3 Ways to Increase your Net Profit FAST
Summer is officially here! The weather is warmer, the days are longer, and for some businesses, the busy season has begun! Whether the summer is a slow or rapid season for your business, you are likely facing overwhelming economic uncertainty. Last month, we focused on tariffs and tips to help you navigate them. Though times are unprecedented, there are tried and true methods that are useful year after year! This month let’s dive into net profit.
3 Ways to Increase your Net Profit FAST
Check in on your retail costs
Managing your retail costs is an important part of keeping healthy margins on your products. From rent, to staffing, to utilities, to payment processors there are many avenues for cutting costs. What every business owner needs is good data, clear tracking, and trustworthy reports to analyze retail overhead. This is also true for product costs. Without a good understanding of how much it costs to get your products to you and ready to sell, cutting expenses will feel impossible! It’s time to sit down and calculate how much your products or services cost you before they get to your customers. Reach out if you’d like help calculating this for your business.
Even though spring might be over, spring app cleaning is still a must!
Make a comprehensive list of every app/piece of software your business uses or pays for. At least once a year you should go through this list and ask the following questions about each app.
Do you actually use all the features?
If there are some features you rarely or never use, look into the various tier options! You can save a lot of money by moving down to a less expensive plan.
Does this app’s features overlap with any others on your list?
Apps often update and expand their toolset. By reviewing your software at least once a year you can stay up to date with their offerings and uncover new tools that make some of your subscriptions obsolete! For example, when Microsoft fully integrated Stream, a screen recording tool, into SharePoint it made it possible for Financly to cancel our Loom subscription!
Do your employees actually use this tool often enough to warrant its price?
Ask your employees to review the list you’ve compiled and highlight which apps they actually use. You might find that certain apps are only helpful to specific employees or departments and you can reduce the number of licenses you pay for overall.
Take a look at Financly’s top approved apps for business efficiencies, including receipt management, inventory, payroll, tracking mileage and more.
give your marketing spends a good look
Lastly, give your marketing spends a good look. Are any platforms underperforming? If Facebook ads are giving you little views and negligible clicks it might be time to cut that expense. You could either save the money and reduce your marketing budget or choose to invest that money on a well performing platform.
Focusing on these three tasks can VERY quickly get your net profit a little higher. At financly, we’re here to help you find efficiencies! With accurate and timely reporting, we can flag things for you before you overspend. If you’re ready to increase your net profit and get your business on track, Drop us a line.