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Posts Tagged ‘revenue’

6 ways to add revenue to your creative arts business

Wednesday, March 21st, 2018

If you are in business, your goal should be to make money. Sure you have other goals that revolve around making a difference or sharing your art or building a legacy. I know that I do. Problem is that you can’t make as much of a difference if you aren’t making a profit in your business.

Making a profit is tied to increasing your revenue or decreasing your expenses or both. In truth you can only increase your revenue in three ways.

First, you can raise your prices.

Second, you can sell more to your current customers.

Third, you can find new customers.

This post focuses on six ways that you can increase your revenue. Some you may already be doing. Some you may have thought of and not tried yet. Some may be new to you.

Read more…

Are You Asking Better Questions?

Wednesday, February 26th, 2014

small_315302588This past week in my Creative Passion to Profit Business Building Program, we talked about wearing our CFO hats. You know, the one where you look at the numbers. I realize that lots of creative types do not want to look at numbers. After all, what could be creative about numbers? They are straightforward, no shades of gray here.

True, the numbers in and of themselves are not creative. What is creative is what you get to do as a result of looking at them. You can create new patterns or new classes. You can bring on an apprentice to help you. You can look for new markets for your art. You can look at ways to expand. You can do so much to make a bigger difference with more people. The problem is that you have to know what the state of your business really is. And the only way to do that is to look at your numbers.

So what do you look at and what do you do with what you see? First, you want to look at your Profit and Loss Statement. It’s also called your P&L. You want to see what profit you have made. That would be your revenue less your expenses. You may or may not like the numbers that you see. Remember the numbers are about your business, not about you so hold the judgment.

Now what do you do with what you see? You learn to ask better questions. You have two options to change the results of your P&L — increase the revenue side or decrease the expense side. Both require you to dig deeper into what makes up the numbers. Let’s look at the revenue side. You have three options here: increase the volume of sales, raise your prices, or improve your mix of business by selling current customers more. Now take those items and dig deeper by asking yourself questions.  If you take increase your revenue by selling more, how will you go about that? Where will you find these customers? Do you need to release a new product? Do you need to run a class that you know will bring in cash? What products are your big sellers? You would do the same exercise if you want to raise your prices. How much can you raise them to meet your needs? How does this meet with the competition? Can you decrease some of your discounts? If you want to improve you mix of business, you look at how you can up-sell to your current clients.

You will do the same thing on the expense side. If you want to lower your expenses, you can improve your efficiency or avoid some costs. Again, you dig deeper into what the numbers show and ask more questions.

In both cases it is about looking at what drives the results. You cannot manage the end result, you can only manage your actions, metrics and decisions that produce that profit. And, once you see what they are, it’s time to get creative.

Are you asking the right kind of questions?

 

PitsLamp photography via photopin cc

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