You can’t stay in business if you don’t turn a profit. Sometimes, that profit comes at the expense of working long hours and making your business your top priority. Growing your profit is important since you want to also get paid well for what you do. Is it possible to grow your profit without burning the midnight oil? Yes! Here are 4 ways you can do just that…but, hey, if you love working at night, we don’t judge!
Review Your Business Expenses
One of the best and easiest ways to improve your profit is to review your business expenses. Generally speaking, there are two types of business expenses: fixed and variable. The good news is that you can possibly reduce both and improve your profit.
Fixed Expenses. Often, your fixed expenses are part of a lease or contract. You may not be able to renegotiate the terms right now, but you could seek to improve the terms of those agreements when they terminate. Keep in mind, though, that this could mean that you have to shop around for other vendors or locations. You’ll have to determine which contracts or leases would be the easiest for you to renegotiate.
Variable Expenses. How you’ll improve your profit by limiting your variable expenses will depend largely on the type of expense. For example, you may find that you can save money on your electric bill if you change the type of lighting that you use. You can also turn off monitors and take other energy efficiency measures to reduce the use of electricity. It may seem like a small thing, but it really does work. You can also look around to find better deals on office supplies if you take the time to shop around. However, be careful not to buy in bulk if it’s not something you’re likely to use in a reasonable amount of time.
Consider Raising Your Rate
While it’s not always a popular concept with existing clients, most new businesses simply don’t start out charging enough for their services. This is because it seems like a great plan to undercut competitors by offering the same basic service for a lesser rate. Sure, this can create a busy schedule, but it can also trap you into making much less than your worth. Even if you don’t raise your prices with current clients, you can invoke a new price range for oncoming clients.
Check-in with Current Clients
How can touching base with current clients grow your profit? Well, simply put, it’s much easier to sell to existing clients than it is to acquire a new client. It’s also less expensive. Reach out to your clients and see how things are going. Let them know that you have some time in your schedule if they need you. You can also ask for referrals. Referrals are a great tool because it helps you come into contact with new clients without the expense of advertising. In most industries, you can provide your current clients with a small incentive if they make a successful referral to your business.
Focus on Growing Your Business
Your time is best spent on serving current clients and acquiring new clients. That’s one of the best ways to grow your business. Yet, that’s not the only part of running a business. Clients ARM partners with businesses just like yours so that owners can focus on growing their business. We focus on client intake, customer service, billing, collections, and other necessary services. And we do it at a rate that’s almost 40% cheaper than hiring an employee. To learn how Clients ARM can help you, schedule your free consultation.