Let’s face it … with the current economy we could all use some leverage to boost cash flow and profits, right?
So what are some ways that we might be able to gain some instant leverage? I subscribe to a newsletter by an Internet Marketer named Yanik Silver. A while back he sent out a one page diagram that outlined four distinct methods to create leverage. I figured now was a good time to review it for my own business and thought I’d share a few of the basics here.
- Transactional opportunities to increase sales; things like upselling and cross-selling, thank you emails, and continuity programs.
- Your Existing database; prospects, past customers, and referral sources
- Analyze existing areas of your business for possible leverage; can you license something? do you own any web sites that can be sponsored? Could you start earning referral fees for recommending a product or service?
- Pricing; ahh, the age old question of pricing. The tempation in a down economy is to lower your pricing (I know I’m guilty of that)… but that doesn’t provide any leverage. Instead, perhaps you should raise your prices, or create some tiers (good, better, best).
I hope this helps you to start thinking of possible ways to create leverage in your business. I know I’m looking forward to going through this with a fine-toothed comb and gaining every bit of leverage I can to improve cash flow and profits.
A wise friend of mine said to me the other day, “Tim, I’m really excited about the friction that you are experiencing in your business right now”. Why? Because through the challenges we will only become stronger as we learn to create better systems and more leverage.
If you’d like to explore leverage points in your business, I’d love to have a cup of coffee with you or talk on the phone. Together we can probably improve both of our businesses. Give me a call at 503.581.4554.