Dynamic Business

3. Increase your price.

This is a tough one and no one likes it. But imagine if you could increase your price by just 2% across the board. On a $500,000 turnover it means $10,000 straight to the bottom line. An accounting firm ranked all their clients on a range of criteria including profitability. They sold off the bottom 20%. They then bit the bullet and increased their fees by 10% for the remaining 80% of clients. The had worked out scripts on what to say, collected testimonials from happy clients to back up their quality of service and even offered a money back guarantee. In the end they only lost 3 clients and added $100,000 to their bottom line.

4. Increase your margins.

This is all about making your business more efficient and effective. Review all your costs and see which ones you can reduce. A simple idea is to ring up each of your main suppliers and ask for a better deal. Meet with your team and find out if things can be done faster, with less people, less materials or cheaper materials. Can you recycle, reduce stock levels or reduce your range of products? Review your team’s performance. Often additional training or mentoring from more experienced team members can reduce mistakes, save time and reduce waste.

Andrew Vincent was the creator and producer of the Channel 9 television series Your Business Success. Over 80 of the best episodes have been re-edited and supported by a set of easy to follow workbooks and FREE business coaching. Go to www.yourbusinesssuccess.com.au/db