Sometimes the numbers just don’t work. You need that bottom line to increase as soon as possible, like yesterday, but something just isn’t clicking. It happens in every business at some time or another, but what can you practically do? You already offer a great service or product at fair prices. Customers are happy and there are plenty of them. Business is booming but the money just isn’t there. You need a way to increase your bottom line now.
This is the first and most obvious for a good reason. It is often the easiest, most effective, and fastest way to increase profit. Look for areas where you are spending too much or spending unnecessarily.
- Evaluate utilities and ensure your practices are as energy efficient as possible.
- Check out pricing on your monthly bills. Is there a better plan for internet or telephone with the same or another company?
- Evaluate amenities and supplies. Could you ask employees that drink the coffee to donate a $1 per week to help cover the cost, or could you save a little by buying a different brand of paper towels or toilet paper? Do you pay a cleaning service? Is there an employee that needs the extra money that would be willing to clean for a little less?
Most of these will not be major costs, but when you really need to increase your bottom line quickly, every little bit can count.
Evaluate Your Workforce
No one likes to fire employees, but neither should you spend money and not get your money’s worth in work. Get rid of those that do not work effectively or efficiently, find those employees that are both productive and efficient, pay them a fair wage and keep them happy and you will save money in the long term. Does one employee want more hours? Can you cut a shift and not lose too much business?
Fill Empty Seats
For businesses such as restaurants and salons, if you have an employee there you are going to pay them the same whether they are busy or not. One option is to cut them and send them home early if business is slow. A better option is to fill those seats. Groupon plans to offer the ability to create deals in real time, meaning if you see there are no appointments with a certain stylist after lunch, a deal could be created and sent to app users at noon for that afternoon with that stylist only in an effort to fill those seats. Other types of businesses could use this method as well in some form. It is the same as standby seating on an airplane or how hotels sell rooms cheap at the last minute. The room or seat on the flight costs the same regardless, even if you get less money for it that is better than no money for it. At least you are covering some of your cost.
Increase Value Without Increasing Cost (Too Much)
Can you add value to your product or service allowing you to increase the price without increasing the cost? For example, if you bake cakes and have cake scraps left, can you make cake pops out of them and sell those? Maybe you do nails and could offer a mother daughter package for a slight upcharge. If you have the free hands you could paint the little girl’s nails while the mom has the full package, charge a little more, keep an employee busy, and keep the daughter happy and occupied. Get creative and think outside of the box.
While increasing the bottom line can be a daunting task, these tips should help. Implementing or all of these could help you see a noticeable change in profits as soon as the next quarter. Every business is different, so pick and choose which ones may work for you and get busy today.