In this guest post, Ann Hawkins writes:
1) Increase Prices
There is no such thing as “the right price”. Price is a perception about value. The better your story, and the more you connect emotionally with your customers, the more you can charge. If you put prices up by 10% and lose 20% of your customers you could still make more profit working with fewer people. Check it.
2) Reduce Costs
Check your fixed and variable costs and how you can make savings by negotiating better deals on supplies. Don’t try to increase your sales until you’re sure you’ve got your profit margins and variable costs right or you’ll lose money fast.
3) Focus on the Most Profitable Activities
Most business owners have their favourite activities but they’re not always the ones that make the most profit. Examine everything you do and give all activities a Green, Amber or Red flag according to how profitable they are. Spend more time on the most profitable activities.
4) Control Cashflow – Daily
Check your cashflow chart first thing every morning. Knowing exactly what is due in and out is the best motivator to make sales calls or chase up overdue payments. Positive cashflow means you’re not paying interest or overdraft fees and gives you more flexibility to negotiate better deals.
Read the entire article on the Cambridge Web marketing Co site