As business owners, most of us have vivid dreams of growing and scaling our companies.
Often though, we hit a point where it feels we are running against a wall
Where what used to work is fading… like a computer’s battery after a couple years.
Acquiring another business seems like the only way to grow …. and that’s not possible for a lot of us right now.
But there are other things we can do before we go down an acquisition path.
And it has to do with leveraging the drivers of growth that we often overlook or consider not applicable.
But they are practical and can be used today.
Not only to build a more valuable business down the line if you ever sold it, but also to build a stronger, profitable business today.
It’s a big topic that we cannot fully cover today, so I’ll just talk about pricing and give you some ideas to think about.
Organic Growth through Pricing
Many of us feel powerless when it comes to pricing.
We feel we are at the mercy of “what the market will pay” or what our competitors charge.
But if you are able to differentiate yourself from your competitors.
If you have a customer base that is loyal and buys from your repeatedly.
Then guess what… you are doing something right.. and you can raise your prices by increasing the value of what you offer.
And become creative with how you increase your pricing.
For example, if you provide services, Grandfather in prices for your loyal customers who have been with you the longest while charging more for newer customers.
It’s a philosophy I am seeing more and more – especially with information providers.
Also set the agenda with your pricing.
Is what you provide really determined by 60 minutes?
For example, a business owner came to me after being approached to buy her company. We went through a business audit and had a 60 minute consultation.
In the consultation, I pointed out her business’s strengths and weaknesses, and things to think about while negotiating with the potential acquirer.
A couple weeks later, she came back to me and told me that our 60 minute consultation helped her negotiate a $350,000 increase in the value of her business, and that she was close to finalising the deal.
So should I price my expertise at $350,000 an hour?
Of course not.. that’s insane…
But it’s also insane to discount my expertise to $0.35 an hour because some clown is offering that rate online.
So, price what you provide based on the impact and value you give, and then multiply that by any transformation you help your customer achieve in their life.
Your pricing reflects how you feel about the value and quality of your solution.
Raise your game and do the same with your pricing.
Over the next several days, we’ll talk about other organic and growth strategies.
Thinking About Selling Your Business
We know you’ve worked hard on your business. What if we told you there’s a way to make it even better, and position it to sell one day at the top price? With Socratic Scaling, we can show you how.
In as little as six months, we can help your business stand out, scale up, and become something others would have to pay top money to buy.
The best part is these benefits start today. Even if you don’t want to sell, your business will put more money in your pocket, free your time, and be more enjoyable to run.
But you need to start getting ready now. Don’t be like the 7 out of 10 business owners who put it off until tomorrow and then find out they’re stuck with profitable businesses that no investor wants to buy, or child wants to inherit.
Click here to transform your business to give you the life you want – starting today.