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4 Steps for Increasing Small Business Profitability Chatsworth GA
Raising prices, cutting fixed costs, eliminating less popular products and services and catering to upper income customers are just some of the ways small businesses can further boost their profits. Now it is the time for businesses to consider how they can maximize profitability. See the following article for more on this.
Belief System Institute
678-576-5207
678-576-5207
606 Pettit Ridge Road
Ellijay, GA
Ellijay, GA
Jordan, Jones & Goulding, Inc.
678-333-0453
678-333-0453
6801 Governors Lake Parkway
Norcross, GA
Norcross, GA
Neal Davies Capital Consulting, LLC
404-320-0074
404-320-0074
2148 Heritage Heights
Decatur, GA
Decatur, GA
Peninsula Consulting Group, Inc.
404-474-1749
404-474-1749
1460 Portmarnock Drive
Alpharetta, GA
Alpharetta, GA
Lantern Capital Advisors
678 385 5937
678 385 5937
400 Galleria Parkway Ste 1500
Atlanta, GA
Atlanta, GA
ExcelCore, LLC
404.347.9254
404.347.9254
640 Glen Iris Drive, NE #515
Atlanta, GA
Atlanta, GA
CCI - Chaifetz Consulting Inc.
404.669.6224
404.669.6224
2233 Chadds Creek Drive
GA, GA
GA, GA
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4 Steps for Increasing Small Business Profitability
Raising prices, cutting fixed costs, eliminating less popular products and services and catering to upper income customers are just some of the ways small businesses can further boost their profits. With 2010 looking to deliver better economic results than 2009, now is the time for businesses to consider how they can maximize profitability. See the following article from The Street for more on this. So far, 2010 is shaping up to be an improvement on 2009. To make it even better, take these steps to pump up your bottom line. Step one: raise prices It sounds obvious: to make more money, you have to charge more. Last year, as shoppers searched relentlessly for bargains, businesses cut prices to the bone, sometimes even forgoing their own salaries to keep the doors open. But that's no way to survive long-term. You can raise prices and keep your customers; the key is to make a good case for what you charge. Maybe your products are biodegradable or otherwise environmentally friendly, or you have credentials and experience your competitors don't. Whatever differentiates your business -- whether it's free premium coffee in your office or a customer-loyalty program -- can be used to justify slightly higher prices. Step two: go upscale A recent Gallup poll found that Americans making $90,000 or more a year spent 33% more in May than they did in April, while spending by middle- and lower-income Americans remained unchanged. The increase was credited to "frugality fatigue," as families with disposable income got tired of pinching pennies. That's great news for any business that markets to upper-income customers. The only caveat is that they can also be high-maintenance customers, since they can afford to shop on quality, not price. If you sell a premium product, you'd better be prepared to explain what makes it special. And make sure your expenses don't shoot up, eating into profits. Step three: offer less Assess all the products or services you're offering. Chances are, you're putting time and resources into things that don't sell well on a regular basis. Rather than trying to be everything to everyone, focus on what you do best. You'll free up inventory space, cut down on training costs and allow your employees to offer better service. Step four: cut fixed costs Again, this seems pretty obvious: If one way to increase profits is by charging more, the opposite strategy is to lower your expenses. SCORE, the national small-business counseling network, suggests reviewing all your vendor relationships at least once a year. Telephone, wireless and cable companies are constantly reconfiguring the plans they offer small businesses, and you might be paying for services that no longer fit your needs. Go over all your monthly bills and see where there's room for renegoti... |
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