It’s a question many (many) business owners are asking themselves right now.
And the answer might be very simple…Only if you innovate.
Almost every business in the next 6-12 months is going to change, if they haven’t already.
This could mean changing your services or having your team work from home or changing the entire structure of how your team works. It could mean taking your events online, like we have, or introducing new products and services. It could also mean a completely new business.
Whatever it means for your business, now is the time to make the changes.
The secret of change is to focus all of your energy not on fighting the old, but on building the new. – Socrates
The Five A’s of change breaks it down simply:
First we must be aware of what needs to change. Perhaps we want to work smarter, not harder, so we can have more family time and better financial returns.
We have to accept that in order to work smarter we will need to do things differently. There is no magic bullet; effective planning is critical to achieving change.
Once we have a plan; we must actually implement it. Taking action can be simpler than imagined; one step at a time, the momentum for change will grow. But, if we don’t act, planning is pointless.
Having someone independent to hold us to account is typically a foolproof way to ensure we act. A bit like going to the gym before work… we’re more likely to show up if we’ve committed to a friend or paid for a personal trainer.
Humans are habitual creatures. It takes 21 times to change a habit. By celebrating the success of taking action and forcing change, we help to reinforce that good behaviour. The reaction is a chemical one.
So I ask you this: What innovations are you making in your business at this time?
How to get more profits in your business right now
As well as looking at what you can create and build in your business right now, you also need to look at how your business makes a profit.
Making a profit isn’t something that happens overnight and right now everything could have changed for you.
To create a good return from your business you need a clear focus and a well thought-out strategy for increasing profitability.
This means reviewing your business model and looking at every area of the business, to see where you can cut costs, increase margins and maximise revenue.
Focus on your key drivers
Having surplus cash at the end of the year allows you to invest back into the business, fund your growth plans and increase the size of your own dividends and drawings as the owner. And, yes, you can still finish the tax ear on a high.
To achieve these profits, it’s important to focus on the key financial drivers in your business.
To drive profits:
- Boost sales – the more sales you make, the bigger your net revenue, so investing in marketing, sales activity and business development will be key to a better bottom line.
- Increase prices – by setting a higher price point, and keeping your ‘cost of goods sold’ number low, you create a larger profit margin on each sale – upping your profitability.
- Cut costs – operational costs and overheads eat into your potential profits. So spend management and cost reduction are vital to creating a more profitable model.
- Reduce taxes – tax liabilities will be one of your biggest costs, so sensible tax planning and use of tax reliefs will help to reduce your taxes and ramp up your end profit. There are plenty of tax reductions and subsidies right now too.
Talk to us about boosting your profits and making changes within your business right now.
These powerful tips are simple and effective. Consider the things in your business that you would like to change and what stage in this process you’re at. What is your next step? Whatever your current situation, empower yourself and make a commitment to real change.
If your business goal is to increase profitability, we’ll help you review your business model, identify your key financial drivers and proactively drive your profit performance, even in our current times.