A Cheat Sheet to Find Profitable Decisions

I wrote yesterday on how profit is hot again. Whether we like it or not, businesses need to shift their focus on finding profit levers that can be pulled without slowing down growth too much.

That’s why I created a cheat sheet to the six major areas any company can use to increase profit. Not every area will be relevant but the best find two or three and exploit them deeply.

1. Pricing

An obvious starting point. Simply raise your fees or find a way to decrease costs. Some companies find it easier to raise fees while others are dealing with highly sensitive customers. There’s a Japanese ramen place near my house that raised their prices by 20% overnight a few years ago. The demand dropped slightly but most people came back. Instant boost with minimal downside.

2. Value

Many companies are offering all kinds of value to customers and they aren’t being compensated for it. Free audits, onboarding support, ongoing help and other things can be put behind price walls. The goal isn’t to nickel and dime customers but to capture as much value as possible.

3. Technology

Another obvious and hot area right now. Better technology can reduce the need for human involvement. Think of how many people no longer visit a ticket counter to get their airline ticket and simply use their phone.

4. Customers

An underrated area for many companies. There’s plenty of customer segments which could have a higher ability to pay for your services. For example, think of all the baby boomers who are being forced to cash out their retirement funds and are ready to spend it.

5. Brand

A stronger brand makes it easier to raise fees, retain customers and drive growth. Airbnb recently realized that they don’t need to spend so much acquiring traffic because their brand is synonymous with vacation rentals.

6. Product

Releasing new products or improvements is another way to drive growth. PetSmart added multiple new ways to buy their products including curbside pickup and Autoship (automatically shipping orders).

In every area, rate your company on a scale of 1 – 5 in terms of how much you think you’re currently exploring profit opportunities. Many of my clients have plenty of room to explore at least a few of these areas.

One more thing before you go!

I have noticed a pattern among the best leaders. They have a high Decision Confidence, a term I use to describe their ability to make the right decisions and convey those decisions to others. I honestly believe that this is one of the most important skills to hone and build.

That's why I am hosting a 90-minute virtual event where I will talk about how to develop unshakable Decision Confidence. You will learn how to:

  • Develop unshakable confidence in yours and your team’s decisions
  • Increase the speed at which you make the right decisions
  • Help others make their own decisions without procrastination
  • Find more profitable decisions and tackle them boldly
  • Learn how to deal with high level of uncertainty
  • Use data to drive decisions while simplifying reports
  • Retain your best employees by giving the ultimate perk: autonomy
  • Stand out in organizations as a confident leader others want to follow
  • Move your organization into a higher gear without missing a beat
  • Learn how to build decision confidence using easy daily and weekly actions

The virtual event is happening on Tuesday, February 28, 2023 at 7:30AM – 9:00AM US Pacific Time. There's limited seating.

Learn how to increase your Decision Confidence to build your business, help your team make better decisions and accelerate your career growth.

Register for Event