There are exactly two ways to make any business more profitable:
- Increase Income
- Decrease Expenses
Just about everyone knows that. But how do we do this exactly?
To increase income, you have two options again:
- Sell More
- Charge More
Either of the strategies work, but both combined work miracles.
If you decide to charge more, make sure that you increase the value of your product or service to account for the increase in price. This will also help you explain better why you are charging what you’re charging without having to feel weird or awkward about it.
To sell more, focus on your marketing strategies and how you present your product or service to others. Create a value for the prospective client and give them what it is that they want.
Getting a quick no is better than getting no answer as it allows you to move on to the next potential client quicker.
If they say no to your product or service, don’t take it personally. It has nothing to do with you. It just means that
- They are not in the market for this product
- You haven’t explained it well
If they are not in the market, perhaps your marketing and target audience are not the match for you. Change your strategy and your market.
If you haven’t explained it well, focus on your product or service features and benefits and look to improve your pitch so they can connect better with what it is what you have to offer.
When I talk to people, I often ask: “What is your largest expense you have?”
I get all kinds of answers. Some say mortgage, some say food, others believe it’s transportation, and I’ve had folks blame their spouse or kids.
While all of those can get very pricey, none of them are the correct answer.
Taxes are the largest expense that you and I and everyone we know have.
It is the only consistent expense that we’ll have to keep paying until we die. And even then, our heirs and beneficiaries will likely have to pay even more tax when we’re gone.
While you can focus on all kinds of expenses to reduce in your personal and business life, I believe that focusing on reducing the largest expense we have, taxes, will give us the most benefit.
There are financial strategies that can help you legally reduce your largest expense and considering implementing them in your personal and business life can make a world of difference, especially long term.
More Profitable Business
Find a competent accountant (CPA, here in the U.S.) that understands tax implication and financial strategies to help you implement. Ask them questions and listen to their advice. Then implement what they tell you.
To learn more about the strategies that exist, consider signing up for 1 Deal Away course we offer where we teach business owners how to leverage these.
Now that you understand the basics, the main question remains: Will you take action to improve your business more profitable?