One of the vital ingredients in running a successful business is a consistent inflow of new customers and profit potential projects. Business can only survive and become self-sufficient with enough customers and clients willing to pay for value and services that the enterprise creates and, most importantly, at a profit.

When you are just starting your venture, the number one rookie mistake is blindfolded acceptance of anyone with the “cheque book and pulse” as a client or a customer.

Almost anyone who operates a business wants as many clients as possible. Chasing a magical number of new revenue-generating clients is equally applicable to those who have just started their business and those who have owned one for a long time. You see, there is a somehow false impression that more clients equate to more revenue and then subsequently in more profits. But the truth is fundamentally different.

Increasing business profits isn’t only met by attracting more clients, mainly if a client’s acquisition is at a loss without the strategically worked back-ends, selling points and up-selling opportunities.   We all know that every beginning is a challenge and effectively “race against the bankruptcy”. If neglected, several critical steps may cause more pain than pleasure to businesses that ignore them.

I use to say; there is always more to the matter than what is visible on the surface.

That alone is sufficient to conclude that more reasons influence the outcome as to why the business doesn’t make as much money as it should besides not having enough clients.

Simple but yet potent tactics to identify profit opportunities with ease

Here are a few visible, easy to spot and simple, yet effective business tactics that will help you unlock hidden profit opportunities with ease in your business. Subsequently, explained are some reasons why things aren’t operating at their full potential as they should.

The false assumption that quantity necessarily produce better quality

Don’t focus on quantity; quantity seldom results in profits and sanity. Mathematically, odds are working in your favour. However, the rules of business growth often go against mathematical formulas and hypothesis.  It would be better to create client profiles and strategically seek opportunities to work with your ideal types. Put the focus on getting closer to prospects willing to work with you, those in need of your services and products and in a position to pay for services and value you create.

Most importantly, you can’t be everything to everybody, but you can certainly be something to somebody.

Avoiding positive discrimination due to the false assumption that all the project are equal in value and complexity

Focus your resources on the essential and high-value projects – Running a business takes a lot of work, so let the employees handle the day-to-day issues. In contrast, you take care of the important ones, such as developing strategies for present and future growth.  Set aside quality time each week to brainstorm ideas, develop and implement strategies and nurture key business relationships. Trust me, rewards and opportunities are in your lists of connections, associates and clients. The higher the number of the ideal type of connections you have, the brighter the prospecting future will be for you.

The more you “positively discriminate” and, by doing so, protect your most valuable resources, the better results and valuable opportunities will come your way.

The false assumption that the market moves slower than the business

Carry out competitive intelligence on other successful companies, especially direct competitors and try to emulate their success. Knowing what competitors are doing doesn’t simply imply copying whatever they do but instead gaining competitive insights and awareness of how the competitive field looks. Study success, get familiar with the structures, models, strategic choices and competitive positions they occupy.

Sometimes, the answers you are looking for are, to some degree, hidden in your industry, so look for thriving businesses in close sectors that are not your immediate competition.

Take the best parts of your research and apply them to your situation.  Keep a close eye on your “most critical numbers” and core priorities. It would be best to control what is in your direct sphere of influence and under your responsibility. Everything else that you can’t influence you probably can’t control. My point is that you do everything to preserve your game and improve whenever and wherever possible regularly. That is how you improve your competitive position;  by studying others’ success, emulating what works and being aware of strategic choices and taking focused actions towards your desired aims.

Spending faster than earning on non-vital expenses and projects

Depending on your business sentiment and experiences, you will make certain decisions where money invested won’t produce results as expected. Sometimes, no matter what you do after the critical decision has been made, results won’t come your way because they follow the path of “ill preparation” and “emotional spending”. If accompanied by the lack of experience and false information on hand,  poor performances are almost guaranteed.

Business investment decisions should be informed choices or close to it. Commitment should follow the research and “important number crunching”, not the other way around.

Elimination of unnecessary overheads and ineffective processes that cost you money is the core responsibility. Track sales as a result of expense and establish a direct correlation between the revenues and costs – only what produces income and directly connects to profits should be allowed.

Business is about testing – what works and what doesn’t. When testing business ideas, you confirm and validate the initial business hypothesis and your value proposition.

Test, improve, measure consistently and measure what matters. Find a modality that works before dumping tons of resources in campaigns doomed to fail from the start.

The false assumption that “Low-Cost Strategy” guarantees competitive advantage

Competing on price is a “suicidal” move but has nothing to do with bravery or sound business practices. Being a low-cost provider is desirable, but it has no business sense to base the whole business model on being the cheapest provider.  My point is that there is always someone willing to do it cheaper, and then you have a price war where margins are eroding and services are commoditised.    Instead of solely competing on price, develop an ultimate strategic advantage by providing more value.  Emphasise strengths and potentials, create movement and fans, provide services that are memorable and your business will stand. Then, it is a new level and a whole new positioning in the industry.

Communicate with clients and find out if they are excited and satisfied with what you offer and deliver.  Ask for suggestions for improvement, ask for honest feedback. Dissatisfied customers will not return, while a delighted client will refer others.

The false assumption that grass is always greener on the other side

Nurture existing clients.  Instead of focusing on acquiring new customers, concentrate on nurturing and maintaining the clients you already have! Ensure they are pleased with the services you provide. Focus attention on their needs, desires, wants and finally, complaints. Honour your promises; your word is your ultimate guarantee “stamp”, mainly if the client’s financial wellbeing is at stake.  It is crucial to establish and maintain good relations with your clients, as they are the ones who keep coming back, bring their associates and friends and keep your business running.

The false assumption that selling is hard and you are not good at selling

Whatever your business situation or life experiences are, the fears and self-doubt your false beliefs create will always attempt to stop you in your tracks. The good thing is – help is available, and you are not alone. Look, the ultimate medicine for all your self-belief issues is – action. Action creates movement; action brings prosperity; action dismantles both fears and self-doubts.

You have to do it, and you have to believe it because if you don’t, who else will believe in you?

To improve your business, you have to become a master of selling.

Encourage cross-selling and upselling more to existing clients, JV partners, in essence, people you already know and people that know you and what you do.  Upsell, cross-sell, cross-promote and add on other products/services.  Selling extras is known to be an excellent method of increasing profits.

One of the core strategic objectives is improving a client’s lifetime value by offering more services, increasing service value, and increasing transaction frequency.   Once selling and marketing activities perform with precision, referrals would come your way. Referrals, the most potent growth tactic,  lower your acquisition cost tremendously and add to the bottom line, profitability and sustainability.

Increase your advertising effectiveness because it will position your business in a way where minimal selling and marketing would be necessary. I know advertising is expensive, but the money will definitely return to you if things work well. You can also try to make the best use you can out of free advertising. Get the most out of promotions and limited offers, especially around holidays, special events and important dates.

The false assumption that you can do it on your own in business

I am not arguing or forcing my opinions on you, but you must create winning teams to win in business. Complementary people with skills that compensate for your shortcomings will provide you with strengths and support where critical. Your power to succeed in business directly correlates with the professional and mental strength of the people you surround yourself with.

So don’t be a smart ass and avoid the need to be the most intelligent person in the room all the time. Credit the effort, honour great performances, surround yourself with experts and winners, and your business will thrive.