Reviewing your Profits: Top Tips from the Accountability Team

So there are lots of ways you can increase profits - but we like to think in these terms - to provide some structure when we’re discussing this with clients:

Can you increase your sales volume? Increase the number of customers, how often they buy, how much they buy in one go. When we’re having these strategic discussions we often talk about things like upselling, staff commissions and marketing.

Can you bring in new products?

Are there new markets to explore?

Can you generate a recurring income which needs little work?

Can you increase your price? Now be honest with yourselves and ask when you last raised your prices. I’m hoping you have as guaranteed your suppliers have been raising theirs.

Think about putting in a year on year fee increase. Losing customers is not always a bad thing.

You will make money if you lose the customers you don’t make a profit on. Don’t measure your value by what your competitors charge.

Have you got a system for tracking your profit? If you do, do you look at it?

To reduce your costs of sales - can you be more productive? How can you make your systems better? Are your highest paid staff doing jobs that lower paid staff could do? Look for ways to buy better. If there are alternative suppliers, shop around. Don’t be afraid to negotiate. Can you take advantage of discounts for prompt payments?

To reduce your overheads - consider when was the last time you reviewed your fixed costs? Have you got any of those subscriptions you signed up for but don’t need now? Could you sublet your office space if you have hybrid staff?

As costs increase, this is the right time to make sure you are actually making a profit. If you don’t know, or don’t know how - get in touch.