What’s the first number people look at to get a sense of their firm’s success?
It’s revenue.
We always talk about SMB or SME (small medium businesses or enterprises) in terms of their top line revenue.
Whether it’s $10 million or $750K, revenue is the first number people look at when they’re assessing their firm’s size.
They measure growth in terms of revenue increases, and they measure danger in terms of revenue decreases.
Of course, profit depends on revenue. Was revenue high enough to generate the profit we want?
It’s natural to invest a lot into increasing revenue.
The challenge is how to do that?
Do you:
- Increase number of buyers at the current prices?
- Add services to attract new buyers or to entice current buyers to buy more from you?
- Increase prices for the current buyers?
Too many–maybe the majority—of companies focus on A and B above. They invest heavily in marketing, networking, social media campaigns, podcasts, books, webinars and so on.
Too many—maybe most—companies are afraid of C, increasing prices for current buyers, because they fear losing those buyers completely.
The problem with A and B, with relying on increasing the number of buyers or the volume of purchases, is that you have no control over these.
People buy for their reasons and with the relentless onslaught of efforts to capture every buyer’s attention, most will never see meaningful increases.
A revenue forecast for 1 or 2 years out is most likely a pipe dream.
You may feel good that you’ve done the work to put numbers in a document. You may even make plans to take the actions needed to make these plans come to fruition, like a specific marketing campaign. But you still do not have control over what happens.
Is it useless then to strive for increased revenue?
Not at all.
Focus on the things you have control over.
Like these:
- The IMPACTs you promise to deliver for fees proportional to those IMPACTs
- Your execution to deliver those IMPACTs
- What makes a great fit client for your firm
The IMPACTs you promise for fees proportional to those IMPACTs
Your company has full license to design options that make a difference in people’s lives.
I believe it is your obligation to design 3 options with different IMPACTs and fees proportional to those IMPACTs. When you do this well, your revenue will increase.
You have control over what you offer. And since you increase your knowledge and expertise every single day, the IMPACTs you can deliver are also increasing in significance.
Offer these new and better IMPACTs to your clients for new higher fees, not the same old offerings from years ago.
Your execution to deliver those IMPACTs
Once you’ve designed your 3 IMPACTful options and the client has chosen, you must go all in on execution.
This means that you’re eager to work with the client, quickly and as often as they need. You track progress and reports on it. You never limit the number of times you meet, work on, or other wise engage, nor do you add up the length of time you spend.
You’ll support them when they ask, and you prod them when they’re falling behind. Distractions are normal, it’s your role to keep the client focused on what it takes to get the life changing differences they’ve paid for.
It’s well known that ideas are easy, it’s execution that’s hard. Be the provider that excels at execution.
Know what a Great Fit Client is for your firm
Revenue will increase when your firm attracts and has signed contracts with great fit clients.
Before you can get them, you need to describe your firm’s great fit clients.
Demographics are usually immaterial to whether someone is a great fit client.
Here are 12 descriptions that could become your definition of a Great Fit Client:
- Describes to you during discovery a change or difference that is important to them.
- The life changing difference they seek is well within your area of expertise.
- Agrees that they are paying for these differences, not the tasks you do, or the time you spend, to deliver those differences.
- Appreciates getting these differences sooner rather than later.
- Is seeking a life changing difference in the 6-10 range on a continuum of significance.
- Has the money and willingness to pay your firm in advance.
- Will commit to the schedule you both agree to.
- Values unlimited communication as needed between you and them.
- Wants your specific provider model: authority, partnership, or implementation.
- Will share all the information you need in a timely manner.
- Sees engaging with you as important to their success, not an interruption of their other work.
- Is pleasant and agreeable to talk to.
You have complete control over the decision to make an offer to a prospect. You might choose to make an offer to a prospect who meets 7 or 8 of these criteria, rather than only those who meet all 12. That’s up to you.
The point is that you have control over who you accept as a client. Use that control and your revenue will increase.
IMPACT Based Pricing will increase your firm’s revenue. Trivers Consulting Group has hundreds of clients who have enjoyed revenue increases.
If it’s time for some outside help—if you see yourself in the list of great fit client attributes—let me know.
