We all like making that sweet, sweet cheddar, and many people think of revenue as the life blood of their business. But it’s not the full story of having a successful business.
No matter what size or stage your business is in here are 3 things you need to focus on:
You can have lots of revenue and still not have any money left in the bank at the end of the day. There are so many businesses that do this to gain market traction, including Amazon and Facebook. I hate to break it to you, but you aren’t Amazon. Nor do you want to be! They aren’t profitable.
Get your business expenses under control so that after all the dust settles you have some profit that you can take home. The key to actually making a profit is…
Set good prices
Do you honestly know how much it costs you to deliver your goods or services? Including your labour? Or are you just basing your prices off what your competition charges? Are you really going to that they did the math?
Get your calculators out and add up every penny that goes into your offerings. Know how much it costs and make sure you are actually turning a profit on each product.
I don’t have to tell you how hard you need to hustle to sell a product. It’s hard to land a customer, so it is important to think about additional revenue streams, complimentary products, or a slick way of getting your customers back for more of the same thing.
Bonus: How to reign in your expenses and actually make a profit
Most people make purchase decisions by looking at their bank account balance and businesses are money eating monsters.
Every month, look at how much money came into your business bank account, and how much went out. Make it a habit to pay yourself something every month. Even if it is just a small amount. Transfer that money out of your business bank account and you will spend less money on the business AND start paying yourself. Twofer!
Stop running your business blind to the numbers and start making a PROFIT today.
Need specific advice about your business? Book a free meeting with a local business advisor.
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