By August 18, 2021
If you had to make $500,000 more dollars in the next year, how would you do it? You might try to put out some savings plans and find ways to cut back on as many things as you can . Maybe you’d cut out coffee, reduce the number of trips you take, and cut out spending you think is irrelevant. But even if you pinched every last penny, and cut out all the fat from your business, you still wouldn’t be able to hit your goal. Because while saving is good, you’ll never be able to grow by cutting back. You need to sell more.
One of the ways that bookkeeping can help is by identifying areas for growth. And it all starts by understanding your goal.
What Is Your Goal?
If you don’t know what your goal is, it’s going to be hard to reach it. You won’t know what you are aiming for. You won’t be able to measure your success. You won’t be able to make course corrections. And even if you reach your dream, how would you know that you reached it?
The financial goals that you set need to be attainable but substantial enough to make you really push hard. You need to be able to break them down into smaller goals that can be tracked and measured.
You also need to know where you are starting from. Knowing where you are going is important, but how you get there will largely depend on where you start. There are three main ways you can increase your sales to reach big financial goals and they all have benefits and challenges.
Increasing Pricing or the Number of Customers
The first option is to increase your prices. Although, for some businesses, this is not even an option. If you sell gasoline, increasing your prices will tend to have the opposite effect, and make you less money. But if you have a productized service that is not heavily regulated, and you have control over the pricing. Increasing your prices is a legitimate way to increase your sales.
The other alternative is to bring in more clients to increase revenue. In this model you will need to get more people to buy from you. This is the idea behind running promotional offers at lower prices. If you sell enough of a low cost item to a large enough number of people, you will be able to make a substantial profit.
The third option is to increase the amount that a client will spend with you. Sometimes this means adding in services that are related but not essential to what you do. Discounted add-ons, and up-charges enable you to grow the per-purchase value of your clients.
Choosing the Right Path
There’s more than one way to be successful in running your business. Some businesses help a small number of elite people and charge enormous amounts of money. Others focus on volume of sales at reduced prices. You will have to find the path that will work for your business in your particular area.
But you don’t have to try to figure it out alone. I don’t just do bookkeeping. I help small businesses like yours attain financial success through bookkeeping and financial planning. If you need help getting your books organized so you can start to plan for growth, I can help. And if your books are in order, I can help you figure out what you need to do to grow your business. Either way, I would love to hear from you. Give me a call today!