I’m often approached by my coachees telling me “Amy, I’m working my ass off, but I’m not making any money” while they feel they’re doing everything right. I believe people when they see they’re working hard and I also believe you’re doing a lot of things, but are you doing the right things? So, today, we’ll take a look at 7 plausible reasons your business is not making enough money.
1. Stop focusing on the features of your product
You might think “But aren’t those very important things to focus on?”. Yes, but also no. Because people probably won’t buy your product or service based on the specifics of what they’re getting. They’re interested in the transformation it will bring to their lives.
Example 1: Plastic Surgery
Let’s take a plastic surgeon as an example. What if they made a billboard and said ‘Come and get your boobs done for 10K. We’ll saw into your body, put silicone where your boobs are right now and then we’ll stitch you back up’.
You think an approach like that will sell? No, exactly, it won’t. But if he put ‘Come get glorious new boobs for 10k’, their clinic will be overflowing with women.
So, stop telling people you’re going to cut their bodies open and instead promise them a glorious cleavage. A lot of entrepreneurs are selling the surgery right now, when in reality you should be selling the lasting effects the surgery will bring people.
Example 2: Food Boxes
Hello Fresh is another great example — they don’t market the box full of fresh foods, no their marketing revolves around saving time and not having to go to the store or think of your own menu.
People who buy from Hello Fresh are not buying a box full of food — no, they’re buying time and peace of mind.
2. Determine your core offer first
In the beginning of having your own business, you might be unsure of whatever it is you’re offering. But if you’re not sure, your customers definitely aren’t. Determine what your core offer will be and go from there, don’t try to offer a variety of things because you’ll probably half-ass it and then you’re back to square one.
Because you’re afraid of failing, you think ‘let me come up with a plan B’.
Nope. Focus on your plan A first and make sure you’ve done everything you can to make that one a success.
Customers don’t have the brain space to remember you’re specialized in 5 different areas, so focus on one and go from there.
Can you open a store or start a business and offer a variety of things? Yes, but make sure there’s a common theme you can hold on to because if it feels overwhelming to you, it will definitely feel that way to the outside world.
When you confuse, you lose. So, focus on making your offer as clear as day so you’ll actually turn a profit.
3. Clear your offer up
This third reason kind of connects to number 2 but not exactly. An unclear offer scares people away, but in this scenario it pertains to one specific product.
For example: let’s say I launch a product and I give it a really fancy name but I don’t specify what this product actually is. Is it something online or offline? Do people get a box shipped to them? When elements like these are unclear, people won’t purchase anything.
So, talk about your offer and explain it thoroughly in order for people to know what exactly they’re spending money on.
Remember: it might be so very obvious to you and it might make sense to you but you’re the mind behind the product or service so of course, it’s clear to you. Your clients, however, have no clue so keep that in mind when you’re talking about it.
4. Be loud about your offer
Again, to you it might be clear you’re in the midst of a launch and people are able to purchase your offer. But take a step back and look at the data:
- How many times did you send out an email?
- How many times did you mention your product and all the information surrounding it?
- How many times did you post a link to the product page?
My guess the answer to those questions is: not enough.
Don’t fall into the pit of self-doubt where you feel like you’re annoying for posting regularly. People need to hear or see something 8 to 10 times before they really absorb it.
Put on your consumer hat and take a look at your social media profiles: is it obvious what you’re selling and where people can buy it? If your answer is not an immediate yes — there’s work to do.
Pitch often and make it clear where people need to go if they’re interested. If it’s unclear or too complicated, people won’t buy.
5. The missing step in your sales funnel
What I often see with entrepreneurs is them focusing on either the inside or the outside of their business, but they’re missing the bridge between the two. In my FastForward Academy, I teach people their consumers go from awareness to interest to trusting you enough to purchase your offer but a lot of business forget focusing on building that trust.
How do you create trust and show your potential customers that you have plenty of authority and make good on your promises? By using social proof in your marketing strategy, such as reviews, your degrees and past experiences. This shows people they can trust you and it will convince them to take action and buy from you.
6. Confidence is key
Being confident isn’t the easiest thing. But when in doubt, or when you’re having a day where you simply want to throw in the towel because you don’t believe in yourself, it’s crucial to believe in your product.
When you decide to stop selling, you’ll take people’s opportunity away to grow because of your product or service. You don’t always have to believe in your own capabilities, but believe in whatever offer you put out there.
7. Charge your worth
The most logical reason your business is not making enough money is the fact you’re not charging enough. When you’re just starting out, you revert to setting low prices because you’re desperate to attract those first customers. And in connection to reason number 6, you’re insecure so you don’t feel as if a higher price setting is okay.
Make sure you’re aware when the times comes to raise your prices, because at the very start it’s okay to start at a lower price setting but after a while, it’s crucial you take a good look at yourself and your business.
Know what you and your product are worth and be brave enough to actually charge that price. The danger of not charging high enough prices is you burning yourself out.
So, protect yourself and your health by setting a logical and just price point.
It goes without saying that for high prices, you obviously also have to offer enough value. Don’t set insanely high prices from the get go to then rip people off because that will come back to bite you in the ass.
Don’t give in to the reasons your business might not be making any money
Use this article to stay away from the possible reasons your business is not making enough money. If you notice, there’s a drop in revenue, refresh your brain on the mistakes you might be making and let’s continue to aim high.
Of course, I never leave you stranded at the end of an article. To help you with this 7th reason, I have a little something for you. If you want to know what you should actually be charging, I built a free tool for you – my Hourly Worth Calculator. You can find it through fastforwardamy.com/hourlyworthcalculator
PS And if you really want to take next step and build a profitable business based on your passion and your own terms, I have some great news for you.
After helping over a thousand clients with my Business Freedom Elevator, I decided to shut the program down for a year so I could make it even better. Register for the program or join the waitlist through fastforwardamy.com/bfewaitlist
Last year, the pre-order spots were gone in less than an hour, so don't miss out!
Watch this episode on YouTube or listen via Apple Podcasts, Spotify or wherever you get your podcasts, and search for episode 196 of the Play To Win podcast.
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