What if You Could Increase Your Profits?
One of the most common questions I hear is, “How can I increase profits in my business?” That’s a great question, and the answer isn’t always easy to find. When working with clients as their business coach, I like to take the first steps in this way:
Have Current Information
Do you know what is happening in your business right now? Many business owners or their bookkeepers or accountants have fallen behind on the business numbers. There’s a saying, “It’s hard to know where you’re going when you don’t know where you are,” which seems especially relevant to businesses. Don’t feel bad if you’re in this situation; instead, determine a way to figure out your numbers. This could mean nudging your bookkeeper or accountant to get things caught up, hiring a new bookkeeper, or outsourcing your bookkeeping and accounting work.
Review Your Numbers with a Business Coach
It’s important to review and understand your numbers. If numbers aren’t your thing, then you’ll want to find someone who can talk about your numbers in an easy-to-understand way. A business coach can be an experienced business mentor, your accountant, or even a high-level bookkeeper. Begin by looking at your income and expenses for the current year. Then compare those numbers to the prior year and compare against industry standards. Your business coach should be able to walk you through this level of review.
Create a Plan
Create a plan to increase your business profits. Should you increase pricing? Can you help your team see how they can increase the bottom line? Can you give your customers more value? Which products or services are your most profitable? Should you cut any expenses? What direction makes the most sense for your business? These questions and more should be discussed with an experienced accountant or business coach who can compute how changes in strategy can increase your profits.
At Wagner Business Consulting, we use technology to pull transactions into your accounting system, so your numbers are always current. And, we provide business review and coaching services. If you’re not sure of the next steps you should take to increase your profits, we’re happy to help.
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