There are steps all across your business processes that have the potential to create or reduce profit for your business.
Profit is the key to growing your business and it is the money left over after everything is paid.
Remember, business isn’t about breaking even, because breaking even keeps you small. The more profit you generate, the more you will have growth to create an impact in the world.
Here are 5 tips to maximize your profit and avoid losing it.
1. Manage your time
Your time has value. The longer you spend on things that aren’t revenue generating, the more profit you can use every day.
If you have a process to make widgets, for example, but you are interrupted every 15 minutes to answer emails or to take calls, the time it takes you to produce the product is longer, but you aren’t getting more money for the widget!
The time interruption takes you off task, and actually costs you real profit!
Make a list of everything you have to do and decide what is actually going towards making money. Use time blocking to manage your schedule and prioritize those things that make your company money.
Delegate the things that aren’t generating revenue and are not in your zone of genius.
2. Manage your costs
Every time you pay for something you don’t need or will not use you are taking money from your profit.
Perhaps it’s a subscription that you are no longer using or maybe you haven’t looked at your suppliers in a few and their prices have creeped up or you have gotten into a groove and haven’t looked at your expenses in a while.
It is important to be as “lean” as possible in business to keep as much profit as possible. Every unused subscription at $12.95 a month adds up!
Review your processes at least once a year and check your providers for new or different capabilities and packages.
Are there places to streamline to one provider, or to change providers that allow you to be more efficient in your process?
3. Manage your delivery process for your products and services
When you coach clients, do you typically go over time? Do you run to the post office every day to mail orders?
Is your process clunky in returning emails to customers who have questions or problems? Do you have a client flow process from onboarding to completing your service or product delivery?
Your delivery process for your products and services can directly impact your profits.
If the processes are not clear and there are inefficiencies anywhere along the line you will eat into the profits you are creating. Keeping your process as simple as possible while giving legendary service is crucial.
4. Watch the “flash sales” and cutting prices too often, it can look like desperation
When sales slow, it can be an immediate instinct to cut prices and try to make money on volume. Every time you cut your prices, you cut profit.
I know holding sales can be great for business but do it with a plan. If you get desperate every month and hold a flash sale the last week, your customers will get smart, and wait until then to order.
Plan your sales and tie them back to some business purpose. Are you holding a sale to add customers to your list? Or maybe for a product or service launch? An early bird?
Cutting prices early and often is a recipe to eat your business profit.
5. There is more money in your follow up.
I recently read that over 80% of sales is in the follow up, after 5 contacts. So have a follow up process.
Whether it’s an email newsletter or email nurture sequence, a plan for phone call contact, the follow up is critical to the sales, and therefore the profit your business makes.
Additionally, it is easier to keep a client than to acquire a new one. You can resell products and services to your existing clients with less effort than gaining new ones.
As I’ve moved to more online business, I’ve realized that I’m actually pretty bad at this one and have been working hard to create a good system for myself. I know it is critically important.
If you are here it’s because you are trying to maximize the profits in your business, right? You want more growth and impact.
You can grab a spot on my calendar for a free 30-minute call by visiting https://dawnkennedy.as.me/support and we can talk to see how I can help you and if we are a good fit to work together in your business.