How to Triple Your Revenue in 2021

Photo: Smith House Photo

Let’s talk about revenue.

Building a business means setting aside time to map out revenue goals and growth strategies. Which can be a daunting task if you’re a dreamer with big financial goals for your business this year.

For those of you looking at your current balance sheet and wondering how in the world you’ll get there by the end of the year, I’m breaking down a few simple, proven strategies you can implement to see massive growth in hitting that bottom (or top) line.

1. Raise your prices.

Want to know the #1 way to increase revenue without adding additional work? RAISE YOUR PRICES.

Spend an afternoon doing a little internal audit of your services, products & pricing. Determine how many clients you need to book or products you need to sell this year to reach your stretch revenue goals. If it’s a lot...as in, that amount of work will leave you completely burnt out, it’s time to start charging more.

For example, if this year’s annual revenue goal for your design agency is $100,000 and your average service costs $2k, you will need to book 50 client projects this year to reach your goal. However, if you start charging $10k for that same package, you only need 10 clients. And if you book 50 clients, you’ll make $500,000 in revenue. Simple. But hugely profitable.

If you’re wondering if it’s time to raise your prices, here are a few things to consider…

What is the value of your product or service?

The first thing to look at when deciding to raise your prices is the value your service or product holds for your customers. Will your offerings allow them to raise their prices? Sell more of their products? Book more clients? Reach new audiences? Gain new opportunities? Automate their processes? The list goes on.

For example, we have seen our clients double their revenue and quadruple their client roster after working with us. We've seen them go from being a brand nobody has heard of to an iconic leader in their field. The websites we build for our clients have the potential to bring in hundreds of thousands of dollars in sales. We've helped our clients organize and effectively present information that's saved them time and money answering emails or hopping on long sales calls.

Your prices should reflect the value and ROI your product or service brings.

Are you presenting your brand in a way that LOOKS as valuable as it is?

How you present & position your offerings is EVERYTHING. Presentation adds perceived value. There is a reason why beautiful things cost more - they look more valuable.

Your potential clients and customers probably don't know how good your product or service is yet. All they have to go off of is the way it looks.

So ask yourself...

If I knew nothing about my brand, would I pay top dollar for what I'm selling?

Do my offerings look as high value as they are?

Do I stand out and compete with other brands in my industry?

If you answered "no" to any of those questions, it might be time to consider investing in a rebrand. You are probably leaving a lot of money on the table, purely because you don't look like the high-value brand or expert that you are.

What does the experience feel like for your customers?

What happens after the customer buys? Will their experience after purchasing reinforce their decision to buy from you? Was the experience one that will make them want to buy again? Will they tell their friends or colleagues about you?

The customer experience after purchase is just as important. For service-based businesses, this comes through in your client process, the way you communicate, how well the client feels taken care of and how your service is ultimately delivered. For product-based businesses, this is your unboxing experience, the culture you're creating, on-going customer exclusives and how you're building brand loyalty.

Oftentimes, the customers you already have are your best customers. How are you taking care of them and making them feel valued after they’ve purchased?

2. Invest in education.

New skills can help you reach more people, uplevel your current offerings and better establish yourself in your industry. If you want to increase revenue, you should continually be learning and developing your skills.

Start by identifying areas of your business that you wish you knew more about. Or think about services that would complement what you currently offer to offer clients and customers even more support.

Here are a couple of great needle-moving skills to invest in learning…

• Marketing & Sales

• Facebook Ad Management

• Brand Strategy

• Copywriting

• Basic Graphic Design

3. Outsource and invest in support.

If you see growth in your immediate future, you will need to invest in additional support. As your business scales, so should your team. And as scary as it feels, you need to hire help before the growth comes so you’re ready when it does.

Start making decisions as your next-level self. This will allow you to grow faster, become more efficient, and handle even more growth in the coming year.

4. Develop content & products for a new audience.

Spend 20 minutes this week scrolling through your social media followers. Get to know them. Are your products or services for them? If 20% or more of your followers aren’t your ideal customer, you are leaving money on the table.

Take some time to think about a new product that you could offer. These people are clearly interested in something you currently do. But you haven’t given them an opportunity to convert.

Never underestimate the power of simply listening to what your audience is asking for. It’s probably something completely different than what you think you should offer. Or servicing a new audience entirely. But it will be the most aligned thing you ever do for your business.

Increasing your revenue means trying new things, taking new risks, and learning more than you ever have had before. Step into your next-level self and create a scalable path to revenue growth.

“New skills can help you reach more people, uplevel your current offerings and better establish yourself in your industry.”

—Ariel Garcia, Graphic Designer and Founder of ByAriel

Photo: Clarin J Photo

About the author: Ariel Garcia is a self-taught graphic designer and founder of the creative agency, ByAriel. She is committed to pushing the boundaries of creative innovation and carries that into each project, campaign, or brand she’s a part of. She also mentors graphic designers on developing their own unique style and artistry. Ariel’s typical day consists of several cups of coffee, logo designing, collaborating with clients, styling products, and planning her next adventure.

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How to Price Yourself in the Freelance Market

Photo: Christina Jones Photography

Unless you’re positive you’re going to win the Powerball (which, may the grace of good fortune be on your side), you are going to have to hustle this year. That means knowing how to price yourself in the freelance market, which is, unfortunately, as tricky as you think it is.

It’s a balancing act. Aim too high, and the client might offer the job to someone else. Price yourself too low, and you’ll end up resenting the high workload and low payout. Read on for a few tips on how to know your worth and how to navigate tricky money situations with clients. 

1. Don't suggest an hourly rate. 

Think of your work as value-based. If you are helping a brand grow its online presence, you shouldn't price yourself based on the amount of time you are going to spend on the job. You should price yourself based on the value you are going to add and your level of expertise. The better you get at something, the faster you work (usually), but that doesn't mean you shouldn't be paid for your skill level. 

2. Dealing with the "we don't have a big budget," pickle. 

It might be true, it might not be, but when a client says this to you it's often a red flag that they aren't going to want to pay. It's also a way to undermine your confidence from the gate. Telling you there is no budget will make you question what you're worth—don't let it. If you have a set rate, stick to it, and if they can't pay that, then it's up to you to decide if the ends justify the means. If you think it's a relationship that will pay in the long run, that's a decision only you can make. 

3. Compare and contrast, but don't undersell yourself based on the market. 

Look into what other people are being offered for the same service, but if you think it's too low for you, don't fall to market pressure. A simple way to find your number is to divide the high-average yearly salary of someone in your position who works full time by the number of months you'll be collaborating with a client. You want to start on the high end because most of the time you will get a counter-offer.

4. Quote yourself confidently. 

Don't be afraid of that big number. Looking at it as a whole can seem intimidating, but sending a confident proposal that shows a client that you believe in your worth and your work, may instill the same confidence in them.

5. Offer your services in tiers.

Be explicit about what services you can provide for different prices. The more specific you can be about deliverables for price points, the more likely a client is to sign on. Tiers also give you wiggle room for negotiation. For example, if the client is into "tier 2" with one additional service you're offering in "tier 1," you can come back and say, "I'm willing to add in X service for X extra."  

6. Asking point-blank if there is a budget.

If you don't know where to start, you can put the initial price point on the potential client. There's really only one way to do this: directly. "How much are you willing to spend?" will send the wrong message. Asking if there is a budget, will not. 

7. There is no ax+b=c formula.

There’s no right answer to price yourself. At the end of the day, everyone has had different kinds of experience put on their résumé, has different skills, and all have worked for different rates in the industry. If you’re confident in your price, have compared your rate based on average market pricing, and have considered all of your skills, experience, and value, you’ll be able to come up with a rate that will make sense to you. If it doesn’t make sense to a potential client, oh well. Like Tinder and Bumble, you’ll eventually find a perfect match that will understand your self-worth and value.

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This story was originally published on February 28, 2019, and has since been updated.

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Is the Price Right? We Help You Figure It Out

Photo: Smith House Photography

Innovation often comes out of the darkest times. Uber is just one example of the super successful businesses that launched just after the financial crisis of 2008, and we have no doubt that the next big thing will come out of the COVID-19 crisis.

Has your brain been swirling with ideas during quarantine? Have you found whitespace that you know you can fill? Has being laid off given you the courage you need to finally launch that business you’ve been dreaming of? Create & Cultivate is here to help get your business idea off the ground.

Quarantine is the perfect time to lay out the plans for your dream. While your friends are learning to bake bread, knit, or do yoga, you are laying the foundations for your future (you go, girl!).

Once you’ve got that product idea all figured out, you’ve started your business plan, and you came up with a killer brand name; you’re going to face a super difficult question: Is the price right? Ask people to pay too much for your product or service and they will stop buying. Ask too little and your profit margin slides or customers assume your product is poor quality.

An “optimum price” factors in all your costs and maximizes your margins while remaining attractive to customers. Here’s how to set your prices, and be sure to scroll to the end to shop our Create & Cultivate Marketplace The Launch Your Business Bundle with a step-by-step guide to trademarking your business, a legal checklist for startups, panel videos from past C&C events, and so much more! 

KNOW THE MARKET

You need to find out how much customers will pay, as well as how much competitors charge. Simply matching a price is dangerous, though - you need to be sure all your costs - both direct and indirect - are covered.

CHOOSE THE BEST PRICING TECHNIQUE

Cost-plus pricing involves adding a mark-up percentage to costs; this will vary between products, businesses, and sectors. Value-based pricing is determined by how much value your customers attach to your product. Decide what your pricing strategy is before making a calculation.

WORK OUT YOUR COSTS

Include all direct costs, including money spent developing a product or service. Then, calculate your variable costs (for materials, packaging, etc). Work out what percentage of your fixed costs (overheads such as rent, rates, and wages) the product needs to cover. Add all of these costs together and divide by volume to produce a unit break-even figure.

CONSIDER COST-PLUS PRICING

You will need to add a margin or mark-up to your break-even point. If the price looks too high, trim your costs and reduce the price accordingly. Be aware of the limitations of cost-plus pricing, because it works on the assumption you will sell all units. If you don’t, your profit is lower.

SET A VALUE-BASED PRICE

You’ll need to know your market well to set a value-based price. For example, the cost to bring a hairdryer to market might be $10. But you might be able to charge customers $25 if this is the market value.

THINK ABOUT OTHER FACTORS

Can you keep margins modest on some products in order to achieve higher margin sales on others? You might need to calculate different prices for different territories, markets, or sales you make online.

STAY ON YOUR TOES

Prices can seldom be fixed for long. Your costs, customers, and competitors can change, so you will have to shift your prices to keep up with the market. Keep an eye on what’s going on and talk to your customers regularly to make sure your prices remain optimal.

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