Jumping Off the Revenue Rollercoaster

When my children were small, my home office doubled as a playroom for the kids. On this memorable day, all three kids were sitting at my feet, playing with toys and happily eating dry Cheerios.

My political consulting business was doing well but the revenue ups and downs were frustrating - and embarrassing. Running campaigns and political fundraisers for candidates, I only made money during ‘election season’.

After several calls, I figured I had about 10 minutes before the gang would clamor for lunch. My phone rang but I didn’t pick it up right away, since time was running short.

At the last second, I grabbed the phone – and that’s the moment I jumped off the revenue rollercoaster.

I was happy to hear Mary’s voice – and her question: “Would you join my team?”

Mary was lobbying the state legislature, and that work happened all year, every year, for local, state, and federal issues. I didn’t have to wait until ‘election season’ to make money.

I had been advocating for specific issues for years, but not as a professional lobbyist. Mary’s invitation seemed like a wake-up call to even out and increase my revenue by adding this specific service.

Within six months, I doubled my revenue. Oh, and the kids had lunch on time that day!

Today’s Question:

What service do you offer that works in any ‘season’? Have you noticed any trends when your revenue is up or down from year to year?

But Here’s the Twist . . .

Generating more revenue is not solely about raising your prices. If it were that simple, everybody would routinely increase their pricing and call it a day. Your pricing strategy can help you grab the whole cookie if you know the secret ingredient.

Just about everyone thinks you must work more to make more. But if you build a pricing model that aligns with the value you deliver, you will create consistency and flexibility in your business.

Most small businesses are operating with outdated pricing models. (Yes, hourly billing, I’m looking at you!) If you’re afraid you will price yourself out of the market, will lose clients, or won’t be able to attract ideal buyers, you’re in good company. Many women feel this way and grapple with how to talk about their pricing.

Are these thoughts running through your mind more often than you want to admit?

• How do I break the news that my services are really expensive?
• What if I get pushback and don’t know how to handle that?
• What if buyers ask me questions about my pricing that I can’t answer?
• Won’t people judge and criticize me?
• What if they want to negotiate my fees?

 
The secret ingredient and the quickest way to generate more revenue with less stress is to build a structure and rationale for your pricing.

When you build a pricing model that aligns with the value you provide to your ideal buyers, you naturally open opportunities to hire quality staff and develop infrastructure to support your continued growth. You may find you don’t need to serve more clients.

You’ll notice I’m not talking about raising prices. You may need to increase prices – and you may want to – but the secret ingredient is having a structure.

-- Excerpt from Patty’s book, Your Hidden Advantage: Unlock the Power to Attract Right-fit Clients and Boost Your Revenue

Now What?

My bite-sized lesson from Mary’s call? Be open to opportunity when it comes calling and build on the opportunity to create the outcome you want. I was so focused on consulting; lobbying didn’t occur to me.

Mary recognized my skillset and provided that first opportunity. Then I focused on positioning my company in the market and refining my prices to even out and increase my revenue. 

That strategy ties into one of the biggest value drivers in your business: consistent, predictable revenue.

Intentionally building value and positioning your company for your exit is a solid business strategy. While you are planning your transition, you will make more money, lift the burden of the business from your shoulders, and find balance between work and leisure.

Exit readiness is a strategic and ongoing process that involves setting the stage for a smooth transition, maximizing business value, and ensuring your legacy endures.

Women who have successfully exited their business have shared with me that the most successful way forward was having a trusted, knowledgeable business advisor who could be objective and caring.

That’s the role I fill, helping the owner with the practical, emotional, confidential, and logistical puzzles that plague the exit process.

Even if your planned exit is 5-10 years down the line, the time to prepare is now.

An Elegant Exit™ requires a new way of thinking, new skills, a simple and elegant design, and an advocate on your side. Contact me to learn more. 

Discover your Exit Readiness Index™ with this assessment: http://she-exits.com/