Have you ever wondered whether your business could be more profitable?
Are you working hard to deliver an awesome service?
You’re trying to create something that you’re proud of and please your customers, right? But every month you look at your accounts – and the figures aren’t what you’d like.
You feel like you’re not getting the rewards for your efforts.
Or perhaps your profits feel consistent – but you’re just not sure whether there are tweaks you could make to improve your business model, and bring in some extra income for little effort.
It’s natural for business owners to feel either of these things, and to question whether their business can be any more profitable.
Often the solution is simple – and it neatly divides up into 4 different approaches you need to make:
1. What Are You Charging Your Customers?
Have you put a consistent price on your product or services? Do you still have customers that are paying ‘mates-rates’?
This is a typical thing to do to get new business through the doors – but it isn’t a helpful model long term.
Have confidence that your product is good enough and begin increasing their prices to bring them in line with everyone else.
If you sell goods, see how your prices line up with your local competition. If you were to reduce/increase your prices would it have a positive effect on your profits?
2. What Are You Offering Your Customers?
Are their elements of your service, or products, that aren’t worth offering – because you don’t make a large enough of a profit on them.
Compare the time you spend on task completion, against the amount you make on a particular service or product, to find out how much profit you’re making.
This can inform you about which areas of your business are most profitable. Then spend more time on delivering those parts of your business.
For example, if you have a product that everyone loves – focus on that! Slim down the choices you have on offer, and lead more people to buy a great product – and be converted into extremely satisfied customers.
3. What Are Your Outgoings?
Track what you’re spending and ask yourself – is it really worth it?
See if there are alternative investments that you could make on software you use, or whether there are any subscriptions that could be lowered.
Be diligent and ruthless with this process, because monthly reoccurring outgoings are the best to save on.
The pounds soon add up across weeks, months and years and, in time, you’ll soon see that you are saving more money than you previously were.
4. What Could You Outsource?
Are there tasks like general admin or customer phone calls that you’re still doing yourself? What about the bookkeeping, and payroll?
It may seem counterproductive, but it’s true – paying someone else to do these tasks for you, could actually make you more money!
By outsourcing these type of tasks, you’ll be able to spend more time delivering the expert service that your customers pay for and value most – be that creating more products, or carrying out more work.
This will inevitably get more money into your business and increase your profitability.
Remember: your hard work to make your business a success will pay off, providing you’re committed to working in an efficient way.