Once you have the basics in place and you start seeing more sales, you can try these 5 additional strategies to increase profitability. 1. Know your most profitable customers Usually, about 80% of your revenue comes from 20 percent of your customers. This is called the Pareto Principle. If you know who these customers are,
If you are struggling to make a business more profitable, it can be challenging to find the best strategy to change the situation. Here are 5 ways that can help you turn things around. 1. Make money by saving money Your business makes money by selling products or services. To sell your products or services,
If your business is losing money, immediate action is needed. At the same time, you should not make drastic changes without taking the time to consider the consequences. Here is a 7-step approach so that you can turn things around and improve your profitability. 1. Evaluate Your Revenue and Expenses Start by evaluating your monthly
Cash flow forecasting is a key skill that every small business owner should have. Because even if your business is profitable, it can still fail if you do not manage your cash flow well. Why is cash flow forecasting important for small businesses? Some of you tell me, “Tonia, I have no need for cash
“Cash is king.” We all know this saying. Lack of cash is even the reason that most businesses fail. Having cash on hand can help your business withstand challenging times or decide to invest to grow your business. It will allow you to take advantage of unexpected business opportunities. It gives you more peace of
Many small businesses needlessly struggle to survive because of the following 8 common cash flow problems. In general, these problems come down to 2 things: Not enough money is coming into the business to pay the bills. Or, too much money is leaving the business too fast. Last week, we talked about cash flow and
Profit does not equal cash flow Your business can fail even though you are making good profits. How can this be possible? One main reason is cash flow. Many business owners do not focus on generating consistent cash flow. Even if they are selling good amounts of products or services, unless that money is coming
For restaurant owners, keeping costs low is a key strategy to improve profitability. Last week, we talked about 16 strategies that any restaurant owner – big or small – can use to save money and increase profits. Today, I am sharing 10 advanced strategies. These advanced strategies can be used by bigger restaurant owners. They
How to save money running a restaurant? When you run a restaurant, it can be hard to make good money. There are so many things to take into account: Waste of products because you bought too much and customers did not come. Loss of products or utensils through carelessness. Higher costs and lower profits because
In my conversations with business owners, one of the main issues that they raise is the fact that their business is not making the profit they expected it to make. Or, sometimes, the business venture is not even profitable. So, the question that I am often asked is, What can I do to increase profitability?
Small business strategies to increase profits There are 3 key small business strategies to increase profits: increase sales increase your price cut costs Increasing sales is a great strategy, but it can take some time to get new customers. You can also increase sales if you convince your current customers to start buying more products.
One of the things many of you ask me during our meetings is how to build financial reserves in your small business. Well, first of all, your business should be making profit. You cannot build reserves if your business is not profitable. If your business is not profitable, you need to address that problem first.