Every business is different yet every business basically operates in the same way. The products and services change but the basics never do. So why are some business owners having such a hard time accessing the money that is hiding in their business? Why is it so difficult to free up capital? Wouldn't you like to have more money to expand your business and take it to the next level? Let me show you a simple exercise to doing so.
Every business, without exception, lives by the graces of its customers. These might be purchasers of your products, users of your services or a combination but they all pay you for solving an issue they have. The trick is to supply your product competitively while you make a proper margin. As always, the customers set the price of your product, not you! Customers have choices and will inevitable choose the best value for money, whatever that may be.
Knowing that the price is set by the customer, you have to make sure the price you charge matches the price the customer is willing to pay. If you are under the price the customer is willing to pay, you leave margin on the table. If you charge too much, your business will ultimately fail. So the first exercise is getting a clear picture of just how much your customer is willing to pay. What features is he expecting and what features is he willing to pay extra for? Do you really know? When was the last time you asked your customers as well as all those that decided NOT to buy from you this question? Are there features the customer would be willing to pay a premium for that you don't offer? Are there features you offer that your customer doesn't perceive as valuable? The first way to access capital is to maximize the price you can charge while supplying the volume you need. This is the first balance to strike to maximize revenue.
Now that you know the pricing, you can focus on your production. Stop spending time or money on anything that does not directly benefit your customers. You now know what your customers want so stop wasting any time or effort on any actions that do not benefit them. Stop wasting time on features that are not perceived as valuable and certainly stop working on any features your customer isn't willing to pay for.
This exercise should not take long but involves your whole organization. It is the cornerstone of driving your profits and you see results very quickly. The improved results is the hidden capital you had in front of you all along. Try it, you might be amazed at the results.
With your success in mind,