Here are some of my top tips on increasing your profits as a woman in business. It’s easy to get focused on the turnover (sales) of your business but you need to be keeping a close eye on your profit levels. Without good profit levels you will struggle to pay yourself an acceptable reward for your hard work. If that’s the case you may start to become disillusioned with your business and frustrated by the return on your effort. So here are five simple ideas you can put into action right now.
1. Review your costs
It is easy to get carried away in business ordering more stock, buying new equipment, ordering more services. Regularly review your costs and keep them low without scrimping on things which save you time and/or money. Think carefully before you spend or commit to spending money on anything. You need to know whether this purchase will help your business, whether you can afford it now and how much it will realistically help in increasing profits.
2. Stop competing on price
If you start competing with others on price you are likely to be on a downward spiral as there is nearly always someone else who is willing to lower their price and make less money (or even make a loss) in the short term. The chances are they are waiting for you to give in and leave the market place. Instead go for quality and additional value. If you give customers good value for money, say that. Don’t say it’s cheap or a really good price but that it’s good value.
3. Add value to your products / services
Look at ways of increasing the value of your product or service to help you stand apart from the competition. Can you offer packages which encompass additional elements or can you add a delivery service or support service? Find things which cost little to add but could be of value to your customers.
4. Consider new markets
Is it possible with a little work to take your product or service and sell it to a new market place? Re-purposing something can be a really great way of taking something you already have, adding to it or making small changes, and then selling it to a new market. Learn about the new market and really understand it before you dive headfirst into it but the work is likely to pay off.
5. Raise your game
Often your profit levels can be raised simply by selling more. To do this you may need to raise your game. Look at new ways of finding customers, maybe making better use of marketing opportunities such as social media. Find ways of networking and connecting to people who can support you in moving your business up a notch.
And finally, ask for the sale when you are with potential customers. If you feel you should wait for the customer to make the first move consider asking them if they would like to buy and see if that helps your business grow.
Do you need help in increasing your profits? Rebecca regularly works as a business mentor to women who need to raise their game and increase their profits. Drop her a line