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Business Profitability - 10 Ways To Boost


10 Ways to Boost your Profitability

So many business owners work hard - really hard - just to break even or keep afloat. Each one of us deserves reward for our efforts, whether that be financial or personal. The question to ask yourself is whether you are directing your effort in the right places, to get the reward you want?

Of the businesses I've seen and worked in, there are plenty of ways to mis-spend effort - that is, to work hard - but on the wrong things. Here are ten of the most common areas where the return on your efforts can really be ramped up.

1. Marketing Inconsistently

Once you have committed to owning and running a business you must be equally committed to marketing and selling the products and services of that business. It is difficult, if not impossible, to stay and remain profitable without a commitment to ongoing concerted marketing.

To get more out of your marketing, create a simple marketing plan that includes marketing activity every day, every week and every month. Marketing plans combine formal activities (such as advertising, promotions and writing) with informal activities (such as making new contacts) . Don't underestimate the power of talking to people about what you do. Use every opportunity, every time.

2. Fear of Asking for the Sale

Isn't it true that we think asking directly for someone's business means coming across as pushy or obnoxious. But if we have this attitude, we are letting profit-producing opportunities pass us by. Worrying more about what someone thinks of you than bringing more money into the business is an all too common mistake. If you find it difficult to "ask for the sale", you can be sure that you're not bringing in as much money as you could be.

The most effective way to address this issue it to practice asking for the sale in language that you are comfortable with (not too wishy-washy please). Write down what you want to say first, then practice it over and over. There is also plenty of stuff out there on handling objections. Prepare your responses to the most common objections so you are well armed before you speak with your prospective customers.

3. Getting help

Most business owners possess strengths in one or two specific areas, but whether by necessity or design, they often end up working in areas they aren't strong in. This builds inefficiencies and potential for mistakes into the business. To compound the problem, we don't ask for help straight away, but struggle on doing the stuff we are not suited to (saves money right?) But each day that goes by with your business running at less than maximum efficiency, means dollars lost from your pocket.

Work out where you add the most and least value in your business. Pay someone to help you out with these low value add activities. Your time is best spent where you add the most value. If you can do more of this kind of activity, your business will benefit.

4. Use your Existing Customer Base

All the research tells us that it is easier and cheaper to keep working with customers you already have, than to get new customers into your business. If you are not following up with past customers on a regular basis you are reducing your profitability potential.

Develop strategies to keep your customers with you, such as loyalty plans, regular communications and special offers. Implement a regular process for following up your customers after they buy from you.

5. Managing Expenses

Savvy business owners regularly appraise their business expenses and find ways to reduce costs without sacrificing quality. If you haven't completed a cost analysis lately, you might be paying more than you need to be, which will reduce your profitability.

At least once per quarter you should review your expenses and negotiate for adjustments as appropriate. Categorize everything you spend under 3 headings: Essential, Nice to Have and Non-Essential. Everything in the last two categories is up for grabs - be ruthless!

6. Spending large amounts on glossy, slick marketing materials and expecting business to pour in without any additional effort.

Glossy brochures and slick marketing materials are a nice addition to more active forms of marketing such as meeting people, calling people and speaking to people. However, brochures and business cards, no matter how beautiful, do not replace direct contact. If you are spending money on flashy marketing materials in the place of marketing directly, your profitability will suffer. The most effective form of marketing comes from you talking about your business to others.

Marketing materials are an expense, and to be sure they are working, you need to get some handle on the return on your investment. At the very least you should be tracking where new business is coming from so you can get an idea of whether your marketing materials are contributing to any new business you get.

7. Spending a significant amount of time in low-return activities

Don't we all know about this one! If you are spending the majority of your day completing tasks which are administrative in nature and/or which can be easily completed by other people then you are not putting yourself to best use. For most of us, the best value-adding activity we can be involved with is in bringing business in the door by building relationships, talking to prospective customers and promoting our business.

What value do you put on your time? Assign yourself a competitive hourly rate for the market and industry you work in - it might be anywhere from $100 per hour or upwards. Then ask yourself whether you would pay anyone that hourly rate to process accounts or do administrative work. If the answer is no, find a way of getting these low-return activities done for a lower hourly rate. Hire a bookkeeper or assistant for a few hours a week, and spend your time doing the valuable work.

8. Not charging enough for what you do.

This challenge seems to arise especially for people who sell services. Either we feel embarrassed to ask for the amount we want, or we simply accept less money than we need - so we get "some money" rather than "no money". But beware, after a while, working for too little can leave you exhausted and resentful, not to mention the impact it has on your profitability.

You do not need to defend an increase in your fees either. It is normal business strategy to review fee structures, make changes and advise customers. And contrary to our fears, it is often the case that business levels improve after fees are increased. It seems that we attract a whole different class of customer when our fees reflect the value we provide.

9. Not making enough use of technology which could save time and effort.

As a business owner, you have a fixed amount of time and energy within which you must maximize your profits. Technology can help you do this in the form of autoresponders, voicemail, wireless internet connections, speech recognition software, SMS from your computer and so on. All of these tools are widely available to us, and are designed to save time and effort. Each of us needs to continually look for ways to make business processes more efficient by using inexpensive technology.

Often the problem is that we don't know what we don't know. Some wonderful tool might be available but we don't know it exists. You need to stay on top of the latest products by regularly checking in with business and telecommunications sites.

10. Sticking with outdated business models or plans.

You've all heard it before - doing things the way they have always been done means that you will get the results that you always got. If you are not satisfied with your results then you need to re-look at what and how you are doing things. An astute entrepreneur has a mindset that is always challenging the way things are done in the business.

Another great way of coming across new ideas is to attend seminars and conferences on various topics. If you get a single idea to put into practice in your business, then that seminar has been worthwhile.

If you are serious about improving your business' profitability (and aren't we all?), then taking action on these areas will help you make more money and have more fun in your business. And that's what it's all about really.

Megan Tough is a published author, coach, facilitator and speaker. Her business, Action Plus, works with professionals to create sustainable and profitable income streams. Make more money and have less stress! To learn more and to sign up for more FREE tips and articles like these, visit http://www.megantough.com


Todays News by officejax free advertising and ad exchange solutionsMORE RESOURCES updated Wed. February / 28 / 2024
Show 1375: The Science Supporting Home Remedies - The People's Pharmacy
Show 1375: The Science Supporting Home Remedies  The People's Pharmacy

7 Home Remedies for UTIs (Urinary Tract Infections) - Healthline
7 Home Remedies for UTIs (Urinary Tract Infections)  Healthline

9 Effective Home Remedies for Diarrhea - Health.com
9 Effective Home Remedies for Diarrhea  Health.com

Home Remedies for Cold and Flu Symptoms - The New York Times
Home Remedies for Cold and Flu Symptoms  The New York Times

Advancing Health webinar: ENT home remedies - myth versus fact - Nebraska Medicine
Advancing Health webinar: ENT home remedies - myth versus fact  Nebraska Medicine

8 simple home remedies to treat cough and chest congestion - The Times of India
8 simple home remedies to treat cough and chest congestion  The Times of India

6 Home Remedies To Treat Blackheads - WION
6 Home Remedies To Treat Blackheads  WION

Free Home Remedies Community Clinic February 17th - WKYK
Free Home Remedies Community Clinic February 17th  WKYK

8 Home Remedies For Sunburn Recommended By Dermatologists - Forbes
8 Home Remedies For Sunburn Recommended By Dermatologists  Forbes

Gogl-mogl: old world home remedy that may comfort — even if it doesn't cure - NPR
Gogl-mogl: old world home remedy that may comfort — even if it doesn't cure  NPR

10 Home Remedies To Attack Your Cold | Right as Rain - Right as Rain by UW Medicine
10 Home Remedies To Attack Your Cold | Right as Rain  Right as Rain by UW Medicine

Home Remedies for Diaper Rash: What Parents Need To Know - Parents
Home Remedies for Diaper Rash: What Parents Need To Know  Parents

Home remedies for respiratory illness - UW Medicine | Newsroom - UW Medicine Newsroom
Home remedies for respiratory illness - UW Medicine | Newsroom  UW Medicine Newsroom

How to Stop Receding Hairline: 12 Home and Medical Remedies - Medical News Today
How to Stop Receding Hairline: 12 Home and Medical Remedies  Medical News Today

Best Life: Home remedies for dry eyes - Action News 5
Best Life: Home remedies for dry eyes  Action News 5

RSV Home Remedies - Health Central
RSV Home Remedies  Health Central

12 Natural Remedies for Anxiety to Look Into - Verywell Health
12 Natural Remedies for Anxiety to Look Into  Verywell Health

Do COVID-19 home remedies really work? Doctors weigh in on saltwater gargles, nasal rinses and more - Fox News
Do COVID-19 home remedies really work? Doctors weigh in on saltwater gargles, nasal rinses and more  Fox News

Traditional medicine has a long history of contributing to conventional medicine and continues to hold promise - World Health Organization (WHO)
Traditional medicine has a long history of contributing to conventional medicine and continues to hold promise  World Health Organization (WHO)

Natural cold remedies are a lot more fiction than fact, but not completely - Pittsburgh Post-Gazette
Natural cold remedies are a lot more fiction than fact, but not completely  Pittsburgh Post-Gazette

Beat Bloating: Expert-Approved Cures for Feeling Bloated All the Time | Health & Wellness Tips - Moneycontrol
Beat Bloating: Expert-Approved Cures for Feeling Bloated All the Time | Health & Wellness Tips  Moneycontrol

Flu: Best Home Remedies and Natural Treatments to Relieve Symptoms - Everyday Health
Flu: Best Home Remedies and Natural Treatments to Relieve Symptoms  Everyday Health

Medical Moment: Home remedies for dry eye - South Bend - WNDU
Medical Moment: Home remedies for dry eye - South Bend  WNDU

Home remedies and foods to detox your liver and kidney - DNA India
Home remedies and foods to detox your liver and kidney  DNA India

Fermented garlic honey is the homemade remedy to try this cold and flu season - ABC News
Fermented garlic honey is the homemade remedy to try this cold and flu season  ABC News

Home Remedies for Dry Eyes - WALB
Home Remedies for Dry Eyes  WALB

Natural Remedies for Tinnitus - Verywell Health
Natural Remedies for Tinnitus  Verywell Health

Health Headlines: Home remedies for dry eyes - KPLC
Health Headlines: Home remedies for dry eyes  KPLC

5 effective home remedies to manage frizzy hairs - India TV News
5 effective home remedies to manage frizzy hairs  India TV News

San Antonians navigate flu season with home remedies, doctor offers insight - WOAI
San Antonians navigate flu season with home remedies, doctor offers insight  WOAI

Dealing with thick, discolored toenails - Harvard Health
Dealing with thick, discolored toenails  Harvard Health

Looking for home remedies? These 6 herbs might be able to help - National Geographic
Looking for home remedies? These 6 herbs might be able to help  National Geographic

4 Home Remedies for Heartburn That Actually Work - Hartford HealthCare
4 Home Remedies for Heartburn That Actually Work  Hartford HealthCare

Spotted lanternfly home remedies may be worse than the bugs - Pittsburgh Post-Gazette
Spotted lanternfly home remedies may be worse than the bugs  Pittsburgh Post-Gazette

Home Remedies for UTI Symptoms: Natural Treatment for Urinary Tract Infections - Everyday Health
Home Remedies for UTI Symptoms: Natural Treatment for Urinary Tract Infections  Everyday Health

10 Natural Remedies for Fibromyalgia - AARP
10 Natural Remedies for Fibromyalgia  AARP

Home Remedies for Bug Bites - Parents
Home Remedies for Bug Bites  Parents

How to Prevent a Hangover Before, During, and After Drinking - Real Simple
How to Prevent a Hangover Before, During, and After Drinking  Real Simple

Home Remedies for Chronic Hives - Health Central
Home Remedies for Chronic Hives  Health Central

Quiz: How Much Do You Know About Natural Remedies? - AARP
Quiz: How Much Do You Know About Natural Remedies?  AARP

Home Remedies: Expert Tips for Caring for Your Sick Child at Home - Checkup Newsroom
Home Remedies: Expert Tips for Caring for Your Sick Child at Home  Checkup Newsroom

Sore Throat? Try These 5 Home Remedies for Relief - MedicineNet
Sore Throat? Try These 5 Home Remedies for Relief  MedicineNet

How to Beat a COVID-19 Cough: Medications, Home Remedies, Tips - Everyday Health
How to Beat a COVID-19 Cough: Medications, Home Remedies, Tips  Everyday Health

How To Get Rid Of A Cough In 5 Minutes - Home Remedies For Coughs - Women's Health
How To Get Rid Of A Cough In 5 Minutes - Home Remedies For Coughs  Women's Health

Natural Remedies and Supplements for Gallbladder Health - Verywell Health
Natural Remedies and Supplements for Gallbladder Health  Verywell Health

Easy home remedies for stomach ache: discover 10 foods to calm your tummy - Business Insider India
Easy home remedies for stomach ache: discover 10 foods to calm your tummy  Business Insider India

Natural Remedies for Skin Irritation, Inflammation, and Dryness - Real Simple
Natural Remedies for Skin Irritation, Inflammation, and Dryness  Real Simple

Home remedies for low blood pressure - The Times of India
Home remedies for low blood pressure  The Times of India

Bee Sting Home Remedies And Treatments – Forbes Health - Forbes
Bee Sting Home Remedies And Treatments – Forbes Health  Forbes

Most effective home remedies for long, healthy hair - Moneycontrol
Most effective home remedies for long, healthy hair  Moneycontrol

20 Natural Remedies to Stop Hair Fall 2024 - The New Indian Express
20 Natural Remedies to Stop Hair Fall 2024  The New Indian Express

What Is a Natural Antibiotic? Examples, Uses & Effectiveness - Health Essentials
What Is a Natural Antibiotic? Examples, Uses & Effectiveness  Health Essentials

Natural Antihistamine: Types, Benefits, and Alternatives - Verywell Health
Natural Antihistamine: Types, Benefits, and Alternatives  Verywell Health

Everything to Know About Newborn and Baby Congestion - The Bump
Everything to Know About Newborn and Baby Congestion  The Bump

Doctor's Best Home Remedies to Ease the Pain of a Gout Flare — in 10 Minutes or Less - Yahoo Life
Doctor's Best Home Remedies to Ease the Pain of a Gout Flare — in 10 Minutes or Less  Yahoo Life

How to Treat RSV at Home for Children and Adults - Everyday Health
How to Treat RSV at Home for Children and Adults  Everyday Health

Natural Remedies for MS: Supplements, Exercise and More - Health Central
Natural Remedies for MS: Supplements, Exercise and More  Health Central

How To Get Rid Of A Stomach Ache - 15 Expert-Recommended Remedies - Women's Health
How To Get Rid Of A Stomach Ache - 15 Expert-Recommended Remedies  Women's Health

Home remedies for low-blood pressure - The Times of India
Home remedies for low-blood pressure  The Times of India

Prevent dry skin this winter with these dermat-recommended ways - Health shots
Prevent dry skin this winter with these dermat-recommended ways  Health shots

Home remedies for sore throat, sneezing, seasonal allergies: Try honey, turmeric, green tea for relief - Moneycontrol
Home remedies for sore throat, sneezing, seasonal allergies: Try honey, turmeric, green tea for relief  Moneycontrol

Home remedies for constipation in children - The Times of India
Home remedies for constipation in children  The Times of India

Severe psoriasis: Treatment, home remedies, and more - Medical News Today
Severe psoriasis: Treatment, home remedies, and more  Medical News Today

These home remedies will help cure constipation - The Times of India
These home remedies will help cure constipation  The Times of India

5 home remedies to lower bad cholesterol levels - DNA India
5 home remedies to lower bad cholesterol levels  DNA India

6 Home Remedies to Get Rid of Bad Breath - WION
6 Home Remedies to Get Rid of Bad Breath  WION

10 home remedies to say goodbye to dry cough - The Times of India
10 home remedies to say goodbye to dry cough  The Times of India

8 Causes Of Wheezing In Kids, Symptoms, And Home Remedies - MomJunction
8 Causes Of Wheezing In Kids, Symptoms, And Home Remedies  MomJunction

Treating a UTI at Home? Talk to Your Doctor - Norton Healthcare
Treating a UTI at Home? Talk to Your Doctor  Norton Healthcare

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6 Best Home Remedies for Chapped Lips  WION

Effective home remedies to combat dandruff this winter - The Times of India
Effective home remedies to combat dandruff this winter  The Times of India

12p natural home remedy 'promotes hair growth' by improving circulation around follicles - Express
12p natural home remedy 'promotes hair growth' by improving circulation around follicles  Express

At-Home Remedies to Fix Under-Eye Bags, as Recommended by Ophthalmologists - Newsweek
At-Home Remedies to Fix Under-Eye Bags, as Recommended by Ophthalmologists  Newsweek

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How To Get Rid Of Brown Recluse Spiders (2024)  Architectural Digest

Natural Remedies For Anxiety: 5 Ideas – Forbes Health - Forbes
Natural Remedies For Anxiety: 5 Ideas – Forbes Health  Forbes

Home Remedies to Relieve Gas and Reduce Bloating - Everyday Health
Home Remedies to Relieve Gas and Reduce Bloating  Everyday Health

Natural Remedies for Crohn's Disease: Supplements, Stress Reduction and More - Health Central
Natural Remedies for Crohn's Disease: Supplements, Stress Reduction and More  Health Central

Dermatologists Weigh In On The Acne Home Remedies We've All Tried - HuffPost
Dermatologists Weigh In On The Acne Home Remedies We've All Tried  HuffPost

Trapped gas: 8 Home remedies for instant relief - The Times of India
Trapped gas: 8 Home remedies for instant relief  The Times of India

6 Home Remedies for Facial Hair Removal - WION
6 Home Remedies for Facial Hair Removal  WION

Protect your hair from sun damage: Home remedies that work - The Times of India
Protect your hair from sun damage: Home remedies that work  The Times of India

11 Home Remedies to Stop Vaginal Itching, According To OB-GYNs - Women's Health
11 Home Remedies to Stop Vaginal Itching, According To OB-GYNs  Women's Health

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Best Home Remedies for Back Pain: Advice From a Physical Therapist  Everyday Health

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11 Natural Ways to Lower Your Cortisol Levels  Healthline

Natural Healing: 10 Home Remedies to Treat Heat Stroke - NDTV Food
Natural Healing: 10 Home Remedies to Treat Heat Stroke  NDTV Food

11 Best Ways to Get Rid of a Cough Fast, Including Home Remedies - Good Housekeeping
11 Best Ways to Get Rid of a Cough Fast, Including Home Remedies  Good Housekeeping

7 best natural antibiotics: Uses, evidence, and effectiveness - Medical News Today
7 best natural antibiotics: Uses, evidence, and effectiveness  Medical News Today

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6 Natural Home Remedies for Skin Tightening  WION

Home Remedies For Back Pain Relief | Homeveda - Hindustan Times
Home Remedies For Back Pain Relief | Homeveda  Hindustan Times

How To Get Rid of Mice — Easy Home Remedies as Inexpensive as They Are Effective: Pest Pro Reveals - Yahoo Life
How To Get Rid of Mice — Easy Home Remedies as Inexpensive as They Are Effective: Pest Pro Reveals  Yahoo Life

Hemorrhoids Treatment Plan - 12 Ways to Get Rid of Hemorrhoids - Prevention Magazine
Hemorrhoids Treatment Plan - 12 Ways to Get Rid of Hemorrhoids  Prevention Magazine

Priced out of healthcare, some Iraqis turn to natural remedies - Reuters
Priced out of healthcare, some Iraqis turn to natural remedies  Reuters

Heat Rash Treatment: 9 Home Remedies - Business Insider
Heat Rash Treatment: 9 Home Remedies  Business Insider

Mucus in throat? Try these home remedies for quick relief - The Times of India
Mucus in throat? Try these home remedies for quick relief  The Times of India

How to prevent UTI: 5 tips to keep urinary tract infection at bay - Health shots
How to prevent UTI: 5 tips to keep urinary tract infection at bay  Health shots

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10 home remedies to reduce wrinkles  The Times of India

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Effective home remedies to prevent sun damage on your skin  The Times of India

How Doctors Treat Their Own Colds At Home - HuffPost
How Doctors Treat Their Own Colds At Home  HuffPost

Home Remedies for Allergies To Stop Sneezing and Itchy Eyes in Their Tracks - Well+Good
Home Remedies for Allergies To Stop Sneezing and Itchy Eyes in Their Tracks  Well+Good

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10 home remedies to deal with hirsutism or excessive hair growth  The Times of India

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