22 Feb THREE TIPS TO MORE PROFIT
Truth Bomb! If you aren’t making a profit, then really your business is a very EXPENSIVE HOBBY.
I know this can hurt, but it is 100% the truth.
You are in business to make a profit, and by profit I mean real money in your bank! Read that again and again and say it out loud.
You are in business to make PROFIT.
Not making the profit you know your business can make? Then read on…
The following are my top three tips to not only see profit on your Profit & Loss Statement, but to have your profit sitting in the bank (wouldn’t that be great).
Number 1: Plan for Profit!
That is right, my number one tip is creating a plan to make a profit!
As the old saying goes, “if you fail to plan, you plan to fail”, this is absolutely true when it comes to making a profit.
All successful businesses have a detailed plan for how they will make a profit each month and year. A working document that is reviewed, analysed and implemented on a daily basis.
However, more often than not, small businesses never actually put in place a plan to make a profit.
In fact, some business owners don’t even know how much money, or lack thereof, they are actually making, (I hope this is not you).
My recommendation: create a Profit Plan for your business. Don’t know where to start? Join me live at 10am next Thursday 4th March, I’ll show you how. Click here to join.
Number 2: Increase your Prices, your Worth It, oh yes you are.
So simple, yet so many business owners are scared to increase their prices for fear that they will lose customers.
Whenever I start coaching one of my clients, often the first strategy I have them implement is to increase their prices.
Why? Because they are worth every penny and more!
Many business owners start out with low fees to win work, they then become so busy that they forget to review their fees, three years go past, and they don’t understand why they aren’t reaping the rewards from all their hard effort.
My recommendation: increase your prices!
Test the market and when you have three knock backs from clients all based on price then you know you have set prices too high.
Number 3: Be Ruthless with your Expenses
When was the last time you did a deep dive into your expenses?
One of the easiest ways to increase profitability is to regularly review your business expenses.
My recommendation: consistently look for ways to eliminate non-strategic expenses that don’t add value to the business.
Any expense you can eliminate or reduce in your business will fall straight to the bottom line. I was able to save a business $5,000 a month, the wage of a full time employee, with this one simple strategy.
By implementing even one of these tips will help increase your businesses profitability. Implement all three and I am sure that your business profit will no longer be that elusive number on your Profit & Loss Statement, and your bank account will thank you for it.
Hi, I’m Phoebe. I love business, especially the Numbers! As a sought-after qualified accountant, I come from a place of experience, with over 15 years of running my own accountancy firm, MGA Accountants, I scaled the business to double the size before successfully selling in 2015. Now I am focusing on what I love, helping entrepreneurs create business success by understanding their business numbers so they can make smart, savvy business decisions to live the life of their dreams.