Are you a little bit perturbed about the money your business has (or hasn’t) been making of late? There’s likely a very good reason your business isn’t raking in the cash that you believe it should be, and here, we’re going to talk about it.
Read on for some very plausible reasons that your business isn’t making enough money and what you can do about it:
- Your pricing strategy is all wrong. Your pricing strategy could be all wrong. When many businesses start out, they set a low price just to get customers, so that they don’t have to compete too hard. However, you don’t want to become known as ‘the budget business’ – unless that’s your shtick. People are becoming more aware that they get what they pay for, and a very low price could actually put them off working with you. Instead, check out what your competitors are charging, realistically assess how much it costs you, and come up with a new price point. Just ensure when doing this, that you aim to add as much value as possible to the lives of your customers.
- You’re not offering enough ways to pay. Maybe your audience are put off because there aren’t enough ways to pay for your service. Some people will prefer to pay by PayPal than by card, and others will want to use a credit card. Looking into easy merchant account solutions will enable you to offer more ways to pay in a way that suits you. Look into it before you lose even more custom!
- You’re not attracting the right customers. Maybe you’re not attracting the right customers for what you have to offer. You need to take the time to define your ideal customer, figuring out exactly who they are so you can create marketing materials aimed towards them. You can ask yourself the following questions to figure this out:
- How old are they?
- What do they worry about?
- What problems do they face?
- Do they have a family?
- Are they married?
- Who are the customers who rave about my product without prompting?
- What are their job title and income level?
- What were the latest purchases they made?
- Which brands do they love?
- How does my product or service solve a specific problem they have?
- You have a bad relationship with money. Maybe the simple solution is to improve your relationship with money. You’d be surprised at how many entrepreneurs have a bad relationship with it. If you know your products is viable, you’re attracting the right people, your business is profitable and you’ve been keeping an eye on your cash flow, but somehow you still feel like you’re not making enough: your relationship with money can improve.
Many entrepreneurs explained how they worry about being rich, especially how it would affect their children. Many of them also said that they did not consider themselves to be financially secure, regardless of how much money they made.
If this sounds like you, improving your money mindset, e.g. the way you think about money, is a must.
Note: this post contains contributed content.