Updated: Oct 23, 2020
3 Ways to Boost Your Business Profits
If you’re like most business owners, you spend the first years of your business working hard to generate revenue and keep the lights on, but at some point in your journey, you will find yourself focused on profitability. And the truth is, the ability to generate a profit will determine the survival of your business in the long term.
Here are 3 tips for generating a profit in your business, and the key questions you should be asking yourself.
PROFIT TIP #1 | UNDERSTAND YOUR NUMBERS
A foundational step for making sure your business is not only making money but is also turning a profit is to understand your numbers - understand what impacts your profits. That is more than just printing out your PnL reports periodically. In business, you must know what makes up your gross profit and your net profit.
For every sale I make, how much cost do I incur?
How much do I keep for my business?
How do my spending habits relate to my earning trends?
PROFIT TIP #2 | WORK WITH VENDORS TO REDUCE COST
Build a strong relationship with your vendors/suppliers to reduce your expenses. If your business relationship will span months or even years, it is likely that your supplier will be open to negotiation because the business partnership is one you both can rely on.
Can I save on cost if I buy in bulk?
Can I take advantage of discounts by paying my vendors early?
PROFIT TIP #3 | AUTOMATE! AUTOMATE! AUTOMATE!
When and where you can it is best to automate your business systems and processes. Automation frees up your time and allows you to work on the business instead of in the business.
Can I automate my payment process?
Can I automate my marketing?
Can I automate my calendar?
But wait, there's more...
Seven more ways to grow your business
Key questions you should be asking yourself
Want to learn more about how a Business Advisor can help you increase your company’s profits? Visit www.descpa.com/business-advisory to learn how we provide business owners with the tools needed to implement and maintain systems that allow them to run the business of their dreams!
This blog content is intended for information purposes only and does not constitute a client relationship with Desnoyers CPA, LLC.