ve discussed the three numbers you need to know for growth: one is the number of leads you need to produce a profit. This is determined by the total number of new clients divided by your close ratio.
Once you’ve figured out the number of leads you’ll need, you can focus on how to reach those leads. A lead machine incorporates all of your marketing collateral, including marketing strategy, website, list and data analytics, and promotional products. The resulting multi-touch marketing campaign delivers the insight you need to make sure your sales and marketing teams are working together to strengthen your ability to reach (and close) the right leads.
Institute Lifecycle Management
Once you’ve sorted out your leads, it’s time to take a look at the equipment your team relies on to get the job done. Older or outdated equipment usually requires more upkeep than newer hardware/software solutions. You should charge more or provide fewer SLAs for managed services of older equipment. This not only entices your customers to upgrade, but it widens the gap between how much time you’re spending fixing and monitoring your customers’ systems.
Aging equipment is also your opportunity to educate your clients on why equipment upgrades are the right way to safeguard their systems and data. Technology fails, and if you’re not taking advantage of when it does, you’ll miss out on significant opportunities. Leveraging solutions like RMM Goldminer (available exclusively to Marketopia partners) ensures you can identify those opportunities before they occur – whether your customer is running out of RAM or their Microsoft Office suite is about to expire.
Bill for Everything
Your time is money, and every second spent consulting for free with your customers is chiseling away at your profit. You may be tempted to provide free consultative services because you want to make an impression or you’re looking to drum up new business, but what you end up doing is giving away money.
When you learn to bill for all the services and time you spend on a project – including the free consultations post-appointment – you’ll start to see that money coming back into your business. Don’t be afraid to add buffers into your prices. If you know a job is going to require some teaching to prevent a problem from happening in the future, pad in the cost for that consultation in your bill for the project.
How Marketopia Can Help
Marketopia is your growth machine for increasing revenue and seeing green. From our lead machine to RMM Goldminer, we provide you with the tools you need to get more leads, more sales and more profit. For more best practices on how to improve profitability and how Marketopia can help, contact us today.