Whilst it would be the ultimate solution to just simply increase your prices in order to improve your financial performance, in reality that is not always possible.
Here are a few tips & tricks to increase your profit and cut the fat in your creative business...
- Manage your debtors. Invoice your clients as quickly as possible and allocate blocks of time in your calendar to follow up on outstanding invoices, sound debtor management is a proven technique to increase your cash-flow. A common mistake is to see the sale as everything, there is no sale unless you get paid !
- Find your best sales margin. Do you know which product or service is providing you with the highest margin? Working this out and focusing on this will show immediate improvement in your profit. Spend more time and effort on the products and services that make you the most money.
- Service your best customers. Do you know who your best customer is ? A small % of your customers will provide the highest % of sales. To run a profitable business you need to understand your customer, your customer's habits and work on developing a strong relationship with them.
- Eliminate unnecessary costs. Find alternatives to high-priced suppliers, or negotiate discounts and payment terms. As a rule carefully check your supplier invoices for overcharging or missing discounts. Another vital tip is to measure the return on all advertising so you can eliminate what doesn't work.