The Power Of Profit

How to make more money in your business now!

Words by Justine McLean

Profit is addictive!

Once you’ve had your first taste of business profit, I guarantee it’s something you’ll want to experience again and again. Because no matter what success looks like for you in your business, the ability to achieve your unique goals and do it profitably allows you freedom and choice. And running a profitable business is definitely the best way to make more money!

But what’s profit?

In a nutshell, it’s what’s left in your business when all the expenses have been paid - it’s that unencumbered money you can save, spend or reinvest as you please. While that sounds simple enough, business owners often get confused when the profit conversation comes up - should they be looking at gross profit or net profit, what’s included and what’s not, how do you set a profit target and how do you measure it?

But, because I know that most business owners didn’t start their business to cross t’s and dot i’s, and let’s be honest, business money isn’t the sexiest topic, I like to keep it simple. So, when it comes to profit, I suggest you focus on your net profit - that’s the money left over after absolutely everything is paid, yep, even your wages!

Over the years watching my net profit and profit account increase in value has become a bit of a game and it absolutely motivates me to stay on the profit pathway. However, for many business owners, staying profitable month after month is just plain hard work, especially in the current economy. What was working last month isn’t working this month, people aren’t buying and it’s not business as usual.

So, whether the going is tough and you just want some inspiration or you’re ready to run down the profit highway, here are 6 sure-fire ways to make some money and increase your profit too.

#1. Price for profit every single time!

I build profit into every offer and every product I sell and you can too. It starts with understanding what it costs you to run your business - that includes wages, super, taxes and some rainy-day savings. Consider how many billable hours you intend to work and take that into the equation and then use those numbers to come up with your prices. Once you’ve got your price, add a profit margin. That way you’ll cover your costs and make a profit on every single thing you sell.

#2. Don’t let them forget about you!

No matter how fantastic that last product or service you sold was, it’s likely that your customer will buy from you and move on. Statistics tell us that 80 percent of our business will come from 20 percent of our customers, so who are your VIPs? Identify them, nurture them and keep them engaged with exclusive offers and personalised touches - remind them how amazing you are and that you’re ready and waiting to help them.

#3. Maybe it’s time to diversify.

If you’re hearing crickets or your current offers aren’t working, think about what you can add to your business to encourage new business or bring back old customers. From online courses to affiliate marketing, events to digital products and services, coaching to podcasting or subleasing space or equipment, there are loads of ways to future-proof your business and unlock fresh opportunities. Plus, down the track, you might sell one of your side hustles for a big, profitable payday!

#4. Manage your expenses!

One of the fastest ways to make more money and profit in your business is to cut back on what you’re spending. So, take a deep dive into your expenses, especially your subscriptions and make some changes - your bottom line will thank you!

#5. Go for the quick wins and a profit injection!

Sometimes it’s the unexpected things that bring in the extra cash. So, where’s the low-hanging fruit in your business? Is there a workshop everyone wants and you can pull together with little work? Or an up sell or cross-sell you can introduce? It’s all about balancing effort and ease so what can you do to maximise the dollars with minimal effort?

#6. Collaborate for Success. 

Two heads are better than one. Forge partnerships with like-minded businesses to amplify your reach, share resources, and tap into new markets. Plus, sharing the risk and reward can be fun and unlock all sorts of profitable possibilities and friendships too.

When the money or profit isn’t there it’s easy to beat yourself up, but the best thing you can do, especially when the going gets tough is be kind to your mind! Ask for help when you need it and get educated because business is a numbers game and numbers tell a story - so, choose to be the author of your story - make it epic and give yourself the freedom of choice and enjoy the power of profit!

JUSTINE MCLEAN is a respected mentor, author, speaker and financial educator on a mission to help business owners increase their financial literacy, build solid financial foundations and create profitable and sustainable businesses.

With 30 years of experience in small business - retail, e-commerce, publishing and financial services - Justine is sought-after for her practical, tailored and proactive approach to business.

Justine has been called ‘the nice warm hug your business finances need.’ She’s a registered BAS agent, host of the Secrets of Successful Business podcast, is a Ladies Finance Club Ambassador,  and was named one of the Coach Foundation’s Top Female Business Coaches for 2022.

Her new book Become A Business Money Magnet will help you manage your money and supercharge your profits and is available for preorder now!

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@flossifiles

justinemclean.com/book