The real goal of a business is to produce a profit.
The profit is the revenue minus your expenses. Revenue is the money you bring in from all of your income sources.
You should want your revenue to be greater than your expenses every month, therefore giving you a profit.
So let’s discuss a few ways that you can continue to increase your profits in your business.
Strategy #1: Find Your Breakeven Point
The breakeven point is when your revenue minus your expenses equals zero. You make just enough money to cover the expenses that your business has for the month with the money you bring in.
When you know how much money you need to make to just break even, it’s easy to figure out how you can continue to plan for a profit in your business.
Once your expenses are covered, then everything else is pure profit for your business and it’s only up from there.
Strategy #2: Use a coupon code as an opt in
Looking for an opt in idea? You could use a coupon code as an opt in. Get a specific dollar amount or percentage off their first (or next!) purchase from you.
People love to be able to save money on something. They will opt in to get that coupon code.
And since these are new people joining your list to get the code, they are new sales for your business and a way to increase your revenue, therefore your profits because there are no additional expenses needed to make these sales.
Strategy #3: Create an evergreen sales funnel
When you have a sales funnel in your business that is evergreen, it is always in season. It is always working for you.
Tweaks to the funnel may need to be made here and there, but this is something that is always going to be working for your business, no matter what time of the year.
This is something that you can sell with very little work. You do the work in the beginning to create the sales funnel and the emails that lead to the sales, but then after someone new opts in to your list, the emails do all the work for you.
Strategy #4: Promote that product you’ve had sitting on the shelves for a while
Who doesn’t have those products that they created a long time ago just sitting on the virtual shelves?
You have all these products on the virtual shelves, so get promoting them. Send an email to your list, with a special price for it. Create those social media posts with a special price for the product.
You spent the time to create the product, stop letting it gather dust.
Better yet, get out your calendar and create a plan to promote a different product that you have in your business inventory shelves on a regular basis. Promote the same product for 1-2 weeks, then move on to another product.
Strategy #5: Reduce your Expenses
You can always increase your profits by reducing your expenses.
Where are you spending money in your business that you don’t need to be spending it? What are you paying for that you aren’t even using?
Are you paying for something more than once? (You would be surprised how many of my clients have been paying for the multiple subscriptions of the same thing and didn’t even realize it, because they don’t look at their expenses regularly.)
Keep an eye on your expenses and know where you are spending money in your business.
How does a profit help your business?
When you have a healthy and regular profit in your business, you are able to increase the amount of money that is available in your bank account.
This gives you a buffer in case something (like not being able to make your income goals one month) was to happen in your business and you need to have extra money.
You should have at least 3 months of business expenses, including your own personal salary, in your bank account at all times, preferably 6-12 months, though.
You never know when something is going to happen in your business and you may not be able to make the income that you are used to, just look at the current economic situation the world is in right now.
You Pay Taxes on Profits
Yes you pay your taxes on the profits you make in your business, not the total revenue that you are bringing.
Yes this also means that you are going to pay a little bit more in taxes as well.
But you should be planning for your tax payments as well, and have a tax savings account that is separate from your regular checking account.
When you do your bookkeeping on a regular basis, you know what your profits are and an rough estimation of how much money you’ll owe in taxes.
Are you creating a healthy profit in your business?
Does your business have a profit that it’s regularly bringing in?
What other ways do you try to bring in a profit in your business?
Here’s to many more profitable businesses.