Cash might be king, but Profit is Queen, and she rules!
Cash stems from unspent revenue, which leads to accumulated profit, and your business needs it to thrive and grow. Every business should plan to increase its profit consistently. Here are five ways you can increase your profit in record time!
GIVE MORE VALUE, GET HIGHER PRICES:
The higher the price, the faster you’ll get your money!
The key to providing high-value products and services is understanding your ideal customers’ biggest struggles and desired transformation or results. People buy products and services that solve a specific problem significant enough to them that they are willing to pay more. I do it and know that I am not alone!
However, you want to base your price increase on something other than generating additional revenue. There are many variables to consider when increasing the prices, which often makes it difficult to pinpoint the “right” price. Understanding your target customer needs, the value you provide, your costs, etc., are crucial to nailing the right price.
The customers you want to attract have other options; you must know what your competitors provide. This way, you can use this information to differentiate your value and give a compelling reason for customers to choose you instead, even at a higher price.
To create a high-value product or service that will stand out and be successful in the marketplace, you must ensure that you deliver value aligned with the price you are charging.
ELIMINATE WHAT’S NOT PAYING YOU:
If it’s not worth measuring, it might not be worth doing!
Most entrepreneurs and business owners want to increase their income, impact, or freedom, if not all of the above. Yet many people keep doing the same things, even though they have yet to produce ANY results.
Time and money are valuable business resources; allocating these resources to activities that don’t generate income or help grow your company jeopardizes your business success and financial freedom.
You cannot accurately measure the success of your marketing efforts if you are unable to identify which activities are generating new business. The same goes for staff productivity if you cannot track and evaluate the results being achieved from their efforts. If you don’t care about these results enough to measure them, then the activity should be eliminated.
If you want a better business, you must consistently manage your resources wisely; before committing chunks of time and money to anything, set your expectations. Whatever you determine them to be, you must have a way of measuring to know if you’re getting it. Otherwise, you will keep doing it out of habit, obligation, or other reasons and keep getting the same results.
It’s the perfect time to pause and take stock of where your time and money go! You can redirect those valuable resources to achieve business and personal goals.
AUTOMATE MORE & GAIN MORE:
Tech is your friend – increases efficiency and reduces cost!
So much of what we do in business is repetitive and can be automated. Just because you are used to doing something manually and you’ve got it down to a science doesn’t mean you should continue doing so. Technology has revolutionized the way we work, allowing us to be more efficient and productive.
When you automate effectively, you will save money on staff costs, as machines can do many of the tasks that used to require manual labor. It could be one way of dealing with the labor shortage that many businesses, big and small, find challenging.
You will also increase your efficiency by working and meeting remotely, eliminating the need to commute to a physical location along with the travel time and expense, both of which you put to better use.
There are many software and other tools to automate and streamline operations. During the last quarter, I invested in automating specific processes, and the impact is terrific; it feels like I gained a new virtual team member at a fraction of the cost of a live body!
STOP SPENDING & START INVESTING
Just because you’re not counting it doesn’t mean you’re not spending it!
We can all justify spending money on whatever we choose; we all deserve “it” because we work so hard, have made many sacrifices, or need to reward ourselves. You can probably add a few of your justifications to the list.
Are you spending to get a return on your investment, or are you being sold to? Here’s the difference: When you decide to buy something, it’s because you have a particular need and expect that whatever you’re purchasing will satisfy that need. If someone offers what you’ve already identified you need, you are still buying.
On the other hand, if you have no interest in purchasing a product or service and you have to be convinced that it’s good for you, you probably can continue to do without it. To avoid being sold to, you should continually ask yourself whether the spending decision you are about to make is essential to your “master plan” and will help to provide the results you seek.
When managing your money, having a system to track your expenses will help you understand where your profits are going and help you make informed decisions toward increasing your income.
The bottom line is that you must watch over your business finance vigilantly if you want increased profit.
HIRE THE RIGHT EXPERTS
It’s not about getting a good deal. It’s about producing the results you want.
Many entrepreneurs dive into business first, and then when their dreams of success begin to fade, they stop to do what they should have done in the first place: seek help for what their business needs.
Why wait for the warning signs? There is no shame in not knowing how to run a profitable company, most successful CEOs did not start out knowing EVERYTHING, which is why they hired experts. You should also but don’t wait too long.
I know that asking for help is uncomfortable or embarrassing because you may have a public image that your business is making a lot of money. It’s too heavy a burden to carry around on your shoulder being concerned about people’s perceptions of you.
Instead, imagine the success you will experience knowing that you are doing the right things for your business by running your company as an effective CEO would.
Here’s a tip: Start with the income you want for whatever purpose, you name it. End with the revenue you must generate to accomplish it. The right planning, resources, and execution stand between you and your dream business! Need help? I got you. Just reach out!
To learn how our strategies and advice can grow your company and income, send email to [email protected].