Ep #80 Increasing profits - 10 simple ways to raise your bottom line

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Are you an entrepreneur or business owner who struggles with managing your relationship with money? Do you find yourself avoiding looking at your finances or feeling like there’s never enough money in your business? If so, you’re not alone.

As someone who has experienced the ups and downs of managing money in my own business, I understand the importance of mastering your relationship with money. And one crucial aspect of this is focusing on your business’s profit.

In this episode, I’ll be sharing ten ways you can increase your profits as a service provider, coach, or consultant. But first, let’s define a couple of terms first. 

Revenue.

Your revenue is the top-line income you generated in your business over a period of time, typically the last twelve months rolling or the last financial year.

Profit.

We will focus on two types of profit. Gross profit and Nett Profit.

1. Gross profit: This is what you have left after deducting the cost of services or cost of sales from your revenue. These are the expenses you had to pay to deliver your services or create your revenue.

2. Net profit: This is the amount you have left after deducting all allowable business expenses and taxes from your gross profit.

What’s really important to understand is that revenue generated is not the same as profit. I have worked with many entrepreneurs at the 6 figure level who take home much more money than their 7 figure competitors simply because they have more profit left over at the end of the day.

Side Note: Stop comparing yourself to other people’s revenue numbers. You really don’t know how well a business is doing unless you have all the information.

Now that we’ve defined profit let’s dive into ten ways to increase it in your business:

1. Have a meeting with your accountant: To understand your numbers, especially your profit and loss statement.

2. Do more of what works: Sell more of the services people want.

3. Increase your prices: Raising your prices can increase your profit margin, but ensure that your clients still perceive your services as valuable.

4. Streamline your processes: Identify areas in your business where you can streamline your processes and reduce costs, such as automating tasks or outsourcing non-core activities.

5. Upsell and cross-sell: Offer complementary services or products to your clients to increase your revenue per client and boost your profits.

6. Improve your sales funnel: Evaluate your sales funnel and identify ways to optimize it to convert more leads into paying clients.

7. Reduce your overhead costs: Analyse your expenses and identify areas where you can cut costs, such as reducing office rent or negotiating better deals with suppliers.

8. Focus on high-value clients: Identify your high-value clients and focus on providing them with exceptional service to encourage repeat business and referrals.

9. Create packages and bundles: Encourage clients to purchase more services from you at once and increase your revenue.

10. Offer premium services: Create premium services with higher prices to attract clients who are willing to pay more for exclusive and personalised services.

By focusing on these ten strategies, you can ensure that the profit you make in your business is not being eaten up by unnecessary expenses or getting lost because you’re avoiding looking at your finances.

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