The main objective of having any business is to be profitable. But many businesses are not achieving the profits they are capable of. There are various reasons this happens:
- Over investing in certain marketing strategies
- Miscalculations of profit margins
- Not adapting to industry changes
- Mixing personal and business bank accounts
- Poor pricing
Do any of these resonate with you?
Maybe they don’t, but you still have the ability to make your business more profitable… And, I am going to share 6 ways to do so!
#1 Way To Make Your Business More Profitable: Jack Prices Up By 2%
You have a product that solves problems! Sales have been steady, but costs have risen. It only makes good sense to raise prices slightly.
The majority of consumers will not even notice, while another percentage will understand.
Yes, you may have 1 or 2 who will complain, but a simple explanation of cost increases will suffice. And 2% really is but a “drop in the bucket.” Let’s say your product is priced at $79. Now the price will be $80.58.
It is not drastic, but adds a slight bigger profit margin.
#2 Way To Make Your Business More Profitable: Know Your ROI On Resources
Let’s say you are testing a new automated software, or you hired a new salesperson… Are you keeping track of your ROI?
ROI stands for Return On Investment.
While there is normally a slight period the ROI will be low or non-existent, within just a few weeks up to 2 months, you should be gaining and not losing profits.
Keep track of your ROI to know what you should keep and what should go.
#3 Way To Make Your Business More Profitable: Approach Your Inactive Customer Base
How many customers have you not seen in some time?
Do you have a system that periodically approaches those previous customers.
Yes, it is important to gain new customers, but it is your previous customers that are your “bread & butter.” Don’t let your bread get moldy.
#4 Way To Make Your Business More Profitable: Try Outsourcing Some Of Your Business Monotonous Tasks
More and more business owners have discovered that having full-time employees, or even themselves doing some of the monotonous business tasks:
- Social media
- Blog posts
- Some accounting
can be an expense that is not needed.
Outsourcing is normally the answer.
“But that freelance agent is more expensive than my $12 an hour employee…”
Did you add in that you bought the employee’s tools, you pay that person’s
- heat and cooling
Overall, it can be a lot cheaper using an outsourced agent than an employee when you add all the factors together.
#5 Way To Make Your Business More Profitable: Faster Turn Around Time
Without dropping quality, speeding up your turn around time will raise profit margins… That is a fact.
Are you consistently looking for ways to speed it up:
- Elimination of steps?
- Linking people, departments and vendors?
#6 Way To Make Your Business More Profitable: Negotiation
One great example is the monstrous Walmart… They are always negotiating with suppliers and vendors to drop prices which therefore creates a larger profit margin… You should do the same!
It IS okay to negotiate.
These are just 6 ways… There are many more.
And, I have a free training course called 7 Days To Profitability… And you can get yours today… JUST CLICK HERE… And we will begin driving your businesses