Tips for Increasing Your Profits

Tips for Increasing Your Profits

Let’s face it, every online business owner wants nothing more than to run a profitable online business. We all want to make more money. After all, money typically equals success, right? For the small business owner, profitability is even more critical because the longer a business is viable, the longer they will be able to keep their doors open, retain their staff, and succeed. Check out Wealthy Affiliate to learn more about starting an online business.

9 Simple Tips for Increasing Your Profits

However, did you know that there are other ways that you can increase your profits without increasing your prices/rates? It’s true- here are 9 simple ways that you can earn more revenue and free up costs.

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Paperless

Chances are, your bank and/or credit cards offer a paperless option where you can get the statement emailed to you or access it on the website. This is great for the environment, but it also reduces your dependence on paper, which makes things so much cheaper.

You don’t necessarily have to stop using paper entirely, but cutting down on the amount you are using makes a world of difference. After all, cutting down on your paper usage also includes costs associated with paper such as binders, storage cabinets, printer toner/maintenance, and more.

Electronic Forms/Filing

Of course, this tip is directly related to the first one. Even if you’ve decided that you’re not going entirely paperless, it’s still possible to replace that paper with electronic forms/filing systems. After all, think about how much you will save if you email your invoices to clients and vendors or accept electronic payments.

This cuts back on your postage fees, paper costs, envelope costs, and more. In addition, it allows you to cut back on your admin budget, because it frees up your employees to do work that has an impact on the bottom line.

Evaluate Current Software/Comparison Shop

If you are using software for your company, think about it and consider if you need to switch to another program/vendor. That might help you save money or give you more value for what you are spending. This could lead to significant savings if you’ve never taken the time to look at what you are using. Of course, this may take a bit of time, but it’s definitely worth it.

Convert Leads to Customers

Depending on your sales pipeline, you might want to convert some of your leads into actual customers. Have your sales team close any outstanding deals/offers that have been sitting by the wayside. Offer special deals for first-time customers to entice them to try out your product/service.

Bundle Products/Services

If you have products/services that naturally go together, try offering bundles. The idea of this is to give the client a discount while increasing your per client profit. Of course, beware of the language you use when building your bundles. Telling clients they’re getting something for “free” entices them, but it could end up backfiring on you later on.

Offer Maintenance Retainers/Contracts

Depending upon your business, charging your clients a maintenance fee is a great way to ensure steady income. A retainer model- popular in the legal profession, may also work for your business. Of course, you want to make sure your clients understand what they’re getting for that retainer fee. You may also consider offering incentives for long-term contracts.

Expand Your Business

Perhaps you’ve been around for some time and you’ve just tapped out your local market- why not consider expanding into another market. Of course, you must keep in mind the added costs including paying remote sales reps or converting new leads to customers. The long-term effects of expanding your market are definitely hard to ignore.

Negotiate with Vendors

Talk to your vendors about discounts for paying for products up front or before the invoice is due. You may be able to save 2 to 5 percent. Plus, it doesn’t hurt to ask. In addition, consider bartering for goods/services. If you can establish a mutually beneficial working relationship, you will both save money.

Ask for Employee Input

You may already know this, but your employees are full of information. They’re down there, doing the work- they may have already come up with some ways to help you decrease your costs or increase your profits. However, they don’t necessarily bring it up because no one has asked them to.

The truth is, increasing your revenue on a profitable online business is a combo of decreasing your expenses and increasing your sales. However, try making some slight adjustments in several areas to create a positive change. Check out the Wealthy Affiliate to learn more about online business.

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