Three ways to increase the profit in your business

Today, I want to share three ways to increase the profit of your business. Whether you’re a seasoned entrepreneur or just starting out, these tips can help you maximise your revenue and improve your bottom line.

?1. Dive Deep into Your Numbers: The first step to boosting your profitability is a thorough analysis of your numbers. It might sound really simple, or even silly but I see way too many women burying their heads in the sand because they lack confidence or financial literacy.

?A book I highly recommend for this is "Profit First " by Mike Michalowicz.? It has a great approach to managing business finances, but the seven bank accounts it recommends might be overwhelming. Instead, I found a balance with just three:?

1. Operating Expenses: Daily business expenses.

2. Tax Account: For taxes owed to the government.

3. Profit Account: A dedicated account where you move a small percentage of your revenue.

By gradually increasing the percentage you allocate to your profit account, you can watch your savings grow. This habit will consistently remind you of the importance of keeping an eye on your profit margins.

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2. Increase Your Prices: Another simple often neglected strategy for increasing profit is to raise your prices. Women, in particular, tend to undervalue their services and hesitate to charge what they're worth. If inflation and business costs rise, so too should your prices. Regularly reviewing and adjusting your prices to reflect the market conditions and the value you provide is crucial.

If you don’t know how to go about setting a price for your offer, then consider using value-based pricing. This means charging based on the value you provide rather than just adding a margin to the cost. Alan Weiss's book, Value-Based Fees , offers great insights into this approach. By focusing on the value rather than just the cost, you can command higher prices and, therefore, greater profit margins.

3. Create New Offers

Introducing new, high-margin offers is another effective way to increase profit. This doesn’t mean pushing out offers with no margin—instead, focus on those with good revenue and strong profit potential.

Experiment with different offers to see what resonates with your audience. Test and learn—keep what works and discard what doesn’t. This strategy not only boosts profit but also brings in new customers and opportunities. For example, we developed our Revenue Raiser Program using this method, and it has significantly contributed to our success.

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Bonus Tip: Optimise! As your business grows, it’s crucial to regularly optimise procedures, tools, and technologies. Here are two key areas to focus on:

1. Streamlining Processes: Identify and eliminate bottlenecks in your workflow. Tools and software to automate repetitive tasks can save you time and money. For instance, I detest administrative tasks, but seeking help from experts like business managers or consultants can help set up efficient workflows.

2. Negotiating with Suppliers: It’s important to regularly review and renegotiate contracts with suppliers to get better rates or terms. However, sometimes paying full price is worth it for better service quality. Evaluate each expense to decide whether negotiation is beneficial.

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Increasing profit isn’t just about making more money; it’s about valuing yourself and your business enough to make the necessary changes.

Happy optimising and let me know how these strategies work for you. I’d love to hear about your experiences and successes!

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For a copy of Emma's book, 'Go-getter: Raise your mojo, shift your mindset and thrive' – https://www.emmamcqueen.com.au/book/