We are well into 2016 and one thing every small business is grow their business. Increasing your businesses earning potential this year takes a couple things working together. It’s not just some simple “omg I want to make $10,000 a month” but didnt make $10,000 in sales in 2015 magic. Today, want to share some insider information on how I focus on increasing my earnings each year from the previous.
Know the numbers
How much money did you make in 2015 is what will help you know what is possible in 2016. Yes, even if you made little you can make even more. Too many times people pull numbers out the thin air and it does nothing for their business. If you made $30,000 in 2015 yes it very possible to make $45,000 or even $60,000 in your business this year by outlining these areas
- Biggest revenue generator
- Best products or services
- Worst revenue generator
- Unnecessary expenses
- Money drainer
Many times small business owners are wasting money and not realizing it. Money you are wasting is money you’re not retaining in your earnings. Think there are people who pay monthly for something verse bundling to annual. A majority of companies provide discounts when you pay for annual than monthly. If you can save $1300 a year for your business that helps.
Add Revenue Streams
They say the average millionaire has seven streams of income. Normally, I suggest only having one stream of income and then adding another once income becomes steady. However, I will suggest looking into tiered product system to increase your revenue stream. Too many times people only have one product with variations for their customers. If I only what one of your products and not the other five cross promotion of “similar items customers bought” won’t work on me. Instead give your customer multiple options. Don’t just sell t-shirts include tanks, hoodies, and sweatshirts into your product lineup at different price points.
Introduce A Savings Plan
To many small business owners have zero in savings hurting their already low bottom line as it is. Savings increasing your earnings simple by giving you a nest egg you didnt have before. If you made $30,000 in 2015 you should have $3,000 in savings. Your savings helps you pay your quarterly taxes and even yearly taxes. Keeping you from having to constantly move money around or find it in your checking.
Redefine Your Circle
One thing I noticed is you are truly your circle of friends as you get older. There is no doubt in my mind birds of a feather flock together. If your circle is okay with going shopping, out to eat and doing things you’re not into such as building wealth it is hindering you. There is nothing wrong with going out to eat and shopping or traveling but its better to do in moderation if you’re trying to change your life. Highly suggest cultivating a group of friends who reflect your interest when it comes to where you are going verses where you’re at in life.
Increasing your earning potential this year is not hard but you must be committed to changing your life for the better verses just settling for where you’re at in life. I believe everyone has the option to live to their fullest potential verse just being unhappy in life.
Photo by Humphrey Muleba on Unsplash