8 Simple Ways to Boost Your Bottom Line
Filed under: Business Tips
As a business owner, you’re aware that being profitable is the key to keeping your doors open. What you may or may not realize is that often times, business owners may think that they are following best practices when, in fact, their methods could actually be harming profits.
Check out these eight tips to boost your business’s bottom line:
Evaluate your payroll and bookkeeping. One mistake business owners commonly make is managing payroll and bookkeeping themselves. Time is money, as the saying goes, and doing your own payroll and bookkeeping takes up quite a bit of your valuable time that could be better spent elsewhere. Also, inefficient payroll procedure can be a major source of budget leaks, not to mention the fact that improper payroll tax preparation could cost a business tens of thousands of dollars. A professional evaluation of your recording practices can save you a significant amount of money in the long run.
Consult with a financial advisor AND a CPA for tax planning purposes. Your tax bill carries the potential to take a huge bite out of your annual profits. Waiting until spring to look for tax credits and deductions can cause you to miss opportunities and cost you money, because you often need to plan for these and take steps to ensure eligibility during the previous year. Even though you may already have a CPA, a second opinion from a CPA who specializes in working with businesses never hurts and a qualified financial advisor may be able to identify additional ways for you to save. Be proactive in your approach to taxes, and consult with the right professionals long before tax season.
Increase productivity through training and coaching. Inefficient business practices often lead to wasted time and resources – both of which hurt your bottom line. In addition, staff turnover can be a major productivity and profit burner. There is room for improvement in almost every business, especially in how you manage employees and solve problems. Leadership training can help you learn new strategies which will elevate productivity, save time, and increase your profits.
Protect your office computers. Whether it’s damage to your equipment itself, or a data breach which compromises sensitive customer information, the cost of a technology-related problem can be catastrophic to your business. The money spent on emergency repairs and reparations can be devastating to your profit margin. Take a proactive approach by hiring an IT consultant to evaluate your processes, and you will protect both your customers and your business.
Enhance your online presence. In the old days, no business would have operated without a listing in the Yellow Pages. Now, of course, most of your potential customers are looking for you online. Having a website that does not get any traffic or that does not convert visitors into leads and customers means that you are losing business to your competitors. Likewise, following a poor online marketing plan can cost you hundreds of hours and thousands of dollars annually. Consult with a professional who has the experience to help you determine exactly what you should (and shouldn’t) be doing online.
Add video to your website. Speaking of your online presence, it’s important to keep in mind that the competition probably has a website, too. Adding video to your site is one of the best ways to make yourself stand out among the crowd. People do business with those they like and trust, and adding video to your website allows customers to “meet” you before they make their decision. It is a proven fact that websites with video convert and capture attention better than those without video.
Examine your financing options. Do you have a business line of credit? If so, are you getting the best rates and making the best use of it? If not, would it make sense to leverage “someone else’s money” rather than dipping into your own bank account for every expense. You may think you’re doing the right thing but there could be a better way. You may want to consult with a business banker and explore your options.
Don’t forget your personal finances. If you own a home or work from home, there may be options available to you that you have not considered. A home equity line of credit or a refinance could get you access to low cost funds, which you can use to grow your business. Or, by refinancing into a lower monthly payment, it may ease the financial stress that comes from being an entrepreneur.
