We’re all talking about improving our ‘bottom line’ in January – getting rid of any saggy bums and improving our overall health and fitness. How about making it a New Year’s Resolution to boost the bottom line of your business at the same time!
Improving your ‘bottom line’
A profit and loss account, usually abbreviated to ‘P&L’, at its simplest level consists of income and costs. Therefore, it stands to reason that you can boost your company profits, your ‘bottom line’, by either increasing your income or improving your costs or, more powerfully, both at the same time.
In part 1 of this 2-part blog, we will focus firstly on improving your income levels.
There are many ways to do this and it is worth brainstorming ideas with your staff or trusted others – it’s amazing what magic can result!
Questions to ask yourselves and areas to consider:
How feasible is it to increase your prices? Consider this on some of your products and services if not all of them. This can be a very effective way to increase your income.
What other products/services can you sell to your existing client base? Often they are grateful you let them know and are happy to stick with those they know, like and trust. More of your products/services sold results in more income.
How can you encourage your existing client base to spread the word on your behalf and introduce you to others who may be interested in your products/services? Happy customers are your best ambassadors! More customers generate more income.
Along a similar theme to referrals but usually a paid for route. However, 50% of something is better than 100% of nothing! And you only pay when you get results…..
How do you currently promote yourselves, how do people know you exist, how do you present yourselves as the go-to experts? Strong PR can be a great tool for generating new business opportunities and therefore increased income.
What trends are emerging in your sector? How can you outwit the competition? Which other markets could you move into? By keeping your eyes peeled to new opportunities, you have a much stronger chance of increasing your sales and growing your business.
What new products/services could you develop, both for your existing client base and potential future clients? How can you refresh and re-launch your current offerings? Keep your customers excited for buying more.
What can you do to treble your marketing efforts to reach wider audiences creatively and cost-effectively? Again, the more people who know of you, the more likely you are to sell more of your products and services, thereby increasing your income.
What other sales might you be able to generate? For example, do you have a spare room you could rent out for conferences, meetings or to another company? If you write a blog, could you attract advertising revenues? Be as creative as possible – it will be worth the effort!
Boost your bottom line!
This is just a starter for ten. Once you get going, you will generate many more questions and therefore ideas to help catapult your income levels.
In part 2 of this blog, we will consider how to improve your costs. Collectively, boosting your income and controlling your costs will ultimately result in a healthier bottom line. After all, isn’t that the reason we’re all in business?
Your thoughts and ideas to share
I’d be interested to know how you get on and what other questions generate results for you that might benefit others. Please write a comment below. Wishing you lots of luck!
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