How to improve your bottom line
Posted on 27th October 2022 at 11:15
We all have good intentions to do some of those must-do business tasks, but they don’t often make it to the top of our to-do list. But what if these business tasks could make an impact on your bottom line? They may suddenly be viewed in a different light.
There are several tasks that you shouldn’t put off and you could try to prioritise to help improve your business’s financial situation. Below are the top four areas we suggest you target:
Reviewing your prices is important, especially at the moment as costs are escalating pretty much across the board. You may feel reluctant to increase your prices because of how it may impact your customers and your sales, but you need to protect the long-term viability of your business. Getting the right balance is important to remain competitive as well as ensure a healthy profit level. Read our blog on how to tackle price increases for more information.
2) Over-servicing clients
There is nothing wrong with going that extra mile for a client or customer, but how often do you or your team actually provide additional services that you should be charging for? Is it starting to add up and should you be reviewing what is included in your rates or services/products to ensure that you get paid for more of this time. Be sure to review what additional work you or your team have been doing and identify areas where you regularly overservice, then you can put a pricing structure in place to ensure you get paid for the additional work you do.
3) Shed unnecessary costs
Reviewing your expenditure and questioning what you are spending is a good way to reduce your overhead costs. Are there any unnecessary costs or are you paying too much for something? It is surprising how many times clients find subscriptions that they no longer need or want, duplicate services, or they are buying things that are no longer competitive.
4) Review contracts
You should also review your supplier contracts to see which are up for renewal now or soon and those where you can switch to see if you are getting the best deal. It is worth shopping around as there are still opportunities to get a better deal such as energy, water, waste disposal, phone and broadband, photocopiers, insurance, and other contracted services.
These four tasks could make a difference to your bottom line and help you achieve the profits you deserve for the effort you put in.
If you would like help reviewing your business and finding savings, then book a business review with us and we will provide you with practical guidance and valuable insight.
Tagged as: business planning, business review, business support, financial planning
Share this post: