Being a business owner can be a challenge. It doesn’t matter how much you make. What’s most important is how much you keep. If you make $800,000 per year and most of it goes to expenses, leaving you $20,000 in profit, this the same as earning $40,000 per year and making the same $20,000 in the end.
How can you keep more of your hard earned dollars in your pocket?
- Reduce overhead. Move to a less expensive location. Share an office. Reduce your energy consumption. Make your own lunch once or twice a week. You’ll end up with more money in your pocket for the same amount of effort.
- Reduce miscellaneous costs. Take transit when you’re going to be in the office. Buy office supplies in bulk for discounts. Shop around for insurance for vehicles and the office. Negotiate better value and terms with your suppliers.
- Nurture your best customers and say good-bye to your worst. We all have clients that sing our praises and are loyal to us. They’re our greatest marketing and sales force for the least cost. For others – the ones who drain your time, your pocket book and your energy – say goodbye.
- Get rid of products and services that don’t serve your goals. Yes, it’s possible to sell less and make more. Products and services that have lower profit margins may be taking up too much of your time and resources.
- Increase your prices and your earnings. Is there an opportunity for you to charge more without pricing yourself out of your market? Do the features, value and quality you offer match the higher price?
Are you meeting your financial goals? What steps will you take right now to increase your profits?
