Spring is in the air. Warm weather is approaching. Time to clean out any sluggish parts of your business so you can create growth and possibly more profits. Here are some items you should review and improve upon every year if you want to grow your profits and your life. I know you’re busy, but if you want the life you dreamed, set up a system to build on these key areas every year. You may be happier after you cleaned up!
Cultivate Cash Flow. Every year, find another way to get paid faster, and pay out slower. Can you send out invoices a day early? Can you send reminders after 20 days? Can you get paid partially up front? Seriously ask yourself these questions every year and come up with new ideas or retry old ones. Your bank account could grow.
You can’t Manage what you don’t Measure. Set up new benchmarks. Are you measuring quality? Satisfaction? Job profitability? Are you looking at the commonality of less profitable jobs or product lines? Are you measuring wasted time? What about proposal to sales ratio? Measure whether you are getting better or worse. Your benchmarks could improve.
Raise the Roof on Prices. Perhaps the most difficult; we fear we could lose customers if we do. But are we really charging for all the extra services the customer ordered? Have we offered something new of value that can be added? Have we looked at our competition lately, have they already raised their core prices? It’s easy to say “I Can’t,” so find at least one item where you can.
New markets, new markets. What customers are underserved in your business? Would it be profitable to do business with them? How would you reach them? What have you done to attract them? Businesses that are NOT growing and changing risk stagnating and dying. Don’t risk it. The world is changing, even here in Berks County.
Keep ‘em Satisfied. What new feature or service will tickle your customers and make them happy to do business with you? What will make them tell their friends about you? How are you keeping in touch with prior customers who use you infrequently?
Give yourself a raise. If you diligently set up improvement projects in the areas above, you can generate more cash to your bottom line each year. Pay yourself first. Are your employees happy when they don’t get a raise? Of course not and neither are you. Put a little more away for you first. This leads me to….
Save it for a Rainy day. Someday, you’ll want to slow down. Go fishing, travel, visit your retired friends. The ‘die-at-your-desk’ retirement plan won’t always be your first choice. Increase your automatic contributions to your emergency funds, retirement plans and wealth accumulation accounts.
Every year — don’t wait for your financial advisor to remind you, start your own spring cleaning. Set up a regularly scheduled meeting that coincides with the start of your most profitable time-of-year. Boost your monthly contributions, even if just a little.
Okay, a shameless plug. I help busy Berks business owners get results like these every day. We find the time; we get creative; we make profits happen. We keep them. Call or contact me at 610.628.2055, Merra Lee.net and firstname.lastname@example.org.
Merra Lee Moffitt, CERTIFIED FINANCIAL PLANNER™ Professional (CFP®), is a Senior Partner at Good Life Financial Group, Wyomissing. She loves helping business owners and other families grow their financial independence. She helps her clients keep work/family balance while they pursue lifetime financial success. It’s part of her financial planning process.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Good Life Advisors LLC, a registered investment advisor. Good Life Advisors LLC and Good Life Financial Group are separate entities from LPL Financial.