When we are working at 100% now, who has the time to expand a business or increase marketing, sales, etc. We have plans for growing our business but who has the time to implement the ideas?
This is much more common than people realize. We have cut back expenses to the bare minimums, which means we as the business owner are going to carry as much of the load as possible and wonder when will we be able to invest just a little bit more time and money to help grow the business.
If we do invest a little bit to grow the business will it be enough to move forward and create the needed cash flow to keep that investment going? And can we sustain the pressure and weight of adding more to our plate on a daily basis. Even if we hire someone on a part-time or contract basis, we will need to manage that person and project.
So how do we get ahead? How do we get to the point that we can reduce the stress, increase the cash reserves, and free up just a little bit of time?
There are several profitable initiatives that can be implemented in almost every business to capture some elusive cash flow and profit. The question is do you know what they are and can you implement the initiative yourself or will you need help?
Your concern should be to find the quickest return on your investment so that you can continue to invest and find additional and bigger cash flow and profit gains.
A. Low or no profit Products and services
One place to start would be to search for low or no profit products and services and to eliminate them or make them more profitable. Anywhere from 20 to 40% of all products and services fall into this category. Often it is subsidized by other products and services and we don’t even know it.
B. No or low profit customers
Another possibility would be to find the low or no profit customer and show them why the cost for keeping them as your customer is higher than others and then renegotiate your price with them. While this may not be possible every time, many times a customer will accept a change in what they are being charged if they understand that it needs to be a win-win for everyone.
These are just two initiatives that a business owner can use. There are many more to consider. Once you can squeeze a some extra from your business you can continue to develop plans to really grow your profits.
If you have any questions about how you can implement these cash flow and profit initiatives call Crossroads Consultants at: 980-241-0189.