Shifting the focus of your business to increasing your profits, rather than reducing tax obligations, will change the whole dynamic of your business for the better.
As soon as this mental shift occurs there are multiple ways to look at your business differently, and here’s just 7 things you will soon discover:
You’ll start to focus on your customers. Are they profitable? Which customers are the most profitable and how can I find more of that type of client? Is their pricing appropriate for the level of service they require?
Moving to focus on profit requires that you look at how efficient you are being in the delivery of services, particular regular repetitive processes, documentation and implementation.
There’s how you deliver products in processes, but also what you’re delivering regularly and how that can be streamlined or costs reduced. Can you purchase more product from a single supplier that you currently get from multiple and negotiate a discount? How long since you checked that you’ve been applying the appropriate margin to products that you many be paying more for but haven’t increased the costs to consumers?
Reviewing your clients profitability also give you the opportunity to review your marketing. Are you targeting the right sort of customers, and are you continuing to market to the existing customers that are really valuable to you? Have you asked them what they love about working with you?
What other services can you offer the clients you have? Visiting a client to provide one service or three services can change the profitability drastically. Keeping an existing customer happy is far more profitable then finding a new customer.
Are you getting recurring revenue for your services? If not think about whether you can you provide a regular ‘checkup’ for your customers that would be a source of ongoing revenue which can be the bread-n-butter of the business in quiet times.
Looking at profitability means looking across all your costs and those subscriptions you’ve left running or that ‘thing you still do each month just because’ and finally find the time to remove these additional costs and processes that just continued for no reason as a legacy.
Analyzing these 7 items and answering the questions posed will give your business the new lease on life you need. Reviewing business regularly is the key. Your business will be more dynamic and profitable for it.