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How to Make Your Business Extremely Profitable

Guest post by: Terri Levine

Article Overview: Tips to making insane profits.

How to Make Your Business Extremely Profitable

There are several secrets to having an extremely profitable business. If you are willing to be open to key points, new models and making a few shifts in your thinking, then you can create an extremely profitable business. First, limit your overhead to 10% of sales or revenues. You can do this by downsizing into smaller offices, cutting staff and positions, linking overheads to a percentage of sales, no longer trying to impress the public, and possibly even telecommuting.

The next step in creating profitability is to increase your profit margins by 50%. Begin with significantly increasing the profit margins of your current products/services and then begin to add products that have higher margins. You can also increase your margins by cutting production costs, cutting sales costs, simplifying the design, changing the delivery method, raising prices, office new niche services, and changing the mix of products you sell. Remember that there is always a better, less expensive, faster, easier and more effective way to create your product or sell your product or services and still provide high quality. Use a professional coach or consultant to help you create a dramatic improvement.

Another critical element in creating extreme profitability is drawing the spending line. Be a wise investor of your time, money and resources, invest holistically, and spend carefully. Cut costs by eliminating as many recurring costs as possible. Be a tightwad and pretend you have no money to spend at all. Sometimes, business owners tend to spend money on business items because it makes them feel more successful. Don't fall for this trap. When times are good, there is no compelling evidence that we need to spend more, but we typically do. Set a stringent budget that brings profitability.

When it comes to your staff, don't assume they are as self-generative as you are. They won't be. Give them incentives to keep focused, productive and motivated. These incentives can include money, stature, strength and power. Money is not usually the primary motivator, surprisingly. So, ask your staff what will motivate them. Include your staff in on your vision.

Often, business owners tell me that they feel "weird" about discussing profits. My advice? Get over it and quick. Profits are something to be proud of. They are a game, not just the scoreboard. It can be fun to make money, so enjoy it!

I also advise clients to simplify, streamline and automate to be profitable. Doing things manually or inefficiently is a symptom of having no technology reserve. There's no excuse for this today. There are systems and services to automate almost everything. It's worth investing in them because you do need the extra time that simplification offers.

A few final pointers about profitability. Understand that you may need to fundamentally change what your business sells and how it delivers products or services and how it runs. Do a percentage budget which forces profitability via change. Exceed the industry averages to be extremely profitable so be aggressive. Be willing to reinvent your business to make more money.

Become a businessperson, not just a business owner. A business is a business is a business even if you totally love it. When you run your business like a business, you will attract higher end clientele. Your business is an asset that is worth something - not just your source of income.

Using these secrets, you will achieve extreme profitability in your business. These solutions work hard so you don't have to!

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Article Tags: business, making a profit, profitable, small business tips



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