Do you find yourself working long hours with not much profit to show for it? Do you want to see more money in the bank account just like you imagined when you started your own business?
Then it is time to take action and make the business work for you.
Start your journey to profit success with these 4 easy steps right now and enjoy leaner and healthier businees.
- Evaluate every expense which goes through your business and cut out anything that is not vital to generate and support sales. Be ruthless. Find and cut out those subscriptions for services you haven’t used in a while, extra stationery and gadgets which don’t improve sales. Look at your rent, insurance, utilities, mobile contract – can you find a cheaper alternative?
- Shop around for better deal on your direct costs. If you can buy in bulk to achieve better gross profit margin, do it. Or change suppliers to save cost. Don’t get stuck with the same old because it’s easier.
- Calculate your gross and net profit margin percentages. Once you’ve followed step 1, your overheads are stripped to bare essentials and staying fixed month on month. To increase your net profit figure work on your gross profit margin and turnover. And that’s the part you are good at.
- If you were to increase your product or service sale price by 2, 3 or 5%, calculate how much more net profit this will bring you with current customers and current overheads. The amount would be worthwhile and it is money in your pocket.
Make these changes today and you will see an immediate effect on your bottom line. And if you need to talk to a qualified bookkeeper to get your financial reports together and make sense of them, we are here to help.
We wish you small business profit success!