Author: Leanne Knowles

8 -10 minute read

Profit doesn’t have to be a challenge

If you’re in business, you’re in the business of making profit. But here’s the kicker: too many small business owners get stuck in the daily grind, chasing sales and struggling to make ends meet without understanding how to create real, sustainable profit.

Here’s the thing—profit isn’t a mystery reserved for big corporations or financial gurus. It’s about making strategic moves that boost your bottom line. Whether you’re in the early stages of your business or scaling up, understanding how to increase your profit without burning out is key to long-term freedom.

In this post, we’re breaking down the 5 most effective ways to create profit. Forget about the fluff—these strategies work, and they’ll help you boost your income while you focus on what really matters: building a business that works for you.

1. Get more customers
2. Get more customers to buy more often
3. Increase how much each customer purchases
4. Reduce costs without cutting quality
5. Increase pricing strategically

Calculating profit

Profit is what’s left over after all your expenses are paid. It’s the reward for your hard work, strategy, and risk-taking. If you’re a small business owner looking to scale, then profit is the fuel that keeps the engine running. It’s what allows you to reinvest in your business, grow your team, and enjoy the financial freedom you’ve been dreaming of.

But creating profit isn’t just about focusing on revenue. It’s about optimising how much money you’re making while minimising costs and increasing your value to customers. Profit is the difference between simply getting by and thriving in business.

Who is this for

These profit-boosting strategies are for the aspiring founders, ambitious entrepreneurs, and small business owners who are tired of scraping by. You know there’s more potential in your business, and you’re ready to learn how to unlock it. Whether you’re running a service-based business, an ecommerce store, or a creative agency, these strategies are for you if you're looking to boost your profit without stressing yourself out in the process.

Let’s be real: building a profitable business doesn’t mean working 24/7 or driving yourself crazy. You need to understand the smart, tactical moves that will allow you to make more money with less effort. 

Why a focus on profit is vital

Profit isn’t just about making money—it’s about creating the freedom and flexibility to live life on your terms as the founder or business owner. A profitable business means you can reinvest in growth, bring on a team to help you scale, and take that well-deserved break without worrying about your bottom line.

Without profit, your business isn’t sustainable. The truth is, many businesses fail because they never figure out how to turn their revenue into profit. If you want to thrive in the long term, you need to get comfortable with the idea of making real profit and knowing how to generate it consistently.

5 ways to create profit (without the overwhelm)

1. Get more customers

The most obvious way to create profit is to get more customers. More customers equals more sales, which means more revenue flowing into your business.

You can’t make profit without sales, and to make sales, you need customers. By attracting more customers to your business, you’re expanding your revenue base and creating a steady stream of income.

Getting more customers doesn’t mean increasing your marketing budget and blindly trying to reach everyone. It’s about identifying and targeting the right audience who will benefit most from your products or services. Use customer personas, test different marketing strategies, and focus on high-impact channels that actually bring results.

Global example:  One of the simplest ways to get more customers is through referral programs. Dropbox, for example, grew exponentially by offering additional storage space to users who referred friends to the platform. They capitalised on word-of-mouth marketing, expanding their customer base rapidly.

Aussie Broadband leveraged exceptional customer service and word-of-mouth referrals to rapidly expand its customer base. Their focus on customer satisfaction and transparent pricing helped them stand out in the crowded ISP market.

Small business example:
A local café offers customers a free coffee after referring a friend, turning loyal customers into brand ambassadors while driving foot traffic and sales.

2. Get more customers to buy more often

It’s not just about getting new customers—it’s about getting your existing customers to come back for more.

 Acquiring a new customer can cost 5-7 times more than retaining an existing one. If you can get customers to buy from you more frequently, you're not only increasing your revenue, but you’re also building loyalty and repeat business.

Focus on building relationships with your customers and delivering an exceptional experience that makes them want to come back. You can use loyalty programs, personalised offers, or automated email sequences to keep your brand top of mind and encourage repeat purchases. Additionally, consider offering subscription models or regular discounts to incentivise customers to keep coming back.

Global example: Starbucks has mastered the art of repeat business with their rewards program. Customers earn points for each purchase, which can be redeemed for free drinks or food. This keeps customers coming back more often, which in turn drives revenue for the company.

Australian example: Woolworths Everyday Rewards Program encourages shoppers to return frequently by offering points that can be redeemed for discounts or fuel savings, boosting customer loyalty.

Small business example: A barber implements a loyalty card—offering every 6th haircut free. This keeps customers coming back instead of visiting competitors.

3. Increase how much your customers buy

Increasing the average transaction value means getting customers to spend more when they make a purchase.

The more customers spend with you, the more profit you make. By encouraging customers to buy more, you increase your average order value, which directly impacts your bottom line.

 Upselling and cross-selling are two effective ways to increase transaction value. Upselling involves offering customers a more expensive version of what they’re already considering, while cross-selling suggests additional products or services that complement their purchase. You can also use bundles or packages to incentivise higher spending.

Global example: Amazon is a master at this. When you buy a product on their site, they show you “frequently bought together” items or offer you upgraded versions of the product you're looking at. This encourages shoppers to spend more, driving up the value of each transaction.

Bunnings Warehouse bundles DIY tools and materials into discounted project kits, making it easier for customers to buy more in a single transaction.

Small business example:
An online tutoring service offers discounted package deals for 10 or more lessons, encouraging parents to purchase larger blocks upfront.

4. Reduce costs (without cutting quality)

Cutting unnecessary costs means improving efficiency and making sure every dollar spent is contributing to your business’s success.

 Reducing costs increases your profit margin. When you minimise unnecessary expenses, you’re able to keep more of the money you earn. The key is to find areas where you can save without sacrificing quality or customer experience.

 Look at your overheads, supplier contracts, and operational expenses. Are there ways to automate processes or renegotiate terms with suppliers? Could you streamline your operations or switch to more cost-effective tools or resources? Small, strategic changes can lead to big cost savings over time.

 Global example: Warby Parker, the eyewear company, disrupted the market by cutting out the middleman and selling directly to consumers online. By doing so, they reduced costs associated with traditional retail models and passed those savings onto their customers while still maintaining a premium product.

Australian example: Thankyou Group streamlined production by partnering with local suppliers, cutting logistics costs while maintaining their quality and mission-driven brand.

Small business example:  A home cleaning service switches to eco-friendly bulk cleaning supplies, reducing costs while appealing to environmentally conscious clients.

5. Increase prices (strategically)

If you’ve built a strong brand and are offering real value, raising prices can be a strategic way to increase profit without increasing your workload.

 Increasing prices directly boosts your revenue. But here’s the thing: Price increases only work when your customers see the value and are willing to pay for it. That’s why it's important to ensure that you’re delivering an exceptional product or service before increasing your prices.

 Conduct market research to see where you stand in relation to competitors. If you’re offering a premium product, don’t be afraid to charge accordingly. However, make sure your customers feel the value—this can be through superior customer service, enhanced features, or a better overall experience.

 Global example: Apple is a perfect example of a company that successfully increases prices. They consistently launch new versions of their products with enhanced features and a polished customer experience, allowing them to charge a premium price and maintain a loyal customer base.

Australian example: Koala Mattresses raised prices after refining their product with premium materials, supported by their strong brand story of sustainable, high-quality mattresses.

Small business example: A personal trainer rebrands their services as premium health coaching, justifying a price increase by including meal plans, progress tracking apps, and personalised fitness plans.

What to do next

Now that you know the 5 ways to create profit, it’s time to take action. Look at each of these strategies and identify where your business can improve. Start implementing these methods gradually—test and tweak as you go.

If you’re new to business, or preparing to startup, use this information as your guide. Don’t wait until you’re drowning in stress or chasing your next sale. Create a strategy for profit that’s sustainable, and watch your business thrive.

About Leanne Knowles

Connect with Leanne on LinkedIn

Leanne Knowles is a former professional skydiver turned Business Growth Strategist, who

started two successful businesses in the adventure sport industry at 24 years old and sold them both ten years later.  Leanne founded Headswitch as a marketing consultancy in January 2000. She now helps small business owners in low tech sectors to grow and scale using tech enabled strategies.

Leanne does this by sharing her decades of experience, hard work and research.  The information and strategies are delivered primarily through online business training, private coaching programs, and The FreedomROI Newsletter, that connects a business community dedicated to business success. These strategies have been responsible for helping Leanne to grow and scale her own business, without the stress and overwhelm.

About Headswitch

Leanne launched Headswitch as a marketing and business strategy consultancy in January 2000, and has transformed it into a global coaching business. Headswitch helps micro and small business owners to grow and scale their business using smart, simple strategies, the latest tech tools, and productive business relationships.

Leanne does this by sharing her decades of experience, hard work and research.  The information and strategies are delivered primarily through online business training, private coaching programs, and a business community dedicated to business success. 

These strategies have been responsible for helping Leanne to grow and scale her own business, without the stress and overwhelm.