Finding more profit in your business can be a real challenge. Knowing what to do or what not to do often times leaves you with more choices than answers. Here is a down and dirty list of ideas that you can implement now.
10 Ideas For Increasing the Profit In Your Business
- Stop chasing revenue. A bigger company is not necessarily a more valuable one if the extra sales come from products and services that are too reliant on you to deliver them.
- Start surveying your customers using the Net Promoter Score methodology. It’s a fast and easy way for your customers to give you feedback, and it’s predictive of your company’s growth in the future.
- Sell less stuff to more people. The most valuable companies have a defendable niche selling a few differentiated products and services to many customers. The least valuable businesses sell lots of undifferentiated products and services to a concentrated group of buyers.
- Drop the products or services that depend on you. If you offer something that needs you to produce or sell it, consider dropping it from your offerings. Services and products that require you suck up your time and cash and don’t contribute significantly to your business’s value.
- Collect more money up front. Turn a negative cash flow cycle into a positive one and you boost your business’s value and lessen your stress load.
- Create more recurring revenue. Predictable sales from subscriptions or recurring contracts mean less stress in the short term and a more valuable business over the long run.
- Be different. Refine your marketing strategy to emphasize the point of differentiation that customers value. Be relentless in highlighting this advantage.
- Find a backup supplier for your most critical raw materials. Consider placing a small order to establish a commercial relationship and diversify the sources of your most-difficult-to-find materials.
- Teach them to fish. Answer every employee question of you with “What would you do if you owned the business?” Your goal should be to cultivate employees who think like owners so they can start answering their own questions without coming to you.
- Create an instruction manual. Document your most important processes so your employees can do their work independently.
Still Not Sure Where To Go?
Like most things, a simple list won't necessarily give you the answer you were looking for. Bringing in an outsider who can see things that you can't see because you are lost in the minutia of the business. That's is where Gary Holt comes in.
Gary has helped many companies find additional profits which in turn has helped several clients net millions more than the value of the business at the outset of working together. It is not an easy road which is why having a seasoned executive coaching you to the next steps is what you are needing.
Gary's 40+ years of business experience paired with his training as Certified Value Builder™ gives you quick insight into the value of your business today.
What is Value Builder™?
The Value Builder System™ is a scientific methodology proven to increase the value of your business. After analyzing over 40,000 businesses, the average Value Builder Score is 59 out of a possible 100. If we look at the acquisition offers these businesses have received, the average offer is 3.5 times pre-tax profit.
The Value Builder users who have improved their score to 90 or greater – by following the system – are receiving offers of 7.1 times pretax profit on average.
Value Builder™ is a realistic look at the true value of your business as it stands today. Would you rather sell your business for 3.5 times pre-tax profit or 7.1 times pre-tax profit?
Did You Know It Takes 3-5 Years To Sell A Business?
That is a long time, a lot can happen. Just look at 2020, who would have thought a pandemic could shut down our prosperous nation. But it did. Planning ahead with a trusted Consultant can literally add millions to your asking price and can help you position your company for the largest sale price possible.
Think You Are Ready To Sell?
Not Sure? Checkout our FREE e-Book, The Exit Checklist.