Consider Monetization Programs

You will never have your business or service at 100% as there is always something left to do. Do not let this stop you from generating cash flow as quickly as possible. Also, in the early days it is highly important to try to monetize aspects of your business. Most successful businesses have come up with innovative ways to monetize business processes that are often left alone.

For example: If you provide a product that includes a warranty – monetize faster ways for your customer to get their item repaired or replaced. Shipping and handling can often easily be monetized as a small profit center (as opposed to a consistent money loser). Wherever possible monetize as a “benefit” as this process should never appear punitive.

The key is to monetize things in ways that offer options to the customer they would not typically have. Bad monetization of services can also hurt a business. Examples of bad practices would be restaurants attempting to charge for ketchup or breaking with the common practice of free refills etc. These offer no upside for the customer and are obvious and totally punitive. On the other hand, valet parking at a restaurant gives the customer an upside for a fee and at the same time turn part of the parking lot into a money making endeavor.

Once you create business marketing programs like the ones described it’s important that you to perform a cost analysis once they are established. Such an analysis is simple to do, just break out the program out from your standard accounting and keep a running tabulation on it’s level of success. Just remember when you do to compare it fairly against what your hypothetical expenses would be without the business program.

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