On the 28th of February, Sarah Hayes, financial mindset coach, top listed advisor in 2023 by The Times, and with a background in retail banking, ran a concise and effective online event with the Federation of Small Business: she talked about “5 ways to maximise our profit”.
Ensure you are covering your costs: How much are you spending on your materials? What costs are included? What about the spaces we are using if you have a manufacturing business, and how much are you spending for it? These are just some of the questions we need to focus on, and, in a nutshell, this is what we need to look at: materials, services, and subscriptions.
Your client base is very important: It’s much cheaper to market your products to existing and previous clients than it is to run a new campaign. For example, new clients. We have higher chances to sell new products to existing or previous clients than we do by trying to build new relationships with new clients. If you have an onboarding process with the client, that takes time, effort, and money – if you have affectionate clients, you don’t need to onboard, you just sell your products, and you don’t need to start from the beginning.
Review your expenses: Being aware of every small or big expense we have, is very important. We always need to ask ourselves: “is this benefiting the business?” “is this useful for the growth of the business?”. Time by time, keeping it under control allows us to cut unnecessary expenses and to buy consciously and profitably for our enterprise.
Increase your prices: Charge your worth. So many people know that there are others in the market that charge three times what they are charging, and they still do nothing to increase their prices, just because they don’t believe in their worth. Increase your price and cut your expenses, that is where you raise your profit!
Maximise productivity: We tend to think that it’s easier to do everything by ourselves, but actually, if we have a skilled staff, or just even one, better, quicker, and more efficient than us, why not delegate? Choosing the right people and asking them to do the right things, save us time and increase our proficiency.
Written by: Marta Aiello