Now that we’ve gone through the core strategies to scale your services profitably:
✅ Task Unit Design (people)
✅ Task Unit Profit Design (maths)
✅ Optimizing for Growth (strategy)
And discussed the sales side of the equation to put an end to selling your services (again if you sell a product, replace the word “services” for your product)
It’s time to discuss the 7 profit levers under the hood to continue to support your scale and improve profitability in the long haul.
I’ve identified and pulled specific levers that have had clear outcomes of increasing opportunities, sales and profit (there might be more and if there are, please let me know)
As we go through these levers you will be tempted to want to apply all of them into your business at once.
I urge you to not.
Why? Revenue and profit generating activities are non-linear. As you focus on one profit level, you will naturally attract and focus on another, then another and another.
Instead, focus only on the 1 or 2 levers you need to hone in on for this quarter or year as you begin.
Here are the 7 profit levers you have power and influence over to determine the health (and growth) of your company:
1 – Price
2 – Sales Volume
3 – Upsells/Upgrade Rate
4 – Win-Back Rate
5 – Client Lifetime
6 – Referral Rate
7 – OpEx & Labor Efficiency
Together we will go through each of these separately and dive into a few strategic points to consider as you look to positively influence each lever.