7 Solid Suggestions to Increase Profits for Your Business in 2019
Believe it or not over half a million small businesses open their doors every single month in the United States. That’s over 6 million per year.
While that might seem like a big number, it ends up self-moderating itself since the majority of those businesses close within 2-years.
Why do so many businesses go out of business? Usually, it comes down to not knowing how to increase profits to the point that a venture is sustainable.
That issue (keeping profits up) is what we want to discuss in this article.
Are you a business owner that’s looking for ways to up their profits in 2019? If you are, we’ve got 7 solid suggestions for you that can strengthen your organization’s financial standing.
1. Start Working With Contractors
Having employees bodes well for corporate culture and for turnover rates. Unfortunately, those benefits come at a pretty steep cost.
Employees ask a lot from employers. Salaries, health benefits, vacation time… The list goes on.
Do you know which class of worker doesn’t ask for as much? Contractors.
Contractors are self-employed individuals that take you on as a client as opposed to as an employer. That’s a big win for you because legally, contractors get to ask a lot less of you than employees.
Talk to your accountant and a lawyer and see how it might make sense to replace employees with contractors and you’ll increase profits for your organization immediately.
2. Outsource The Right Kind of Jobs
Outsourcing work got pretty popular in the mid-2000s and then took a bit of a downturn as consumers started to sniff out sub-par, exported labor.
What we learned from that was two things…
First, if you’re going to engage with an outsourcing company, make sure the company works with extremely talented international contractors. Second, not all work should be trusted to international contractors.
If you have jobs like maintaining spreadsheets, creating graphics and similar things, outsource that. If you’re trying to write your consumer-facing marketing materials, keep that work domestic.
3. Audit Your Expenses
One of the fastest ways to boost your profits is to stop wasting money on things that you don’t need.
Do you have a vendor bring premium snacks into your break room each week? Stop doing that.
Do you offer 3-weeks paid vacation? Keep your policies in line with industry standards and cut down to 2-weeks.
Small adjustments like that can mean hundreds of thousands of dollars staying in your pocket each year.
4. Know Your Best Products and Double-Down
Every business has one or two products that drive the vast majority of their business. Our recommendation is that you identify what your best products are and double-down on them by eliminating fluff.
What exactly is fluff?
Fluff is all of those other products you’re paying to make, ship and store that don’t move the needle for you. Drop those products.
Allocate all resources to your big winners and you’ll be astounded by how efficient your spending becomes.
5. Increase Prices
This is an obvious increase profits tactic that is worth tapping into. Take your most popular products and boost them by a small amount of money.
Even a boost as small as a quarter can mean thousands of extra dollars in your pocket if you sell things in volume.
You can get even more aggressive with your price boosting if you up prices by 10% – 15% and offer an additional perk to make it seem like you’ve substantially increased the value of what you’re offering.
That perk should, in truth, only raise your product’s development costs by 2% – 4% which means that the vast majority of your price hike is money in the bank.
6. Play With Low-Cost Marketing
You don’t have to put hundreds of thousands of dollars into a television campaign to get noticed by customers anymore. Today, everybody is online and there are ample free and low-cost ways to get those internet surfer’s attention.
Try organically marketing on social media or funding a small paid PPC campaign through Google.
See what sort of bang for your buck you’re able to extract from those efforts and if you’re finding that your advertising dollars are going further, migrate your marketing dollars permanently into digital mediums.
7. Build Your Team Around Winners
There is a tremendous amount of waste in the corporate world today. Much of that waste comes from lining the pockets of employees that come in each day and just go through the motions.
You can’t build a cost-effective team around those people.
Make it known that your company culture expects and rewards excellence. Always hold team members accountable day in and day out.
If you’re seeing that somebody on your team is very demanding and not a good cultural fit for the fast team that you’re trying to build, give them a warning and if things don’t change, let them go.
Wrapping Up Solid Suggestions to Increase Profits for Your Business in 2019
Whether it’s demanding more from your team or auditing your expenses, there is no shortage of clever ways that you can increase profits in 2019. Mostly, your ability to get your company to where you want it to go is going to come down to the amount of effort you’re willing to put into shaking things up.
So, if you’re feeling energized and are ready to tackle the challenge, start making changes and start reaping the benefits today!
Small-Bizsense.com is a site that’s dedicated to helping entrepreneurs make sense out today’s marketplace. To learn more about the wonderful world of running your own company, check out more of our content today!