All businesses want to be able to make a profit and continue to increase those profits every year. Although, this is the goal we all know that sometimes our bottom line shows more of a net loss than a net profit. What, then, is the best way to earn a profit? As in every discussion, there are several opinions out there some of which are shared by several and some of which are only shared by a few. I am going to cover the ones more commonly shared among successful business owners.
One of the more popular opinions is to cut your own costs down. This makes sense, if it cost you less to run your business, then you will make more profits because you are spending less. On the practical side of this, how does one cut their costs? Some of the suggestions were very good. For example, negotiate cost of you inventory items with your vendors. Shop around for the best deal, and go with the vendor that will give you the most for the least without sacrificing quality. As far as inventory is concerned, keep a good tracking system on goods so that you are not over ordering nor loosing inventory items due to theft or other means.
Another way to cut cost is to start outsourcing and automating some of your needs. Virtual assistants are becoming more and more popular as are virtual bookkeepers. Making use of one or both of these might save you money on office staff, benefits packages, and keeping up with technology. Also, find ways to automate processes that you might otherwise be doing by hand or paying others to do for you. These will save you time thereby giving you time to devote to the job you actually love the most – your business.
An area that can really zap the money out of your pocket is marketing. There were some really good ideas on how to save money on your advertising campaigns. One of those was to use geo-targeted marketing. This is the first time I had heard of this so I did a little research. Basically, geo-marketing gives you the ability to choose an area or areas that you want your advertisement to hit. If you do an internet marketing campaign, sometimes you pay per click. What if those clicks are in an area outside your market zone? Then you are paying for something that isn’t beneficial for you. Also, keep track of what is working and what isn’t. This sounds easy and logical, but when you are busy with running your business, sometimes you spend and don’t really think about its actual benefit or lack thereof.
There were a few other ideas that came up more than once on how to increase your profits. One of these was to increase your prices. That is ok, but you also have to stay competitive. It was stated that if you increase your prices, you must also make sure you keep the quality up to standard, and also that you are providing something unique to your niche. This idea of a unique niche is becoming more and more popular right now. It is so important at this moment in time that the rumor is if you do not make yourself unique, you will not succeed. That sounds a little harsh, but that is the reality, so good luck to all you struggling entrepreneurs.
As always, if I can help relieve some of your everyday bookkeeping tasks and maybe take some of the financial stress/headache off your shoulders, please send me a quick e-mail, text, or phone call. I would love to help you out.
Bambi Samares (cell) 936-697-5412