There’s no point in having a business if it isn’t profitable. While in the beginning stages you may not be making a profit in order to get off the ground, eventually profitability needs to become a focus. I know because it’s a lesson I’ve learned the hard way. That’s why one of my main goals for 2018 is to focus on how I can increase profits this year.
Why You Need to Increase Profits
If you’re not making a profit, then you can’t pay yourself a salary. You also can’t really build wealth because all the money is going back into the business.
In other words, it’s not enough to solely rely on revenue because it costs money to make money. Your focus should be to increase profits so you can pay yourself, reinvest some of the revenue into additional resources and continue staying in business.
2 Proven Ways to Increase Profits
If increasing profits is one of your goals for 2018, then here are some places to get started. Granted, this is based on doing some analytics on my own accounting software. Even though these are great places to start for any business, I still encourage every business owner to look at their numbers.
Continue Focusing on Email Marketing
In 2017, I started paying more attention to my email marketing. Not only was I sending out emails more frequently, I was also more specific about the copy.
The end result is I started making more money. More specifically, I increased affiliate sales, course sales and sales into my group coaching program.
Since I know I can trace most of these sales back to email marketing, then I’m going to continue focusing on email to increase profits in 2018. This includes list building strategies and sending out the actual emails.
Focus on scalability.
Another thing that worked out for me in 2017 was creating my first group coaching program. This allowed me to scale and help more people. It also led to more money in the bank because I had a signature offering at a good price point that was easy to sell.
When reviewing my numbers for 2017, I realized that most of my coaching income came from this group coaching program. The program itself is also a hit among students. Therefore, I’m going to focus on enrolling more students in this program in order to increase profits.
But what does that mean for your business? It means that if you haven’t found a way to scale, then it may be something you’d like to focus on. In this case, I mean scaling in the sense of creating an offering that allows you to make money, help more people and take up less of your time. So, if you’ve been working with clients one on one, maybe that looks like creating a course.
The good news about increasing profits is that once you see what’s working in your business, you’ll know how to make more money. That’s why although these two tips should work for most businesses, I still encourage you to look at your own numbers to see what it is you should be focusing on to increase profits.