Running a business is hard work. It takes mental stamina, courage, time and so much more. It’s a roller coaster ride of ups and downs and it never stops. We as business owners want our businesses to succeed and to profit but what if you’re not making enough profit in your business?
If you are not making enough profit in your business you may have had thoughts like:
- Why am I doing this?
- I don’t know how much longer I can do this for
- Why can’t I get ahead in business?
- How do I make changes to improve things so I can keep going?
These thoughts are entirely normal so don’t feel bad about thinking this way. The important thing is, what you can do to help your business profit?
Here are 3 strategies to make immediate changes to your business’ profitability:
- Put profit first
- There is absolutely nothing wrong with the desire to make money in your business if anything it’s a necessity that many people forget. Consider how much you would earn if you were employed by someone else? Are you making this? If not, why?
- Review your pricing for labour and materials
- Are you pricing consistently, or do you have varying prices depending on the customer?
- Why do you do this? Are you valuing your services and what you do?
- Do you take on any customer that comes in the door because you are desperate for sales?
- Consider who you enjoy working with, who values your services and products, and who you would like to work more with?
- Are you pricing high enough?
- Are you and your team being productive with your time? Or are you just keeping your staff in a job without making any money for yourself?
- Get better management over your costs
- Increase productivity of staff and yourself
- Seek alternative suppliers
- Are there any services or costs to your business you could do without?
- Can you squeeze on costs?
Jot down all your answers and comments in relation to the above. Then closely review your notes. It’s good to re-evaluate your situation and gain insight and clarity. Apply what you’ve learnt about your business to your business and monitor the positive impact. You may still need to tweak things along the way.
If you regularly conduct this exercise and apply your findings to your business, you’ll be on your way to working towards a profitable business.