Get a Head Start on Pricing for Profit with this 4 minute video. A tip from our mentor Scott W.
Last edition of Tips we explained that the traditional accounting equation of Income-Expense=Profit has the effect of putting profit last. We think it should be first else why run a business. Now read Part Two of how to achieve this. https://mailchi.mp/468801850bb9/9aq6p6q6lb
Supplied by our mentor Scott W.
Among the largest contributors to the failure of both small and larger businesses, are either, they fail to make a profit or they incorrectly account for their cash and run out of money to pay their debts and tax liability.
This is particularly acute in small businesses where the owner/operators do not necessarily have much experience in financial matters and find themselves in an unexpected cash flow crisis.
It introduces a simple set of “Piggy Banks” that give you a “set and forget” approach so that when tax and other expenses become due, you have sufficient funds to pay. And, along the way, you have also taken out not only a Wage but a Profit as well. Read more here:
This article was suggested by our mentor Scott Williams
A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. Clearly, this could be a quick boost to your company’s profitability.
For a quick example of the impact of a price change, consider a business turning over $500,000 per year. Let us further assume that it makes a 5% profit on that, which gives it a profit of $25,000. If it increased its price by 1%, and assuming demand remained constant, that would lead to an extra $5,000 in income. This extra $5,000 over the original $25,000 is a 20% improvement.
Read more here… (link below)
Recommended listening by our mentor Scott Williams.
This 3:49 minute video will revolutionize how you think about using your time. As a bonus, it can have an equally dramatic increase in your business’s profit.
Recommended watching by our mentor Scott Williams.