Do you run your own business? I guess you do since you’re reading this blog post! As you are no doubt aware, running a business requires a lot of effort and skill. Many people dream of being an entrepreneur. But few realize what’s involved.
The main priority of any business is to make money. Even charities and non-profit organizations have to make money to survive. There’s no getting around that fact. The last decade has proven to be a real challenge for all businesses thanks to the global economic crisis.
If you have surfed the tidal wade of uncertainty from the last decade, I congratulate you! But your journey in the business world doesn’t end there! If anything, it’s just beginning! Companies everywhere need to adapt with changing market conditions.
To help you with that challenge, I am going to offer you some dynamite tips to stay profitable well into 2015. They are as follows:
Put your Prices up by 2.5%
As consumers, we all know that the price of goods and services goes up on occasion. With increasing costs to consider, businesses cannot afford to swallow any big losses. That’s why they need to put prices up.
No-one likes paying extra for the things they buy. But if the increase is only small, like 2.5%, the price increase isn’t going to break the bank. People will only complain and “vote with their feet” if you increase your prices by a big amount like 25% or 50%!
Bring Down your Costs by 2.5%
At the same time as increasing the price of your goods and services, you also need to lower your firm’s outgoings. Match the price increase; lower your costs by 2.5%. These figures might seem a little odd at first.
But by doing so, you are increasing your profit by 5%! Or to put it another way, that’s an extra $5 for every $100 you make. There are plenty of ways to bring down your costs. For instance, you could automate certain processes. And you can outsource some of your work to save on employee costs.
Set up Stalls at Relevant Conventions
Conventions are great places to drum up new business. The only thing you need to remember is that convention stalls are no different to bricks and mortar stores. You need to catch people’s attention so that they come over and learn more about who you are and what you sell.
I’ve seen some great Vegas convention ad campaigns in the past when I’ve attended conventions in Nevada. There’s no reason you can’t make eye-catching ad campaigns at conventions you attend too!
Be Strict with your Payment Terms
If other companies know they can stall you for payment, you will end up spending more time chasing money than making it!
Be strict with your payment terms and enforce them, regardless of who the customer is. You are running a business and deserve to get paid in a timely fashion. No exceptions!
That just about wraps up today’s article. I hope you’ve enjoyed it. See you later, alligator!