HOW DO I MAKE MORE PROFIT?
You really need to maximise the amount of money you make from each sale in order to be successful long term. Here are our Top Ten Tips
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 "How Can I Get More Customers?" Article
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.