A lot of businesses I work with are still finding it quite hard to grow, and make bigger profits. The recession whilst officially over, still has its grip on us, and it will probably be quite some time yet before things feel any easier. So right now we all need to be looking for any ways in which we can increase our bottom line. In its simplest terms this means you need to increase your turnover (without increasing costs proportionately) and/or reduce your costs. Raising prices is clearly one of the easiest ways to do this, but many business owners are scared of going by this route at the moment. However, I am not suggesting huge increases, or necessarily across all your products or services, but when you analyse your sales in detail, you can see what a difference it can make. Just suppose your average sale was around £15.00, and you are selling 100 units of these per week, if you were able to raise the average price by£1.50, a relatively small amount in real terms, your income per week would go up by £150, per month by £600, and in the year over £7000.
On the other aspect of reducing costs, again close analysis, and small changes can make significant savings. I recently worked with a business which was offering refreshments to their clients (coffee/cold drinks), but there is no system or limit on who could be offered what. On analysing this we found that simply by ensuring that clients were offered refreshments following a system which would automatically reduce the cost (but without upsetting the clients), we were able to save £4000.
So think again, re-look at your business, and see what could you do to improve your bottom line.