How Can I Make More Money/Profit From My Business?
Most small business owners I encounter want to make more money.
I know some business owners who are making killer sales numbers, but are still going home broke at the end of the month.
The first thing you have to do is look at your costs.
What is it costing you to deliver that product or service? Once you determine the cost, how much margin have you added to the cost? Did you include paying yourself? Too many people I know who own a business do not pay themselves.
The secret to making more money profitably as a small business owner lies in how you manage your costs.
Understand, I am not saying just cut costs, although you need to drive costs out as often as you can.
I am talking about taking advantage of opportunities for discounts for paying early or in cash, and spread the costs across multiple items.
When you make a sale, do you up sell or cross sell your product or service? Do you have a down sell strategy when they cannot afford your most profitable product? When you sell one item, you can offer the second item at time of purchase at a discount because the first item is covering all the cost.
You can manage costs by ensuring every transaction is maximizing profit.
Do you have a database? How many active customers do you have in the database? It is cheaper to encourage existing customers to purchase again than to market to a new customer.
The more an existing customer purchases from you, the more profitable that customer becomes.
Communicate with active customers at least every 30 days.
They will purchase from you more because you can offer discounts to them because there is very little cost to generate the sale.
How many inactive customers do you have in your database? Do you know why they are not purchasing from you anymore? What can you do to encourage those customers to become active again? Call them and ask them why they no longer do business with you.
Remember a client that has not done business with you in 90-120 days is no longer your client.
If you get client back to the active file, do not allow them to go over 90 days without some kind of message or promotion from you.
Given all the holidays we have, you have a reason to send a promotional piece to generate traffic to the website or encourage foot traffic through the door.
Remember the more repeat business you generate with them the more profitable they become.
The quickest way to create revenue that goes straight to the bottom line is to raise prices.
We have strategies to show you how to raise prices without losing a single customer.
When you raise your existing prices, more revenue goes straight to your pocket; if, only if your costs have not increased.
Many business owners I have en¬countered are fearful of raising prices and have not done so for years.
What surprises me are business owners who are afraid to raise prices even though their costs have increased.
Raise prices as your costs increase to remain profitable.
Remember you started a business to make money.
I know some business owners who are making killer sales numbers, but are still going home broke at the end of the month.
The first thing you have to do is look at your costs.
What is it costing you to deliver that product or service? Once you determine the cost, how much margin have you added to the cost? Did you include paying yourself? Too many people I know who own a business do not pay themselves.
The secret to making more money profitably as a small business owner lies in how you manage your costs.
Understand, I am not saying just cut costs, although you need to drive costs out as often as you can.
I am talking about taking advantage of opportunities for discounts for paying early or in cash, and spread the costs across multiple items.
When you make a sale, do you up sell or cross sell your product or service? Do you have a down sell strategy when they cannot afford your most profitable product? When you sell one item, you can offer the second item at time of purchase at a discount because the first item is covering all the cost.
You can manage costs by ensuring every transaction is maximizing profit.
Do you have a database? How many active customers do you have in the database? It is cheaper to encourage existing customers to purchase again than to market to a new customer.
The more an existing customer purchases from you, the more profitable that customer becomes.
Communicate with active customers at least every 30 days.
They will purchase from you more because you can offer discounts to them because there is very little cost to generate the sale.
How many inactive customers do you have in your database? Do you know why they are not purchasing from you anymore? What can you do to encourage those customers to become active again? Call them and ask them why they no longer do business with you.
Remember a client that has not done business with you in 90-120 days is no longer your client.
If you get client back to the active file, do not allow them to go over 90 days without some kind of message or promotion from you.
Given all the holidays we have, you have a reason to send a promotional piece to generate traffic to the website or encourage foot traffic through the door.
Remember the more repeat business you generate with them the more profitable they become.
The quickest way to create revenue that goes straight to the bottom line is to raise prices.
We have strategies to show you how to raise prices without losing a single customer.
When you raise your existing prices, more revenue goes straight to your pocket; if, only if your costs have not increased.
Many business owners I have en¬countered are fearful of raising prices and have not done so for years.
What surprises me are business owners who are afraid to raise prices even though their costs have increased.
Raise prices as your costs increase to remain profitable.
Remember you started a business to make money.
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