As a business and financial coach, I get a lot of questions about bank accounts, what accounting systems to use, how to pay quarterly taxes, and all of that fun stuff. But when I really drilled down with people in my community and asked them what they are really struggling with and what their big roadblock is, by far the biggest thing that people tell me is this: making money or how to make more profit in business.
One important factor in being a successful entrepreneur is learning ways to improve your business’ profitability. You might know of some businesses that suffered failures or setbacks despite having a high-demand on their products or services. This usually stems from not having a concrete plan on how to increase their profits.
It’s also really important to discuss one thing that may possibly be very obvious to a lot of people, but still a good point to make when talking about profits. And that is: there is a difference between revenue and profits. Revenues are what you bring into your business. Profit, on the other hand, is your revenue minus your expenses. If you want to dig deeper into that, you can check this post about Revenue Vs Profits to find out more.
So, if you are feeling disillusioned because you’re not reaching your target profit level or just plain disappointed that your business profits are declining, watch the video above as I go through these 5 (not 4!) steps that you can take to make your business more profitable:
Running a business is one thing, and making sure you profit while running a business is another. It’s vital that you never stop exploring new ways to reach your target, and even go beyond it.