15 Commonly Overlooked Ways To Boost Profits And Revenue
Nov 18, 2020
A simple Google search will help you find plenty of methods businesses can use to increase their profits and revenue. However, most become less effective once they hit the mainstream. After a critical mass of companies have adopted them, they are no longer truly innovative, and the law of diminishing returns can leave you throwing too much of your budget toward implementing ineffective strategies.
When it seems like every company is taking the same revenue-boosting measure, consumers grow used to it, and the tactic’s power to influence wanes. Fortunately, even among the standard approaches, a few underutilized gems stand out.
Forbed Council asked 15 members of Forbes Coaches Council to share their thoughts on the most commonly overlooked strategies for increasing profits and revenue. See their ideas below.
Members discuss underutilized methods of boosting profits and revenue. Photos courtesy of the individual members.
1. Find The ‘Hidden Gold’ In Your Sales Team
You will find "hidden gold" in your sales team by identifying members of the “middle club.” This club includes performers who attain 50% to 80% of their quota. Sales managers often focus on the overperformers and the overall team’s attainment rate. In my experience, you will find half or more of any sales force stuck in the middle. - Barry Michael George, Impact Global Coaching LLC
2. Reduce Employee Turnover
Employee turnover is the most obvious area to tackle, but it is surprisingly overlooked as a norm. Turnover is expected. Often, companies don't try to get to the root cause of it, even when it's the manager that's at the root. Adding to your bottom line starts and stops with employee engagement. You can't have that with turnover. Turnover is the sucking sound of your profits draining. - Shelley Smith, Premier Rapport
3. Use A Science-Based Hiring Process
When companies use a science-based hiring process, which includes the right pre-hire sales assessment, they hire better salespeople and exponentially increase revenue. Many firms use a haphazard process for selecting sales hires. Hiring mediocre salespeople makes it impossible to maximize revenue. Nearly 40% of the companies surveyed in a recent study projected that less than 25% of their salespeople would meet quota this year, resulting in lost opportunities for success. - Andy Miller, Big Swift Kick
4. Examine Your Current Talent
Consider the often-forgotten talent equation. Increasing revenue begins with the talent you have on the team. Begin by examining the skills, talents and strengths of the team members. Where might you not be taking full advantage of these strengths because you have under- or over-defined the leader’s position, creating limitations? What's the impact of how you think about the person? - Angela Cusack, Igniting Success
5. Focus On Your Product's BenefitsWhen attempting to persuade someone to buy your product or service, it is important to focus on the benefit it provides, not simply its features. A feature is a statement about what your product or service can do for your customer, while the benefit shows the end result. In most cases, audiences don’t care what your product can do, they only care what your product can do for them. - G. Riley Mills, Pinnacle Performance Company
6. Implement Scenario Planning
Scenario planning continues to be a business tool that is often overlooked or implemented incorrectly. Used properly, the process can help make an organization more nimble and responsive when the unexpected happens. Being surprised by or mishandling a disruption to the flow of operations can affect a company’s reputation and credibility, and in severe cases, it can stop business operations altogether. - Cheryl Procter-Rogers, A Step Ahead Consulting and Coaching
7. Leverage Customer Divestment
Customer divestment is a viable strategy for increasing revenues and profits. Work with your sales, service and marketing teams to identify those customers who show no signs of being profitable and serve no strategic purpose, and take actions to terminate those relationships. To protect your brand, express your gratitude for their business and recommend alternative providers. - Alexandra Friedman, Friedman Business Solutions
8. Develop A Customer Experience Plan
What is your customer experience plan? Do you have one? It is key to making the experience for your buyers a memorable one worth sharing, but too many companies neglect developing an exceptional customer experience plan. The best plans are the ones that speak to the customer's emotions. If you need a good example, look into companies like Chick-fil-A and Trader Joe's. - Kurt Faustin, Kurt Faustin
9. Raise Your Prices
The one strategy I see that is most overlooked (and also makes owners uncomfortable) is raising prices. A 2% price increase in a business with a 10% profit margin nets a 20% increase in profit. You must judge your service and your target customers' price sensitivity, but do not ignore this very powerful strategy that you have available to you. - Sturdy McKee, SturdyMcKee.com
10. Train Your Managers To Be Coaches
Train your managers to be coaches, not task managers. Gallup research has shown that employees with great managers see 27% more revenue per employee, on average. Being a great leader is a skill that comes from learning and practice; it's not inherent. Invest in leadership training focused on practical application that offers the opportunity for reflection and follow-up. Under this leadership, your team members will blossom into high performers who give 110%. - Aaron Levy, Raise The Bar
11. Lower Your Expenses
Often, leaders only think of acquiring more customers or increasing prices. I worked in the corporate world for many years, and after owning my own business, I better understand how much money is wasted that could be saved. There are small adjustments—from printing in-house documents in draft mode to turning off lights when you leave a room—that add up to big savings and do not require people cuts. - Michelle Braden, MSBCoach, LLC
12. Inspire Employees And Stakeholders
Inspiring your employees and stakeholders is one powerful way to drive profits and revenue. When people are inspired, and I'm not just talking about sales and business development people, they will propel your business forward. In difficult times, so many organizations focus on the expense-reduction side of the equation. What if they invested in inspiring their workforce? - Juliette Mayers, Inspiration Zone LLC
13. Take A Deep Dive Into Your Business Model
A key strategy for increasing profits and revenue is to take a deep dive into your business model. Business model innovation can drive immense growth when well-positioned for how your core customer wants to buy. Business model innovation does not take a lot of resources, just the discipline to brainstorm with your team for maximum market impact. - Shannon Byrne-Susko, Metronome United
14. Improve Operational Efficiency
One strategy consistently leads to dramatic growth for my clients: improving your operational efficiency. Most organizations bleed 20% or more of their potential profits through time, energy and opportunities that are lost due to unhealthy conflict. The primary driver of that conflict is usually a lack of clarity regarding expectations and goals, roles and responsibilities, and processes and systems. - Christian Muntean, Vantage Consulting
15. Ensure Effective Leadership And A Solid Culture
Ensuring effective leadership and a solid culture is an overlooked growth strategy. When businesses do not focus on those two aspects, revenue and profits suffer. Effective leadership and engaged employees have a direct impact on the bottom line. The businesses that remember this during tough economic times often thrive and come out stronger when the economic environment shifts back. - Renelle Darr, InSight Coaching & Consulting
