ABCounting Ltd

Tips & Advice

Everything you need to know to build the business you want

person holding iphone showing social networks folder

7 strategies to increase your profit margin (when you can’t increase demand)

If your profit is the actual money you get to walk away with, you want to be continually improving this number – start with these:

1. Raise your prices – simple, same amount of work but more money.

2. Reduce costs – how can you streamline things?

3. Upsell to existing clients – they already know you, it’s easier than talking to strangers.

4. Increase the productivity of your staff – set targets, motivate and train them, develop their skills.

5. Fix bottlenecks – are your processes too slow? Not utilising talent, waiting for work from others, is there poor communication channels?

6. Improve inventory turnover – markdowns are known profit-killers, so avoid them at all costs. Make better decisions around purchasing, sales and marketing.

7. Increase the perceived value of your brand – position yourself as the go-to-expert, and you can charge a premium.

You don’t have to make drastic changes and it’s not all down to increasing your demand either – tiny continuous improvements over time can all add up to more money in your bank account!

Share this post

laptop technology ipad tablet

Making Tax Digital!

Tax digitization is an important part of government planning to help individuals and businesses  get taxes correctly and manage their operations  HMRC’s goal is to

Read More »