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I just read it here that the red elixir when consumed by you increase permanent damage and health, it's not much but you can kill the first boss as many times you want.
The ways that you can improve is by leveling the skills, so far there are 2:
- skillsword that increase by simply attacking, even if you attack nothing it counts to the "1000 swings" thing
- sneak/backstab, this one increase by backstabing enemies or dancing in the bathroom while sneaking on imouto
But the main improvement I would say are the items, I like to use the following set
- sacred gloves
- imouto smile
- purple crystal
- golden chalice (double money and increase luck)
- maybe another imouto smile or sacred gloves for more overall stats