HOW CAN I MAKE MORE PROFIT?

Essential Tips for Small Businesses

Although your sales are good, your customers are happy, and your business is successful, somehow your savings and profitability remain low. Is there something wrong?

Business isn’t something you start to become a busy fool or to fill the pockets of others; you need some reward for your hard work.

A business can lose cash in a multitude of ways, some of which are hard to identify.  Here are our top ten tips for “How can I make more profit?”

Profitability starts now!

1. Sell Profitably

Understand your cost base, which costs are fixed and which increase as you grow. Do you become more profitable with more sales? If not, your pricing structure is wrong.

2. Increase Your Customer Spend

Assuming you make more money with more sales, where is the existing growth opportunity within your current client base? More products or services? Higher margin alternatives?

3. Control Those Costs

Be brutal at controlling costs, analyse every pound spent and every supplier for value. Ask "if I didn't have this what would be the impact on my business?". If it's not significant then don't spend it.

4. Stop Wasting Time

Lost time is lost money, how long does it take to do all the tasks in your business? If you know how long it takes you also know how much capacity you have and how efficient your business is.

5. Look To The Future

Use technology to reduce costs and speed delivery. Things change fast so always keep abreast of new developments in technology and think about how you can apply them in your business.

6. Focus on High Profit Customers

Drop low margin or unprofitable customers. You know the ones, they pay the least and expect the most, tying up endless staff hours or returning purchases for petty reasons. Don't hold on to unprofitable turnover.

7. Understand Client Value

Identify both the cost per acquisition and the lifetime value of each customer and how you got them. You can then apply this to your marketing strategy.

8. Don't Stockpile

Buy only what you need when you need it, because buying in bulk only has so much value, cash to generate more sales has more.

9. Get More Customers

Now you understand what type of clients you want, how much they are worth and where to find them, go get some more. Read our article "How Do I Get More Customers?"

10. Only Move When You Have To

Only have the space you need short term. The rise in working from home (which you should also take advantage of) could bring the price and availability of new units down in the future.

So that’s our top ten tips on “How can I make more profit?” do you agree? Leave a comment below.

How can I make more profit

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