The Six Keys To Profitability
What makes a business profitable? Is it advertising and marketing? Cutting costs? Beating out the competition? Or just plain old hard work? What if we told you seeing a profit in your business is actually easier than one might think. It just takes the right combination of skill and consistently using the right tools. Turning a profit can be narrowed down to six easy steps or categories that ensure to see a return on your initial investment.
Set a clear goal. Whether it’s units sold or a total revenue, you should have a clear goal. The difference between setting a goal and not is like taking a shot in the dark. You may hit your target, but you also may do some damage to something else. Setting a goal is the first step to seeing a profit.
Hone in on what you do well. As a business, many opportunities will arise and some will be outside of your business model. Don’t let the excitement of making more money or expanding too soon lead your business to an early demise. Focus on mastering one thing and then slowly expand to other products and services.
Make sure the price is right. Create a good cost/price margin. Always make sure the price of the good/service covers the cost of the item or service. Consider the time it takes you to create, order, stock products, as well as the wages you pay if you have a team. Incorporate them into the cost of the item. It is impossible to generate a profit with the wrong price point.
Invest in marketing. How you market can determine how people feel about your brand and affect whether consumers chose to patronize your business. Aside from general overhead, marketing is the next most important way to reinvest money back into the business.
Have A System In Place. You have marketed your business, the inquiries and interest are rolling in, and boom, here come the sales. Now what? It is smart to think through the entire process of a customer making a purchase, through the delivery of the product/service. By creating a system, you decrease the work for yourself, and make it easy for customers. An easy process for buyers creates repeat buyers and loyal customers. Loyal customers are a big determinant for profit.
Monitor Sales and Engagements. The other part of marketing is monitoring trends. Create a method for monitoring sales and engagements. Monitoring these things provides indicators to what marketing strategies work, whether you’re trending towards your goal, or may even cue you that it may be time to slow down and take on less clients. Follow the numbers and use them towards your next campaign.
It is all about the profit. If you are in business for the passion and not the profit, consider starting a not-for-profit organization instead, there may even be more tax benefits by going that route. Otherwise, observe and implement these six tips, and ensure that your business turns a profit.
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https://profitscollective.com/the-6-key-profit-drivers-in-your-business/
