INCREASE YOUR PROFIT

I think I am fairly correct in assuming that you are in business to make profit – perhaps this is not the primary goal, but you wouldn’t survive long if you didn’t make any profit!

 

So, how do you make a profit?

 

Is it by:

Spending less?

Making more income?

Raising prices?

Buying the cheapest materials?

 

Not really! Some of these solutions would be part of the answer, but by themselves wouldn’t necessarily give you more profit.

 

THE WAY YOU MAKE OR INCREASE YOUR PROFIT IS BY MANAGING YOUR MONEY CORRECTLY!

 

You can be so tight with your money that you’re not buying the right or sufficient ingredients to make a good product, or you can refuse to advertise as being too expensive and not have any customers to sell to!

 

You can make millions in income, but if you insist on buying all the latest gadgets, even those you have no use for in your business, then you’re not going to have a lot of money left over!

 

You can price your goods or services so high that no-one will buy them.

 

I’m sure that you can think of many more ways to ensure that you’re not making a profit!

 

Realise that running a business takes money – you do need to spend money to make money. The question is: how much do you spend in which area of your business? This requires a very good working knowledge of your industry as the answer to that question is most likely going to be different for every kind of business. A manufacturer will need to spend the majority of their costs in raw materials, whereas a service industry will need to spend the majority of their costs in personnel. And again it will be different from company to company, depending on their products/services, location, size, etc..

 

The key here is:

 

MANAGE THE MONEY YOU HAVE SO THAT IT CREATES MORE INCOME AND MORE PROFIT!

 

The best way you can do this, is by setting aside a time each week (or month) and going over all the finances, what income came in, what expenses you have, and what you need to invest in to make sure that you will have an increased income the next week/month.

 

Early last year I decided to make sure that I’d spend at least 14% of my income on advertising and promotion each month. Very soon after that I got 3 new big jobs in which more than paid for this 14% spent on advertising! So that was a good investment!

 

What can you invest your money in, so that you can create more income and profit?

 

As always, keep it simple and… Flourish and Prosper 🙂

Lisa

 

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