Increase Profits In 2018
This is how Investopedia defines profit: Profit is a financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business’s owners, who may or may not decide to spend it on the business. Therefore, to increase profits in 2018 you will need to lower your expenses or raise your revenue. Honestly, the best case scenario is to do both!
Three Simple Ways To Increase Profits In 2018 And Beyond
- Price Check ALL Of Your Expenses Starting With Insurances: First of all, this one is SO important for a small business owner. I really recommend doing this annually. Don’t forget about anything! Often times it seems like all costs are going up. However, I almost always find a way to save money. Begin with checking your personal auto, home and life insurance policies. Then move on to your health and business insurance. The needs of your business, as well as your personal needs, will change several times throughout the life of your business. Make this a priority at least one time per year.
- Look Into Partnerships And Trades: As we have discussed before, this one can be a little dicey. It is important to handle this the right way. A great way to start is to speak to your vendors and professionals about referrals or incentives. Ways that you can earn a discount. Another great way is to see if someone who provides you necessary services can trade you for what you offer. An example would be if your landscaper could trade you for store credit, as opposed to you paying your landscaping bill outright. Although it is crucial to analyze these deals, they can really pay off when done well.
- Assess Your Marketing Plans: This one is all about raising your top line sales! It doesn’t necessarily need to be your marketing that you assess. In general, think about what impacts your top line the most. How do sales get made and what adds or takes away to your sales level or income. For a lot of people, and in most industries, a lot of this will fall under marketing. So whether your focus needs to be on sales, referrals or client/customer acquisition…set aside a time to figure it out!