We can exchange all we want to about meeting business objectives and growing your establishment, but it’s all just a means to an end. You probably love your business – it might even be a real passion of yours – but it’s only the vehicle you’re using to please your own personal goals at home.
You do it to make money, which can then be leveraged to uphold the lifestyle you envisioned, grow your savings, build a retirement nest egg, and buy your freedom.
It’s not enough to increase your corporation’s revenue. If you’re only focused on growing revenue, then there’s a really good chance that you’ll also boost your expenditures in lockstep. This gives you the impression of growth, but it doesn’t do anything for you and your own individual financial goals. The only way to build up your take-home pay is by growing your profit margin.
Increasing your revenue margin isn’t always a stress-free thing. But, the formula for doing it is pretty direct. If you put your head down and get motivated, you can make it happen. Here are some business development suggestions:
FOCUS ON CUSTOMER LOYALTY
Did you know that it’s in the middle of 5x and 25x cheaper to maintain an existing shopper than it is to obtain a new one? In other words, if it takes you $5,000 to bring in a new consumer, it would probably take you anywhere between $200 to $1,000 to keep a current customer. That’s why a modest 5% increase in customer retention usually increases profits by 25% to 95%.
There’s surely an element of anticipation and joy in adding new consumers – and proactive sales outreach is a must – but don’t forget about your existing customers. Keeping more of them engaged is the key to your growth.
YOU HAVE TO SPEND DOUGH TO MAKE BREAD
As the saying goes, scared money don’t make no money. In other words, you have to be prepared to spend money and invest in the right assets and projects if you want to generate real revenue.
When your attention is on taking home more, spending more can seem backwards. And, truth be stated, it can be…for a small period of time. Your profit margin might in fact take a hit for a number of weeks or months, but it’s the long-term outcomes that matter.
Advancing in the right supplies, resources, innovation, technology, and individuals can help you generate bigger profit margins. Don’t be frightened to spend when needed!
RETHINKING WORKFLOWS AND SYSTEMS
Pull back the curtain and really take a closer look behind the scenes. Which procedures, systems, and workflows are most vital to your business’s productivity and harvest? Now think about how you can retool them to be more well-organized. This may involve removing steps, reordering methods, redesigning tools and workstations, and systematizing manual, time-consuming responsibilities.
Sometimes the major savings are hidden in the most dubious places. For instance, did you know that many businesses waste thousands of dollars per month on poor fleet maintenance plans? Something as unassuming as automating with fleet maintenance software can help you attain lower operating costs.
Running a brand is tough and (at times) difficult work that keeps us up very late at night. It’s often described by emotions like stress, anxiety, fear, distress, and unease. If we want to appreciate longevity in our companies, we have to get real about strengthening profit margins and growing take-home pay. It’s not egotistic – it’s necessary to our existence.
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