1. Make more sales
I am ashamed to even write this, it’s so logical isn’t it; however, it’s the obvious first port of call for all business owners who want to make more profit. Here’s a few suggestions as to how:
· Obtain referrals from current/former clients (free and highly effective)
· Market current/former client testimonials at potential clients
· Reflect on your lead generation model – how can you streamline, improve or upgrade your existing way of finding new clients
· Spend more time on your business development. If you only spend 30minutes a day looking for new clients, increase that to an hour. If you do it in fits and starts, diarise to do it regularly. The golden rule is that bizdev should be a daily task; no excuses.
2. Raise your prices
Raising your prices, whilst keeping your expenses the same (or less if you can manage it, without affecting quality), will increase your profit. If you haven’t raised yours for some time, and it’s something you’ve been avoiding for fear of upsetting or losing clients, consider this: increasing your prices by just 5% can have an extraordinary effect on your overall income. For instance, increasing your daily rate of £300 by 5% could yield over £3000 extra per year.
3. Lower your break-even point
If you’re doing as much bizdev as you can, and you’ve already raised your prices, another avenue to explore would be to lower your break-even point (the amount of items you need to sell/income you need to bring in to cover your expenses).
Where can you negotiate lower costs? What are you paying for that isn’t needed? Could you share workspace, machinery, or other core costs? Check with your accountant that you are taking advantage of all tax breaks, and other potential savings.
For more ways to save, and make money, check out my e-book 88 Ways To Make More Money In Your Business Starting Today!